Kexin Xu (CRD #6966805) Is the Subject of a Customer Dispute

Kexin Xu (CRD #6966805) has been the subject of disclosure events reported on Kexin Xu’s FINRA BrokerCheck. According to Kexin Xu’s FINRA BrokerCheck report accessed on January 15, 2026, Kexin Xu has been the subject of one customer dispute disclosure. If you invested with Kexin Xu and you have concerns about the activity described below, keep reading.

BrokerCheck link: BrokerCheck

BrokerCheck report: BrokerCheck Report (PDF)

Investor disputes / customer complaints

Kexin Xu FINRA BrokerCheck report reflects 1 customer dispute disclosure. Below is the dispute listed on BrokerCheck:

Example 1 (Pending): Kexin Xu FINRA BrokerCheck report reflects that, on November 26, 2025, a claimant alleged violations of the FINRA Conduct Rules of Fair Practice and SEC’s Regulation Best Interest (Reg BI) regarding unsolicited trades that allegedly resulted in a margin deficit on October 10, 2025. The matter involves a derivative (index option). The claimant requested $90,800,000 in alleged damages. The dispute is pending in FINRA arbitration under docket/case number 25-02564.

Rule summary #1: FINRA Rule 3260 (Discretionary Accounts)

FINRA Rule 3260 limits when a broker may exercise discretion in a customer’s account. In general, a broker cannot place trades on a discretionary basis unless the customer has provided prior written authorization and the firm has accepted the account as discretionary. The rule is designed to help prevent unauthorized trading and ties discretionary accounts to firm supervisory obligations.

Rule summary #2: FINRA Rule 2010 (Standards of Commercial Honor and Principles of Trade)

FINRA Rule 2010 requires member firms and associated persons to observe high standards of commercial honor and just and equitable principles of trade. The rule is broad and is frequently cited in matters involving unethical conduct and customer-facing sales practice concerns.

Why this matters to investors (Regulation Best Interest)

Regulation Best Interest (Reg BI) is a U.S. securities regulation designed to strengthen the standard of conduct that broker-dealers owe to retail investors when making recommendations about securities transactions or investment strategies. Adopted by the U.S. Securities and Exchange Commission and effective as of June 30, 2020, Reg BI aims to enhance investor protection while preserving investor access to brokerage products and services.

Reg BI requires broker-dealers and financial advisors to act in the best interest of the retail customer at the time a recommendation is made, and not to place their own financial or other interests ahead of the customer’s. This represents a higher standard than the historical “suitability” requirement, which only required that recommendations be suitable, not necessarily optimal or conflict-free.

Reg BI is built around four key obligations:

1. Disclosure Obligation – Broker-dealers must disclose material facts about the relationship and recommendations, including fees, scope of services, and conflicts of interest.
2. Care Obligation – Recommendations must be made with reasonable diligence, care, and skill, considering costs, risks, and alternatives.
3. Conflict of Interest Obligation – Firms must identify, disclose, and mitigate or eliminate conflicts, particularly those that create incentives to favor one product over another.
4. Compliance Obligation – Firms must establish policies and procedures designed to ensure compliance with Reg BI as a whole.

Importantly, Reg BI applies at the recommendation level, not as a continuous duty like the fiduciary standard applicable to registered investment advisers. Still, it significantly narrows the gap by emphasizing cost considerations, conflict management, and investor-focused decision-making.

Overall, Regulation Best Interest seeks to promote transparency, improve the quality of investment recommendations, and reinforce trust between retail investors and broker-dealers in the U.S. securities markets.

Background information (from BrokerCheck)

Based on the BrokerCheck report, Kexin Xu reportedly:

• Is currently employed by and registered with J.P. Morgan Securities LLC (since June 30, 2021).
• Has passed the Series 7 (General Securities Representative) Exam, the SIE (Securities Industry Essentials) Exam, and the Series 66 (Uniform Combined State Law) Exam.
• Was previously registered with Leucadia Asset Management LLC (May 2020 to June 2021) and Jefferies LLC (July 2019 to June 2021).

Kurta Law Can Help

If you have worked with Kexin Xu and you have concerns about the activity described above, you may have recovery options. You may be entitled to pursue a claim through FINRA arbitration and recover investment losses. Contact Kurta Law at 877-600-0098 or info@kurtalawfirm.com for a free consultation.

Helpful resources: Unauthorized Trading | Margin Calls

For nearly 20 years, Kurta Law has advocated for investors to recover their investment losses from brokers and brokerage firms on a contingency basis. This means that the firm only earns a fee if our securities attorneys recover money on your behalf. Do not let securities fraud go unchecked. Start your recovery process today.