Tagged: Review

2013 PHLX Disciplinary Actions

resource link:  http://www.nasdaqtrader.com/Micro.aspx?id=phlxdisciplinaryactions 

 

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PHLX Disciplinary Actions

2013

Enforcement No. Title Date
2013-04 Notice of Disciplinary Action Against UBS Securities, LLC, a Member Organization 6/10/2013 
2013-03 Notice of Disciplinary Action Against Cowen and Company, LLC, a Member Organization 6/10/2013 
2013-02 Notice of Disciplinary Action Against Cutler Group, LP, a Member Organization 6/10/2013 
2012-10 Notice of Disciplinary Action Against Rosenbaum Capital, LLC, a former Member Organization, and Jonathan Levene, a former Associated Person of Rosenbaum Capital, LLC 4/03/13 
2013-01 Notice of Disciplinary Action Against PTR, Inc. (“PTR” or the “Firm”), a member organization of the NASDAQ OMX PHLX LLC (“PHLX” or the “Exchange”). 4/01/13 
2012-12 Notice of Disciplinary Action Against Bullock Trading LP, a former Member Organization, and Jason Ferrari, a former Associated Person of Bullock Trading LP 3/26/13 
2012-16 Notice of Disciplinary Action Against Cutler Group, LP, a Member Organization 1/3/13
2012-13

2012-15

Notice of Disciplinary Action Against J.A.K. Securities, Inc., a Member Organization 1/3/13

July 2013- what your NOT being told: THE FOREIGN EXCHANGEX is becoming a SIMULATED MARKET. (gameing platform)

copied from the investopedia website which is partnered with FXCM!

resource link: http://www.investopedia.com/terms/f/foreign-exchange.asp

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I checked today to see if there has been any progress in how well the public is being informed about the true nature of “forex” trading. Namely that it is now simulated (fake) trading for all accounts holding less than 10 million dollars.

Instead of progress- they are hiding it down deeper- However some of the previous misleading definitions are still posted on Investopedia.

What is noticeably missing is mention of on vs off exchange currency. They have started top vanish the old meaning of foreign exchange from the foreign exchange its self. All while not telling the public anything!

People FOREIGN EXCHANGE TRADING is no longer real. Its an ONLINE GAMING PLATFORM, Your not trading against other people- your trading against a computer program. A program the broker is able to manipulate as needed to make sure you loose your money. Read the fine print on your trading agreement- you agreed to them doing it! 

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Definition of ‘Forex – FX’
The market in which currencies are traded. The forex market is the largest, most liquid market in the world with an average traded value that exceeds $1.9 trillion per day and includes all of the currencies in the world.

Investopedia explains ‘Forex – FX’
There is no central marketplace for currency exchange; trade is conducted over the counter. The forex market is open 24 hours a day, five days a week and currencies are traded worldwide among the major financial centers of London, New York, Tokyo, Zürich, Frankfurt, Hong Kong, Singapore, Paris and Sydney.

The forex is the largest market in the world in terms of the total cash value traded, and any person, firm or country may participate in this market.
   
Definition of ‘Forex Market’
The market in which participants are able to buy, sell, exchange and speculate on currencies. The forex markets is made up of banks, commercial companies, central banks, investment management firms, hedge funds, and retail forex brokers and investors. The currency market is considered to be the largest financial market in the world, processing trillions of dollars worth of transactions each day.

Investopedia explains ‘Forex Market’

The foreign exchange markets isn’t dominated by a single market exchange, but involves a global network of computers and brokers from around the world. Central banks use their massive buying and selling capabilities to alter exchange rates through their open market activities and in many cases will do so not with profit in mind, but rather for any number of policy reasons. Forex brokers act as market makers as well, and may post bid and ask prices for a currency pair that differs from the most competitive bid in the market.

Definition of ‘Foreign Exchange Market’
The market in which participants are able to buy, sell, exchange and speculate on currencies. Foreign exchange markets are made up of banks, commercial companies, central banks, investment management firms, hedge funds, and retail forex brokers and investors. The forex market is considered to be the largest financial market in the world.

