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.

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 U.S. Commodity Futures Trading Commission (CFTC) is issuing this customer advisory to inform the public of possible risks associated with investing or speculating in virtual currencies or recently launched Bitcoin futures and options. 

Virtual currency is a digital representation of value that functions as a medium of exchange, a unit of account, or a store of value, but it does not have legal tender status. Virtual currencies are sometimes exchanged for U.S. dollars or other currencies around the world, but they are not currently backed nor supported by any government or central bank. Their value is completely derived by market forces of supply and demand, and they are more volatile than traditional fiat currencies. Profits and losses related to this volatility are amplified in margined futures contracts. 

Background

Beware of claims that the damage caused by hurricanes and other natural disasters will increase the profitability of trading in crude oil, wheat, unleaded gasoline, corn, natural gas, cotton, or other commodity futures or options.

Natural disasters cause extensive damage to various regions of the country throughout the year. In addition to causing great hardship among residents of those regions, the events cause damage to factories, oil drilling stations, and crops.

Please be advised that whatever effect these events might have on the price of physical commodities, the occurrence of such well-known events do not necessarily increase the likelihood of making profits in commodity futures or options trades that are based on these products or limit the risk in such trades. Any claims of potential profits from trading in futures or options on affected products or commodities based on the effects of the natural disaster are probably...

Washington, D.C. — The Commodity Futures Trading Commission today released the agenda for the upcoming Technology Advisory Committee (TAC) public meeting that will be held February 26, 2020 at the CFTC’s headquarters in Washington, D.C.

CFTC Commissioner Brian Quintenz is the sponsor of the TAC.

At this meeting, the TAC will hear presentations on stablecoins, audit trails, compliance solutions, and cryptocurrency self-regulatory organizations, insurance, and custody. The TAC will also discuss and vote on a recommendation from its Cybersecurity Subcommittee regarding the Financial Services Sector Coordinating Council Cybersecurity Profile. The agenda includes key issues that will be discussed and the speakers for each panel.

If you search online to learn how to trade futures or options, you’ll find dozens of seminars, web courses, and training software. But while there are many useful resources available, there are also plenty of instructors promising expertise and results they can’t deliver — and in some cases, perpetrating fraud. How do you navigate the overwhelming number of options, sort the good from the bad, and steer clear of scams? Here are some tips for learning new trading skills or more about the markets safely and successfully.

Getting Started Before you pay for classes or training software, it’s useful to tap into free resources to learn how markets and trading really work. A strong foundation will help you evaluate your options for further education and zero in on the areas where you most need help. You can learn a great deal on your own.

To help avoid misinformation and scams, it’s a good idea to start with public institutions, nonprofit organizations, and regulated...

Washington, D.C. — The Commodity Futures Trading Commission today announced that following a bench trial the U.S. District Court for the Middle District of Alabama entered a final judgment against defendants Husam Tayeh of Illinois and his companies, Dinar Corp., Inc. and My Monex, Inc., both Nevada corporations. The court’s ruling orders the defendants to pay more than $22.6 million in disgorgement and civil monetary penalties in connection with Tayeh’s fraudulent foreign currency (forex) scheme. The court previously found the defendants liable for violations of the Commodity Exchange Act, including fraud.

“This ruling reaffirms the CFTC’s commitment to working in parallel with our enforcement counterparts at the federal, state, and local level,” said CFTC Director of Enforcement James McDonald. “The CFTC remains committed to working closely with other regulators and criminal authorities to root out fraud in our markets. I’m grateful to the Alabama Securities...

Latin may be the root of Romance languages like English, but it's easy to forget how often we use pure Latin phrases in our everyday lexicon. Several have reached new heights of popularity recently. Quid pro quo comes to mind. While it literally translates as "something for something," it has an underhanded connotation the English translation misses.

Bona fide is another common Latin phrase regular DTN readers will recognize from recent news. Meaning "with good faith" in Latin, the English language tends to use it interchangeably with "genuine" or "real"; however, the Latin phrase generally also confers extra clout or importance.

When the Commodity Futures Trading Commission released a new position limits proposal -- what I've been told is actually the fifth attempt at creating such a rule, not the fourth as I reported previously -- it was clear the futures market regulator was taking a different approach, particularly toward bona...

Through bravery, perseverance, faith, and resolve — often in the face of incredible prejudice and hardship — African Americans have enhanced and advanced every aspect of American life.  Their fight for equality, representation, and respect motivates us to continue working for a more promising, peaceful, and hopeful future for every American.  During National African American History Month, we honor the extraordinary contributions made by African Americans throughout the history of our Republic, and we renew our commitment to liberty and justice for all.

