I’m not referring to the initial entry, although I guess what you said could apply. I’m speaking more of midway into the trade and more of the who’s on the other side.
I did further research and it seems to be a matter of the contract of the initial counterparty being sold and then another party buy his contract taking over the other side (I am short) of my trade. Hence if there isn’t enough volume the dealer does have to step in. Just like in any equity etc.
It makes me wonder if some of these big financial institutions do things like this knowing they’ll get caught and fined, but the fine doesn’t compare to how much money they make - Billions. This might not be the case here with J.P. Morgan I don’t know, but makes wonder if they do this type of stuff intentionally to make a quick billion or more.
There was a phone company that got busted for charging their customers debit card 2 to 3 dollars extra every month without their customers knowing, they were ordered to pay 800 million, but they made 3 billion on those illegal charges, basicaly stealing from their customers.
May 23, 2024
Washington, D.C. — The Commodity Futures Trading Commission today issued an order simultaneously filing and settling charges against J.P. Morgan Securities LLC, a registered futures commission merchant and swap dealer, for failing diligently to supervise its business as a CFTC registrant, resulting in J.P. Morgan failing to capture billions of orders in its surveillance systems.
J.P. Morgan admits the facts in the order in Sections II.C.2 (Scope of Surveillance Data Gaps) and 3 (Causes of Surveillance Data Gaps); acknowledges that its conduct in those sections violated the CFTC regulations; and otherwise neither admits nor denies the findings of fact.
The order requires J.P Morgan to pay a $200 million civil monetary penalty (CMP), cease and desist from further violations of the CFTC’s supervision requirements, and comply with conditions and undertakings specified in the order. The order provides the CMP obligation will be offset by a total of $100 million of any payment made pursuant to the resolution with JPMorgan Chase Bank, N.A. concerning surveillance gaps by the Office of the Comptroller of the Currency dated March 14, 2024, and the resolution with JPMorgan Chase & Co. concerning surveillance gaps by the Board of Governors of the Federal Reserve System dated March 8, 2024.
“Today’s resolution includes a significant penalty, certain factual admissions, and the appointment of a consultant to ensure remediation,” said Director of Enforcement Ian McGinley. “We hope it sends a clear message that CFTC registrants must take appropriate steps to ensure, through testing and other means, that complete trade and order data direct from exchanges are being ingested into trade surveillance systems and that orders are being surveilled.”
Case Background
According to the order, in 2021, in the course of onboarding a new trading exchange, J.P. Morgan discovered its surveillance of trading on multiple venues and trading systems was not operating correctly, resulting in gaps in J.P. Morgan’s trade surveillance on these venues.
The surveillance gaps resulted from J.P. Morgan’s failure to configure certain data feeds to ensure complete trade and order data were being ingested by J.P. Morgan’s surveillance tools. On a specific U.S. designated contract market, J.P. Morgan failed to ingest into its surveillance systems—and thus failed to surveil—billions of order messages from 2014 through 2021, which, according to J.P. Morgan, largely consisted of sponsored access trading activity for three significant algorithmic trading firms. J.P. Morgan has represented the surveillance gaps were fully remediated by 2023.
According to the order, while J.P. Morgan had in place a quarterly reconciliation process designed to ensure the completeness of some order and trade data ingested into certain surveillance systems, J.P. Morgan did not subject direct-from-exchange data feeds to that reconciliation process, based on an erroneous assumption that data directly from an exchange was from a “golden source” and thus did not need to be tested.
The CFTC acknowledges and appreciates the assistance of the Office of the Comptroller of the Currency and the Board of Governors of the Federal Reserve System in this matter.
The Division of Enforcement staff responsible for this matter are Meredith Borner, R. Stephen Painter, Jr., Lenel Hickson, Jr., and Manal M. Sultan, and former staff member Steven Ringer.
CFTC Orders J.P. Morgan to Pay $200 Million for Supervision Failures | CFTC
PLEXYTRADE IS ACCEPTING NEW CUSTOMERS FROM THE U.S.
I checked with my rep about this, since on the page where you register for a new account, United States is not in the drop-list for Country of Residence. She wrote back: “We accept clients globally, and they may continue to sign up for Plexytrade. However, if they do not have the option to select ‘US’ as their country when opening an account, they may choose ‘Other’ as an alternative.”
PlexyTrade (St. Lucia) has been added to our List.
Note:
I propose to remove the Alphabetical List of Brokers from this thread. That list begins in post 2 and continues through posts 3 and 4. It is continually getting out of date, as brokers enter and exit the forex industry, merge with other brokers, change their names and registration locations, etc. Keeping that list up to date is burdensome and almost impossible. Also, I’m not aware that anyone actually uses the Alphabetical List.
If there is no consensus to retain the Alphabetical List. I will delete it at the next update.
This is unreal…demo accounts affect price in the market.
It’s been a very long time since I’ve used demo and I definitely wasn’t paying attention nor was able to pick up on it then -or- things have changed, but the demo account I’m using impacts the market just as a live account would…this is unreal. I’ve had my suspicions when I used mt4 with ftmo, but thought it was an isolated case due the nature of their business model…but to have an actual legit broker’s demo behave this way I was not expecting…This is flabbergasting.
Whenever I had a demo account, it matched the live account, what are you saying?
The market is reactive. Doesn’t matter what size trader you are as a participant. It’s hard to explain without getting into details…maybe on my discord one saturday afternoon.
It’s probably better that most people don’t pay attention to this kind of thing.
What broker is this?
-Without question.
-Brokers are able to apply artificial slippage and execution delays etc. on their demo accounts, to simulate live conditions. These parameters can be adjusted as needed. Not sure if this is what you are referring to.
Surgetrader just went bust last week. They partnered with Kathy Lien/Boris Schlossberg and BKForex for a bit.
where was they base?
Naples Florida.
Thanks for that info
No, it’s more than that. I’m gonna go live so I’ll see. Just really weird, these networks are so automated, so many algos.
Yea the ad should be a red flag. Beach, money, chilling, girl. Uh what about the trading?
This can’t be happening because futures are exchange centralized.
One contract bought = one contract sold and all can be checked in logs.
It’s not like CFDs where we can buy without a seller (it’s just a ledger entry made by the broker).
I believe, though, that demos are prepared to consider the order size and level 2 at the moment of the demo execution. That’s what you’re observing.
So far from the limited time I’ve been on the feed I think it does effect price, but it’s more of a liquidity and pricing response. From what I’ve experienced on the demo I honestly believe the network is recognizing the demo executions and does not distinguish between the two. The only difference obviously is at the back office level with the one being funded. This is also taking into account these are contracts so the price action is a bit more segmented…something even a beginner can see in the charts.
Put it this way, for now, I can’t pick up any difference in the price reaction between demo and live executions.
I’ve become extremely acute after fighting the off-shore algos for such a long time.
Went live and there’s an immediate relief, but that’s how it started with each of the FX off-shores. If things stay this way I recommend all you guys dump the off-shores and never touch them again.
We’ll see after I put up some serious numbers in few months. I’ll definitely pick up any changes.
Enjoy your journey, wishing you the best.