How 2nd Circ. Decision Extends CFTC's Extraterritorial Reach

The Second Circuit ruled that the Commodity Exchange Act's swap provisions apply to foreign conduct with a direct and significant connection to U.S. commerce, even without posing systemic risk. Partner Chad Silverman, counsel Daniel Merzel and associate Isabelle Lelogeais discuss how this decision broadens the scope of U.S. regulation over foreign swap transactions involving U.S. counterparties, emphasizing that such transactions can be subject to U.S. law based on their connection to U.S. commerce.