Commodity Exchange Act Law and Legal Definition
The Commodity Exchange Act, 7 USCS § 1 et seq., provides a private right of action against individuals who purchased or sold a futures contract if those individuals manipulated the price of any such contract or the price of the commodity underlying such contract. A private cause of action under the Commodity Exchange Act requires the plaintiffs to plead that:
a. the defendants possessed an ability to influence market prices;
b. an artificial price existed;
c. the defendants caused the artificial prices; and
d. the defendants specifically intended to cause the artificial price. [Hershey v. Energy Transfer Ptnrs., L.P., 610 F.3d 239 (5th Cir. Tex. 2010)].