A recent Enforcement Action against AlphaMetrix by the National Futures Association (NFA) could hasten the firm’s path to bankruptcy.
On October 21, the NFA issued a “Notice of Member Responsibility Action” to AlphaMetrix which instructed the firm to pay $600,000 in fees owed to managed futures Commodity Trading Advisors (CTAs) by November 1 or to cease trading, which for all practical purposes brings the firm to an end point. Sources have indicated the firm will have difficulty raising the capital and is resting its hopes on an additional capital infusion, which has yet to materialize. “The enforcement action forces Aleks Kins (firm founder and CEO) to make difficult decisions he had been resisting,” said one source familiar with the matter.
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