NFA demands $3.3 million from FXDD
The National Futures Association (NFA) has ordered FX Direct Dealer (FXDD) to hold $3.3 million aside in case it is found guilty of price slippage practices that fell in favour of the margin broker over its clients.
As part of the order, FXDD has to either post a bond or place funds in an escrow account to ensure it can meet its obligations to return any earnings made this way to clients, if found guilty as charged.
NFA's Business Conduct Committee (BCC) issued a complaint against FXDD earlier this year, charging that FXDD engaged in price slippage practices that benefited FXDD to the detriment of customers. Similar cases involving asymmetrical price slippage practices have also resulted in customer restitution.
For previous coverage of the cases made against FXDD by the NFA, please click here.
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