Regulatory public disclosures

Types of customers: institutional (Introducing Brokers, Commodity Pool Operators, Commodity Trading Advisors), ECP and retail.

Markets and currencies traded: Foreign exchange currencies. Contracts for Difference, including index, bond and commodity-based CFDs and Precious Metals are not available for trading to residents of the United States.

International business: OANDA operates in eight regulated markets including:

OANDA Corporation – operating in US (regulated by CFTC/NFA),
OANDA Europe Limited – operating in the UK and Europe (regulated by the FCA),
OANDA Europe Markets Limited - operating in the European Union (regulated by the MFSA),
OANDA Asia Pacific Pte Ltd – operating in Singapore (regulated by the MAS),
OANDA (Canada) Corporation ULC – operating in Canada (regulated by IIROC),
OANDA Australia Pty Ltd – operating in Australia (regulated by ASIC),
OANDA Japan Inc – operating in Japan (regulated by FSA),
OANDA Global Markets Ltd - operating in the emerging markets (regulated by the FSC in the BVI).

OANDA holds its operating and customer funds in accounts at top tier banks. When initially selecting a bank depository, a thorough review of the bank’s credit rating and financial statements is completed. Normally, OANDA only holds funds at banks with a credit rating of A or higher. OANDA periodically monitors the financial condition of the banks it has relations with for ongoing compliance with established criteria. Any deviation from the above is subject to review and approval by OANDA’s Risk Management Executive Committee

ECP credit risk arises when an ECP’s total deposited funds are insufficient to cover trading losses incurred. This situation may arise when there is a sudden and significant movement in the market relating to an instrument in which the client has an open position. OANDA controls the risks associated with ECP trading activities by requiring ECP’s to deposit cash collateral. OANDA does not allow ECPs to enter into trades if the ECP has not deposited a sufficient amount of collateral. In addition, the trading platform manages this risk by automatically closing out an ECP’s open positions when there is insufficient collateral on deposit. OANDA also has affiliated companies that act as regulated forex counterparties in foreign markets and OANDA is required to maintain a higher level of capital based on its relationships with those affiliates.

OANDA is required to disclose any material administrative, civil, enforcement or criminal complaints or actions filed against OANDA where such complaints or actions have not concluded, and any enforcement complaints or actions filed against FCM during the last three years.

On April 1, 2021, the National Futures Association (“NFA”) issued a Decision accepting an Offer of Settlement (“Offer”) that OANDA had made to resolve a complaint that NFA had issued on March 8, 2021 (“Complaint”). The Complaint had alleged, inter alia, that OANDA: (1) in apparent violation of NFA Financial Requirements Section 13, had failed on various dates to submit certain daily forex reports accurately or timely; and (2) in apparent violation of NFA Compliance Rule 2-36(e), had failed: (i) to adopt and implement an adequate information systems security program; (ii) in three instances, to follow its procedures for handling and resolving customer complaints; and (iii) as a result of the foregoing, to diligently supervise its business and employees. Under the terms of the Offer, OANDA, without admitting or denying the allegations in the Complaint, consented to findings that it had violated NFA Financial Requirements Section 13 and NFA Compliance Rule 2-36 and agreed to pay a fine of $200,000.

On August 21, 2020, the Commodity Futures Trading Commission issued an order filing and settling charges (the “Order”) against OANDA Corporation (“OANDA”). The summary of the Order provides: "In or around October 2018 and during the period April 2019 to August 2019, the CFTC OANDA failed at times to meet certain financial requirements applicable to futures commission merchants (“FCMs”) offering or engaging in retail foreign currency transactions and/or retail foreign exchange dealers (“RFEDs”): (1) OANDA failed to meet minimum capital requirements from April 26, 2019 to August 21, 2019 and (2) OANDA made dividend payments on October 15, 2018, April 26, 2019, and May 28, 2019 in violation of the equity withdrawal restriction. In addition, OANDA violated certain reporting requirements related to its violations of these financial requirements. The Commission’s Division of Enforcement has found no indication that customers suffered any losses as a result of OANDA’s net capital and equity withdrawal restriction violations. OANDA did not maintain adequate internal controls with respect to these financial and reporting requirements; consequently, the firm failed to diligently supervise these matters related to its business as a Commission registrant. In accepting OANDA’s offer of settlement, the Commission recognizes OANDA’s cooperation in the investigation of this matter."

More information can be found through the NFA BASIC system at https://www.nfa.futures.org/basicnet/.