CFTC Adds 34 Unregistered Foreign Entities to RED List

Washington, D.C. — As part of the Commodity Futures Trading Commission’s ongoing efforts to protect Americans from fraud, today the CFTC added another 34 unregistered foreign entities to its Registration Deficient List (RED List).  Launched in 2015, CFTC’s RED List now has 202 entities. [See CFTC Press Release No. 7224-15]

A firm is added to the RED List when the CFTC determines, from investigative leads and public inquiries, that it is not registered with the Commission and appears to be acting in a capacity that requires registration, such as trading binary options, foreign currency (forex), or other products. 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 (NFA) provides.

The 34 new foreign entities added to the RED List are:

[See the complete list at RED List.] 

The Division of Enforcement staff members responsible for compiling the RED List are Erica Bodin, Michelle Bougas, and Rick Glaser. CFTC’s Office of Customer Education and Outreach produces and helps promote the online list.

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 Binary Options Customer Alert and Fraud Advisories

The CFTC and the U.S. Securities and Exchange Commission have issued a Binary Options Consumer Alert to warn about fraudulent schemes involving binary options and their trading platforms. The alert warns customers that the perpetrators of these unlawful schemes typically refuse to credit customer accounts, deny fund reimbursement, commit identity theft, and manipulate software to generate losing trades. The CFTC also has issued several customer protection Fraud Advisories that provide the warning signs of fraud, including a Forex Fraud Advisory.

The CFTC also strongly urges the public to verify a company’s registration with the Commission before committing funds. If unregistered, a customer should be wary of providing funds to that entity.

A company’s registration status can be found using NFA BASIC.

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.