The United States National Futures Association (NFA) has ordered K-Ratio Advisory LLC (KRA), a CFTC-registered commodity trading advisor and former NFA Member located in Chicago, Ill., and K-Ratio Brokerage LLC (KRB), a previously CFTC-registered introducing broker Member located in Chicago, Ill., never to reapply for membership or act as a principal of an NFA Member.

The Decision, issued by NFA’s Business Conduct Committee (BCC), is based on a Complaint issued by the BCC and a settlement offer submitted by KRA and KRB, in which they neither admitted nor denied the allegations.

The Complaint alleges that KRA and KRB operated an unregulated trading program without having adequate financial wherewithal to do so. Further, the Complaint also alleges that KRA and KRB used misleading and deceptive promotional material and communications. KRA and KRB allegedly allowed an unregistered individual to act as an associated person without being registered in such capacity and an NFA Associate.

Finally, the Complaint alleges that KRA and KRB failed to supervise.