FX trading: Let the mud slinging begin
The NFA has barred Tradex permanently from membership, triggering spectacular bad-mouthing between former colleagues.
Some of the pitfalls of retail foreign exchange were highlighted at the start of February following the settlement of an enforcement action by the US National Futures Association against Boston-based Tradex Group [see Weekly FiX, February 9]. The NFA acted after it found that Tradex had contravened the Commodity Exchange Act.
As a result, the NFA permanently barred Tradex Group from membership after a complaint, filed in June 2006, alleged that it had solicited retail customers to trade off-exchange FX futures and options with its parent company, Swiss-based Tradex Handel & Beratungs (THB), now known as Tradex AG, in contravention of the Commodity Exchange Act.
As a result, Tradex Group was ordered to pay $22,144.53 in restitution to its US customers. Nicolaas Jansen van Rensburg, Tradex AG’s chief executive, is swift to disassociate himself from what went on in the Boston office. "First we have to note that a fine was imposed on Tradex Group and not on THB. This fine was actually not a fine but a refund to traders that traded on the Tradex platform," he says.
"Secondly also note that THB was merely an investor in Tradex Group LLC...