USCA4 Appeal: 25-1892
Doc: 16
Filed: 10/15/2025
Pg: 49 of 97
id. §§ 38.450, 16.00 et seq ., liquidity standards, id. § 38.1101(a)(2), and
penalties, 7 U.S.C. §§ 9a, 12c. CFTC regulation also covers transactions on DCMs. The CEA sets out
comprehensive rules governing DCMs, including prohibitions on fraud,
manipulation, and disruptive trading, as well as requirements for position-
size limits in transactions involving certain commodities. 7 U.S.C. §§ 6a, 6b, 6c, 9; see 17 C.F.R. §§ 150.2 & App. E, 180.1, 180.2. DCMs may self-certify
contracts they have determined comply with the CEA and CFTC regulations,
with the CFTC retaining back-end authority to review any self-certified
contract for compliance. In the case of event contracts in certain categories,
the CFTC has discretion to determine whether they are “contrary to the
public interest. ” 7 U.S.C. § 7a-2(c)(5)(C)(i). The CEA rounds out the scheme
by authorizing an array of sanctions, including civil penalties, revocation of licensing, and referral for criminal enforcement. Id. §§ 9a, 12c, 13, 13a, 13a-1. Th e CFTC’s comprehensive regime leaves “no room for the States to supplement it.” Arizona , 567 U.S. at 401 (cleaned up). Instead, “Congress
meant to draw a bright line easily ascertained, between state and federal
jurisdiction ,” by making the CFTC’s jurisdiction over trading on DCMs “ plenary. ” Nazarian , 753 F.3d at 475 (quotation omitted).
34
Made with FlippingBook - Online catalogs