Key Takeaways
- • The US National Futures Association (NFA) ordered Alggoritmica Portfolio Management LLC, a Wilmington, Del.-based NFA Member commodity pool operator and commodity trading advisor, to withdraw from NFA membership and not reapply.
- • NFA ordered Lino David Flores Hidalgo, the sole principal and associated person of Alggoritmica, to withdraw from membership and not reapply for three years, and to pay a $75,000 fine.
- • The NFA Hearing Panel found that Hidalgo committed the violations alleged in the Business Conduct Committee's Complaint; both respondents neither admitted nor denied the allegations under a settlement offer.
- • The violations centered on Alggoritmica Volatility Portfolio Fund LP, including failure to ensure the pool qualified for a claimed CFTC Regulation 4.7 exemption, use of a misleading disclosure document, and a prohibited loan or advance of fund assets to the firm and Hidalgo.
Summary
The US National Futures Association has ordered Alggoritmica Portfolio Management LLC to withdraw from NFA membership and not reapply, according to an NFA regulatory announcement reported by FX News Group on December 18, 2025. Alggoritmica is an NFA Member commodity pool operator and commodity trading advisor based in Wilmington, Delaware.
The NFA also ordered Lino David Flores Hidalgo, the firm's sole principal and associated person, to withdraw from membership and not reapply for three years. If he seeks NFA membership or principal status in the future, he must pay a $75,000 fine and comply with several undertakings.
The Decision was issued by an NFA Hearing Panel and was based on a Complaint from the NFA's Business Conduct Committee and a settlement offer submitted by Alggoritmica and Hidalgo. Both parties neither admitted nor denied the Complaint's allegations.
The Committee alleged that Alggoritmica violated NFA Compliance Rule 2-13(a) by, among other things, failing to ensure that its pool, Alggoritmica Volatility Portfolio Fund LP (the Volatility Fund), qualified for a claimed exemption under CFTC Regulation 4.7, and by using a misleading disclosure document. It also alleged a violation of Compliance Rule 2-45 for permitting a prohibited loan or advance of Volatility Fund assets to Alggoritmica and Hidalgo. The Committee further alleged breaches of Compliance Rule 2-4, for not acting in the best interest of the fund and its participants, and Compliance Rule 2-5, for failing to cooperate promptly and fully with NFA.
In its Decision, the Hearing Panel found that Hidalgo committed the violations alleged against him in the Complaint.
The NFA also ordered Lino David Flores Hidalgo, the firm's sole principal and associated person, to withdraw from membership and not reapply for three years. If he seeks NFA membership or principal status in the future, he must pay a $75,000 fine and comply with several undertakings.
The Decision was issued by an NFA Hearing Panel and was based on a Complaint from the NFA's Business Conduct Committee and a settlement offer submitted by Alggoritmica and Hidalgo. Both parties neither admitted nor denied the Complaint's allegations.
The Committee alleged that Alggoritmica violated NFA Compliance Rule 2-13(a) by, among other things, failing to ensure that its pool, Alggoritmica Volatility Portfolio Fund LP (the Volatility Fund), qualified for a claimed exemption under CFTC Regulation 4.7, and by using a misleading disclosure document. It also alleged a violation of Compliance Rule 2-45 for permitting a prohibited loan or advance of Volatility Fund assets to Alggoritmica and Hidalgo. The Committee further alleged breaches of Compliance Rule 2-4, for not acting in the best interest of the fund and its participants, and Compliance Rule 2-5, for failing to cooperate promptly and fully with NFA.
In its Decision, the Hearing Panel found that Hidalgo committed the violations alleged against him in the Complaint.
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