The National Futures Association ("NFA") Business Conduct Committee charged an introducing broker and an associated person ("AP") for failure to meet recordkeeping and supervisory requirements. The requirements, which include recording and recordkeeping of conversations with customers, are part of a regulatory scheme applied to firms that hire a large percentage of persons with disciplinary histories or that have previously worked for disciplined firms in the industry.
In an investigation conducted in June 2017, the NFA Business Conduct Committee found that Traders Edge, Inc. ("Traders Edge") was not complying with recordkeeping requirements for telephone calls. Between March 1 and June 1, 2017, Traders Edge did not record telephone calls, nor were its associated persons able to produce written reviews of recorded calls. Edward F. Carr, Jr., an AP at Traders Edge, was also charged by the NFA for failing to supervise its operations and regulatory compliance.
Following the NFA's proceedings, Traders Edge and Mr. Carr may face penalties that include fines of up to $250,000 for each violation, along with suspensions or expulsions.
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