There is a high probability that a settlement deal is being negotiated between the proprietary trading firm My Forex Funds and regulators in the US and Canada, Finance Magnates has learned exclusively.
Ongoing Negotiations
The possible negotiation follows lawsuits filed against the firm and its CEO, Murtuza Kazmi, by the Commodity Futures Trading Commission (CFTC) and the Ontario Securities Commission (OSC).
The company’s legal fight with the CFTC has disrupted the proprietary trading industry, prompting other firms to swiftly modify language on their websites. Many have added terms such as “simulated” and “virtual” to clarify the nature of their services.
The CFTC initially charged My Forex Funds and Kazmi with fraud at the end of August 2023. According to the regulator, the company generated at least $310 million in fees from its proprietary trading business. The platform had more than 135,000 customers between November 2021 and its forced closure.
However, the regulatory action, including a temporary restraining order and an asset freeze, effectively shuttered the business overnight. After a legal challenge by the defendants’ lawyers, a court unfroze most of Kazmi’s assets.
Misrepresentation of Facts
The defendants also pointed to misrepresentation of facts in obtaining the asset freeze order, claiming it resulted from the regulatory staff’s “bad faith.” This prompted in a motion for a sanctions order against the regulator.
Interestingly, one of the CFTC commissioners, Caroline Pham, publicly criticised the regulator’s actions in the case against My Forex Funds, questioning the work ethics of its staff.
Later, Republican Senator Charles Grassley of Iowa addressed the issue by sending a letter to the Chairman of the CFTC. He raised concerns about the “process and procedure” of the regulator’s administrative actions and inquired whether disciplinary measures had been taken against staff involved in the alleged misconduct. Although his letter did not explicitly mention My Forex Funds by name, it referenced details of the lawsuit.
There is a high probability that a settlement deal is being negotiated between the proprietary trading firm My Forex Funds and regulators in the US and Canada, Finance Magnates has learned exclusively.
Ongoing Negotiations
The possible negotiation follows lawsuits filed against the firm and its CEO, Murtuza Kazmi, by the Commodity Futures Trading Commission (CFTC) and the Ontario Securities Commission (OSC).
The company’s legal fight with the CFTC has disrupted the proprietary trading industry, prompting other firms to swiftly modify language on their websites. Many have added terms such as “simulated” and “virtual” to clarify the nature of their services.
The CFTC initially charged My Forex Funds and Kazmi with fraud at the end of August 2023. According to the regulator, the company generated at least $310 million in fees from its proprietary trading business. The platform had more than 135,000 customers between November 2021 and its forced closure.
However, the regulatory action, including a temporary restraining order and an asset freeze, effectively shuttered the business overnight. After a legal challenge by the defendants’ lawyers, a court unfroze most of Kazmi’s assets.
Misrepresentation of Facts
The defendants also pointed to misrepresentation of facts in obtaining the asset freeze order, claiming it resulted from the regulatory staff’s “bad faith.” This prompted in a motion for a sanctions order against the regulator.
Interestingly, one of the CFTC commissioners, Caroline Pham, publicly criticised the regulator’s actions in the case against My Forex Funds, questioning the work ethics of its staff.
Later, Republican Senator Charles Grassley of Iowa addressed the issue by sending a letter to the Chairman of the CFTC. He raised concerns about the “process and procedure” of the regulator’s administrative actions and inquired whether disciplinary measures had been taken against staff involved in the alleged misconduct. Although his letter did not explicitly mention My Forex Funds by name, it referenced details of the lawsuit.
This post is originally published on FINANCEMAGNATES.
