The National Futures Association (NFA) has fined NinjaTrader $250,000, alleging serious gaps in its compliance framework. According to the association, the Chicago-based futures commission merchant faced regulatory scrutiny over failures in both its anti-money laundering (AML) program and overall supervision procedures.

The enforcement action follows a settlement between NinjaTrader and the NFA, reportedly finalized through a Decision issued by an NFA Hearing Panel.

While the firm did not admit or deny the allegations, it agreed to the penalty proposed by the regulator. The case stems from a Complaint filed by the NFA’s Business Conduct Committee, which charged the firm with violating two key compliance rules.

AML Deficiencies Trigger Regulatory Response

According to the NFA, NinjaTrader failed to implement an adequate AML program, which is a clear breach of the Compliance Rule. This rule requires member firms to adopt measures that detect and prevent money laundering.

The lack of an effective AML framework raised concerns about the firm’s ability to monitor suspicious activity and protect the integrity of financial markets.

Read more: FTMO-Owned OANDA Fined $600,000 by U.S. Regulator Over Compliance Failures

In addition to the AML violations, the NFA cited NinjaTrader for failing to supervise its operations in line with the Compliance Rule. This rule obliges firms to maintain proper oversight of their business activities to ensure compliance with NFA rules. The panel found that NinjaTrader’s supervisory systems were inadequate and contributed to the compliance lapses.

Settlement Reached Without Admission of Guilt

Though the company neither confirmed nor denied the charges, it submitted a settlement offer as part of the regulatory process. The NFA Hearing Panel accepted the proposal and issued a formal Decision confirming the violations.

The $250,000 fine reflects the seriousness of the breaches and underscores the NFA’s commitment to enforcing high compliance standards among its members.

The action against NinjaTrader clearly signals to other NFA members the importance of strong internal controls. Firms operating as futures commission merchants must maintain robust compliance systems, especially in high-risk areas such as anti-money laundering.

As regulators continue to tighten scrutiny, financial firms face growing pressure to ensure that their supervisory practices can withstand examination.

Source: Finance Magnates