SEC launches registration fee estimator, but FX brokers “RED List” won’t go away

Rick Steves

The Securities and Exchange Commission (SEC) yesterday announced the launch of an online tool to help companies calculate registration fees for certain form submissions, with the aim of improving the accuracy of fee calculations and minimize the need for corrections, as well as to provide guidance on completing the related fee tables and a better […]

SEC launches registration fee estimator

The Securities and Exchange Commission (SEC) yesterday announced the launch of an online tool to help companies calculate registration fees for certain form submissions, with the aim of improving the accuracy of fee calculations and minimize the need for corrections, as well as to provide guidance on completing the related fee tables and a better and clearer understanding of the costs for submitting filings.

These include forms used to register initial public offerings, debt offerings, asset-backed securities, closed-end mutual funds, limited partnerships, and small business investment companies.

The Office of Financial Management, however, reminds users that “the tool should not be relied upon as an official SEC calculation or verification of these filing fees. Filers will remain responsible for paying all required fees and accurately including all required information in their filings.”

Hopefully, this improved access to information may reduce the regular update to the CFTC’s RED List, composed by foreign “Registration Deficient” (unregistered) firms operating, soliciting and accepting funds from U.S. residents at a retail level for trading FX or binary options.

Yesterday, the list added 23 new foreign entities operating outside of legal requirements:
Banc de Options
Barclays Broker
BeeOptions
Binary Book
Binary Das
Binary Int’l
BTG Option
Diamond Managed Forex
Forex Broker Inc.
Forex CBR
Forex Investment Services
Golden Tangent Holdings
Ivory Options
Land FX
Lbinary
NRG Binary
Optionsxo
Paam-Maam Forex Fund Management
Profit Forex Corp
RealForex.com
Tallinex
Titan Trade
UK Options

The SEC changes in its online filing information, however, might not be enough to change this pattern for several factors. Many of the blacklisted firms have no intention of being regulated for reasons of transparency (potential fraud) and financial costs, preferring to operate under the radar.

Also, but not as relevant, registering a FX broker in the US soil remains a headache for some due to the confusion provided by the existence of two organisms accepting registration of FX dealers: the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC).

The SEC, with oversight from the House Financial Services and Senate Banking committees, regulates stock exchanges and financial companies that sell securities. The CFTC, with oversight from the House and Senate agriculture panels, regulates trades in commodities from orange juice to foreign currencies. However, both SEC and CFTC regulate hedge funds and securities firms, both trading equities and commodities.

Read this next

Retail FX

eToro is latest platform to suspend Terra’s LUNA, Binance resumes trading

Israeli social trading network eToro has become the latest platform to suspend trading on the Terra (LUNA) cryptocurrency in light of a market-wide downturn.

Industry News

UK court allows ThinkMarkets’ “obscure” B-book claims against IS Prime

“The Judge added that “Think did need to address the concerns expressed” as its counterclaim “suffers from a lack of detail, obscurity and potential inconsistency”.

Retail FX

Brazilian Broker XP launches crypto trading to 3.5M users

XP Inc (XP.O) is set to launch a crypto trading platform, dubbed ‘XTAGE’, as Brazil’s largest broker is looking to tap into the growing interest in trading bitcoin and other digital assets.

Retail FX

easyMarkets adds MT5 as demand for platform continues to grow

easyMarkets has joined a growing group of brokers in switching over to MetaTrader 5 (MT5), becoming the latest retail platform to incorporate the platform into its live trading infrastructure.

Institutional FX

SGX’s FX volume shines in a largely lackluster April

The Singapore Exchange (SGX) notched a healthy gain in its FX and indices volumes, despite seeing a wavering performance across commodity and securities segments.

Industry News

Devexperts webinar: Attracting retail traders with fractional trading

Following the successful webinar on introducing crypto to retail investors, Devexperts is returning to host a new one about fractional trading. 

Digital Assets

Relai to launch bitcoin debit card to unlock BTC via every purchase

To attract more retail investors to the crowdfunding project, Relai has promised 0% fees on transactions on the Relai app for those who invest €5,000 or more.

Digital Assets

Amid crypto meltdown, Tether reduces corporate debts in USDT reserves

Tether, which is closely affiliated with crypto exchange Bitfinex, has drastically reduced its holdings of commercial debt in its reserves over the last six months. Instead, the stablecoin issuer allocated most of its non-fiat reserves to Treasury bills, almost doubling assets in short-term government securities.

Industry News

TrustPay launches SEPA instant payments

” Our clients will now be able to make instant transactions with the immediate settlement of funds, which makes business more effective in today’s fast world.”

<