September 9, 2015
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
Washington, DC — As part of the U.S. Commodity Futures Trading Commission’s (CFTC) ongoing efforts to help protect Americans from fraud, today 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. The RED list can be found at: www.SmartCheck.gov/REDList.
“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.
The RED List joins CFTC’s SmartCheckSM campaign, launched last year, to help investors identify and protect themselves against financial fraud. CFTC is actively working with other regulators, consumer groups, industry participants, self-regulatory organizations, exchanges, and industry associations to further protect individual investors from fraud.
Last Updated: September 9, 2015