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.

Source: CFTC – CFTC Publishes List of Foreign Entities that Illegally Solicit U.S. Residents to Trade Foreign Currency and Binary Options

 

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