Nadex Permanently Bans Its Member Rafael Muzzi from Trading

North American Derivatives Exchange (Nadex) last week announced that its Compliance Department had decided to revoke its member Rafael Muzzi's Nadex Membership, and permanently ban him from trading on Nadex, due to his hiding disciplinary history.

According to Nadex, the Compliance Department opened an investigation following Nadex' third-party background service regarding the recent regulatory history of Rafael. Besides, the institution was notified that Rafael was the subject of an action by the Connecticut Banking Commission, which alleged securities fraud related to the sale of unregistered securities, and was ordered to Cease and Desist (CDO), make restitution and pay the penalty of $300,000.

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The Connecticut Banking Commission found that from at least January 2017 to June 2018, Rafael raised approximately $800,000.00 from at least 25 investors primarily located in Connecticut by establishing a trading account in his own name at a FX brokerage firm, and pooled funds for the alleged purpose of investing such funds in FX accounts that he managed.

During his tenure as a Nadex Member, Rafael failed to timely apprise Nadex that he was a party to the aforementioned regulatory matter and subsequent fines, penalties and orders related to it. In addition, Rafael failed to comply with this investigation when he ceased communications with Nadex subsequent to November 17, 2020.

Accordingly, the Compliance Department concluded that Rafael violated 3.3(d)(iv) and Rule 3.3 (d)(v). In addition, Rafael violated Rule 3.3(a) and Member Acknowledgements and Authorizations, Section (h) of the Nadex Membership Agreement.