NFA Fines GMG Brokers and Its CEO & Deputy CEO $350,000 in Total

The National Futures Association (NFA), the self-regulatory organisation for the U.S. derivatives industry, disclosed yesterday that its Business Conduct Committee has charged GMG Brokers LTD, an NFA Member introducing broker located in London, U.K., CEO Marco Saviozzi and Deputy CEO Jason Terence Lyons, with breaching NFA Compliance Rules.

Specifically, the Compliant alleged that GMG and Lyons engaged in deceptive conduct, failing to observe high standards of commercial honor and just and equitable principals of trade, and acting contrary to their customers' best interests through Lyons' misleading communications with GMG customers. Besides, the two defendants engaged in trading activities that placed GMG and his interests—as well as the interests of a "favored" GMG customer—ahead of other GMG customers to generate additional brokerage fees.

Also, the Compliant accused GMG and Saviozzi of failing to supervise. All of them neither admitted nor denied the Complaint's allegations, according to the official press release.

NFA has issued two Decisions against GMG, Saviozzi and Lyons. One requires GMG to pay a $225,000 fine, with Saviozzi sharing liability with the firm jointly and severally for $50,000. The other one orders Lyons to pay a $125,000 fine and to withdraw from NFA associate membership on or before May 1, 2023, and thereafter not apply for NFA membership, associate membership or principal status for 120 days.

In January, NFA has ordered StoneX Markets LLC​, a registered swap dealer and NFA Member headquartered in Chicago, Illinois, to pay a $1,000,000 fine for multiple violations of compliance rules.