The operator of a binary options trading firm agreed to settle CFTC charges for engaging in off-exchange options trading without being properly registered as a futures commission merchant ("FCM").
According to the CFTC, Curtis Dalton, the principal of the firm, entered into, and confirmed the execution of, off-exchange retail commodity options. The CFTC found that Mr. Dalton offered binary options transactions to U.S. and foreign customers without being registered with the CFTC as an FCM, as required. The CFTC charged that Mr. Dalton violated prohibitions against the sale of off-exchange options trading, including by entering into swaps with customers who were not eligible contract participants. The CFTC determined that Mr. Dalton's business, Binary International, took in a reported $1.5 million through trading binary options.
To settle CFTC charges, Mr. Dalton agreed to (i) a permanent ban on trading on behalf of, or soliciting and accepting funds from, others regarding trading and commodity interests, and (ii) a $200,000 civil monetary penalty.
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