December 5, 2019
CFTC Adds 21 More Unregistered Foreign Entities to List for Apparent Illegal Operation
CFTC’s Registration Deficient List (RED List) Grows to Nearly 150
Washington, DC — As part of the U.S.
Commodity Futures Trading Commission’s ongoing efforts to help protect Americans from fraud, today the CFTC added 21 unregistered foreign entities to its Registration Deficient List or “RED List,” bringing the total to 146.
A firm is added to the RED List when the CFTC determines, from investigative leads and questions from the public, that it is not registered and appears to be illegally soliciting and accepting funds from U.S.
consumers to trade binary options, foreign currency (forex) or other products.
The Red List launched in 2015 [CFTC Press Release 7224-15].
The 21 new foreign entities added to the RED List are:
Binary Trade Option
Global Capital Options
Peak Options 24
FG/Cents Projects Ltd
[See complete list at CFTC RED List.]
The Commodity Exchange Act generally requires intermediaries in the derivatives industry to register with the CFTC.
An “intermediary” is a person or firm that acts on behalf of another person in connection with trading futures, swaps, or options.
Depending on the nature of its activities, an intermediary may also be subject to various financial, disclosure, reporting, and recordkeeping requirements. There are some exceptions or exemptions where an intermediary does not require registration.
The RED List is circulated to financial industry partners, including other regulators, consumer groups, industry participants, self-regulatory organizations, exchanges, and industry associations. It complements registration information the National Futures Association provides.
Binary Options Consumer Alert and Fraud Advisories
The CFTC and the U.S. Securities & Exchange Commission has issued a Binary Options Consumer Alert to warn about fraudulent schemes involving binary options and their trading platforms.
Institutional FOREX positions as of October 1 -19 based on CFTC and Supply and Demand
The CFTC also has issued several customer protection Fraud Advisories that provide the warning signs of fraud, including aForex Fraud Advisory.
Customers can report suspicious activities or information, such as possible violations of commodity trading laws, to the CFTC Division of Enforcement via a Toll-Free Hotline 866-FON-CFTC (866-366-2382) or file a tip or complaint online.