Dispute resolution systems in the commodity futures industry

✍ Scribed by James J. Moylan; Laren Ukman

• Publisher: John Wiley and Sons
• Year: 1986
• Tongue: English
• Weight: 867 KB
• Volume: 6
• Category: Article
• ISSN: 0270-7314
• DOI: 10.1002/fut.3990060411

✦ Synopsis

isputes involving commodity futures trading can be resolved in several for-D ums. There is the traditional federal or state court action with which all practitioners are familiar. In addition, the Commodity Futures Trading Commission (CFTC) maintains an administrative reparations forum where individuals can seek redress against CFTC registrants for violations of the Commodity Exchange Act (CEA).' In addition, the nation's contract markets or boards of trade-i.e. commodity futures exchanges-maintain arbitration forums for the resolution of disputes between customers and members, customers and associates of members; or member to member and employee to member controversies. Finally, the National Futures Association (NFA) maintains arbitration facilities for resolving commodity futures trading disputes.

While we will acknowledge state and federal judicial forums for resolution of commodity futures trading disputes, this article will concentrate on the more esoteric CFTC reparations procedure and arbitration. We will present a discussion of the NFAs arbitration procedures and, as representative of commodity exchange arbitration facilities, we will review the rules governing arbitration at the Chicago Board of Trade (CBOT).

STATE COURTS

A commodity futures dispute could be litigated in any state court. The most likely causes of action would be breach of contract, breach of fiduciary duty or common '7 U.S.C. $1 et seq. (1983).