Judge Calls CFTC’s Swap Rules ‘Inherently Contradictory’ as Novig Loses Bid to Block New York

A federal judge in New York on Tuesday rejected Novig ‘s bid for a preliminary injunction against the state’s attorney general and gaming regulators. At this early stage, U.S. District Judge Colleen McMahon concluded, the sports prediction exchange’s contracts are not swaps under the Commodity Exchange Act (CEA) , a category that the Commodity Futures Trading Commission (CFTC) , the federal derivatives regulator, oversees exclusively when the contracts trade on a federally designated exchange. That leaves New York free to require Novig to get a state gambling license or stop listing the contracts. McMahon also gave no deference to the CFTC.

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