Investopedia explains ‘Foreign Exchange Market’

Because the currency markets are large and liquid, they are believed to be the most efficient financial markets. It is important to realize that the foreign exchange market is not a single exchange, but is constructed of a global network of computers that connects participants from all parts of the world.

___________________________________________________________________This is all such BULL! Participants are connected to brokers gaming platforms. End of story. WHY DOESNT IT TELL THE TRUTH????   ITS A SIMULATED MARKET ENVIRONMENT!!! 

name/description of all FOREX TRADE REGULATORS(groups, associations, agency) FOR all 13 countries that trade.

copied from Global Gain’s website

resource link: http://globegain.com/brokers/forex-regulators

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Forex Regulators

Like any financial market Forex currency trading requires proper regulation to avert and eliminate the abuse of investors’ rights. For this purpose each country has its own governmental and independent supervisory bodies which are altogether called ‘Forex regulators’. The most prominent of them are the NFA (the National Futures Associations), the CFTC (the Commodity Futures Trading Committee), the FSA (the Financial Services Authority).

The first and foremost objective of these regulatory bodies is to set and implement the policies for fair and ethical business behaviour of all forex-related institutions within their jurisdiction. In their turn all Forex brokers, IBs and signal sellers have to operate in strict compliance with the rules and standards laid down by the Forex regulators, otherwise their activity is regarded as unlawful. First of all, they must be registered and licensed in the country where their operations are based. This point is really indispensable as approval of the national regulatory institutions implies that the broker must stick to strict quality control standards and ensures that your business with the broker is safe and fair. In accord with this regulation licensed brokers are subject to recurrent audits, reviews and evaluations which force them to maintain the industry standards. Besides, Forex brokers must keep a sufficient amount of funds to be able to execute and complete Forex contracts concluded by their clients and also to return clients’ funds intact in case of bankruptcy.

Not all the brokers nowadays are regulated by appropriate financial regulators in their countries. So it’s of utmost importance to check the broker’s regulatory status before signing an agreement as it will determine the level of security and protection of your investments.

AUSTRALIA

Australian Securities and Investment Commission (ASIC)

All the financial markets and firms in Australia as well as organizations and individual self-employed specialists consulting on and dealing with such issues as superannuation, insurance, investment, deposit withdrawals and credit-taking are regulated and controlled by ASIC.

On the one hand, being one of the market regulators, ASIC evaluate the efficiency of these structures performance and their discharge of obligations to act on financial markets properly, fairly, and transparently. Making recommendations to the Minister on the new markets authorization is also in power of ASIC. On 1 August 2010, the oversight of trade carried on domestic licensed equity, derivatives and futures markets was entrusted to ASIC too.

On the other hand, being the financial services regulator, ASIC grant licenses and supervise businesses rendering financial services connected with superannuation and insurance, managed funds and derivatives, shares and firm securities.

CANADA

Canadian Derivatives Clearing Corporation (CDCC)

Being the Montreal Exchange’s subsidiary companу, CDCC fulfills the function of the principal clearing counterparty in the process of derivative output trading on the exchange. Apart from this function, CDCC performs as a counterparty in an increasing number of the off-exchange trade deals. To guarantee the steadiness and unity to the supported markets is the CDCC’s basic aim.

The exceptional position taken up by CDCC among all the financial markets of Canada is easily explained by the following reasons:

· There’s no other counterparty equal to this unique corporation in options, futures and options on futures clearing and settling in North America.

· 35 years’ experience and practice in exchange-trading.

· According to the average audience rating got from Standard & Poor’s CDCC proves to conduct both reasonable and standard risk assessment policies and a process sequence.

CDCC includes about 30 members, among which both main Canadian brokers and financial institutions are represented.

British Columbia Securities Commission (BCSC)

The BCSC is a state-run corporation able to control and govern a dynamic market due to its self-sufficiency and adjustability. Being one of the governmental agencies we report to the Legislature via the minister that bears responsibility for the Securities Act administration. BCSC’s self-financing signifies that not ratepayers but the participants of the market bear the securities regulation cost.

