CFTC Adds Another 45 Unregistered Foreign Entities to Its RED LIST

The U.S. Commodity Futures Trading Commission (CFTC) has added another 45 unregistered foreign entities to its Registration Deficient List (RED List).

The CFTC's RED List, which was launched in 2015, has now grown to include more than 240 entities. A company is included on the list when the CFTC, based on its investigational findings or inquiries from the public, determines that it is operating in a capacity that requires registration, such as trading in forex, binary options, or other products, but it is not registered with the CFTC.

The Commodity Exchange Act mandates that intermediaries in the derivatives sector register with the CFTC. Intermediaries act on behalf of other parties in futures, swaps, or options trading and may be subject to several financial, recordkeeping, and reporting obligations based on their activities. Although certain exceptions or exemptions may apply, entities listed on the RED List do not meet the criteria for an exceptions or exemptions from the registration requirement.

Ian McGinley, Director of Enforcement at CFTC, said: "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. 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 following 45 new foreign entities have been added to the RED List.