Principal of binary options trading firm fined $200,000 for illegal off-exchange trading

Principal of binary options trading firm fined $200,000 for illegal off-exchange trading

The U.S. Commodity Futures Trading Commission (CFTC) has informed the public yesterday that it has required Curtis Dalton of Middleton, Massachusetts to pay $200,000 for offering illegal off-exchange retail commodity transactions to U.S. and overseas customers while failing to be registered by the CFTC as required.

Dalton offered transactions, which consisted of binary options in foreign currencies, required to be traded on a designated contract market. However, these contracts were traded on a binary options trading platform operated by an unregistered British Virgin Islands company located in Cyprus.

Director of Enforcement James McDonald said:

The requirement that these contracts be offered by registered entities on a bona fide exchange is part of the CFTC’s comprehensive regulatory regime to protect the public from unscrupulous trading outfits. We remind customers that they should do their homework on any firm they intend to use to trade in our markets.

The CFTC order also prohibits Dalton from ever trading for others or soliciting and accepting funds from others for the purpose of trading any commodity interests.

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