The Commodity Futures Trading Commission (CFTC) has added 45 unregistered foreign entities to its Registration Deficient (RED) List, which aids in protecting Americans from financial trading fraud.
The RED List, which was established eight years ago, now contains over 240 entities. A firm is added to the RED List when the CFTC determines through investigative leads and questions from the public, ensuring that it is not registered with the CFTC and appears to be acting in a capacity that requires registration.
“For nearly 10 years, the CFTC has listed entities on the RED List that have the potential to do irreparable financial harm to unsuspecting Americans,” CFTC Director of Enforcement Ian McGinley. “It is for this reason, we strongly encourage all customers to check the RED List before they trade because they may have little or no protections if they choose to trade with unregistered firms that operate outside the U.S.”
The RED List is circulated to financial industry partners that include other regulators; consumer groups; industry participants; self-regulatory organizations; exchanges; and industry associations.
According to the CFTC, the Commodity Exchange Act generally requires intermediaries, a person or firm that acts on behalf of another person in connection with trading futures, swaps or options, to register with the agency.