BCSC incurs a liability for the regulation of securities in British Columbia commerce via the Securities Act administration.

Public interest protection and promotion is BCSC main goal which can be achieved only by cultivating the following ideas:

·A fair and transparent securities market that guarantees public certainty and trust

·Creating securities industry characterized by competiveness and dynamics and thus providing vast opportunities for investors with their capitals.

Ontario Securities Commission (OSC)

All the capital markets of Ontario including equities, derivatives markets and fixed income are liable to the regulation by the OSC. Being a self-financed organization, the OSC is at the same time a state-run agency. It means that this commission is responsible vis-a-vis the Legislature of Ontario via the Minister of Finance.

Both the Commodity Futures Act and the Securities Act of the given province are administered and enforced by this regulatory body. The Business Corporations Act, and more exactly some of its provisions, is controlled and regulated by the OSC too.

According to the legislation the OSC’s duties are set out in the following areas: the development and enforcement of rules helping in investment safeguarding; the misconduct discouragement and prevention; the cultivation of fairness and integration at capital markets;  the fosterage of public certainty and trust in the markets.

CYPRUS

Cyprus Securities and Exchange Commission (CySEC)

Widely known as CySEC, The Cyprus Securities and Exchange Commission corresponds to a regulatory body in the sphere of financial relations in the Republic of Cyprus.

When in 2004 the Republic of Cyprus was included into the number of European Union members, the CySEC became a part of European regulatory system MiFID. Since that time all the companies that have been registered in this Republic have been given access to the markets of Europe.

The CySEC watches that the Cyprian investment firms strictly followed financial instructions according to the legislation and the normative base of Cyprus and European Union. CySEC is a public body which supervises actions and the operations performed at stock exchange.

The incomplete list of obligations CySEC:

– Supervises activity of the licensed investment companies

– Observes activity of brokers and the broker companies

– Gives out current licenses to investment companies

DENMARK

Danish Financial Supervisory Authority (Danish FSA)

The Danish FSA’s main mission is to carry out the supervision of various financial ventures such as banks, superannuation funds, mortgage-credit institutions and insurance companies. Solvency supervision is one the basic priorities of this regulatory body. This supervisory activity means that all the financial ventures have to possess their own adequate funds in order to cover all their risks.

So all the Danish securities markets are controlled by this organization. It supervises as well if the given undertakings fulfill their duties and obligations concerning all the relevant information publication (prospectuses, internal knowledge etc.). At last, all the cases of market abuse are also prosecuted by the Danish FSA. Apart from a supervisory activity itself, this regulator performs as a collector of key statistics and as an assistant in financial legislation drawing up.

EUROPEAN UNION

European Securities and Markets Authority (ESMA)

Since 1 January 2011 ESMA has been functioning instead of former CESR (the Committee of European Securities Regulators). The latter one, being an independent organization set by European Commission, gave birth to ESMA. Since then ESMA has made its contribution to the protection and support of the EU financial system stability.

Close cooperation with EBA, EIOPA and other organizations connected with the supervision in banking, insurance and pensions assures ESMA to foster harmonization both across financial segments and among securities regulatory bodies. But the main aim of ESMA remains unchangeable – to create and support proper functioning of securities markets. It signifies to provide markets with the unity, transparency, efficiency and fairness. Improvement and reinforcement of the investment sector is another ESMA priority.

GERMANY

Federal Financial Supervisory Authority (BaFin)

Since its establishment in May 2002, BaFin has been carrying out the supervision of most financial undertakings in the country such as banks, insurance ventures and providers of all kinds of financial services functioning under the same roof. The Federal Ministry of Finance exercises control over BaFin. Being an independent public-law regulatory body, this organization is financed by dues and payments contributed by the supervised institutions and ventures. So thanks to this fee system, BaFin doesn’t depend on the Federal Budget.

As for BaFin’s main goal it’s, first of all, to operate in the public interest assuring due functioning, unity and stability of the financial system in Germany. BaFin’s solvency supervision consists in controlling financial institutions ability to meet their engagements concerning all kinds of payments. Preventing illegal business and enforcing professional behavior standards are other objectives of BaFin.

