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Court orders interdealer broker to pay $7M for deceptive trading practices

Written by Jasir Jawaid

The U.S. District Court for the Southern District of New York entered a consent order against TFS-ICAP LLC and TFSICAP Ltd., requiring them to pay a $7 million civil monetary penalty.

The order finds that between January 2014 and August 2015, TFS-ICAP brokers represented to U.S.-based bank clients that there were bids or offers for a foreign exchange option at a particular level when, in fact, no trading institution had bid or offered the option at that level. TFS-ICAP brokers on the emerging markets desks in both London and New York also communicated to one or more U.S.-based bank clients that trades had occurred when it had not happened.

The order also finds that TFS-ICAP, its former CEO Ian Dibb, and its former emerging markets desks head Jeremy Woolfenden failed to supervise diligently TFS-ICAP broker conduct.

The order resolves an enforcement action by the CFTC. Defendants Dibb and Woolfenden are each subject to a $500,000 civil monetary penalty for their individual supervisory failures and have both agreed to not apply for registration or claim exemptions from registration with the CFTC in any capacity, or engage in any activity requiring such registration or exemption from registration with the CFTC, for five years.

This article was published by S&P Global Market Intelligence on the S&P Capital IQ Pro platform.


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