Regulators

U.S. Commodity Futures Trading Commission (CFTC)

Commodity Futures Trading Commission, referred to as CFTC, is an independent agency of the U.S.

Forex Regulatory Tips

According to the official website of the US CFTC, the US Commodity Futures Trading Commission ("CFTC") regulates leveraged foreign exchange. American foreign exchange dealers need to register with the CFTC as FCMs (Future Commissions Merchants, futures dealers); among them, dealers providing retail foreign exchange need to register as FCM RFED (FCM Retail Foreign Exchange Dealer).

List of Regulated Companies

After foreign exchange traders register as FCMs, they need to submit their financial data statements to the CFTC every month; the CFTC will publish this data sheet on its official website at the beginning of each month. We can use this table to determine whether a dealer is a foreign exchange dealer. The following is the data table download address: https://www.cftc.gov/MarketReports/financialfcmdata/index.htm

Organization Profile

Institutional nature
The U.S. Commodity Futures Trading Commission (CFTC) is an independent agency of the U.S. government and one of the U.S. financial regulators, mainly responsible for overseeing commodity futures, options and financial futures and options markets.
Institutional History
The CFTC was established in 1974 and is headquartered in Washington.
Regulatory functions
Protect market participants and the public from fraud, market manipulation, and improper operations related to commodity and financial futures and options, and ensure the openness, competitiveness, and financial reliability of futures and options markets.
Regulatory Objectives/Scope
The CFTC's mission is to foster open, transparent, competitive, and financially sound markets. By striving to avoid systemic risk, the CFTC seeks to protect market users and their funds, consumers and the public from fraud, manipulation and abuse related to derivatives and other products subject to the Commodity Exchange Act (CEA).
The agency oversees various individuals and organizations. These agencies include swap enforcement agencies, derivatives clearing agencies, designated contract markets, swap data repositories, swap dealers, futures dealers, commodity fund managers and other entities.
Contact
Email: [email protected]@cftc.gov.
Tel: 001 866-366-2382 / 001 202-418-5000 / 001 202-418-5000
Fax: 202-418-5521
Address: Commodity Futures Trading Commission, Three Lafayette Centre, 1155 21st Street, NW, Washington, DC 20581

Licence application

Application Requirements
The US CFTC requires that the adjusted net assets of FCMs as foreign exchange brokers need to be more than 1 million US dollars; among which, the net capital requirements of FCMs (FCM RFED) as retail foreign exchange dealers are 20 million US dollars or more;

License Type

Regulatory Rules

Regulatory Inquiries

After foreign exchange traders register as FCMs, they need to submit their financial data statements to the CFTC every month; the CFTC will publish this data sheet on its official website at the beginning of each month. We can use this table to determine whether a dealer is a foreign exchange dealer. The following is the data table download address: https://www.cftc.gov/MarketReports/financialfcmdata/index.htm

General complaint process

General Complaint Process:
Complain to the dealer first and resolve the dispute directly with the dealer - If you are not satisfied with the dealer's answer, you can complain to the CFTC - If you are still not satisfied with the result of the complaint, you can finally seek legal channels

