National Futures Association (NFA) has levied a fine of USD500,000 against Vision Financial Markets LLC (Vision). Vision is a Futures Commission Merchant and Commodity Pool Operator with headquarters in New York City and branch offices in Chicago, Illinois and Stamford, Connecticut.
The decision, issued by NFA’s Business Conduct Committee, is based on a Complaint filed in May 2011 against Vision and its president and senior vice president, Howard M. Rothman and Michael P Doherty, respectively and a settlement offer submitted by them.
The Committee found that Vision, Rothman and Doherty failed to diligently supervise five of Vision’s Guaranteed Introducing Brokers (GIBs): 20/20 Trading Company, Statewide FX, Inc., Vista Trading Advisors, Inc., Investors Trading Institute, and Direct Futures LLC. In 2010, NFA Complaints against these GIBs included allegations of recommending trades that maximised commissions without regard for the best interest of their customers, making deceptive sales solicitations and using deceptive promotional materials.
In addition to the USD500,000 fine, Vision, Rothman and Doherty must retain an independent consultant to review Vision’s existing procedures for supervising its GIBs and make specific recommendations for the supervision of trading in broker assisted retail customer accounts which Vision, Rothman and Doherty will implement. In addition, Vision is prohibited from entering into guarantee agreements with any IBs for a period of two years.
