USCA4 Appeal: 25-1892
Doc: 16
Filed: 10/15/2025
Pg: 31 of 97
Congress in 2000 to eliminate the economic purpose test and allow DCMs to
list derivatives contracts by self-certifying compliance with applicable
requirements. 7 U.S.C. § 7a-2(c)(1); 17 C.F.R. § 40.2(a)(1). The CFTC may stay the listing of a new contract in certain circumstances. See 17 C.F.R.
§ 40.2(c). Alternatively, exchanges may voluntarily submit contracts to the
CFTC for approval before listing. 7 U.S.C. § 7a-2(c)(4)(A); 17 C.F.R. § 40.3.
The CFTC “shall approve a new contract” unless it determines the contract
would violate the CEA or CFTC regulations. 7 U.S.C. § 7a-2(c)(5)(B); 17
C.F.R. § 40.3(b).
If the CFTC concludes that an event contract may fall within an
enumerated category in the Special Rule, it may subject the contract to a 90- day public-interest review. See 17 C.F.R. § 40.11(c). The CFTC may request that the DCM suspend the listing of that contract pending review. Id. § 40.11(c)(1). Following review, the CFTC “shall issue an order approving or disapproving ” the contract. Id. § 40.11(c)(2).
The CEA also sets out a detailed enforcement scheme. If a DCM offers
a contract in violation of the CEA, the CFTC may utilize an array of
enforcement mechanisms, including but not limited to civil penalties, 7 U.S.C. § 9, revocation of licensing, id. § 12c, and referral for criminal enforcement, id. § 13. Following the 1978 CEA amendments, appropriate
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