FXDD to Pay $3.3 Million in Restitution for Asymmetrical Price Slippage

Discussion in 'Forex Brokers' started by Options12, Dec 7, 2012.

  1. Options12

    Options12 Guest


    December 7, Chicago - National Futures Association (NFA) has ordered FX Direct Dealer, LLC (FXDD) to either post a bond or place funds in an escrow account to ensure that the firm can meet its obligations under any restitution order that may result from a related NFA disciplinary action. The customer restitution is estimated to be $3.3 million. NFA's Business Conduct Committee (BCC) issued a Complaint against FXDD earlier this year, charging that FXDD engaged in price slippage practices that benefitted FXDD to the detriment of customers. Similar cases involving asymmetrical price slippage practices have also resulted in customer restitution. FXDD is a futures commission merchant, retail foreign exchange dealer and forex dealer member of NFA, located in New York, New York.

    The Member Responsibility Action (MRA) shall remain in effect until the resolution of the BCC Complaint and upon a final determination of the amount of restitution, if any, that FXDD owes to customers. FXDD may request a prompt hearing on this matter before NFA's Hearing Committee.

    The complete text of the MRA is available on NFA's website (www.nfa.futures.org).

    The following Compliance staff members are responsible for this case: Sarah A. Walsh (312-781-1202) and Dan Pierson (312-781-1507).