The National Futures Association (NFA) has imposed a $400,000 fine on X-Change Financial Access (XFA), part of Marex, and suspended one of its executives from supervisory duties, following an investigation that revealed alleged compliance violations at the Chicago-based introducing broker.

Chicago Broker X-Change Financial Access Fined $400,000 by NFA

Timothy Francis Hendricks, an associated person and principal at XFA, will be barred from supervisory roles for 90 days and share liability for $100,000 of the total fine, according to the NFA's decision issued Wednesday.

The regulatory action stems from alleged multiple violations, including the firm's failure to maintain proper transaction records and pre-trade communications. The NFA also found that XFA allowed unregistered individuals to operate as associated persons without proper registration or NFA association status.

“The firm failed to keep full, complete, and systematic records of all transactions,” the NFA stated in its decision, highlighting broader supervision inadequacies under Hendricks' watch.

The settlement, reached without admission or denial of the allegations, requires XFA and Hendricks to implement remedial measures outlined in a separate agreement with the regulator. These undertakings specifically address the violations and relate to Hendricks' temporary supervision prohibition.