CFTC Orders NinjaTrader to Pay $750,000 for Regulatory Failures

The Commodity Futures Trading Commission (CFTC) has taken significant action against NinjaTrader Clearing, LLC, which operates under the names NinjaTrader, Tradovate, and TransAct Futures, based in Deer Park, Illinois.

The CFTC's order, announced on September 23, finds that from at least December 31, 2020, to the present, NinjaTrader failed to implement adequate policies and procedures for the emergency handling of accounts, resulting in insufficient oversight of its employees during critical situations.

Specifically, the firm did not effectively manage accounts linked to Rajiv Patel following a statutory restraining order issued in the case of CFTC v. Patel, which was filed in 2022. As a consequence of these oversights, accounts remained active for several days after the order was served, leading to a loss exceeding $200,000 in value.

In addition to the civil monetary penalty of $750,000, NinjaTrader is required to pay $233,425 in restitution to the court-appointed receiver for distribution to victims affected by the fraud. The CFTC emphasized the importance of diligent supervision and adherence to regulations to protect market integrity.