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September 29, 2003
NFA suspends California FOREX firm
September 29, Chicago - National Futures Association (NFA) announced today that it has suspended FX First, a futures commission merchant located in Newport Beach, California. FX First's principal business is handling customer accounts in the off-exchange foreign currency (FOREX) market. The suspension prohibits FX First from, among other things, acting in any manner which requires registration under the Commodity Exchange Act and from disbursing any funds without approval from NFA.
The suspension of FX First became effective as of the close of business on September 26, 2003. This action follows up on a Member Responsibility Action (MRA) that NFA took against the firm on September 11 because FX First failed to maintain minimum financial requirements in accordance with NFA Compliance Rules.
"Despite our earlier action and the firm's repeated assurances that it would have sufficient capital, FX First still has not demonstrated that it is in compliance with NFA's Financial Requirements," said Ronald V. Hirst, Associate General Counsel and lead enforcement attorney for NFA. "We determined that additional steps were needed to protect investors and ensure market integrity."
The MRA will remain in effect until NFA is satisfied that FX First is in complete compliance with all NFA requirements. FX First may petition the Commodity Futures Trading Commission for a stay of this action and may also request a hearing before NFA's Hearing Committee.
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