The Commodity Futures Trading Commission (CFTC) added 43 unregistered foreign entities to its Red List.
The Red List is a tool that provides information to U.S. market participants about foreign entities that are acting in an unregistered capacity. It is designed to help investors make more informed decisions about trading.
The Red List, which stands for Registration Deficient List, launched in 2015 and contains almost 300 entities.
A firm is added to the RED List when the CFTC determines that it is not registered with the Commission and appears to be acting in a capacity that requires registration, such as trading binary options, foreign currency (forex), or other products. This is typically determined through investigative leads and questions from the public.
The Commodity Exchange Act generally requires intermediaries in the derivatives industry to register with the commission. An intermediary is a person or firm that acts on behalf of another person in connection with trading futures, swaps, or options.
An intermediary may also be subject to various financial, disclosure, reporting, and recordkeeping requirements, depending on the nature of its activities. However, there are some exceptions or exemptions where an intermediary does not require registration.
The RED List is circulated to financial industry partners, including other regulators, consumer groups, industry participants, self-regulatory organizations, exchanges, and industry associations.