JAPAN

Financial Services Agency of Japan (FSA Japan)

The FSA is a Japanese regulatory body, undertaking to assure the financial system stability, to protect depositors, holders of insurance policies and investors of the securities market. Characterized by strict supervision, the FSA doesn’t only inspect private financial companies, but also carries out securities transactions monitoring. Taking by the FSA such measures as planning and policymaking provides financial system in Japan with transparent administration. Discipline and self-responsibility are the main principles of the existing national economy, and the FSA Japan supervises at all levels if these principles are followed by the participants of the market.

Financial systems qualitative repletion is another desired goal for the FSA. It can be achieved only by adapting financial regulations to such financial environmental changes as innovations and globalization.

IRELAND

Central Bank of Ireland (CBI)

The Central Bank of Ireland is the financial services regulator of Ireland and historically the central bank. In compliance with Central Bank Reform Act 2010 the Financial Services Authority of Ireland (commonly known as the Central Bank) and the Irish Financial Services Regulatory Authority (financial regulator) were replaced by a new single body – the Central Bank of Ireland – which now fulfills both central banking and regulatory functions. The Central Bank controls the activities of all financial institutions in Ireland with the purpose to enforce and maintain fair and safe financial environment for consumers. It implements and monitors the consumer protection, the compliance of financial bodies with the established business and prudential requirements. It also fixes min competency requirements for companies. The Central Bank has created several statutory codes of conduct which force financial bodies within its jurisdiction to carry out operations fairly, transparently and solely in the interests of their clients. These protection codes are enforced by means of on-site inspections and backed up by enforcement powers.

SWEDEN

Swedish Financial Supervisory Authority (Swedish FSA)

The Swedish FSA is a governmental agency. We strive for promotion of financial stability and assurance of consumer rights. Every company engaged in Swedish financial markets is liable to our supervision and authorization. Analysis of market patterns, evaluation of business soundness of firms, industries and market in general are within our cognizance. Paying due attention to risks and control measures, we ascertain conformity to the relevant normative acts.

We license every activity associated with financial services. Our legislative competence involves issuance of standards and amendment of current unqualified normative acts. Should incompliance or market rate manipulations become apparent, on-the-spot investigations will involve resident and non-resident Swedish companies.

We see to elaboration of accounting and reporting rules, guaranteeing that the public is kept posted on the activities pursued by the companies.

SWITZERLAND

Swiss Financial Market Supervisory Authority (FINMA)

FINMA protects the investing public, system and its reputation, and advances financial market soundness, thus, strengthening the competitive capacity of the financial sector.

FINMA regulates the activity of other financial organizations, ensures protection against money laundering, and sometimes it acts as the liquidator. FINMA authorizes operation of companies and ensures their compliance with normative acts and laws along with fulfillment of the licensing requirements. It provides lawful administrative aid and imposes penalties, if necessary. Moreover, FINMA exercises regulatory and legislative activity, issues acts and guidelines, providing for acknowledgement of the standards of self-governance. FINMA monitors the matters related to takeover proposals, disclosure, and appeals against decisions taken in this field.

UAI (DUBAI)

Dubai Financial Services Authority (DFSA)

Economic activity of a free target-oriented zone in Dubai is regulated by the DFSA.

Management of resources and securities, execution of banking and trust services, Islamic finance, exchange of international equities and derivatives, as well as insurance matters fall within the competence of the DFSA.

Activity of DFSA is based on a principle of risk-related regulation and avoidance of unnecessary regulatory implications. Besides, the agency made it clear that the obligations liable to fulfillment should comply with optimization of risks in order for such obligations to be successfully met.

Under the circumstances, the priorities include generation of a cycle of risk optimization that aims at identification, evaluation and assessment of risks in order to enhance local and international markets and their patterns.

According to DFSA, the reality of efficient risk-based regulation is more important than the way of its achievement.

