(HedgeCo.Net) U.S. Commodity Futures Trading Commission has 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.