Jump to navigation

Free Newsletter Modern Trader Follow

Main menu

  • Futures
    • Modern Trader Magazine
    • Commodities
    • Futures Mag Archives
    • ETFs
    • Financials
    • Forex
    • Managed Funds
    • Market Analysis
    • News
    • Options
    • Regulation
    • Technology
    • Trading Strategies
    • Education
    • Futures Op-Ed
  • Favorites
    • Alpha Pages Most Popular
    • Futures Magazine
    • Modern Trader Magazine
    • Most Popular
    • Slideshows & Lists
    • Special Topics
      • Alpha Hunters
      • Bad Boys
      • FINtech
      • High-Frequency Trading
      • Trader's Life
      • Trading Strategies
      • FUTURES MAG's 500th ISSUE
      • We asked traders
  • Traders
    • Market Data
    • Hot Charts
    • Interactive Charts
    • Trading Calendar
  • FINalternatives
  • Hard Assets
    • Home
    • Base Metals
    • Precious Metals
    • Rare Earth Metals
    • Commodities
    • Mining Investments
    • Slideshows
  • Modern Trader
    • Subscribe
    • Past Issues
  • All +
    • Follow Us +
      • FuturesMag
      • Newsletters
      • Facebook
      • Google+
      • Linkedin
      • Twitter
      • RSS Feeds
    • About Us +
      • About
      • Advertise
      • Contact
      • Contribute
      • Privacy Policy
  • !
Follow Futures          
       
more >>

We Asked Traders

Top things I learned about life while day trading millions

Sponsored Content

Trading

Equities.com launches unlimited trading via Tradier Brokerage, Transforming into a news & fintech portal

Featured Topics

more Commodities>>

Commodities

A Saudi-Iran oil war could break up OPEC
Advertisement
more Volatility>>

Volatility

Implied vs. Realized Volatility & the VIX
more Financials>>

Financials

Making drones work for you
more Financials>>

Financials

Perspective: S&P 500 short side off highs

CFTC sues Australian company for unlawfully soliciting U.S. customers

Halifax must register, the CFTC says

By Press Release

February 5, 2013 • Reprints

The following is from the CFTC...

The U.S. Commodity Futures Trading Commission (CFTC) today announced that it filed a complaint in the U.S. District Court for the Northern District of Illinois against Halifax Investment Services, Ltd. (Halifax) of Sydney, Australia for soliciting and accepting foreign currency (forex) orders from U.S. customers without registering with the CFTC as required.

In the forex market, entities known as Retail Foreign Exchange Dealers (RFEDs) may buy foreign currency contracts from, or sell foreign currency contracts to, individual investors. Under the Commodity Exchange Act (CEA) and CFTC regulations, since October 18, 2010, with a few exceptions, an entity acting as an RFED that solicits or accepts orders from U.S. customers in connection with forex transactions must register with the CFTC and abide by rules and regulations designed for investor protection, including those relating to minimum capital requirements, recordkeeping, and compliance (see the CFTC’s Forex Currency Trading page).

According to the CFTC complaint, Halifax acts as an RFED and knowingly solicits or accepts orders from non-eligible contract participants (non-ECPs) located in the U.S. without being registered with the CFTC as an RFED. Among other things, the complaint states that Halifax operates a website that permits U.S. customers to open trading accounts by submitting online account applications, and that nothing in Halifax’s online account application states that Halifax does not accept U.S. customers or precludes non-ECPs from opening forex accounts with Halifax.

In its continuing litigation, the CFTC seeks a permanent injunction preventing Halifax from soliciting U.S. customers to buy or sell foreign currency contracts and from operating its website unless and until it complies with the CEA and CFTC regulations, as charged. The complaint also seeks civil monetary penalties, trading and registration bans, disgorgement, and rescission.

The CFTC strongly urges the public to check with the National Futures Association (NFA) whether a company is registered before investing funds. If a company is not registered, an investor should be wary of providing funds to that company.

For information on finding a company’s registration status, see the CFTC’s Education Center, Registration of Intermediaries webpage.

The CFTC also strongly urges members of the public to visit the CFTC’s Customer Protection webpage and to review the following CFTC Customer Fraud Awareness and Prevention Advisories, before investing money in the forex market:

CFTC Consumer Advisory: Forex Fraud: If it sounds too good to be true, it probably is!

Fraud Advisory from the CFTC: Foreign Currency Trading (Forex) Fraud

Foreign Exchange Currency Fraud: CFTC/NASAA Investor Alert

The CFTC Division of Enforcement staff members responsible for this action are David Terrell, Joy McCormack, Elizabeth Streit, Rosemary Hollinger, Scott R. Williamson, and Richard Wagner.

About the Author

Related Articles
NZD/JPY collapses as NZ Business Confidence hits lowest level in decade
Sentiment bruised by Tariff plans; Emerging markets tumble
US dollar drops after Powell stresses gradual approach to rates
Is EUR/USD Rolling Over Ahead of Powell?
Beating down the dollar
Previous
Stocks rebound with oil while Treasuries retreat
Next
Monte Paschi to reveal size of losses masked with derivatives
Related Terms
forex 2901cftc 944U.S. Commodity Futures Trading Commission 658Illinois 599National Futures Association 316CFTC Division of Enforcement 152Richard Wagner 65Rosemary Hollinger 64Australia 60Scott R. Williamson 12Joy McCormack 8Registration 6Elizabeth Streit 5David Terrell 5Foreign Currency Trading 3Education Center 3halifax 1Forex Currency Trading 1Halifax Investment Services Ltd. 1online account applications 1online account application 1U.S. District Court for the Northern District of Illinois against Halifax Investment Services 1

Free Newsletter Modern Trader Follow

Main menu

  • Futures
    • Modern Trader Magazine
    • Commodities
    • Futures Mag Archives
    • ETFs
    • Financials
    • Forex
    • Managed Funds
    • Market Analysis
    • News
    • Options
    • Regulation
    • Technology
    • Trading Strategies
    • Education
    • Futures Op-Ed
  • Favorites
    • Alpha Pages Most Popular
    • Futures Magazine
    • Modern Trader Magazine
    • Most Popular
    • Slideshows & Lists
    • Special Topics
      • Alpha Hunters
      • Bad Boys
      • FINtech
      • High-Frequency Trading
      • Trader's Life
      • Trading Strategies
      • FUTURES MAG's 500th ISSUE
      • We asked traders
  • Traders
    • Market Data
    • Hot Charts
    • Interactive Charts
    • Trading Calendar
  • FINalternatives
  • Hard Assets
    • Home
    • Base Metals
    • Precious Metals
    • Rare Earth Metals
    • Commodities
    • Mining Investments
    • Slideshows
  • Modern Trader
    • Subscribe
    • Past Issues
  • All +
    • Follow Us +
      • FuturesMag
      • Newsletters
      • Facebook
      • Google+
      • Linkedin
      • Twitter
      • RSS Feeds
    • About Us +
      • About
      • Advertise
      • Contact
      • Contribute
      • Privacy Policy
  • !
images