CFTC Sues Louisiana to Block State Ban on Event Contracts Offered by Federally Regulated Exchanges
The U.S. Commodity Futures Trading Commission (CFTC) announced in Washington on November 13 that it has filed a lawsuit against Louisiana to block the state from prohibiting the offering of event contracts by CFTC-regulated designated contract markets, futures commission merchants, and derivatives clearing organizations.
According to the CFTC, Louisiana obtained a state court order on Thursday shutting down the operation of more than 30 companies in the state connected to the trading of CFTC-regulated derivatives products, without giving the defendants notice or an opportunity to be heard. The commission published its complaint for injunctive and declaratory relief alongside the announcement.
CFTC Chairman Michael S. Selig said event contracts have traded openly in Louisiana for years, in compliance with the Commodity Exchange Act and CFTC regulations, and criticized the state's last-minute emergency lawsuit seeking to shut down the entire prediction market industry. He said the commission's lawsuit seeks to maintain the status quo while the federal courts decide the issue in an orderly manner.
The CFTC said Louisiana is the 12th state it has sued to defend its exclusive jurisdiction over derivatives markets, as granted by Congress under the Commodity Exchange Act. The commission has also submitted amicus briefs in four federal Courts of Appeal and one state Supreme Court.
Source: U.S. Commodity Futures Trading Commission
Published by GSM · USA (original Chinese edition)
Photo: 图：美国商品期货交易委员会总部大楼入口（编辑部固定图库）。 / Photo: Entrance of the headquarters of the U.S. Commodity Futures Trading Commission (GSM asset library).
