Subject:

Commodity Exchange Act, Statutory Standing, Futures Commission Merchants

Question:

The Commodity Exchange Act provides an express private right of action for actual losses to a person who "engaged in any transaction on" or "subject to the rules of" a commodity board of trade against that board of trade if the board, in bad faith, engaged in illegal conduct that caused the person to suffer the actual losses, 7 U.S.C. § 25(b)(1).

The question presented is:

• Whether the court of appeals erred in concluding that futures commission merchants lack statutory standing to invoke that right of action because, in the court's view, they do not engage in such transactions, despite the statutory requirement that the merchants enter into and execute their transactions on, and subject to the rules of, a board of trade and the fact of the merchants' financial liability for the transactions.

Decisions:

• U.S. Court of Appeals - 2nd Circuit Opinion Filed: September 18, 2006
• United States Supreme Court, Cert. Granted: May 25, 2007

Resources:

• Docket Sheet From the U.S. Supreme Court.