Document Type
Article
Media Type
Text
Abstract
This article addresses the conflicting judicial and administrative agency interpretations of a recent innovation in agricultural merchandising known as Hedge-to-Arrive ("HTA") contracts. This article examines the first federal district court opinion upholding HTA contracts as forward contracts, exempt from the Commodity Exchange Act ("CEA") and regulation by the Commodity Futures Trading Commission ("CFTC"). The article also examines the CFTC's approach to regulating HTA contracts in its administrative forum. The CFTC has taken the position that HTA contracts marketed to the general public are illegal futures contracts. A CFTC Administrative Law Judge recently took the position that HTA contracts are not forward contracts, but rather illegal futures contracts under the CEA. The authors conclude that non-speculative HTA contracts between commercial agricultural operators, that provide for actual delivery of the commodity, should be exempt from the CEA and CFTC regulation.
First Page
481
Last Page
496
Publication Date
7-1-1998
Department
Other
ISSN
0734-1490
Language
eng
Publisher
Northern Illinois University Law Review
Recommended Citation
King, Jennifer Durham and Moylan, James J.
(1998)
"Hedge-to-Arrive Contracts: Jurisdictional Issues Under the Commodity Exchange Act,"
Northern Illinois University Law Review: Vol. 18:
Iss.
3, Article 5.
Suggested Citation
Jennifer Durham King and James J. Moylan, Hedge-to-Arrive Contracts: Jurisdictional Issues Under the Commodity Exchange Act, 18 N. Ill. U. L. Rev. 481 (1998).
