A year ago MODERN TRADER tabbed cybersecurity as the investment theme of 2017. Contributors Timothy Summers and Michael Robinson highlighted the reasons and provided a short list of stocks to look at. While every stock mentioned was not a home run, Robinson’s picks of Nvidia (NVDA) and Raytheon (RTN) soared 65% and 40% over the 11 months to follow and the broad sector as represented by the ETFMG Prime Cyber Security ETF (HACK) gained more than 18%.
The letter points out that the activity it was sanctioned for — the handling of cash residuals and trade break credits from trades resulting from bunched orders that Vision received for clearing from Ace — was discontinued two years prior to charges being filed.
Vision will pay a $1.5 million fine in addition to the $2.053 million in restitution it paid to customers on March 15, 2014. Vision was also ordered to withdraw from NFA membership six months from today’s decision.
If the firm becomes registered, NFA will ensure that any customer who inquires about High Ridge through NFA's BASIC system will be provided with information about all of Vision's disciplinary actions.
Vision agreed to accept the findings that it violated certain NFA rules, pay a $1.5 million fine and to withdraw its FCM registration once the business is “spun out” to a yet to be registered FCM.
In what only can be described as an act of supreme chutzpah or proof that Chang had become completely separated from reality; he then sent out a marketing letter to brokers encouraging them to raise assets for ACE.
The NFA charged ACE and Chang with converting customers' property; failing to observe high standards of commercial honor and just and equitable principles of trade
The complaint points out that Vision “has had a long history of supervisory issues during its tenure as an NFA Member,” and notes that it has been the subject of four prior NFA Complaints – three of which charged the firm with failing to diligently supervise various aspects of the firm’s operations. The respondents in this complaint could face expulsion or suspension for a specified period from NFA membership; bar or suspension for a specified period from association with an NFA Member; censure or reprimand or a monetary fine not to exceed $250,000 for each violation found. I was introduced to Vision’s aggressive strategy for raising assets for options writing CTAs nearly a decade ago. Justin Boshnack, son of Vision founder Bob Boshnack (who currently has no administrative responsibilities) had called me to pitch a story on the success of Vision’s brokers. He told me that many of their brokers were making in excess of $1 million a year by raising assets for various CTAs. I was at Futures Magazine at the time and I recall thinking that he did not understand the nature of our publication. Futures covers all things related to the futures industry but a story on successful asset raising absent any context of a trading strategy is something we didn’t do. The younger Boshnack was bragging about how much money their brokers were making as if we were some internal broker newsletter. There was no mention of whether the investments they were selling was making any money for customers. None. I recall thinking, ‘if we did do a story on this it wouldn’t be positive.’ Shortly later a CTA who I had profiled recently had sent me some disturbing offering documents from Vision. The CTA was also an introducing broker (IB) and the documents were touting excessive upfront fees an IB could charge by raising assets for ACE and Yu-analysis I did on ACE came to 25.60%. No one is that good.
Futures has learned that a preliminary agreement has been reached between Vision Financial and the trustee for Peregrine Financial Group that would transfer all PFG accounts to Vision.
Futures Commission Merchant Vision fined 500K by NFA for failing to superivse IBs.