New task force is created to make traders honest
The authorities of the country created a task force aimed at investigation and prosecution of the cheating in the foreign exchange market that is overcrowded with dishonest traders. This task was created by the CFTC (the Commodity Futures Trading Commission) that is involved into control of the US futures markets. According to the CFTC comments the main aims of creating the task were not only investigation of the frauds occurred at the foreign exchange markets but also certain work with other control bodies and criminal authorities.
The task force called – the Forex Enforcement Task Force was established after the widening of the CFTC’s jurisdiction occurred in the June of the current year.
Due to Michael Dunn a head of another task force agency working with foreign exchange education the creation of the task force by the CFTC says about the real intention of state authorities to stop the work of unscrupulous traders.
The CFTC has already announced that foreign currency trading may turn to be quite risky especially in case it is executed out of the main exchanges like Chicago Mercantile Exchange.
The purchase of the foreign exchange contract means a purchase of certain amount of this or that foreign currency sold at fixed price in USD. It is supposed that investors will earn money from the differences of the currencies rates at the markets. However great differences in prices can also be risky and quite dangerous. The situation may be worsened when investor takes credit to execute the corresponding investment. In such case he or she can lose not only their own a capital but become a debtor.
According to CFTC it has already executed over 100 enforcement actions since the year 2000 in relation to companies and dealers working with illegal schemes of foreign exchange contracts.
