Account Registration For Futures Trading Philippines
The Commodity Futures Trading Commission (CFTC) regulates global derivative markets to promote competition and efficiency, protect market participants from manipulation, abusive trading practices, fraudulence, and financial integrity; plus it serves as a forum for price discovery and risk management.
Under Section 15(a) of the Commodity Exchange Act (CEA), the CFTC must weigh the costs and benefits before promulgating or issuing a proposed rule or order. These considerations include safeguarding market participants and the public; sound risk management practices; as well as other public interest factors.
The Commodities Futures Trading Commission (CFTC) is empowered to carry out its duties under various laws, such as the Securities Act, Exchange Act and Commodities Exchange Act. If CFTC finds violations of those laws by market participants, it has the authority to issue orders that stop or prevent them from occurring; these orders can be based on any number of grounds such as whether there was an unfair or deceptive act or practice involved.
The Commission is also responsible for registering brokers and clearing houses that participate in futures transactions. It does this by reviewing applications and approving or disapproving registrations, as well as issuing rules and regulations to govern their operations.
For instance, a broker or clearing house may be required to give customers detailed account information and execute transactions according to customer instructions. Furthermore, it could be held liable for customer losses if it does not abide by the rules of the exchange in which it trades.
Additionally, the CFTC can issue a cease-and-desist order to prohibit a broker from engaging in illegal activity. Unfortunately, this order was not granted in the case of Plutus Financial Inc. d/b/a Abra of California and its Philippines-based partner Plutus Technologies Philippine Corporation d/b/a Abra International which were accused of violating various sections of the Securities Act and Exchange Act.
Another way the CFTC can prevent an illegal action is by ordering those responsible for it to pay a fine and forfeit any property they own. For instance, if a company commits fraud by selling securities without being registered, then the Commission has the power to order them to pay both a fine and forfeiture of any assets they possess.
The Philippines can be a good investment destination for foreign investors, but it comes with its share of challenges. The country's constitution requires that at least 60% of businesses be owned by Filipino citizens, and corruption, cronyism, and graft have all been known to deter investors from investing there.
The Marcos administration should prioritize improving the country's business climate and making it more appealing to investors, in order to foster deeper international trade partnerships with other nations. But first it must address a long list of problems such as widespread corruption, nepotism, and other wrongdoings.
If you're thinking of trading futures in the Philippines, there are a few things to consider. First and foremost, be aware of the country's legal restrictions on forex trading. To begin trading forex trades within the country, you need special authorization and deposit an extensive amount with a bank there.
Second, you'll need to find an online broker that accepts traders from the Philippines. These usually provide a web-based trading platform that can be accessed on any device with an internet connection. Furthermore, ensure the broker is licensed to operate in your country of choice.
Finally, you'll need to create a successful trading plan that incorporates risk/reward analysis and sound money management techniques. With such an approach in place, trading currencies could potentially bring in some additional income for you.
One of the most essential functions of any financial market is ensuring its proper functioning and that users remain safe from fraud, manipulation and abusive practices. That is why the CFTC regulates derivatives markets; to foster competition and efficiency while promoting integrity, protect market participants from abuses or fraudulence and guarantee financial integrity in clearing processes.
The Commodity Futures Trading Commission (CFTC) is empowered to enforce the rules it creates, such as those for new products or amending existing ones. These powers are established in both the Commodity Exchange Act and Commodity Trading Commission regulations.
In recent history, financial markets have seen many innovations. From cloud computing and algorithmic trading to distributed ledger technology and artificial intelligence, there has been much activity within this space.
Blockchain technology is undoubtedly the most exciting innovation of our time, offering tremendous potential to revolutionize how businesses are conducted. The CFTC is eager to play a leading role in monitoring and regulating this rapidly advancing technological trend.
If you're considering trading futures, make sure you learn the rules of the game and contact a seasoned pro for guidance. Getting an invitation at the table can be intimidating if you're new to it; therefore, schedule an appointment with an experienced pro who can guide you through each step of the process. Many CFTC staff members would be glad to help out in any way they can. In addition to your friendly neighborhood CFTC personnel, find a broker who gives you an edge over competitors.
Enforcing laws and regulations is a complex undertaking. The simplest form of enforcement involves persuading violators that it's in their best interest to follow the law. When they ignore those appeals, more formal measures must be taken.
Some violations are subtle and go undetected for extended periods. Others are so serious that compliance with a law or regulation is worth the cost of fines. Still others are ignored because they don't make much difference or they don't matter to large violators who have money to spare and can afford to ignore several thousand dollars in fines.
Recently, the Securities and Exchange Commission charged California-based Abra International Inc. and its Philippine affiliate Plutus Technologies Philippines Corp with providing security-based swaps to retail investors without registration and failing to transact such contracts on a registered national exchange.
The SEC reported that the Abra app allowed users to wager on price movements of U.S.-listed equity securities through blockchain-based financial transactions. Customers could select specific securities whose performance they wanted to replicate, with their contract value rising or falling in accordance with those securities' prices.
In this case, the SEC asserted that Abra had sold security-based swaps to Filipino customers at a profit and failed to register them on a national exchange. They claimed these acts were prohibited under federal and foreign securities laws as well as Philippine law.
Abra's actions were found to violate Section 8 of the Securities Act, which requires all securities to be registered in their country of issue. Furthermore, Abra violated Section 10 of the Philippine Securities Act which requires issuers to publish notice of filing a registration statement before offering or selling their securities in the Philippines.
In addition to violating the Securities Act, Abra's actions also infringed upon sections 11 and 12 of the Philippines Banking and Finance Act (PAS). PAS requires banks or trust departments engaged in derivatives activities to account for their transactions, including reporting them to the Bangko Sentral ng Pilipinas within fifteen banking days from the end of a reference month. Furthermore, BSP has the authority to impose sanctions on any bank engaging in an unauthorized derivatives activity.