Case 1:25-cv-12578-RGS Document 1 Filed 09/15/25 Page 9 of 28
v. Doyle , 66 F.3d 867, 875 (7th Cir. 1995). Accordingly, Congress put “all exchanges and all
persons in the industry under the same set of rules and regulations for the protection of all
concerned.” H.R. Rep. No. 93-975, at 79 (1974). Indeed, Congress considered adding but
ultimately removed from the bill’s final language a provision of the CEA that would have
preserved parallel state authority over futures trading. See 120 Cong. Rec. 30,464 (1974)
(statements of Sens. Curtis and Talmadge). As described below, the CEA was further amended
by the Dodd-Frank Act of 2010, Pub. L. No. 111-203, 124 Stat. 1376, which brought swaps
within the coverage of the CEA and added a special rule about event contracts. See 7 U.S.C.
§ 7a-2(c)(5)(C)(i).
27.
The CEA provides that the CFTC has “exclusive jurisdiction” over
transactions involving event contracts—which, as described below, are swaps or contracts of sale
of a commodity for future delivery—traded on registered exchanges (known as “designated
contract markets”): “The Commission shall have exclusive jurisdiction . . . with respect to
accounts, agreements (including any transaction which is of the character of, or is commonly
known to the trade as, an ‘option’, ‘privilege’, ‘indemnity’, ‘bid’, ‘offer’, ‘put’, ‘call’, ‘advance
guaranty’, or ‘decline guaranty’), and transactions involving swaps or contracts of sale of a
commodity for future delivery (including significant price discovery contracts), traded or
executed on a contract market designated pursuant to section 7 of this title . . . .” 7 U.S.C.
§ 2(a)(1)(A) (emphasis added). The CEA expressly preserves state authority to regulate
transactions “not conducted on or subject to the rules” of a CFTC-regulated exchange. Id.
§ 16(e)(1)(B)(i).
28.
To receive the CFTC’s designation as a contract market, an exchange must
apply and set forth its ability to comply with CFTC rules and regulations. Id. §§ 2(e), 7(a); 17
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