Forex Capital Markets (FXCM) has been fined and charged by the US Commodity Futures Trading Commission (CFTC) for acting as a retail foreign exchange dealer (RFED) and conducting forex transactions without registering with CFTC.
The London-based firm has been ordered by CFTC to settle the charges by paying $140,000 as civil monetary fine and to cease its operations from further violating CFTC regulation.
CFTC had levied the charges based on the new regulations enacted in October last year, which includes certain provisions of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010.
The charges underscore the importance of CFTC’s statutory functions of monitoring and enforcing the Commodity Exchange Act (CEA).
According to the order, registration serves as the backbone of the regulatory framework enacted by Congress to protect the public and the integrity of the industry.