The Commodity Futures Trading Commission advises the public that unregistered brokers selling binary options, foreign exchange (forex) programs, and cryptocurrencies are targeting people who lost their jobs due to the coronavirus outbreak. The scams are primarily conducted on social media and via messaging apps. The fraudsters convince their victims they can earn unrealistically high profits from home, but later force the victims to pay excessive “fees” and “taxes” to get their supposed earnings. The profits are not real and the fraudsters disappear when the victims stop paying.    

The Commodity Futures Trading Commission advises the public that unregistered brokers selling binary options, foreign exchange (forex) programs, and cryptocurrencies are targeting people who lost their jobs due to the coronavirus outbreak. The scams are primarily conducted on social media and via messaging apps. The fraudsters convince their victims they can earn unrealistically high profits from home, but later force the victims to pay excessive “fees” and “taxes” to get their supposed earnings. The profits are not real and the fraudsters disappear when the victims stop paying.    

The Commodity Futures Trading Commission is providing this dedicated website to highlight the Commission’s actions related to COVID-19. During this challenging period, the CFTC remains squarely focused on its mission to promote the integrity, resilience, and vibrancy of the U.S. derivatives markets through sound regulation.

Washington, D.C. — The Commodity Futures Trading Commission’s Division of Swap Dealer and Intermediary Oversight (DSIO) today announced that it has issued additional targeted, temporary no-action relief to foreign affiliates of certain futures commission merchants (FCMs) in response to the COVID-19 (coronavirus) pandemic. The relief expires on September 30, 2020.

“The CFTC will continue to provide targeted, temporary relief to market participants where appropriate,” said DSIO Director Joshua Sterling. “This action bolsters our efforts to facilitate orderly trading and liquidity in our derivatives markets during this volatile period. We encourage market participants to engage with the CFTC early and often as market developments continue to unfold.”

The pandemic has caused compliance with certain CFTC requirements to be particularly challenging or impossible because of displacement of personnel from normal business sites due to social distancing and other...

Understand the Basics

Before you trade in commodities or futures, educate yourself on the basics of trading.

Check Out Your Financial Provider

Verify your financial provider's registration status and disciplinary history before you invest. Revalidate their credentials at least annually.

Derivatives markets have never been this volatile. Over the past week, a leading high-yield credit default swap index that is a barometer of insolvency risk repeatedly reached new highs. On March 16, Cboe Volatility Index futures, which react to stock market volatility, soared to historic levels. Commodity prices are behaving similarly, with oil futures plummeting 34% on March 9 only to jump by a record 24% some 10 days later. Gold—usually a bulwark against equity market volatility—has been falling in tandem with stocks. Other financial measures have shown similar volatility as markets seesaw.

Yet...

Do a check

One of the best ways to protect yourself from fraud is to check to first see if the person or company selling you advice or asking for your money is or has been registered with the CFTC. Registration is no guarantee against fraud, but it does mean that registrants have passed rigorous background checks and proficiency tests, and firms meet certain financial and customer protection requirements.  

Visit cftc.gov/check for information on:

Derivatives markets have never been this volatile. Over the past week, a leading high-yield credit default swap index that is a barometer of insolvency risk repeatedly reached new highs. On March 16, Cboe Volatility Index futures, which react to stock market volatility, soared to historic levels. Commodity prices are behaving similarly, with oil futures plummeting 34% on March 9 only to jump by a record 24% some 10 days later. Gold—usually a bulwark against equity market volatility—has been falling in tandem with stocks. Other financial measures have shown similar volatility as markets seesaw.

Yet...

Understand the Basics

Before you trade in commodities or futures, educate yourself on the basics of trading.

Check Out Your Financial Provider

Verify your financial provider's registration status and disciplinary history before you invest. Revalidate their credentials at least annually.

Computer programs that signal when to buy and sell commodity futures and options contracts Signals are based on mathematical formulas and are typically technical analyses of trading data, such as trading volume and prices Signals are not based upon fundamental analyses of economic factors, such as supply and demand Technical analysis attempts to predict future price movements based on historical prices, price relationships and price trends

The best way to protect yourself against fraud is to stay informed. Be aware of the tactics scammers use to lure you into making questionable investing decisions. Watch for the following in the sales pitches:

The Commodity Futures Trading Commission is providing this dedicated website to highlight the Commission’s actions related to COVID-19. During this challenging period, the CFTC remains squarely focused on its mission to promote the integrity, resilience, and vibrancy of the U.S. derivatives markets through sound regulation.

Washington, D.C. — The Commodity Futures Trading Commission today announced that in response to the COVID-19 (coronavirus) pandemic, the Division of Swap Dealer and Intermediary Oversight (DSIO) has issued two additional no-action letters providing temporary, targeted relief to a large U.S. bank that helps finance America’s oil and gas sector and to those who operate commodity-focused investment funds the CFTC regulates.

“End users involved in energy exploration and production are facing unique challenges, and the CFTC is committed to providing targeted relief, where appropriate, that helps these companies weather volatile market conditions,” said CFTC Chairman Heath P. Tarbert. “We are also taking additional steps to provide flexibility for investment funds by granting temporary relief from certain reporting requirements that have become challenging to meet under the present circumstances.”

“During these difficult times, the CFTC remains squarely focused on our...

The Commodity Futures Trading Commission is providing this dedicated website to highlight the Commission’s actions related to COVID-19. During this challenging period, the CFTC remains squarely focused on its mission to promote the integrity, resilience, and vibrancy of the U.S. derivatives markets through sound regulation.