October Term 2007 · Docket 06-1265
Does a futures broker have the right to sue an exchange for failing to enforce its own rules?
A futures broker claims an exchange breached its duty by ignoring its own rules. The exchange argues the law does not allow such a lawsuit.
Verified source milestones
- — An official oral-argument transcript was verified.
- — An official oral-argument transcript was verified.
The arguments, in order
This case may have been argued more than once. Each entry below uses that session's official transcript. Later arguments do not erase earlier ones.
Argument 1 ·
What happened at the argument
The broker's lawyer argued the law covers bad faith failure to enforce rules.
The exchange's lawyer argued the statute limits suits to contract purchases and sales.
Justice Kennedy posed a hypothetical about negligent enforcement of fraud rules.
Justice Souter asked if the Court needed to decide a specific issue that morning.
Read the official transcript for this argument · Official argument details
Sources used for this argument breakdown
- Official Supreme Court Transcript — file page 20, lines 25-43 — Transcript, file page 20, lines 25-43
- Official Supreme Court Transcript — file page 3, lines 13-17 — Transcript, file page 3, lines 13-17
- Official Supreme Court Transcript — file page 3, lines 7-11 — Transcript, file page 3, lines 7-11
- Official Supreme Court Transcript — file page 30, lines 5-43 — Transcript, file page 30, lines 5-43
- Official Supreme Court Transcript — file page 4, lines 19-21 — Transcript, file page 4, lines 19-21
- Official Supreme Court Transcript — file page 4, lines 25-33 — Transcript, file page 4, lines 25-33
- Official Supreme Court Transcript — file page 58, lines 3-45 — Transcript, file page 58, lines 3-45
- Official Supreme Court Transcript — file page 58, lines 47-49 — Transcript, file page 58, lines 47-49
- Official Supreme Court Transcript — file page 6, lines 23-27 — Transcript, file page 6, lines 23-27
- Official Supreme Court Transcript — file page 7, lines 13-17 — Transcript, file page 7, lines 13-17
- Official Supreme Court Transcript — file page 7, lines 43-45 — Transcript, file page 7, lines 43-45
- Official Supreme Court Transcript — file page 7, lines 49-51 — Transcript, file page 7, lines 49-51
- Official Supreme Court Transcript — file page 8, lines 17-27 — Transcript, file page 8, lines 17-27
- Official Supreme Court Transcript — file page 8, lines 41-47 — Transcript, file page 8, lines 41-47
- Official Supreme Court Transcript — file page 8, lines 5-9 — Transcript, file page 8, lines 5-9
- Official Supreme Court Transcript — file page 9, lines 11-25 — Transcript, file page 9, lines 11-25
- Official Supreme Court Transcript — file page 9, lines 39-43 — Transcript, file page 9, lines 39-43
A citizen's guide to the whole case
What this case is about
This case tests the scope of a federal law. The law lets certain parties sue exchanges for bad faith. The core question is what counts as a covered transaction. The parties disagree on the definition of that term.
Official sources for this section
- Official Supreme Court Transcript — file page 20, lines 25-43 — Transcript, file page 20, lines 25-43
- Official Supreme Court Transcript — file page 3, lines 13-17 — Transcript, file page 3, lines 13-17
- Official Supreme Court Transcript — file page 30, lines 5-43 — Transcript, file page 30, lines 5-43
- Official Supreme Court Transcript — file page 58, lines 3-45 — Transcript, file page 58, lines 3-45
How the case got here
The Supreme Court heard oral argument in this case on October 29, 2007.
Official sources for this section
- Official Supreme Court Transcript — file page 3, lines 7-11 — Transcript, file page 3, lines 7-11
- Official Supreme Court Transcript — file page 58, lines 47-49 — Transcript, file page 58, lines 47-49
What each side wants
The broker wants a ruling that allows it to sue the exchange for ignoring its rules.
The exchange wants a ruling that bars the broker from suing it under this specific law.
Official sources for this section
- Official Supreme Court Transcript — file page 20, lines 25-43 — Transcript, file page 20, lines 25-43
- Official Supreme Court Transcript — file page 3, lines 13-17 — Transcript, file page 3, lines 13-17
- Official Supreme Court Transcript — file page 30, lines 5-43 — Transcript, file page 30, lines 5-43
- Official Supreme Court Transcript — file page 58, lines 3-45 — Transcript, file page 58, lines 3-45
What each side says
The broker argues the law covers the exchange's failure to enforce required rules.
The exchange argues the law only covers the purchase and sale of contracts, not rule enforcement.
Official sources for this section
- Official Supreme Court Transcript — file page 20, lines 25-43 — Transcript, file page 20, lines 25-43
- Official Supreme Court Transcript — file page 3, lines 13-17 — Transcript, file page 3, lines 13-17
- Official Supreme Court Transcript — file page 30, lines 5-43 — Transcript, file page 30, lines 5-43
- Official Supreme Court Transcript — file page 58, lines 3-45 — Transcript, file page 58, lines 3-45
What the justices asked
Justice Ginsburg asked the broker to define the specific transactions relied upon.
