Myun-Uk Choi v. Tower Research Capital, LLC, No. 20-1648 (2d Cir. 2021)Annotate this Case
Plaintiffs, five South Korean citizens who traded a derivative financial product called KOSPI 200 futures on an overnight market of the Korea Exchange (KRX), filed suit against Tower and its CEO, alleging that, in 2012, Tower's trading of KOSPI 200 futures violated the anti-manipulation provisions of the Commodity Exchange Act (CEA).
The Second Circuit affirmed the district court's grant of summary judgment on plaintiffs' CEA claims. The court concluded that the trading of KOSPI 200 futures on the KRX is not subject to the rules of the Chicago Mercantile Exchange (CME), and therefore rejected plaintiffs' contention that there is a genuine factual dispute as to whether Tower's trading was subject to the rules of the CME. The court also concluded that the district court did not abuse its discretion by excluding a report from plaintiffs' expert witness who opined that Tower's trading of KOSPI 200 futures was "subject to" the rules of the CME. The court further concluded that the district court's judgment does not contradict the court's prior ruling in this case. Finally, the court concluded that the district court properly rejected plaintiffs’ public policy arguments.