CFTC Fines Starberry Limited Over $1.37M for Operating as FCM without Registration

The Commodity Futures Trading Commission (CFTC) has ordered Starberry Limited to pay a total of $1,376,206.81 civil monetary penalty for acting as a futures commission merchant (FCM) without being registered. The CFTC has also imposed a cease-and-desist order on Starberry from violating Section 4d(a)(1) of the Commodity Exchange Act (CEA), 7 U.S.C. § 6d(a)(1). 

Fazzaco to Launch Business Awards 2022

According to the official press release, the order specifically finds that from February 28, 2020 through March 17, 2020, while not registered in any capacity, Starberry accepted more than $400 million from a foreign customer and deposited that money in Starberry's proprietary trading account. Starberry then executed more than 12,500 NYMEX West Texas Intermediate (WTI) trades in March 2020, which resulted in more than $86 million in profits for the foreign customer and $1,376,206.81 in commission and fees for Starberry.

The order recognizes respondent's substantial cooperation in the form of a substantially reduced penalty.

Acting Director of Enforcement Director Gretchen Lowe said, "The CFTC will continue to vigilantly investigate and prosecute those who act as FCMs without first registering."