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Klein & Co. Futures, Inc. v. Board of Trade of the City of New York

Docket No.: 06-1265
Certiorari Granted: May 21 2007
Argued: October 29, 2007

PartyNames: Klein & Co. Futures, Inc. v. Board of Trade of the City of New York, et al.
Petitioner: Klein & Co. Futures, Inc.
Respondent: Board of Trade of the City of New York, et al.

Court Below: United States Court of Appeals for the Second Circuit

Klein & Co. Futures, Inc.
v.
Board of Trade of the City of New York, et al.
Background:

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. ยง 25(b)(1).

Question Presented:

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.

Question:

Do futures commission merchants, who buy and sell futures contracts on behalf of others, "engage[] in [...] transaction[s]" subject to the rules of a commodity board of trade and therefore have standing to sue under Section 22 of the Commodities Exchange Act?

Note:

DISMISSED PURSUANT TO RULE 46

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