North American Derivatives Exchange (Nadex), a part of IG Group (LON:IGG), has issued a notice of disciplinary action against one of its members – Chiso Nwokoro.

Nadex explains that, on June 13, 2019, in light of suspicious trading activity, the Compliance Department sent Nwokoro an Account Inquiry letter requesting, among other things, general background information, source of funds information, and details regarding his order and trading activity. This inquiry was subsequently followed up with other requests for information.

Nwokoro responded to certain inquiries and requests for information. However, Nwokoro failed to produce full and complete banking statements, and did not adequately respond to questions regarding his trading strategy and sources of funding. Also, Nwokoro failed to disclose to Nadex a dispute with another brokerage which resulted in his trading privileges being suspended.

In addition, the Compliance Department found, by both his own admission and his banking activity, that Nwokoro allowed a third party to have a direct economic and financial interest in the activity and trading in his Nadex account. Further, this investigation revealed that Nwokoro executed trades in his Nadex account with third party funds and traded his account, at least in part, on behalf of that third party.

Based on Nadex’s investigation, the Compliance Department concluded that Nwokoro violated Exchange Rule 3.3(d)(i) when he failed to immediately notify Nadex in writing that his trading privileges had been suspended as a result of a dispute with a brokerage. The Compliance Department has also concluded that Nwokoro violated Member Acknowledgements and Authorizations, Section (h) of the Nadex Membership Agreement and Exchange Rule 3.3(a) by failing to fully cooperate with this investigation.

Additionally, Nwokoro violated the Nadex Membership Agreement, Member Representations Section (d), when he allowed a third party to have a direct economic interest in the activity and trading in his Nadex account and Nadex Rule 5.19(g)(1) when he executed trades in his Nadex account, at least in part, on a third-party’s behalf.

Finally, Nwokoro violated Nadex Rule 5.2(e) when he admittedly allowed another Nadex Member to log in and access his Nadex account.

By settlement agreement, Chiso Nwokoro neither admitted nor denied the findings or conclusions of the investigation. The trader has been assessed a $10,000 fine. Additionally, Chiso Nwokoro’s Nadex Membership has been revoked, his account terminated, and he has been permanently banned from trading on Nadex markets, either directly for his own account, through an intermediary, or as an authorized trader on behalf of any other account.