My broker wrote me a letter

June 25, 2014 12:17 PM
Vision maps out future for customers

Vision Financial Markets LLC sent a letter addressed to its customers, business associates and other interested parties through law firm Sidley Austin reiterating the contents of a letter sent earlier in the month regarding its settlement with the National Futures Association over charges filed last September regarding its oversight of commodity trading advisors Ace Investment Strategists and its principal Yu-Dee Chang.

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. However, the NFA complaint charged Vision with facilitating Ace’s action—misappropriating more than $2 million in customer money— and “that Vision was in a position to detect and stop the abuses.”

Once again Vision ties its agreement to withdraw its NFA membership to an orderly transfer of its futures business to a new FCM, High Ridge Futures LLC, indirectly owned by Howard Rothman and Robert Boshnack, the principal owners of Vision.  However, the NFA decision only states that Vision must redraw within six months of the June 20 decision “unless such period is extended by the Hearing Panel for good cause shown relating to the orderly transfer of Vision's futures business to a registered futures commission merchant.”

There is no acknowledgement or expectation in the decision that Vision will simply be able to move its business to High Ridge as it indicates in the letter. 

The decision goes on to say, “Should Vision reapply for NFA membership after it has withdrawn, NFA may use the Committee's Complaint and this Decision as the sole basis for denying Vision's application.”

The letter liberally uses the word “alleges” to refer to items in the NFA complaint that Vision agreed to its findings. The letter states that Vision agreed, without admitting or denying the allegations of the complaint, to findings that Vision violated NFA Compliance Rules,” which were the essence of the complaint. 

About the Author

Editor-in-Chief of Modern Trader, Daniel Collins is a 25-year veteran of the futures industry having worked on the trading floors of both the Chicago Board of Trade and Chicago Mercantile Exchange.