USCA4 Appeal: 25-1892
Doc: 16
Filed: 10/15/2025
Pg: 86 of 97
ADDENDUM B State Bucket-Shop Laws Regulating Futures Before the Commodity Exchange Act’s Enactment in 1936 : A LABAMA x “If any person, corporation, or other association of persons … shall establish or open an office or other place of business in this state for the purpose of carrying on or engaging in any business of making contracts to sell and deliver any cotton, Indian corn, wheat, rye, oats, tobacco, meal, lard, bacon, salt pork, salt fish, beef cattle, sugar, coffee, stocks, bonds, or choses … when … it is not intended by the parties thereto that the articles or things so agreed to be sold and delivered shall be actually delivered or the value thereof paid , but it is intended and understood by then, that money or other thing of value shall be paid to the one party by the other, … he shall be guilty of a misdemeanor.” Ala. Code § 3579 (1928). C ALIFORNIA x Outlawing “‘[b]ucketing’ or ‘bucket shopping,’” which “shall mean,” in relevant part, “[t]he making of or offering to make any contract respecting the purchase or sale of any securities or commodities, wherein both parties thereto intend, or such keeper intends, that such contract shall be, or may be, terminated, closed, or settled according to or upon the basis of the public market quotations of prices made on any board of trade or exchange upon which said securities or commodities are dealt in and without a bona fide purchase or sale of the same .” Cal. Gen. L., tit. 75, § 2 (1923). C OLORADO x Outlawing bucket- shop transactions “respecting the purchase or sale … of any … commodities, … intending that such contract or other transaction shall be terminated, closed or settled according to, or upon the basis of the public market quotations of or prices made on any board of trade or exchange or market upon which such commodities … are dealt in, and without intending a bona fide purchase or sale of the same .” Colo. L. ch. 57, § 1(a) (1931).
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