Emirates Securities and Commodities Authority (SCA)

Fulfillment of federal tasks has always been the goal of Securities and Commodities Authority. Its normative acts establish and enhance the legal environment of the companies engaged in the securities business, thus, strengthening the Authority’s credibility.

The Authority continuously strives to enhance administration of the subordinate companies, alerting them to the general requirements set by the relevant federal laws and any other supportive normative acts.

The SCA shall license all securities markets in the UAE established in the form of electronically interconnected local public bodies.

Market management shall be ensured by the locally established Board comprising only those members that participate neither in any public joint-stock company nor in any brokerage activity.

The primary task of this agency lies in protection of the investing public, adequate enactment that promotes fair business and advances market efficiency, and adoption of the relevant control measures.

UNITED STATES

Securities and Exchange Commission (SEC)

SEC in the U.S. ensures protection of investors, maintenance of fair markets, and capital formation advancement. The main participants dealing with securities are controlled by the agency. The first concern of the SEC here lies in promotion of crucial information disclosure, protection against fraud and fair business relations.

Rational and well-educated investors are an important mechanism of efficient market functioning, since they serve as the major information source. A variety of information aligned with investor awareness is posted by the SEC on this website, including the database of documents liable to disclosure and submission.

The SEC regulates and controls the American securities markets in cooperation with many other agencies, including Congress, various private companies and other organizations. Notably, the Chairman of the agency and certain public officials participate in a working group on financial markets.

National Futures Association (NFA)

NFA is a self-governed sectoral organization representing American futures industry. Day after day NFA strain to elaborate regulations, programs and services meant to protect market integrity and investors, ensuring legal qualification of it Members.

Being an autonomous regulatory agency, NFA is unbound to any certain marketplace. It activity has no financial implications for the taxpayer and it is funded solely by users of the futures markets in the form of affiliation and assessment fees.

With rapid development of financial markets, NFA has become the leader in self-regulation field. Since the need for efficient regulation today is as substantial as ever, NFA’s reputation is rather beneficial for the market agents willing to share their experience, while NFA serves as a model of self-regulatory organization.

Financial Industry Regulatory Authority (FINRA)

FINRA is the largest independent agency regulating securities-related sphere of activity of various organizations in the U.S. FINRA’s objective lies in protection of American investors through assurance of fair and honest operation of the securities industry.

Every feature of the securities business, including registration and instruction of industry agents, elaboration and enforcement of rules and federal laws, evaluation of companies engaged in the field, training and instruction of investors, submission of trade reports, as well as administration of forum for dispute settlement, is covered by FINRA. Contractual market regulation for the key U.S. stock markets falls within our competence as well.

In this sophisticated global economic situation FINRA acts as a reliable representative of investors’ interests; its activity is devoted to assurance of market soundness and aimed at regulation of financial matters to protect the market and the investors themselves.

Commodity Futures Trading Commission (CFTC)

Economic benefit of the markets dealing with futures is assured by the CFTC through promotion of their competitive capacity and efficiency. It strives for protection of market agents against fraud in order to exclude manipulation and unfair commercial practice, paying due attention to the clearing process soundness. Effective supervision of the CFTC makes it possible for the futures markets to fulfill their key function and provide for price regulation and market risk optimization.

CFTC’s activity is aimed at protection of market agents and individuals from fraud, manipulative action, abuse and constant derivative-related risk in conformity with relevant acts. Besides, its operation advances overt, viable and efficient markets.

UNITED KINGDOM

Financial Services Authority (FSA)

The FSA is the independent body that regulates the financial services industry in the UK. Limited by guarantee, FSA is sponsored by the financial services industry. Although general policy establishment is reserved to the Board, daily decision making and staff management matters fall within the competence of the Executive Committee.

The FSA has a wide range of rule-making, investigatory and enforcement powers which enables them to meet four statutory objectives. The four statutory objectives are:

1.  Market confidence – maintaining confidence in the UK financial system;
2.  Financial stability – contributing to the protection and enhancement of stability of the UK financial system
3.  Consumer protection – securing the appropriate degree of protection for consumers; and
4. The reduction of financial crime – reducing the extent to which it is possible for a regulated business to be used for a purpose connected with financial crime.

