A pair of offshore firms that created generic, white label trading platforms that were used to provide unregistered trading in contracts for difference (CFDs) to U.S. investors are being sanctioned by the U.S. Securities and Exchange Commission (SEC).
The regulator alleged that, between 2019 and 2025, Saint Lucia-based Netrios LP Ltd. and its Malta-based affiliate, Red Acre, Ltd., sold the technology and operational infrastructure to enable at least 15 U.S.-based, white label firms to provide trading in CFDs — tied to U.S. and European stocks, commodities and other assets — to retail investors, without registration.
In its order against the firms, the SEC said that the stock-based CFDs qualify as security-based swaps.
“Netrios provided the white-label brokers with the CFDs, which were marketed on the white-label brokers’ websites and available for trading,” the SEC’s order said.
According to the order, Netrios provided white-label brokers with trade pricing and liquidity, among other services; while Red Acre provided know-your-customer (KYC) verification and marketing services that facilitated Netrios’ trading.
Without admitting the SEC’s findings, Netrios and Red Acre agreed to pay penalties of US$1.75 million and US$750,000, respectively.