The US Commodity Futures Trading Commission (CFTC) has added 45 unregistered foreign entities to its registered defect list RED List.
CFTC's RED List was launched in 2015 and currently has over 240 entities on the list. When CFTC determines through investigation or public inquiries that a company engages in activities that require registration without registration, such as trading binary options, currency pairs, or other products, the company will be included in the list.
According to the US Commodity Exchange Act, intermediaries in the derivatives industry are required to register with the CFTC. Intermediaries "refer to individuals or companies acting on behalf of other parties in futures, swaps, or options transactions. Depending on the nature of their activities, intermediaries may also have various financial, disclosure, reporting, and record keeping obligations. Some companies meet certain exceptions or exemption criteria and are exempt from registration. However, the entities listed in the RED List do not meet the exceptions or exemption criteria for registration requirements.
In the past decade, CFTC has included entities on the RED List that may cause irreparable economic losses to the unsuspecting American public. Therefore, we strongly recommend that all clients compare their RED List entities before trading. If clients choose to trade with unregistered companies operating outside of the United States, their asset security will not be protected
The following are 45 new foreign entities listed on the RED List.
