CFTC sues Louisiana to block its ban on event contracts offered by regulated exchanges

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CFTC sued Louisiana, seeking to block the state from prohibiting designated contract markets, futures commission merchants, and derivatives clearing organizations regulated by CFTC from offering event contracts. Louisiana had previously obtained a state court order to shut down more than 30 companies in the state involved in derivatives trading regulated by CFTC, without notifying the defendants or giving them an opportunity to be heard. CFTC said Louisiana is the 12th state it has sued to defend the exclusive jurisdiction over derivatives markets granted to it under the Commodity Exchange Act, and that it has filed amicus briefs with 4 federal courts of appeals and 1 state supreme court.