NFA notice regarding Gain financial

Discussion in 'Wall St. News' started by SWScapital, Oct 28, 2010.

  1. For More Information Contact:
    Karen Wuertz (312) 781-1335,
    Larry Dyekman (312) 781-1372,

    NFA orders $459,000 monetary sanction against New Jersey forex firm Gain Capital Group LLC

    October 28, Chicago - National Futures Association (NFA) has ordered Gain Capital Group LLC (Gain), a forex dealer member located in Bedminster, New Jersey, to pay a $459,000 fine as a result of an NFA Complaint issued and a settlement offer submitted by Gain and its chief executive officer, Glenn H. Stevens.

    NFA's Business Conduct Committee alleged that Gain engaged in abusive margin, liquidation and price slippage practices that benefited Gain to the detriment of its customers. The Committee also alleged that Gain failed to maintain records for certain unfilled orders, failed to adequately review the activities and promotional material of the firm's unregistered solicitors, and failed to supervise the firm's operations.

    In addition to the fine amount, Gain must also provide appropriate refunds to its customers as a result of these detrimental margin, liquidation and asymmetrical slippage practices.

    Gain and Stevens neither admitted nor denied the charges. The complete text of the Complaint and Decision are available on NFA's website (

    NFA is the premier independent provider of innovative and efficient regulatory programs that safeguard the integrity of the futures markets.


    Whatta bucket shop.
  2. thanks for posting the info SWScapital

    I started a new thread in the Forex Brokers forum since I have the sense that some
    people only look at the thread titles in the Forums that interest them, and may have
    missed yours because of its location, also attached the 'Case Document'

    not much of a fine, only took away the profit Gain made and didn't add a punitive
    sum to that amount, about 10% of what they netted in 09
  3. emg



    Next up will be ZEN FIRE BROKERS!!
  4. OTC Forex is a shady game... your broker is the counter party to your trades, controls your data feed and order processing. Your adversary also has complete history of your past orders, stops and general gauge of your trading style and account balances. They pretty much have your playbook.

    The conflicts of interests in play are so obvious and are absolutely absurd to be allowed under any circumstance... This really should be investigated as a felony criminal act... instead when they are caught they pay a bribe/fine to the regulators and retain their license to steal.

    Kind of like being in a military battle and asking your enemy for a bullet and their position every time you want to fire off a round.

    Imagine a banker stealing client funds, gets caught, pay a court fine and continues to be a banker accessing client funds.

  5. This is outright criminal
  6. bstay


    read the part where they allowed slippage on larger volumes when clients are exiting at a loss, but tightened slippage volume limits when clients are exiting for a profit. now we know why those "Re-Quote" dialog box appears whenever we want to exit on profits .....
    (pdf originally posted by Wallace)
  7. bstay


    but the price action is still tradeable, ....... (from today's european session)
  8. Sure its tradeable except this broker is stealing a little on each transaction by fraudulently manipulating your spread.

    Every single transaction Gain has ever engaged in should be audited. If a pattern of spread manipulation is discovered (more than 2) they should be required to pay treble the spread plus all costs and fees as damages under a class action civil RICO proceeding for wire fraud.

    The NFA regulators have no authority or jurisdiction to process or settle criminal claims. These matters should be turned over to the FBI and state AG's.
  9. joe4422


    I agree, but not only zen fire. Most don't realise that they're friendly neighborhood futures broker is a bucket shop.

    I've tried to enlighten people to this fact, but I've only been attacked or had my post deleted as a result.
  10. emg


    I know that some of the ZEN FIRE brokerages used gain capital market maker. I will not be surprise if zen fire brokerages took some profit or participate from the "price slippage practices."

    Beware Zen Fire Clients.
    #10     Oct 29, 2010