The Commodity Futures Trading Commission added 22 unregistered foreign entities to its Registration Deficient List (RED list) as part of its ongoing effort to protect Americans from fraud. The US watchdog also launched a RED list website with new design to provide more information about the entities added in the list. The list now includes 168 entities since its launch in 2015.
The Commission adds firms to the RED list when they are not registered with the CFTC but appear to be involved in activities that require registration such as trading binary options, forex, etc.
The RED list is published and spread to financial industry partners, such as other regulators, consumer groups, industry participants, self-regulatory organizations, exchanges and industry associations.
The new design of the Red list webpage improves its effectiveness and its usability. Each of the entities listed there has a clickable link which redirects the user to the entity’s profile page. This page provides information the CFTC has gathered on the firm such as origin, the name of the company that owns and operates it, the type of products it offers, when the firm was added to the RED list and the risks involved in engaging with such entities.
