Choi v. Tower Research Capital LLC, No. 17-648 (2d Cir. 2018)Annotate this Case
Plaintiffs, five Korean citizens, filed suit alleging that Tower Research Capital, a New York based high‐frequency trading firm, and its founder injured them and others by engaging in manipulative "spoofing" transactions on the Korea Exchange (KRX) night market in violation of the Commodity Exchange Act (CEA), 7 U.S.C. 1 et seq., and New York law. The Second Circuit vacated the district court's dismissal of the action, holding that plaintiffs' allegations make it plausible that the trades at issue were "domestic transactions" under the court's precedent, and thus the court did not agree that application of the CEA to defendants' alleged conduct would be an impermissible extraterritorial application of the Act. Furthermore, the court held that plaintiffs have brought a claim for unjust enrichment where New York unjust enrichment claims did not require a direct relationship between the plaintiff and defendant. Accordingly, the court remanded for further proceedings.
The court issued a subsequent related opinion or order on May 9, 2018.