Cash-Strapped AlphaMetrix Ordered To Pay Out Fee Rebates

Oct 22 2013 | 12:56pm ET

Hedge fund services firm AlphaMetrix has been ordered to pay its clients about $600,000 by the end of next week, or face serious consequences.

The National Futures Association yesterday said that the firm was in violation of its rules after failing to reinvest the fee rebates in question. AlphaMetrix said earlier this month that it had to delay those payments due to "significant cash-flow issues."

The NFA has barred AlphaMetrix from taking in new investments, and said that if AlphaMetrix fails to pay out the rebates by Nov. 1, it would be barred from placing any trades other than those liquidating existing positions.

"The firm had deducted advisory fees for certain participants in commodity pools operated by the firm," the NFA wrote in its member responsibility action. "Those fees were to be reinvested in the pools but were not."

"AlphaMetrix has and will continue to cooperate with the NFA," the firm said.


In Depth

GSAM’s Papagiannis on Liquid Alternatives

May 25 2016 | 5:07pm ET

The popularity of liquid alternatives strategies has blossomed in recent years,...

Lifestyle

From Modern Trader: Stephen Curry is a Black Swan

May 18 2016 | 7:43pm ET

What do the rise of the Internet, the sinking of the Titanic, 9/11, and Stephen...

Guest Contributor

LendingClub and the Question of Internal Hedge Funds

May 19 2016 | 8:42pm ET

Peer-to-peer lending platform LendingClub Corp. has been in the news since the firm...