The regulator slammed futures commission merchant for its carelessness and prohibits Interactive from further violating the Commodity Exchange Act and CFTC Regulations as charged.
CFTC has alleged that Interactive repeatedly failed to aggregate positions for related accounts that it reported to the CFTC in its daily large trader submissions from January 2008 to January 2012.
Using an automated system, Interactive supervised the aggregation aspect of its large trader reporting which lacked functionality sufficient enough to aggregate accounts owned and/or controlled by the same traders.
The US watchdog also charged the firm for failing to file updated Form 102s when large traders opened related accounts or changed information concerning their trading accounts, which is crucial to identify account holders and entities excising trading control over certain accounts in order to evaluate potential market risks.
