Alpari cancelling trades and removing profits from clients accounts

[pboyles]

According to the NFA that is. Even more interesting is that due to the number of people working there with 'previous' they were put under closer supervision.

http://www.nfa.futures.org/basicnet/CaseDocument.aspx?seqnum=3341
http://www.nfa.futures.org/basicnet/CaseDocument.aspx?seqnum=3359

 

[The Leopard]

A bucket shop up to no good? I cannot believe this is possible - the NFA must be mistaken.

 

[TraderNumber7]

According to the NFA that is. Even more interesting is that due to the number of people working there with 'previous' they were put under closer supervision.

http://www.nfa.futures.org/basicnet/CaseDocument.aspx?seqnum=3341
http://www.nfa.futures.org/basicnet/CaseDocument.aspx?seqnum=3359

Pboyles,

Did you read paragraph number #7, regarding the part about "Fortress?" (NFA's Forex Transaction Reporting Execution Surveillance System)

They say that the system's daily reports are "analyzed" to assist NFA staff in detecting possible price manipulation by the FDM. FDMs are also able to send communication through Fortress to the NFA regarding adjustments to trades that the FDM has made each day.

Also, did you see paragraph 9, sentence 2 of the primary complaint? Alpari, an expected Bucket Shop (these are my words, not the complaint) was certain taking the other side of the trade, which is something that ALL Bucket Shops continually tell you that they DON'T DO whenever you chat with them online, or when the actually have the nerve to enter a forum, like FXCM's Jason Rogers. Well, at least this Bucket Shop was proven to be a Bucket Shop in the formal complaint.

I'd love to see the daily Fortress Reports on FXCM - which gives me a great idea.

It is amazing to me how Alpari, was able to classify these five account holders as having engaged in making "illicit" profits, when it was their own system that caused the problem in the first place. It was not the Traders fault that Alpari's system allowed for the execution of options trades when it did.

Alpari, even goes on to say that it was the Customers who acted in bad faith, which is absurd and also a great example of how a Bucket Shop will go behind a Customer's back to harm them. Any Forex Retail Broker found harming customers, should be taken to court and SUED until the Broker is blind, or out of business.

Thanks for the link.

 

[TraderNumber7]

A bucket shop up to no good? I cannot believe this is possible - the NFA must be mistaken.

As I said, I'd actually PAY SOMEONE real money to get my eyes on the FXCM Daily Fortress reports.

 

[pboyles]

Pboyles,

Did you read paragraph number #7, regarding the part about "Fortress?" (NFA's Forex Transaction Reporting Execution Surveillance System)

They say that the system's daily reports are "analyzed" to assist NFA staff in detecting possible price manipulation by the FDM. FDMs are also able to send communication through Fortress to the NFA regarding adjustments to trades that the FDM has made each day.

Also, did you see paragraph 9, sentence 2 of the primary complaint? Alpari, an expected Bucket Shop (these are my words, not the complaint) was certain taking the other side of the trade, which is something that ALL Bucket Shops continually tell you that they DON'T DO whenever you chat with them online, or when the actually have the nerve to enter a forum, like FXCM's Jason Rogers. Well, at least this Bucket Shop was proven to be a Bucket Shop in the formal complaint.

I'd love to see the daily Fortress Reports on FXCM - which gives me a great idea.

It is amazing to me how Alpari, was able to classify these five account holders as having engaged in making "illicit" profits, when it was their own system that caused the problem in the first place. It was not the Traders fault that Alpari's system allowed for the execution of options trades when it did.

Alpari, even goes on to say that it was the Customers who acted in bad faith, which is absurd and also a great example of how a Bucket Shop will go behind a Customer's back to harm them. Any Forex Retail Broker found harming customers, should be taken to court and SUED until the Broker is blind, or out of business.

Thanks for the link.

I dont recall in which paragraph it appears but it clearly states that Alpari's primary business was as a counter party to clients trades. Its there somewhere in black and white. The question is have they advertised that they DONT do this anywhere?

 

[Soloquan]

Wow. Very interesting. I notice this is NFA and Alpari US.

Anybody know how this would relate to Alpari UK. Is Alpari US just in essence a Franchise and Alpari US are using the 'brand name' if you will or is Alpari UK/US and I belive RU one corporation?

 

[pboyles]

Wow. Very interesting. I notice this is NFA and Alpari US.

Anybody know how this would relate to Alpari UK. Is Alpari US just in essence a Franchise and Alpari US are using the 'brand name' if you will or is Alpari UK/US and I belive RU one corporation?

