USCA4 Appeal: 25-1892
Doc: 16
Filed: 10/15/2025
Pg: 29 of 97
provides that the CFTC “may”— but need not —“determine” event contracts
to be contrary to the public interest if they “involve”:
(I)
activity that is unlawful under any Federal or State law;
(II) terrorism; (III) assassination; (IV) war; (V) gaming; or (VI) other similar activity determined by the Commission, by rule or regulation, to be contrary to the public interest. Id . § 7a-2(c)(5)(C)(i); see 17 C.F.R. § 40.11. No such contract “determined by
the Commission to be contrary to the public interest ” may be listed. 7 U.S.C.
§ 7a-2(c)(5)(C)(ii). Absent an adverse public-interest determination,
however, an exchange may list event contracts involving the Special Rule’s
enumerated activities, subject to the CFTC’s exclusive jurisdiction. E. Congress Sets Forth A Comprehensive Scheme For Regulating Derivatives Trading. The CEA today sets out a “comprehensive regulatory structure” for entities seeking to offer derivatives. Curran , 456 U.S. at 356 (quotation
marks omitted). The principal requirement is that entities become
“designated” as contract markets , known as DCMs. DCMs must comply with
myriad federal obligations designed to ensure orderly trading and prevent “price manipulation, cornering and other market disturbances.” Am. Agric. ,
977 F.2d at 1151.
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