How to file a complaint with the CFTC

How do investors file a complaint with the CFTC? Applying for compensation for complaints generally needs to go through the following process:
Complainant inquires about trader's registration information - Trader's suspected illegal or illegal activities - Complainant selects the type of complaint procedure - Complainant submits complaint - CFTC inspects complaint - CFTC assigns a judge - Evidence: discovery stage, resolution stage, appeal or preliminary review Resolution - Cash Award - Counterclaim
The complainant must first check the registration information of the dealer:
Before making a complaint, please check whether the complainant is registered with the CFTC. There are 2 ways to check:
1. The background of NFA belongs to the state information center BASIC: https://www.nfa.futures.org/BasicNet/
2. CFTC's Office of Proceedings: [email protected]
The type of illegal or illegal activity the trader is suspected of:
1. Fraud - deceives or attempts to defraud you by making false claims about the possibility of profit or loss; false or misleading representations about the transaction or your salespersons, advisors, or the trading procedures you use; or any other material fact that is false or misleading Sexual statements that you rely on in making decisions about futures or options trading.
2. Breach of fiduciary duty - under the Commodity Exchange Act or the Commodity Futures Trading Commission, the broker or salesperson did not exercise special care in handling your account.
3. Unauthorized Transactions - Transactions made by a broker without your prior specific authorization or written authorization.
4. Embezzlement - Unauthorized use or misappropriation of funds deposited by you to trade futures or options by a broker.
5. Overtrading - Overtrading your account to earn commissions against your financial interests.
6. Improper Liquidation - Unauthorized closing of your positions.
7. Failure to Supervise - The supervisor has failed to successfully supervise the processing of your account by the supervisor's partners, officers, employees and agents.
8. Non-disclosure — Failure to inform about the risks associated with futures and options trading; failure to disclose any other material facts necessary to make decisions about futures or options trading.
The complainant selects the type of compensation procedure:
Before submitting a complaint, you must select the type of compensation procedure, there are 3 types:
(1) Voluntary - available for claims of any amount
(2) Summary Procedure - Claims of $30,000 or Less
(3) Formal Procedure - Claims Over $30,000
Submit a complaint:
When you are ready to file a complaint:
1. Fill out the CFTC’s Complaint for Indemnity Form (Form 30).
2. Check the Complaint Complaint Checklist to confirm that you have prepared the necessary information for all complaints.
3. Prepare the complaint application fee.
4. After completing the form and paying the fee, send it in person or by post to the following address (preferably certified or registered mail):
Commodity Futures Trading Commission
Office of Proceedings
1155 21st Street, N.W.
Washington, DC 20581
Note:
1. Download the Complaint Form (Form No. 30): https://www.cftc.gov/sites/default/files/idc/groups/public/%40cpdisciplinaryhistory/documents/file/Form%2030%20-%20with %20OMB%20Control%20No.%20%20Feb%202018.pdf
2. Browsing address of the compensation complaint list: https://www.cftc.gov/sites/default/files/idc/groups/public/@cpdisciplinaryhistory/documents/file/complainantchecklist.pdf
Information that must be included in the complaint:
1. Information about you - Complainant's full name, address, telephone number, email and fax number.
2. Information about the subject of the complaint - the name, address and telephone number of the subject of the complaint (if known).
3. Facts - Statements of facts that support your claim of a breach; attach all documents that support or explain your claim, such as account forms and transaction statements.
4. Statement of Liability - Explain why each defendant you designate should be held liable. Any respondent that does not describe its responsibility or involvement may be dismissed.
5. Damage Calculation - A brief description of the amount of damages you are claiming and how you calculated the damages. The amount of your claim may not be adjusted after the case has been forwarded unless you have the permission of the adjudicator. See how losses are calculated.
6. Parallel Action Statement - A statement that no arbitration or civil court action is pending based on the same facts and including the same respondent you designate.
7. Bankruptcy or Administration Statement - A statement indicating, to the best of your knowledge, whether any respondent is involved in bankruptcy or administration proceedings.
8. Verification - A statement that the facts stated in your complaint are true to your knowledge, beliefs and information. If you sign a Complaint Complaint Form or include a Verified Statement with a description of the complaint, notarized Compensation is not required. Your verification statement should look like this:
"I hereby confirm (punished by law) that, to the best of my knowledge, the facts contained in this complaint are known or believed to be true."
9. Continue to Select and Submit Fees - You must select the type of action and submit the appropriate filing fee when filing your complaint.
Application Fee - The application fee or money order should be paid to the Commodity Futures Trading Commission (CFTC).

Example of punishment

Example of punishment

FAQs

1. Does the CFTC regulate foreign exchange?
A: The US CFTC regulates foreign exchange.
2. Does the CFTC need to charge for handling complaints?
A: When a complainant submits a complaint to the CFTC, an application fee (ranging from $50 to $250) is required.

Related Links

NFA: https://www.nfa.futures.org/
U.S. Securities and Exchange Commission (SEC) (can find information on all U.S. listed companies): http://www.sec.gov/edgar/searchedgar/companysearch.html
US Business Registration Data Center (manta): http://www.manta.com/mb
US Financial Industry Regulatory (FINRA): http://www.finra.org/
New York Stock Exchange (NYSE): http://www.nyse.com
Securities Investor Protection Corporation (SIPC): http:///www.sipc.org
Chicago Board of Trade (CBOT): http://www.cmegroup.com
Nasdaq: http://www.nasdaq.com

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