Page 24 - 期货和衍生品行业监管动态（2023年9月刊）

期货和衍生品行业监管动态

without registration, or offering or entering into leveraged retail commodity contracts

off-exchange, is acting in clear violation of the law.”

Case Background

According to the complaint, the defendants, doing business as “My Forex Funds,”

supposedly offered retail customers the opportunity to become “professional traders”

by using Traders Global’s money to trade against third-party “liquidity providers” and

share in any trading profits. They assured customers that “your success is our business,”

and “we only make money when you do.” But, in reality, Traders Global—not a third-

party “liquidity provider”—is the counterparty to substantially all customer trades.

The complaint also alleges that Traders Global actively minimizes the likelihood

that customers trade profitably by using pretexts to terminate customer accounts,

misleadingly assessing commissions that reduce customer account equity, secretly

using specialized software to cause customer orders to be executed at worse prices than
appeared to the customer at the time an order was sent, and handicapping the extremely

small number of successful customers to decrease customer profits and increase

customer losses.

As the complaint noted, the Traders Global pitch has been successful, and more

than 135,000 customers have signed up for their trading program since November 2021,

paying at last $310 million in fees. The complaint alleges Kazmi used proceeds from

the fraud to purchase luxury homes and automobiles, and make tens of millions of

dollars in transfers to his personal accounts.

Related International Action

In a separate action, on August 29, the Ontario Securities Commission issued a

temporary cease trade order that includes a prohibition against all trading in any

securities by Traders Global Group Inc. and Murtuza Kazmi.

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