The National Futures Association (NFA) has ordered AlphaMetrix LLC to satisfy its obligations to certain pool participants by 1 November.
AlphaMetrix had deducted advisory fees for certain participants in commodity pools operated by the firm. Those fees were to be reinvested in the pools but were not. The total amount owed to participants is approximately USD600,000, while AlphaMetrix has approximately USD700 million under management.
According to the NFA's order, if AlphaMetrix fails to satisfy its obligations by 1 November, the firm would be prohibited from placing trades for any of its pools except for trades liquidating open positions. Any disbursement of pool funds could then only be made with NFA approval.