The US National Futures Association (NFA) has ordered Alggoritmica Portfolio Management LLC, an NFA Member commodity pool operator and commodity trading advisor in Wilmington, Del., to withdraw from, and not reapply for, NFA membership.

NFA has also ordered Lino David Flores Hidalgo, the sole principal and associated person of Alggoritmica, to withdraw from, and not reapply for, NFA membership status for three years and to pay a $75,000 fine and comply with several undertakings if he reapplies for NFA membership or principal status in the future.

The Decision, issued by an NFA Hearing Panel, is based on a Complaint issued by NFA’s Business Conduct Committee and a settlement offer submitted by Alggoritmica and Hidalgo, in which they neither admitted nor denied the allegations in the Complaint.

In the Complaint, the Committee alleged that Alggoritmica violated NFA Compliance Rule 2-13(a) by, among other things, failing to ensure that its pool, Alggoritmica Volatility Portfolio Fund LP (Volatility Fund), qualified for a claimed exemption under CFTC Regulation 4.7 and using a misleading disclosure document; and violated NFA Compliance Rule 2-45 by permitting a prohibited loan or advance of Volatility Fund assets to Alggoritmica and Hidalgo.

The Committee further alleged that Alggoritmica and Hidalgo violated NFA Compliance Rule 2-4 by not acting in the best interest of Volatility Fund and its participants and violated NFA Compliance Rule 2-5 by failing to cooperate promptly and fully with NFA.

In its Decision, the Hearing Panel found that Hidalgo committed the violations alleged against him in the Complaint.