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CFTC Stretching Enforcement Reach, Gold Dealer Monex Says

Oct. 16, 2018, 7:45 PM

The Commodity Futures Trading Commission is improperly stretching its enforcement and regulatory authority over spot market commodities trading, attorneys for precious metals company Monex told a federal appeals court Oct. 15.

The CFTC’s interpretation of its authority to bring antifraud-related enforcement cases beyond futures and derivatives trading “would also give it sales fraud jurisdiction over virtually every commodity sale imaginable, including everyday grocery purchases,” Monex’s counsel wrote in a brief to the U.S. Court of Appeals for the Ninth Circuit.

The CFTC filed a lawsuit against the company in 2017, charging Monex and its principals with operating an unregistered commodities ...