A U.S. federal court has ordered a futures brokerage run by well-known New York trader Mark Fisher to pay $650,000 for not properly segregating customer funds following a complaint filed by the country's top commodity regulator.
The U.S. Commodity Futures Trading Commission accused Fisher's MBF Clearing Corp in March of holding between $30 million and $90 million of customer funds between September 2008 and March 2010 in an account at a separate financial institution that did not meet the requirements of the Commodity Exchange Act.
The account did not have the "legal obligation to make customer funds available for redemption by the next business day". Nor was the account properly labeled as a "customer segregated account," the CFTC complaint said.
The agency went to federal court for an order requiring MBF Clearing to pay the fine. Once it is paid, the firm will be clear of CFTC charges.
Fisher did not immediately return a message left with his New York office seeking comment.
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