Release Number 7551-17

April 25, 2017

CFTC Adds 71 Names to Its List of Foreign Entities that Illegally Solicit U.S. Residents to Trade Binary Options and Forex

Registration Deficient (RED) List on CFTC Website Identifies Entities Operating Illegally Without Being Registered

Washington, DC — As part of the U.S. Commodity Futures Trading Commission’s (CFTC) ongoing efforts to help protect Americans from fraud, today the CFTC added 71 new names to the RED List. These 71 new additions bring the total number of foreign entities on the RED List to over 110.

The RED List - standing for “Registration Deficient” was launched in September 2015 (see CFTC Press Release 7224-15) and supplemented in April 2016 (see CFTC Press Release 7363-16). The RED List contains the names of unregistered foreign entities that the CFTC has reason to believe are soliciting and accepting funds from U.S. residents at a retail level for, among other things, trading in binary options or foreign currency (forex) and who are required to register with the CFTC but, in fact, are not registered. The RED List can be found at: www.SmartCheck.gov/REDList.

Registration is no guarantee against fraud or mismanagement by an otherwise unscrupulous firm; however, registration 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 under the Commodity Exchange Act.

The RED List works in conjunction with the CFTC’s SmartCheck^SM campaign to help investors identify and protect themselves against illegal conduct.  The RED List also complements registration information available to the public on the National Futures Association website (http://www.nfa.futures.org).

The CFTC publicizes the existence of the RED List to other government regulators, the media, consumer groups, industry participants, self-regulatory organizations, exchanges, and industry associations.

The 71 foreign entities added to the RED List are:

The following CFTC staff members responsible for the RED List are: Erica Bodin, Michelle Bougas, Hannah Huynh, and Rick Glaser.

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See CFTC’s Binary Options Customer Fraud Advisory

The CFTC has issued a 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.  

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.

Media Contact
Dennis Holden
202-418-5088

Last Updated: April 25, 2017