CFTC Updates RED List with 20 Unauthorized Firms

The Financial Commission / Regulatory Actions / CFTC Updates RED List with 20 Unauthorized Firms

The US Commodity Futures Trading Commission (CFTC) has issued a press release today indicating an update to its ‘Red List’ – a directory of unauthorized firms about which the regulatory body issues warnings and alerts to investors. The regulator has informed the public that it added 22 new firms to the ‘Red List’ as the firms do not currently hold RFED and broker dealer licenses with US regulatory authorities.

The regulator indicated that a firm is added to the RED List when the CFTC determines, from investigative leads and questions from the public, that it (i) is not registered with the Commission and (ii) 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 list of new unauthorized firms includes Forex and binary options trading companies:

















The regulator also indicated that it has updated the Red (Registration Deficient) List with new features “that improve its usability and effectiveness in deterring illegal conduct.” Investors and traders can check out the new Red List and search for unauthorized firms here.

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