Justice Roberts asked where the substantive limitation on the transaction comes from in the law.
Official sources for this section
- Official Supreme Court Transcript — file page 3, lines 7-11 — Transcript, file page 3, lines 7-11
- Official Supreme Court Transcript — file page 4, lines 19-21 — Transcript, file page 4, lines 19-21
- Official Supreme Court Transcript — file page 4, lines 25-33 — Transcript, file page 4, lines 25-33
- Official Supreme Court Transcript — file page 58, lines 47-49 — Transcript, file page 58, lines 47-49
- Official Supreme Court Transcript — file page 6, lines 23-27 — Transcript, file page 6, lines 23-27
- Official Supreme Court Transcript — file page 7, lines 13-17 — Transcript, file page 7, lines 13-17
- Official Supreme Court Transcript — file page 7, lines 43-45 — Transcript, file page 7, lines 43-45
- Official Supreme Court Transcript — file page 7, lines 49-51 — Transcript, file page 7, lines 49-51
- Official Supreme Court Transcript — file page 8, lines 17-27 — Transcript, file page 8, lines 17-27
- Official Supreme Court Transcript — file page 8, lines 41-47 — Transcript, file page 8, lines 41-47
- Official Supreme Court Transcript — file page 8, lines 5-9 — Transcript, file page 8, lines 5-9
- Official Supreme Court Transcript — file page 9, lines 11-25 — Transcript, file page 9, lines 11-25
- Official Supreme Court Transcript — file page 9, lines 39-43 — Transcript, file page 9, lines 39-43
Why it matters
This case defines who can sue financial exchanges. It clarifies the scope of federal oversight. It affects the accountability of market regulators. It shapes the rights of brokers in disputes.
Official sources for this section
- Official Supreme Court Transcript — file page 20, lines 25-43 — Transcript, file page 20, lines 25-43
- Official Supreme Court Transcript — file page 3, lines 13-17 — Transcript, file page 3, lines 13-17
- Official Supreme Court Transcript — file page 30, lines 5-43 — Transcript, file page 30, lines 5-43
- Official Supreme Court Transcript — file page 58, lines 3-45 — Transcript, file page 58, lines 3-45
What happens next
This article currently covers the argument record. Use the official docket link for later case activity.
Official sources for this section
- Official Supreme Court Transcript — file page 3, lines 7-11 — Transcript, file page 3, lines 7-11
- Official Supreme Court Transcript — file page 4, lines 19-21 — Transcript, file page 4, lines 19-21
- Official Supreme Court Transcript — file page 4, lines 25-33 — Transcript, file page 4, lines 25-33
- Official Supreme Court Transcript — file page 58, lines 47-49 — Transcript, file page 58, lines 47-49
- Official Supreme Court Transcript — file page 6, lines 23-27 — Transcript, file page 6, lines 23-27
- Official Supreme Court Transcript — file page 7, lines 13-17 — Transcript, file page 7, lines 13-17
- Official Supreme Court Transcript — file page 7, lines 43-45 — Transcript, file page 7, lines 43-45
- Official Supreme Court Transcript — file page 7, lines 49-51 — Transcript, file page 7, lines 49-51
- Official Supreme Court Transcript — file page 8, lines 17-27 — Transcript, file page 8, lines 17-27
- Official Supreme Court Transcript — file page 8, lines 41-47 — Transcript, file page 8, lines 41-47
- Official Supreme Court Transcript — file page 8, lines 5-9 — Transcript, file page 8, lines 5-9
- Official Supreme Court Transcript — file page 9, lines 11-25 — Transcript, file page 9, lines 11-25
- Official Supreme Court Transcript — file page 9, lines 39-43 — Transcript, file page 9, lines 39-43
Official Court provenance
Official docket and case history · Official Supreme Court oral-argument detail page
Title and summary sources
- Official Supreme Court Transcript — file page 20, lines 25-43 — Transcript, file page 20, lines 25-43
- Official Supreme Court Transcript — file page 3, lines 13-17 — Transcript, file page 3, lines 13-17
- Official Supreme Court Transcript — file page 30, lines 5-43 — Transcript, file page 30, lines 5-43
- Official Supreme Court Transcript — file page 58, lines 3-45 — Transcript, file page 58, lines 3-45
- Official Supreme Court Transcript — file page 20, lines 25-43 — Transcript, file page 20, lines 25-43
- Official Supreme Court Transcript — file page 3, lines 13-17 — Transcript, file page 3, lines 13-17
- Official Supreme Court Transcript — file page 30, lines 5-43 — Transcript, file page 30, lines 5-43
- Official Supreme Court Transcript — file page 58, lines 3-45 — Transcript, file page 58, lines 3-45
Revision history
- Revision 1 · Official Transcript ·
Correction: Rewritten to the concise citizen-facing editorial standard.
- Revision 2 · Official Transcript ·
Correction: Migrated to the dated official Court activity contract without model use.