The theme of this year’s observance, “African Americans and the Vote,” coincides with the 150th anniversary of the 15th Amendment, which gave African American men the right to vote.  This Amendment to the Constitution, ratified in 1870, prohibits the government from denying or abridging a citizen’s right to vote based on “race, color, or previous condition of servitude.”  Today,...

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:

Washington, D.C. — The Commodity Futures Trading Commission at its open meeting today unanimously approved two proposed rules to revise CFTC regulations for swap data reporting, dissemination, and public reporting requirements for market participants. The Commission also unanimously approved reopening the comment period of a proposed rule to amend certain agency regulations related to swap data repositories. All three measures are intended to improve data quality and streamline CFTC regulations.

Proposed Rule: Amendments to the Real-Time Public Reporting Requirements (Part 43)

The Commission unanimously approved proposed revisions to its regulations for real-time public reporting and dissemination requirements for swap data repositories (SDRs), derivatives clearing organizations (DCOs), swap execution facilities (SEFs), designated contract markets (DCMs), swap dealers (SDs), major swap participants (MSPs), and swap counterparties that are neither SDs nor MSPs....

Washington, D.C. — The Commodity Futures Trading Commission and the Center for Risk Management Education and Research at Kansas State University today announced that registration is open for the third annual Agricultural Commodity Futures Conference (AgCon2020). First held in 2017, the conference is scheduled for April 1-2 in Overland Park, Kansas. Register for AgCon2020 HERE.

Featured panels planned for this year’s conference include discussions on managing risk in the face of disasters; differentiating between manipulative conduct and legitimate market activity; the transition from LIBOR to SOFR and other alternative reference rates; long-term trends in grain and oilseed futures position; and how the landscape change for futures commission merchants is shaping agricultural risk management.

A full AgCon2020 agenda will be available in March.

The conference will coincide with an open meeting of the Commission on March 31, 2020 at the Federal Reserve Bank...

There are many ways to ensure a deal is right for you. Bob’s investigation process included online research and meeting with his broker in person. But it didn’t include checking his broker’s or the company’s background — and it cost him.

Washington, D.C. — The Commodity Futures Trading Commission today filed a civil enforcement action in the U.S. District Court for the Eastern District of Missouri against Joshua Christian McDonald and his company, Perfection PR Firm LLC (PPR), which operated out of California and Tennessee. The complaint charges McDonald and PPR with fraud and misappropriation related to an off-exchange foreign currency (forex) trading scheme in which they solicited funds totaling at least $440,000 from at least 12 investors, including multiple residents of Missouri.

According to the complaint, the defendants pooled investors’ funds in bank and trading accounts in their own names. In soliciting funds for and operating the pooled investment vehicle, PPR acted as an unregistered commodity pool operator and McDonald acted as an unregistered associated person of PPR.

The complaint further alleges that beginning in at least August 2017, the defendants...

Washington, D.C. — The Commodity Futures Trading Commission today announced the filing of a civil enforcement action in the U.S. District Court for the District of Colorado against Breonna Clark, of Denver, Colorado, and Venture Capital Investments Ltd., a Colorado limited liability company, charging them with fraud and failing to register with the CFTC.

The complaint charges that the defendants solicited U.S. residents to trade foreign currency (forex) contracts as well as Bitcoin and other digital assets through a commodity pool operated by the defendants. In connection with these solicitations, the defendants collected $534,829 from approximately seventy-two individuals. Rather than trade, the defendants used at least $418,000 of the funds for personal expenses—including acquiring a BMW automobile—and to make Ponzi-type payments to other pool participants.

The complaint also alleges that the defendants fraudulently solicited...

Recovering From Your Fraud Losses

The U.S. Commodity Futures Trading Commission (CFTC) is the federal government agency that regulates the commodity futures, commodity options, and swaps trading markets. Part of the CFTC’s mission is to address fraud, manipulation, and abusive practices that target customers and other market participants. Unfortunately, sometimes honest people lose money to fraud. Following is information on steps those who have experienced financial fraud may take to begin recovering from their losses.

Monitor Financial Information

• Contact the receiver or monitor assigned to any CFTC enforcement action or any government case related to the fraudulent scheme and submit a claim with all accurate supporting documentation to the assigned receiver or monitor.

• Review any asset or income disclosures you have reported that included the misinformation for things such as loans, public assistance, immigration, and taxes.

• Provide...