NFA - National Futures Association

12/17/2025 | Press release | Distributed by Public on 12/17/2025 13:09

DECISION IN DISCIPLINARY CASES (Alggoritmica Portfolio Management LLC and Lino David Flores Hidalgo)

Case Documents:

Amended Answer Amended Complaint Amended Decision Amended Notice Of Intent Amended Notice Of Member Responsibility Action Answer Appeals Committee Decision Cftc Decision Cftc Order Circuit Court Appeal Complaint Decision Federal Court Order Final Order Interim Order Nfa Reply Notice Notice And Order Lifting Member Responsibility Action Notice And Order Lifting Suspension Of Membership Notice And Order Of Suspension Notice Of Appeal Notice Of Associate Responsibility Action Notice Of Intent Notice Of Member Responsibility Action Notice Of Suspension Of Membership Notice Of Termination Of Ara Notice Of Termination Of Member Responsibility Action Order Order Denying Petition Order Lifting Conditions Order Of Dismissal Petition To Stay Response To Amended Notice Of Intent Response To Notice Of Intent Withdrawal Of Notice Of Intent

Narrative Summary:

COMPLAINT:

On June 17, 2025, NFA's Business Conduct Committee (BCC) issued a Complaint against Alggoritmica Portfolio Management LLC (Alggoritm... ica) and Lino David Flores Hidalgo (Hidalgo). Count I of the Complaint charged Alggoritmica with failing to ensure that Alggoritmica Volatility Portfolio Fund LP (Volatility Fund) qualified for the claimed CFTC exemption; using a misleading disclosure document; failing to comply with pool participant account statement requirements; and failing to file a pool financial report with NFA. Count II of the Complaint charged Alggoritmica with permitting a prohibited loan or advance of Volatility Fund assets to Alggoritmica and Hidalgo. Count III of the Complaint charged Alggoritmica and Hidalgo with failing to observe high standards of commercial honor and just and equitable principles of trade by failing to act in the best interests of Volatility Fund and its participants. Count IV of the Complaint charged Alggoritmica and Hildalgo with failing to cooperate promptly and fully with NFA.

ANSWER TO COMPLAINT:

On July 17, 2025, Alggoritmica and Hidalgo filed an Answer to the Complaint.

DECISION:

On December 17, 2025, NFA's Hearing Panel issued a Decision, based on Alggoritmica and Hidalgo's settlement offer, and ordered Alggoritmica to withdraw from NFA membership and not reapply for NFA membership or apply for principal status with an NFA Member at any time in the future. In the Decision, the Hearing Panel also ordered Hidalgo to withdraw from NFA associate membership and not apply for NFA membership or reapply for NFA associate membership or principal status with an NFA Member for three years. The Hearing Panel further ordered Hidalgo to pay a $75,000 fine and to comply with several undertakings, described in the Decision, if he seeks NFA membership or reapplies for NFA associate membership, or seeks to become a principal of an NFA Member following the expiration of the three-year period. Read More.

Rule Type:

  • C.R.2-13 - RECORDKEEPING FOR CPOS/CTAS
  • C.R.2-4 - HIGH STDS. OF COMMERCIAL HONOR
  • C.R.2-5 - FAILURE TO COOPERATE W/ NFA
  • C.R.2-45 - PROHIBITION OF LOANS BY COMMODITY POOLS TO CPOS AND AFFILIATED ENTITIES

Committee:

  • Business Conduct Committee
  • Hearing Committee

Action Type(s):

  • GENERAL CONDUCT
  • SALES PRACTICE

Penalty/Event:

  • WITHDRAW FROM MEMBERSHIP
  • ORDERED NOT TO APPLY AS PRINCIPAL OF AN NFA MEMBER
  • ORDERED NOT TO REAPPLY FOR NFA MEMBERSHIP
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