IG Group Holdings subsidiary NADEX (North American Derivatives Exchange) has announced the commencement of disciplinary actions in contrast to one of its members. Among other offenses, the member is accused of being under investigation by the Michigan Department of Licensing and Regulatory Affairs, as well as FINRA and failing to inform NADEX about these investigations.
In May 2018, the Nadex Compliance Department began an investigation into a Nadex member by the name of David Ferwerda. He stood accused by FINRA of selling securities to clients that were not registered nor exempt from the applicable registration requirements.
On October 30, 2018, Ferwerda replied to the accusation against him by executing a Letter of Acceptance, Waiver and Consent with FINRA (AWC NO. 2018057887801). This meant that he neither admitted nor denied the accusations levied against him. He also agreed to the sanctions and findings that he unsuccessful to provide the FINRA with documents and information relating to the case requested by it.
By virtue of the AWC, Ferwerda has agreed to his being placed on a permanent ban that resolutely forbids him from associating with all FINRA members in virtually any capacity.
Nadex Wields The Axe
According to Nadex, Ferwerda violated the rules: 3.3(d) (I), (iv) and (v) by failing to let the exchange know in a timely manner of the FINRA action against him related to the sale of unregistered securities. Ferwerda also failed to disclose that he had been disqualified from associating in any way with FINRA members. More, he for some reason did not disclose that he was under inspection by the Michigan Department of Licensing and Regulatory Affairs.
According to the Compliance Department, Ferwerda was deemed in violation of the Member Acknowledgements and Authorizations, section (h) and Exchange Rule 3.3(a) by his failure to present useful information to the Compliance Department when it was tasked with investigating his breaches of exchange policy. As a result, David Ferwerda has had his Nadex membership revoked.
His account is terminated. He is under the permanent ban that forbids his making trades on the exchange, either directly or via an intermediary. The ban applies regardless of if he has been authorized by other traders to make trades on their behalf.
The ban takes full force from November 4, 2019.
