The Supreme Court on May 21 granted a petition to hear the case Klein & Co. Futures, Inc v. Board of Trade of the City of New York, et al. The case raises an important issue regarding whether futures commission merchants have a private right of action against futures exchanges and clearing houses under the Commodity Exchange Act. The case will be briefed over the summer and argued in the fall. The petitioner is represented by Drew Days of Morrison & Forrester. The respondent is represented by Edmund Schroeder of Cadwalader, Wickersham & Taft. The FIA filed a brief as "amicus curiae," which was prepared by Chris Landau and Mark Young of Kirkland & Ellis. The FIA has taken an interest in this case because of its implications for the futures industry. The FIA's brief argued that the Second Circuit "clearly erred" by interpreting Section 22 of the CEA to deprive futures commission merchants of standing to bring a private right of action against registered entities such as exchanges. "That error affects the interests not only of the parties to this case, but of the entire futures industry, by exposing futures commission merchants to substantial financial harm resulting from bad faith misconduct by registered entities without any remedy," the FIA’s brief stated.

Supreme Court Docket
Brief of Amicus Curiae FIA In Support of Petitioner