Release Number 8224-20
CFTC Orders Toronto-Based Firm to Pay $500,000 for Violating Capital, Reporting, and Supervision Rules
August 21, 2020
to meet minimum net capital requirements, violated the equity withdrawal restriction in making dividend payments on three occasions, failed to meet certain reporting requirements, and failed to diligently supervise matters related to its business as a CFTC registrant.
“The CFTC’s capital, reporting, and supervision requirements are critical to ensuring market integrity and the protection of customers,” said Division of Enforcement Director James McDonald. “We will continue to be diligent in holding firms accountable for violating these regulations.”
“Capital requirements are a cornerstone of the regulatory framework governing CFTC-regulated intermediaries and we will continue to monitor firms for compliance with these important rules,” added Division of Swap Dealer and Intermediary Oversight Director Joshua B. Sterling. “We look forward to continuing to work with the Division of Enforcement when firms fall short of their financial obligations.”
that, in or around October 2018 and during the period April 2019 to August 2019, OANDA failed at times to meet certain capital requirements applicable to FCMs offering or engaging in retail foreign currency transactions and/or to RFEDs. OANDA failed to meet net capital requirements from April 26, 2019 to August 21, 2019 and made dividend payments on October 15, 2018, April 26, 2019, and May 28, 2019 in violation of the equity withdrawal restriction. Additionally, OANDA failed to meet certain financial reporting requirements related to these violations. The order also finds that OANDA did not maintain adequate internal controls with respect to these financial and reporting requirements. Consequently, the firm failed to diligently supervise matters related to its business as a CFTC registrant.
The order recognizes OANDA’s cooperation in the investigation of this matter. The order also notes that the Division of Enforcement found no indication that customers suffered losses as a result of the firm’s net capital and equity withdrawal restriction violations.
The CFTC thanks and acknowledges the National Futures Association for their assistance. Kelly Venezia, Robert Loeber, and Gerald J. Nudge of the Division of Swap Dealer and Intermediary Oversight also assisted with this matter.
The Division of Enforcement staff members responsible for this case are Karin N. Roth, R. Stephen Painter, Jr., Lenel Hickson, Jr., and Manal M. Sultan.