The US Commodity Futures Trading Commission (CFTC) today updated its caution list, the ‘RED List’, in which it warns the public against unauthorized FX and binary options firms that are illegally conducting financial services targeting the country’s residents.
The CFTC added 21 new names to the list, bringing the total number of backlisted entities to over 125.
Short for ‘Registration Deficient List’, the RED list follows the example of other regulators abroad, such as the AMF (Autorité des marchés financiers) in France, which allows investors to identify unregistered foreign entities that may be engaged in illegal practices.
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The US regulator’s list includes forex and binary options brokers that appear to be soliciting and/or accepting funds from US residents without having obtained CFTC registration, providing more protection and transparency for investors.
According to the CFTC, many of these foreign entities are acting in a capacity requiring them to be registered with the CFTC. Registration allows the agency to provide greater security and oversight of the industry by examining whether firms meet minimum financial standards as well as disclosure, reporting and recordkeeping requirements.
However, the press release emphasized that registration is no guarantee against fraud or mismanagement by an unethical firm, although it does help bring a higher level of security and accountability to the industry.
The following brands have been added to the RED List:
- Astercap Ltd.
- Fundix Inc.
- Broker Official
- Global Consulting Group
- Goldex Technology Limited
- B&K Investment
- K2 Investing
- Binary Mate
- Markets The World
- Binary Options Ltd.
- Options Robot
- Binary Options Robot
- Signals Binary
- Capital City Markets
- Suomen Kerran LP d/b/a/ Finministry
- Trade24 Global Ltd.
- Finance Group Corp.
- UTC Broker
- Forward Option