Some clients may have been made aware that, at the end of April 2017, AxiTrader’s name briefly appeared on the RED (Registration Deficient) list operated by the U.S. Commodity Futures Trading Commission (CFTC).
This list is a resource for U.S. consumers to be able to identify unregistered foreign entities that attempt to solicit and/or accept funds from U.S. residents at a retail level. Despite not having any operations interests in the USA and despite not accepting US clients, AxiTrader was incorrectly flagged on this list.
AxiTrader’s Compliance department moved swiftly to communicate with representatives of the CFTC and determine the reasons behind the decision. It was subsequently discovered that AxiTrader appeared in error and was immediately removed from the list.
José Iao from the Compliance department says, “Our company and all its employees are fully committed to complying with and not violating the laws and regulations of the US. We were therefore surprised to learn AxiTrader had been added to the RED list.
“However, having had detailed conversations with representatives at the CFTC, it became clear AxiTrader had been added inadvertently. We fully understand the intention of the RED list is not to discourage legitimate businesses that operate in a fair and orderly capacity, so we thank the CFTC for their cooperation in resolving this issue promptly.”
In 2013 AxiTrader had announced it was intending to enter the USA in cooperation with a local partner but subsequently changed its global focus and pulled out of all operations in the country.
Says Mr Iao, “As far as operating in the USA is concerned, we currently have no active business interests there. In fact, we go so far as to implement geo-blocking technology on our websites to prevent residents of the USA from accessing our accounts and services, further protecting us from potential breaches of the local laws.
“We greatly value the work done by the CFTC and similar agencies in other countries to ensure the general public is protected from businesses who would undermine the trust built up by fully regulated companies like our own.”
AxiTrader continues to operate as normal in a fully regulated capacity, including with FCA (Financial Conduct Authority) approval in the UK and ASIC (Australian Securities and Investments Commission) in Australia.
