GAIN Capital is being sued by the NFA for improperly adjusting customer accounts

Today, the National Futures Association (NFA) published its monthly Investor Newsletter. It discussed its most recent steps to enforce the law. The NFA's complaint against online trading corporation GAIN Capital and its associated person (AP) Alexander Robert Bobinski, Jr. is on the list.

The NFA's Business Conduct Committee (BCC) filed a complaint against Gain Capital Group LLC and Alexander Robert Bobinski, Jr. on September 15, 2022.

In Count I of the Complaint, the gain was accused of making changes to client accounts without permission, which seems to be against NFA Compliance Rule 2-43(a) (1).

GAIN's FOREX.com trading platform was down from around 2:55 p.m. on March 31, 2021, until roughly 1:00 a.m. on April 1, 2021. During this period, users could place stop and limit orders in 14 currency pairs at prices that differed from those shown on the company's platform.

Customer purchases that had already been fulfilled had cost GAIN around $3 million by the time the situation was resolved. GAIN deducted around $2.84 million from the accounts of 17 clients. It added nearly $35,000 to the accounts of 33 consumers.

GAIN's CEO, Bobinski, personally authorized the changes.

The Gain was accused of violating NFA Compliance Rule 2-36(c) by failing to maintain high standards of commercial honor and reasonable and equitable principles of trade by treating customers unjustly who were impacted by a system malfunction and Gain's account modifications in Count II of the Complaint.

Gain and Bobinski were accused in Count III of the Complaint of failing to cooperate and failing to follow high standards of commercial honor and fair and equitable principles of trade by repeatedly providing incorrect and incomplete information to the NFA, which appears to be in violation of NFA Compliance Rules 2-5 and 2-36. (c).

The gain was charged with not supervising in Count IV of the Complaint, which seems to be a violation of NFA Compliance Rules 2-9, (a), and 2-36. (e). Bobinski was also charged with failing to supervise, which seems to be a violation of NFA Compliance Rule 2-36. (e).

About NFA

The National Futures Association (NFA) is the industrywide, self-regulated body for the derivatives industry in the United States, delivering innovative and effective regulatory initiatives. The NFA is a recognized futures association, as designated by the CFTC, and works every day to protect investors and ensure members satisfy their regulatory duties.

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More information about Gain Capital may be found at https://www.wikifx.com/en/dealer/8381534411.html.

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