AMBIGUITY AND EXCEPTIONS: DISSECTING CFTC V. MONEX CREDIT CO. AND THE COMMODITY EXCHANGE ACT TO EXPLAIN ACTUAL DELIVERY

Authors

William Knotts, Mississippi College School of Law

Publication Date

Fall 2023

Abstract

“Leveraged trades” are transactions in which an investor borrows the capital to purchase or sell a commodity using the commodity itself as collateral. These transactions are vital to the health of commodities markets as they relate directly to market participation and liquidity, both essential components. A recent Ninth Circuit decision threatens these types of valuable transactions by adopting a narrow interpretation of a key exemption from the applicability of Commodity Exchange Act regulations. This Article will argue a broader interpretation is more consistent with the purpose behind the Commodity Exchange Act, recent Commodity Futures Trading Commission interpretations, and will better serve commodities traders along with the markets themselves.

Recommended Citation

Knotts, William (2023) "AMBIGUITY AND EXCEPTIONS: DISSECTING CFTC V. MONEX CREDIT CO. AND THE COMMODITY EXCHANGE ACT TO EXPLAIN ACTUAL DELIVERY," Mississippi College Law Review: Vol. 41: Iss. 3, Article 8.
Available at: https://dc.law.mc.edu/lawreview/vol41/iss3/8