secure trading facilities.” 53 Further, CEA section 3(b) provides that in order to foster the public interests described in subsection (a), the purposes of the CEA include “to deter and prevent price manipulation or any other disruptions to market integrity; to ensure the financial integrity of all transactions subject to [the CEA] and the avoidance of systemic risk; to protect all market participants from fraudulent or other abusive sales practices and misuses of customer assets; and to promote responsible innovation and fair competition among [DCMs], other markets and market participants.” 54 How should the public interests set out in CEA section 3 inform the Commission’s public interest determination under CEA section 5c(c)(5)(C)? 9. Under a past version of the CEA that was repealed in 2000, the Commission applied an “economic purpose” test as part of determining whether a DCM could list a contract for trading. 55 Are there any elements of the former “economic purpose” test that should or should not be applied in the Commission’s public interest determination under CEA section 5c(c)(5)(C)? 10. What role do event contracts play in “managing and assuming price risks, discovering prices, or disseminating pricing information” as contemplated by CEA section 3(a)? How are event contracts used in hedging, which is one aspect of managing price risks? How should the Commission incorporate considerations of hedging, price risk, price discovery, and price dissemination in its public interest determination under CEA section 5c(c)(5)(C)?
53 7 U.S.C. 5(a). 54 7 U.S.C. 5(b). 55 See 2008 Concept Release, 73 FR at 25672.
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