The US Commodity Futures Trading Commission has filed a notice of intent to permanently revoke the registration of Worldwide Clearing of Fort Lauderdale, Florida, as a futures commission m
The US Commodity Futures Trading Commission has filed a notice of intent to permanently revoke the registration of Worldwide Clearing of Fort Lauderdale, Florida, as a futures commission merchant.
The notice says that under the Commodity Exchange Act, Worldwide is subject to disqualification from registration based on the September 14, 2007 entry of a consent order of permanent injunction and other equitable relief against it in the United States District Court for the Southern District of New York.
The consent order, which stems from a CFTC civil complaint filed on September 30, 2005, finds that, from November 2004 until at least June 2005, International Currency Exchange, solicited members of the general public to open accounts to trade foreign currency options and knowingly or recklessly made misrepresentations regarding the risks and rewards of trading forex options.
The consent order finds that under its introducing agreement and in the course of conduct, IC Exchange acted as Worldwide’s agent in soliciting customers to open accounts with Worldwide for the purpose of speculating in forex options, and that as a result Worldwide is liable for IC Exchange’s fraud.
The consent order prohibits Worldwide from seeking registration with the CFTC in any capacity and imposes a USD130,000 civil monetary penalty and restitution of USD670,000 on the firm.
