Nadex bans trader for failure to respond to requests for info

North American Derivatives Exchange (Nadex), a part of IG Group Holdings plc (LON:IGG), has published a notice of disciplinary action as to Hsinchi Wu for violations of Nadex rules.

On September 27, 2019, the Compliance Department sent Hsinchi Wu an Account Inquiry letter requesting, among other things, general background information, prior trading experience, and details regarding his order and trading activity. Wu responded to certain inquiries and requests for information.

However, Wu failed to provide information regarding his relationship with other Nadex Members as well as information regarding how he accessed and placed orders on the Exchange.

Accordingly, the Compliance Department concluded that Wu violated Member Acknowledgements and Authorizations, Section (h) of the Nadex Membership Agreement and Exchange Rule 3.3(a) by failing to fully respond to Nadex Compliance’s requests for information despite multiple opportunities to comply.

Section (h) of “Member Acknowledgements and Authorizations” of the Nadex Membership Agreement states:

“You acknowledge and agree that You will, following a request by Nadex, promptly provide to Nadex financial or other information as Nadex may reasonably request or as may be required for Nadex to respond to a request for information from the Commodity Futures Trading Commission (“CFTC”) or other regulatory or judicial bodies”.

As a result of the aforementioned violations, the Nadex Compliance Department has deemed it appropriate to fine Hsinchi Wu $2,500.00. Additionally, Hsinchi Wu’s Nadex Membership, has been revoked, his Nadex account terminated, and he is permanently banned from trading on Nadex, either directly for his own account, through an intermediary, or as authorized trader on behalf of any other account.

Posted on

Leave a Reply

Your email address will not be published. Required fields are marked *