The National Futures Association (NFA), the self-regulatory body for the US derivatives industry, disclosed yesterday Its Business Conduct Committee has charged GMG Brokers LTD, a London-based NFA member referral broker, and its Chief Executive Officer (CEO) Marco Saviozzi and Deputy Chief Executive Officer Jason Terence Lyons with violating a number of NFA compliance rules.

Specifically, the indictment alleges that GMG and Lyons engaged in deceptive conduct, failed to adhere to the high standards of business honor and the principles of fair and equitable dealing, and acted against the best interests of GMG customers through Lyons' misleading communications with GMG customers. In addition, the two defendants engaged in trading activities that placed the interests of GMG and Lyons, as well as the interests of a "favored" GMG customer, ahead of other GMG customers to generate additional brokerage fees.

The indictment also accuses GMG and Saviozzi of inadequate supervision. According to official sources, all the defendants neither admitted nor denied the charges in the indictment.

The NFA has issued two decisions against GMG, Saviozzi and Lyons. One of the decisions requires GMG to pay a $225,000 fine and Saviozzi to share liability with the company for $50,000. The other is to order Lyons to pay a $125,000 fine and withdraw from NFA Associate membership on or before May 1, 2023, and not apply for NFA membership, associate membership, etc., for 120 days thereafter.

In January, the NFA fined StoneX Markets LLC, a registered swap dealer and NFA member, $1 million for violating multiple compliance rules.