From their website

Important Legal Information
All references to "Alpari" on this website refer to the association of Alpari companies. Each associated company forms a separate legal entity† which does not act as agent or principal to any other Alpari company, and (unless expressly provided for) accepts no liability for acts or omissions of any other Alpari company. Information provided on this website is of general description and does not constitute advice, an offer or solicitation to transact in any financial product. Some financial products mentioned on this website may not be suitable for you or available in your jurisdiction. Please select the country you reside in to view the related disclaimer in accordance with applicable law.
† With the exception of Alpari (UK) Limited Shanghai Representative Office, which is the Mainland China representative office of Alpari (UK) Limited.

 

[Soloquan]

From their website

Important Legal Information
All references to "Alpari" on this website refer to the association of Alpari companies. Each associated company forms a separate legal entity† which does not act as agent or principal to any other Alpari company, and (unless expressly provided for) accepts no liability for acts or omissions of any other Alpari company. Information provided on this website is of general description and does not constitute advice, an offer or solicitation to transact in any financial product. Some financial products mentioned on this website may not be suitable for you or available in your jurisdiction. Please select the country you reside in to view the related disclaimer in accordance with applicable law.
† With the exception of Alpari (UK) Limited Shanghai Representative Office, which is the Mainland China representative office of Alpari (UK) Limited.

Still, tarnishes the name of Alpari somewhat

 

[Alpari UK]

Thank you for your posts.

As you know, Alpari (US), LLC (“Alpari (US)”) recently entered into a USD200,000 settlement with the National Futures Association (“NFA”) and refunded losses incurred as a result of adjustments made to client accounts. We would like to take this opportunity to point out that the FXOptions platform – which was the subject of the NFA investigation – is not part of the Alpari companies’ core offering and has never been offered by Alpari (UK) Limited (“Alpari (UK)”). Alpari (US) ceased to offer the platform in January 2012.

Please note that this ruling has no impact on Alpari (UK) or its clients for three reasons:

1 Alpari (US) and Alpari (UK) are regulated by the regulatory bodies located in their respective regions. Decisions by a US regulatory body (NFA) on Alpari (US) have no bearing on Alpari (UK). Alpari (UK) is authorised and regulated by the Financial Services Authority (“FSA”) and must comply with the FSA's rules which differ from those of the NFA.

2 Alpari (US) and Alpari (UK) are both independent entities within the global association of Alpari companies. In addition to our core products and platforms, each of the businesses has its own region-specific product portfolio. FXOptions was offered by Alpari (US) only.

3 Alpari (UK) and Alpari (US) each have their own Terms of Business reflecting their region’s regulatory and legal environment. Alpari (UK)’s Terms of Business would allow us to cancel an erroneously executed order and we reserve the right to remove funds from clients’ accounts where we believe such an error has occurred. However, we will only do this as a last resort and where it is evident that our Terms of Business have been breached. Clients can be assured that everything we do is underpinned by our regulatory obligation to treat customers fairly.

A reminder of our Terms of Business

Alpari (UK)’s Terms of Business are in line with FSA requirements and are regularly reviewed to ensure continued compliance with any changes to rules and regulation. When we make changes to our Terms of Business or Client Agreement we communicate them to clients by email and by notifications made in the Company News section of our website.

To ensure that you remain familiar with our trading policies it's always a good idea to review and read the latest version of our Terms of Business, available online:
Trading Platform Legal Documents - Alpari (UK)

Should you have any questions, please email our support team at [email protected] or call +44 (0) 207 426 2900. We will be happy to help in any way we can.


Alex

________
Alexander Chadwick
Alpari (UK) Representative

 

[Soloquan]

Thank you for your posts.

As you know, Alpari (US), LLC (“Alpari (US)”) recently entered into a USD200,000 settlement with the National Futures Association (“NFA”) and refunded losses incurred as a result of adjustments made to client accounts. We would like to take this opportunity to point out that the FXOptions platform – which was the subject of the NFA investigation – is not part of the Alpari companies’ core offering and has never been offered by Alpari (UK) Limited (“Alpari (UK)”). Alpari (US) ceased to offer the platform in January 2012.

Please note that this ruling has no impact on Alpari (UK) or its clients for three reasons:

1 Alpari (US) and Alpari (UK) are regulated by the regulatory bodies located in their respective regions. Decisions by a US regulatory body (NFA) on Alpari (US) have no bearing on Alpari (UK). Alpari (UK) is authorised and regulated by the Financial Services Authority (“FSA”) and must comply with the FSA's rules which differ from those of the NFA.

2 Alpari (US) and Alpari (UK) are both independent entities within the global association of Alpari companies. In addition to our core products and platforms, each of the businesses has its own region-specific product portfolio. FXOptions was offered by Alpari (US) only.

