CFTC fines FXCM, parent firm, founders Niv and Ahdout $7 mln

Global Brokerage

06/02/2017 20:57

WASHINGTON, Feb 6 (Reuters) - The U.S. Commodity Futures 
Trading Commission on Monday ordered Forex Capital Markets, its 
parent FXCM Holdings LLC and  founding partners Dror Niv and 
William Ahdout to pay $7 million to settle charges it defrauded 
retail foreign exchange customers. 
    The CFTC said in a statement that "between Sept. 4, 2009 
though at least 2014, FXCM engaged in false and misleading 
solicitations of FXCM's retail customers by concealing its 
relationship with its most important market maker and by 
misrepresenting that its 'No Dealing Desk' platform had no 
conflicts of interest with its customers." 
    Niv, FXCM's chief executive officer, and Ahdout, its 
managing director, are also barred from future CFTC registration 
and acting for those who are registered for the agency, it said. 
 
 (Reporting by Washington Newsroom; Writing by Eric Walsh) 
 ((eric.walsh@thomsonreuters.com; 1-202-898-8457; Reuters 
Messaging: eric.walsh.thomsonreuters.com@reuters.net)) 
 
Keywords: FXCM PENALTY/