Lowell Enlow was a contractor for NASA and later operated several insurance agencies throughout Florida. Nick Morrison is a store manager in Central Illinois. Despite their years of investing and financial experience, both men were victims of a sophisticated online fraud.

They thought they were investing in a highly liquid options market that offered quick returns with a low cost of entry. Instead, they were lured into an unregistered binary options trading platform run by an off-shore operation. They’re sharing their stories so you can see just how difficult it can be to recognize binary options fraud, when it’s happening right before your eyes.

Traders use binary options to hedge against unforeseen circumstances, such as weather events. Unlike other options, there are no strike prices and traders don’t get the choice to exercise the option. Instead, they take a position on a specific market event to occur at a specific time. If the event happens as predicted,...

Washington, D.C. — Commodity Futures Trading Commission Chairman Heath P. Tarbert today announced the CFTC will hold an open meeting on Thursday, January 30, 2020 at its headquarters in Washington, D.C. A morning session will convene from 9:00 a.m. – 12:30 p.m. (EST) to consider the following:

Before working with any person or firm to trade in commodity futures, commodity pools, options, forex, or other derivatives, verify that the entity is properly registered with the CFTC.  The Commodity Exchange Act requires certain firms and individuals to be registered with the CFTC.  Registration and examination of intermediaries is conducted on behalf of the CFTC by the National Futures Association (NFA) under the supervision of the CFTC.

By Heath P. Tarbert @ChairmanHeath

America’s farmers and ranchers are at the heart of our real economy. Yet for the past six years, U.S. agricultural production has faced turbulence. From natural disasters to low commodity prices, farmers and ranchers are forced to spend considerable time thinking about how to mitigate risk and insulate themselves from potential losses. Farm bill programs and crop insurance are an important part of that equation, but so are the derivatives markets.

As chairman of the Commodity Futures Trading Commission, the regulatory body that oversees our derivatives markets, I am committed to making sure the agricultural sector can rely on futures prices and effectively hedge risk. That was originally—and always will be—the very cornerstone of the Commodity Exchange Act.

By Heath P. Tarbert @ChairmanHeath

America’s farmers and ranchers are at the heart of our real economy. Yet for the past six years, U.S. agricultural production has faced turbulence. From natural disasters to low commodity prices, farmers and ranchers are forced to spend considerable time thinking about how to mitigate risk and insulate themselves from potential losses. Farm bill programs and crop insurance are an important part of that equation, but so are the derivatives markets.

As chairman of the Commodity Futures Trading Commission, the regulatory body that oversees our derivatives markets, I am committed to making sure the agricultural sector can rely on futures prices and effectively hedge risk. That was originally—and always will be—the very cornerstone of the Commodity Exchange Act.

Washington, D.C. — The Commodity Futures Trading Commission today issued an order filing and settling charges against Propex Derivatives Pty Ltd, a proprietary trading firm headquartered in Australia, for spoofing in the Chicago Mercantile Exchange E-mini S&P 500 futures market. The order finds that Propex, through a former trader, engaged in spoofing from at least July 2012 through March 2017, causing $464,300 in market losses.   

 

The order imposes a total of $1 million against Propex, comprised of $464,300 in restitution, $73,429 in disgorgement, and a $462,271 civil monetary penalty. It also requires Propex to cease and desist from violating the Commodity Exchange Act’s prohibition on spoofing. This case was brought in connection with the CFTC Division of Enforcement’s Spoofing Task Force.

 

“This enforcement action demonstrates, once again, the continued parallel efforts between the CFTC and our law enforcement partners...

The CFTC Glossary is intended to assist the public in understanding some of the specialized words and phrases used in the futures industry since many of these terms are not found in standard reference works. The CFTC Glossary is not inclusive, and if you cannot find the term you are looking for or have any other comments, please let us know.

Definitions are not intended to state or suggest the views of the Commission concerning the legal significance or meaning of any word or term and no definition is intended to state or suggest the Commission’s views concerning any trading strategy or economic theory.

A commodity futures contract is an agreement to buy or sell a particular commodity at a future date The price and the amount of the commodity are fixed at the time of the agreement Most contracts contemplate that the agreement will be fulfilled by actual delivery of the commodity Some contracts allow cash settlement in lieu of delivery Most contracts are liquidated before the delivery date A commodity futures option gives the purchaser the right to buy or sell a particular futures contract at a future date for a particular price With limited exceptions, commodity futures and options must be traded through an exchange by persons and firms who are registered with the CFTC

The following information is designed to warn you about a type of fraud that involves individuals and firms, often unregistered, offering investments in commodity pools. In these fraudulent schemes, your money is misused (often spent on improper expenses). The pool operators advertise based on false claims of high profits and low risk.

The following information is designed to warn you about a type of fraud that involves individuals and firms, often unregistered, offering investments in commodity pools. In these fraudulent schemes, your money is misused (often spent on improper expenses). The pool operators advertise based on false claims of high profits and low risk.

List of Foreign Entities That Have Been Identified as Acting in a Capacity That Appears to Require Registration but Are Not Appropriately Registered With the Commission

The CFTC frequently receives investigative leads and questions from the public about foreign entities that solicit and/or accept funds from U.S. residents at a retail level. For example these leads and questions can relate to, among other things, foreign entities that engage in foreign currency (“Forex”) in a capacity similar to Retail Foreign Exchange Dealers (“RFEDs”), Introducing Brokers, Commodity Trading Advisors or Commodity Pool Operators and binary options. Many of these foreign entities are acting in a capacity that requires them to be registered with the CFTC.

If a foreign entity is registered with the commission, then it is subject to CFTC regulations and oversight that apply to registrants. Generally, foreign entities that solicit you to trade are required to...

The following information is designed to warn you about a type of fraud that involves individuals and firms, often unregistered, offering investments in commodity pools. In these fraudulent schemes, your money is misused (often spent on improper expenses). The pool operators advertise based on false claims of high profits and low risk.

The following information is designed to warn you about a type of fraud that involves individuals and firms, often unregistered, offering investments in commodity pools. In these fraudulent schemes, your money is misused (often spent on improper expenses). The pool operators advertise based on false claims of high profits and low risk.

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