NFA Sanctions Introducing Broker XFA and Two Employees for Multiple Violations

The U.S. National Futures Association (NFA) has imposed a $400,000 fine on X-Change Financial Access LLC (XFA), an NFA Member introducing broker based in Chicago, Illinois.

According to the NFA Hearing Panel’s Decision, XFA was found to have violated several rules. The firm failed to maintain full, complete, and systematic records of all transactions and pre-trade communications. Additionally, XFA allowed two unregistered individuals to act as associated persons (AP) without being NFA Associates and failed to adequately supervise its operations and employees.

The Decision also held Timothy Francis Hendricks, a principal and AP of XFA, jointly and severally liable for $100,000 of the $400,000 fine. Hendricks has further been barred from acting in a supervisory capacity for XFA or any other NFA Member for a period of 90 days.

In a separate Decision, the Hearing Panel ruled that Peter Gordon Scheffler, a former principal and AP of XFA, is prohibited from reapplying for NFA membership, associate membership, or principal status through December 31, 2024. Scheffler is also required to pay a $150,000 fine if he seeks NFA membership or principal status in the future. Additionally, he is barred from being employed as a supervisor by or acting in a supervisory capacity for any NFA Member through March 31, 2025.