Forex Firm Wants CFTC Sanctioned For 'Bad Faith' Behavior - Law360 (2024)

FAQs

Is Forex regulated by CFTC? ›

What are regulators doing? The CFTC is the Federal agency with the primary responsibility for overseeing the commodities markets, including foreign currency trading.

Criminal activity involving commodity-related instruments can result in prosecution for criminal violations of the CEA and for violations of other federal criminal statutes, including commodities fraud, mail fraud, wire fraud and conspiracy.

The Commodity Futures Trading Commission is an independent U.S. government agency that regulates the U.S. derivatives markets, including futures, options, and swaps.

The CFTC regulates the U.S. derivatives markets. This includes the commodity futures, options, and swaps markets as well as over-the-counter (OTC) markets.

capital, reporting, and supervision rules. Specifically, OANDA failed to meet minimum net capital requirements, … to its business as a CFTC registrant.

Are Forex Brokers and Forex trading legal in the U.S.? Yes, forex brokers are legal in the U.S., but they must be registered with and regulated by the Commodity Futures Trading Commission (CFTC) and be members of the National Futures Association (NFA).

The CFTC's “red flags” rule (17 C.F.R. §162) requires financial institutions and creditors to develop and implement a written identity theft prevention program designed to detect, thwart, and mitigate identity theft in connection with certain existing accounts or the opening of new accounts.

“Spoofing” includes, but is not limited to: (i) submitting or cancelling bids or offers to overload the quotation system of a registered entity, (ii) submitting or cancelling bids or offers to delay another person's execution of trades, (iii) submitting or cancelling multiple bids or offers to create an appearance of ...

It shall be unlawful for any person, directly or indirectly, to manipulate or attempt to manipulate the price of any swap, or of any commodity in interstate commerce, or for future delivery on or subject to the rules of any registered entity.

You file your complaint within two years of the date the violation occurred or within two years of the date you should have known of the violation.

Who oversees the CFTC? ›

The CFTC organization is led by the Chairman in his or her capacity as the agency's Chief Executive.

Under the CEA, it is unlawful to:

Use any means of fraud or deceit in connection with the sale of commodities or futures contracts involving commodities; or. Manipulate the price of commodities or their futures contracts.

In addition, the CFTC has jurisdiction to investigate and prosecute foreign currency fraud occurring in its registered firms and their affiliates.

SBSAs are a type of swap related to securities over which the CFTC has full regulatory and enforcement authority under the Dodd-Frank Act, and where the SEC also has certain authority, including antifraud authority, and access to information from certain CFTC regulated entities.

Yes. Under the Dodd-Frank Act, even if the Secretary of the Treasury determines that foreign exchange forwards or foreign exchange swaps should not be regulated as swaps, they still would be subject to swap reporting requirements (to a swap data repository, if available, or otherwise to the CFTC).

Financial Industry Regulatory Authority (FINRA) National Futures Association (NFA) US Securities and Exchanges Commission (U.S. SEC) Chicago Board of Trade (CBOT)

These regulations in India are governed by the Foreign Exchange Management Act ('FEMA') and the Regulations thereunder. The apex body on these matters in India is the Reserve Bank of India ('RBI') which regulates the law and is responsible for all key approvals.

The global supervisory bodies regulate forex by setting standards which all brokers under their jurisdiction must comply with. These standards include being registered and licensed with the regulatory body, undergoing regular audits, communicating certain changes of service to their clients, and more.

FOREX.com is regulated in the United States by the National Futures Association (NFA) and Commodity Futures Trading Commission (CFTC). As such, FOREX.com is required to have a written complaint handling process. A complaint or dispute can be received via the phone, letter, email, or any other form of communication.