The FOREX TRADING lie = WHITE COLLAR CRIME. Who do you call? THE FBI

It’s been a couple weeks since I filed complaints with every branch of the trade industry and consumer protection agencies (6 total) and there has been no results. I have to consider that the level of corruption goes up higher than I thought- involving not just the NSA but also the CFTC. 

Not even the American Gaming Association has reacted to the fact that forex trading platforms- upon becoming self contained systems- became legally a “Gambling Machine” or a tool for “Online Gaming” – both of which fall under their jurisdiction.

CNN replied with a “thanks for your story” but no action has followed. The Attorney General said the CFTC has to address it before they can.  I thought there was nothing more I could do- then ***ping! Duh! This is a federal crime happening on a national level- federal crime = FBI

I think it’s pretty pathetic for just 1 person …. me…. to be fighting so hard to stop something that doesn’t even affect me. I’m doing this to try stop you- the person reading this that does trade “forex” from being ripped off.

People- it’s time for YOU to do your part- COMPLAIN TO THE FBI  ask your broker questions- demand to know if your trading against a computer program. Ask them if your orders are called out- pooled and submitted to anywhere at all- or is it like that blogger says- all my orders are processed right on the platform. Ask them how many platforms are supervised per employee. And are they allowed to alter or adjust the contract price after the transaction has been completed? FIGHT BACK!!

Most importantly- ask to see the companies financial report- the page that shows how much was paid out to customers in 2012.  I noticed a few days ago that on all these financial reports- there’s no line that shows how much was withdrawn by customers that was in excess of what the put into the account. WHERE DOES IT SHOW PROFITS PAID OUT 

Why is that…… oh… I know……………………………………. there aren’t any.  

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White-collar crime is financially-motivated nonviolent crime committed for illegal monetary gain.

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Within criminology, it was first defined by sociologist Edwin Sutherland in 1939 as “a crime committed by a person of respectability and high social status in the course of his occupation“.

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The FBI has adopted the narrow approach, defining white-collar crime as “those illegal acts which are characterized by deceit, concealment, or violation of trust and which are not dependent upon the application or threat of physical force or violence” ____________________________________________________________

  1. Attempt and conspirac
  2. Material involving sexual exploitation of minors
  3. Mail fraud – frauds and swindles
  4. Bank fraud
  5. Prohibition of illegal gambling businesses

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Some forms of corruption—-now called “institutional corruption”[2]—-are distinguished from bribery and other kinds of obvious personal gain. Campaign contributions are the prime example. Even when they are legal, and do not constitute a quid pro quo, they have a tendency to bias the process in favor of special interests, and undermine public confidence in the political institution. They corrupt the institution without individual members being corrupt themselves. A similar problem of corruption arises in any institution that depends on financial support from people who have interests that may conflict with the primary purpose of the institution.

The UNITED STATES FOREX TRADE INDUSTRY has become corrupt.

NFA Rules that prove Platforms are just simulated trading= not real trading

NFA rules about platforms

Trade Integrity

General Standard
FDMs must adopt and enforce written procedures reasonably designed to ensure the integrity of trades placed on their trading platforms.

Pricing
. Trading platforms must be designed to provide bids and offers that are reasonably related to current market prices and conditions. For example, bids and offers should increase as prices increase, and spreads should remain relatively constant unless the market is volatile.
Furthermore, if an FDM advertises a particular spread (e.g., 1 pip) for certain currency pairs or provides for a particular spread in its customer agreement, the system should be designed to provide that spread.

19
The report should exclude transactions by contract eligible participants **as that term is defined in Section 1a(12) of the CEA.
 (** contract eligible participant=those with accounts with over 10 million)
20
Management should approve each fill outsi de the price range displayed by the system when a market order was placed and should document the reason for the fill price.

21
If the FDM’s customer agreement provides for exceptions in volatile or illiquid markets and those exceptions are prominently disclosed, the system may be programmed to be consistent with the agreement’s terms.