By: Derek Hawkins//September 10, 2019//
7th Circuit Court of Appeals
Case Name: Effex Capital, LLC, et al. v. National Futures Association, et al.
Case No.: 18-1914
Officials: FLAUM, RIPPLE, and MANION, Circuit Judges.
Focus: Failure to Exhaust Administrative Remedies
Effex Capital, LLC (“Effex”), brought this action alleging that the National Futures Association (the “NFA”) had defamed it in documents related to a settlement between the NFA and one of its members, Forex Capital Markets, LLC (“FXCM”). It sought injunctive relief and damages. The district court dismissed the action, holding that Effex had failed to exhaust its administrative remedies. Effex timely appealed the district court’s dismissal.
For the reasons set forth more fully in the following opinion, we now affirm the judgment of the district court. In the Commodity Exchange Act, 7 U.S.C. § 1 et seq., Congress has regulated comprehensively all matters relating to NFA discipline. As such, a federal Bivens remedy is unavailable. Further, the Commodity Exchange Act preempts Effex’s state law claims. Any remedy available to Effex must be based on the provisions of that statute.
Affirmed