Case 1:25-cv-12578-RGS Document 1 Filed 09/15/25 Page 10 of 28
C.F.R. § 38.3(a). The CFTC’s comprehensive regulatory framework for contract markets,
including a set of 23 “Core Principles,” 17 C.F.R. pt. 38, is designed to ensure and protect the
integrity of those markets. Status as a CFTC-designated contract market “imposes upon [an
exchange] a duty of self-regulation, subject to the Commission’s oversight,” requiring the
exchange to “enact and enforce rules to ensure fair and orderly trading, including rules designed
to prevent price manipulation, cornering and other market disturbances.” Am. Agric. Movement,
Inc. , 977 F.2d at 1150-51. The CFTC is authorized to suspend or revoke an exchange’s
designation if it fails to comply with any of the provisions of the CEA or the CFTC’s regulations.
7 U.S.C. § 8(b).
29.
An exchange may submit new contracts to the CFTC for approval prior to
listing; alternatively, it may self-certify the contracts as complying with CFTC requirements.
7 U.S.C. § 7a-2(c)(1), (4)(A); 17 C.F.R. §§ 40.2(a), 40.3(a), 40.11(c). Generally, the CFTC
“shall approve a new contract” unless the CFTC finds that it would violate the CEA or CFTC
regulations. 7 U.S.C. § 7a-2(c)(5)(B).
30.
The CEA contains a special rule relating to CFTC review and approval of
event contracts, which was added by the Dodd-Frank Act of 2010. Pub. L. No. 111-203,
§ 745(b), 124 Stat. 1376, 1735-36. With respect to event contracts specifically, the CFTC may
prohibit event contracts in specific categories if it determines them to be “contrary to the public
interest.” 7 U.S.C. § 7a-2(c)(5)(C)(i); 17 C.F.R. § 40.11(a)(1)-(2).
31.
If an exchange self-certifies a new contract, the CFTC may initiate a
review of that contract within 10 business days of receiving notice of it. See id. § 7a-2(c)(2); see
also 17 C.F.R. § 40.11(c) (permitting the CFTC to select a 90-day review period for event
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