The National Futures Association has ordered Ikigai Strategic Partners LLC and its principal Anthony Robert Emtman to jointly pay a $150,000 fine.
The self-regulatory organization for the U.S. derivatives industry, including on-exchange traded futures, retail off-exchange foreign currency, and OTC derivatives, has fined the Puerto Rico-based commodity pool operator following the alleged violations:
- Ikigai Strategic permitted one of the pools the firm operates to make a prohibited advance of pool assets to an affiliate that Emtman and another Ikigai Strategic principal own.
- Ikigai and Emtman acted contrary to high standards of commercial honor and just and equitable principles of trade regarding the prohibited advance by engaging in conduct that placed the firm’s and Emtman’s interests above their obligations to the pool and its participants.
- Ikigai Strategic commingled pool funds with the assets of another pool, failed to provide necessary disclosures to pool participants and failed to comply with recordkeeping and reporting obligations.
- Ikigai Strategic and Emtman failed to supervise the firm’s operations and its employees.
Ikigai Strategic has agreed to settle with the NFA by paying the $150,000 fine without either admitting or denying the alleged violations.
Sigma Broking fined $150,000 in May
A previous $150,000 fine was ordered upon Sigma Broking Limited in May because the brokerage allegedly failed to conduct annual anti-money laundering audits, failed to keep written pre-trade communications readily accessible, and failed to supervise.
Sigma Broking is a UK-based financial services firm that provides brokerage services. It operates as an interdealer broker, facilitating transactions between financial institutions. The firm offers a range of services, including trading in derivatives, foreign exchange, and commodities.
The brokerage firm is known for its expertise in options and other derivative products, providing liquidity and market-making services. It also offers bespoke trading solutions tailored to the needs of its clients, which include banks, hedge funds, and other financial institutions. Sigma Broking operates as an execution-only IB in the United States and specializes in providing block futures and options cleared on US and non-US institutional clients.
The NFA’s Business Conduct Committee, which reminded that the broker has a history of failing to conduct its required AML audits and miscalculating its adjusted net capital (ANC), found in March 2023 that Sigma failed its AML and ANC obligations once again.
The decision, issued by an NFA Hearing Panel, is based on the committee’s complaint. Sigma Broking settled with the NFA while neither admitting nor denying the allegations in the complaint.
In its Decision, the Hearing Panel found that Sigma Broking failed to conduct annual anti-money laundering audits, in violation of NFA Compliance Rule 2-9(c); failed to keep written pre-trade communications readily accessible, in violation of NFA Compliance Rule 2-10(a); and failed to supervise, in violation of NFA Compliance Rule 2-9(a).
Sigma Broking recently enhanced its partnership with ION, enabling its customers to route orders to the London Metal Exchange (LME) more efficiently. Sigma, known for its brokerage services to institutional clients, has incorporated ION’s XTP Execution suite (XTP-E) into its offerings. This suite is recognized for its effectiveness in executing listed derivatives trades.
Established in 2008, Sigma has expanded into multiple asset classes, including commodities and global equity execution. It became a Category 1 Ring Dealing member of the LME in 2022, marking a significant milestone in its growth.
