CFTC Orders Principal of Binary Options Trading Firm, Curtis Dalton, to Pay $200,000 for Illegal Off-Exchange Trading and Registration Violations
Washington, DC (STL.News) – The U.S. Commodity Futures Trading Commission today issued an order filing and settling charges against Curtis Dalton of Middleton, Massachusetts, requiring him 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.
The transactions offered by Dalton consisted of binary options in foreign currencies, which were required to be traded on a designated contract market, an exempt board of trade, or a bona fide foreign board of trade. Instead, these contracts were traded on a binary options trading platform operated by an unregistered British Virgin Islands company located in Cyprus. In soliciting and accepting orders for such contracts, Dalton illegally operated as an unregistered futures commission merchant.
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.”
In addition to requiring payment of a $200,000 civil monetary penalty, the CFTC order prohibits Dalton from ever trading for others or soliciting and accepting funds from others for the purpose of trading any commodity interests.
The CFTC staff members responsible for this matter are Alan Edelman, Diana Dietrich, Daniel Jordan, Michael Loconte, and Rick Glaser.