SEC flags down 2 CFD platforms 

The Securities and Exchange Commission (SEC) has warned financial investors against transacting with HFM-HF Markets and Exness Global Ltd., saying that these platforms, although legal in other countries, do not have the required license to operate in the Philippines.

The commission noted that while the firms are registered as broker-dealers in other countries, they lack Philippine registration as required under the Securities Regulation Code to operate as securities dealers or exchanges.

HFM-HF Markets says it is a multi-asset contract for difference (CFD) trading platform offering access to foreign exchange, commodities, bonds, metals, energies, shares and indexes. The platform promotes a trading experience combining technology, education and trading conditions, according to its website.

Exness Global, meanwhile, claims to be a global brokerage providing access to financial markets including foreign exchange, cryptocurrencies, stocks and commodities, largely via CFDs.

The SEC said both platforms use social media and mobile apps to attract Filipino investors. Local users can access HFM-HF and Exness through their websites and apps on Google Play and Apple App Store.

Records show neither HFM-HF nor Exness is registered as a corporation in the Philippines, nor are they licensed to sell securities, act as brokers or dealers or operate an exchange under the Securities Code.

The SEC advised the public to exercise caution when engaging with unregistered online investment platforms and their representatives.

It warned that anyone selling or promoting these platforms in the Philippines, including through online channels, may face fines of as much as P5 million or a jail term of up to 21 years.

Representatives, brokers, agents, promoters, influencers or enablers could be held liable under the code, the regulator said.