CFTC launched RED LIST of Foreign Entities that Trade Foreign Currency and Binary Options
CFTC Publishes List of Foreign Entities that Illegally Solicit U.S. Residents to Trade Foreign Currency and Binary Options
The New Registration Deficient ‘RED List’ Identifies Companies Operating Illegally
The Commodity Futures Trading Commission’s (CFTC) USA, has issued a press release to inform that as part of the Commission’s ongoing efforts to help protect Americans from fraud, the agency launched the “RED List,” a new tool that allows investors to identify unregistered foreign entities that may be engaged in illegal practices.
The RED List, which stands for Registration Deficient List, identifies unregistered foreign entities the CFTC has reason to believe are illegally soliciting and/or accepting funds from U.S. residents. Companies soliciting U.S. customers to trade in foreign currency (forex) or binary options, for example, are required to register with the CFTC.
“Today, I’m pleased we are launching the RED List, an important new tool that will further protect customers from bad actors. This initiative will allow people to make more informed decisions about investing – and help protect themselves against financial fraud,” said CFTC Chairman Tim Massad.
Registration is no guarantee against fraud or mismanagement by an otherwise unscrupulous firm; however, it does bring a higher level of security and accountability to the public. For example, registration enables the CFTC to examine whether firms meet minimum financial standards as well as disclosure, reporting, and recordkeeping requirements.
- CFTC Announces Additional Names to Its List of Foreign Entities that Illegally Solicit U.S. Residents in Forex and Binary Options
- 71 Binary Options and Forex providers added to CFTC RED List
- Binary Options trading firm and its principals charged with $4.8 million fraud scheme
- USA Regulator ordered a penalty of more than $2.2 million for Forex fraud scheme
- Forex fraud: Individual and his company to pay over a million dollar penalty