3 Alpari (UK) and Alpari (US) each have their own Terms of Business reflecting their region’s regulatory and legal environment. Alpari (UK)’s Terms of Business would allow us to cancel an erroneously executed order and we reserve the right to remove funds from clients’ accounts where we believe such an error has occurred. However, we will only do this as a last resort and where it is evident that our Terms of Business have been breached. Clients can be assured that everything we do is underpinned by our regulatory obligation to treat customers fairly.

A reminder of our Terms of Business

Alpari (UK)’s Terms of Business are in line with FSA requirements and are regularly reviewed to ensure continued compliance with any changes to rules and regulation. When we make changes to our Terms of Business or Client Agreement we communicate them to clients by email and by notifications made in the Company News section of our website.

To ensure that you remain familiar with our trading policies it's always a good idea to review and read the latest version of our Terms of Business, available online:
Trading Platform Legal Documents - Alpari (UK)

Should you have any questions, please email our support team at [email protected] or call +44 (0) 207 426 2900. We will be happy to help in any way we can.


Alex

________
Alexander Chadwick
Alpari (UK) Representative

Looks like someone is sh**ing bricks over at Alpari's Lair... I mean Head office

 

[The Leopard]

Looks like someone is sh**ing bricks over at Alpari's Lair... I mean Head office

 

[pboyles]

Thank you for your posts.

As you know, Alpari (US), LLC (“Alpari (US)”) recently entered into a USD200,000 settlement with the National Futures Association (“NFA”) and refunded losses incurred as a result of adjustments made to client accounts. We would like to take this opportunity to point out that the FXOptions platform – which was the subject of the NFA investigation – is not part of the Alpari companies’ core offering and has never been offered by Alpari (UK) Limited (“Alpari (UK)”). Alpari (US) ceased to offer the platform in January 2012.

Please note that this ruling has no impact on Alpari (UK) or its clients for three reasons:

1 Alpari (US) and Alpari (UK) are regulated by the regulatory bodies located in their respective regions. Decisions by a US regulatory body (NFA) on Alpari (US) have no bearing on Alpari (UK). Alpari (UK) is authorised and regulated by the Financial Services Authority (“FSA”) and must comply with the FSA's rules which differ from those of the NFA.

2 Alpari (US) and Alpari (UK) are both independent entities within the global association of Alpari companies. In addition to our core products and platforms, each of the businesses has its own region-specific product portfolio. FXOptions was offered by Alpari (US) only.

3 Alpari (UK) and Alpari (US) each have their own Terms of Business reflecting their region’s regulatory and legal environment. Alpari (UK)’s Terms of Business would allow us to cancel an erroneously executed order and we reserve the right to remove funds from clients’ accounts where we believe such an error has occurred. However, we will only do this as a last resort and where it is evident that our Terms of Business have been breached. Clients can be assured that everything we do is underpinned by our regulatory obligation to treat customers fairly.

A reminder of our Terms of Business

Alpari (UK)’s Terms of Business are in line with FSA requirements and are regularly reviewed to ensure continued compliance with any changes to rules and regulation. When we make changes to our Terms of Business or Client Agreement we communicate them to clients by email and by notifications made in the Company News section of our website.

To ensure that you remain familiar with our trading policies it's always a good idea to review and read the latest version of our Terms of Business, available online:
Trading Platform Legal Documents - Alpari (UK)

Should you have any questions, please email our support team at [email protected] or call +44 (0) 207 426 2900. We will be happy to help in any way we can.


Alex

________
Alexander Chadwick
Alpari (UK) Representative

I think the information that the case brought to light is much more interesting than the fine itself. For instance the fact that your primary business is to act as a counter party to your clients trades. Also the fact that you have so many people who have worked at dodgy firms that you have been placed under closer supervision.

When I say 'you' I refer to the Alpari group of companies.

 

[forexanalyst]

Does anyone know how much hedging a MM actually has to do? Obviously most of the hedging will be internal but how much excess risk can they carry? E.g. if their clients are 15k lots long and only 10k lots short is this acceptable? In this instance they are 5k lots short. I have a feeling that all EU FX brokers now have to abide by the latest capital adequacy levels in the Basle Accords and this would also have an effect on how much prop trading they can do. Anyone more knowledgable (won't be too hard) on this matter? Maybe Mr Alpari??!

p.s. for what it's worth it's nice to see a broker on the forum taking all the crap!! Brave but definitely better than hiding away in the normal FX broker fashion. I've seen the FXCM guy on FF and again he takes a lot of crap but transparency is increased which cannot be a bad thing.

 

[6am]

One thing I do not understand is why did they prohibit options trades on the expiration day? The report suggests that it was a sure deal for customers to trade options on the expiration day. Alpari even suggested that trades were executed in bad faith, that customers took advantage. But what advantage?