Monex International, Ltd. v. Commodity Futures Trading Commission
Opinion
Lead Opinion
Boochever, J.
Monex International Ltd. (“Monex”) seeks review of an order issued by the Commodity Futures Trading Commission (“CFTC” or “the Commission”) in a reparations proceeding. The Commission affirmed two decisions made by Administrative Law Judges (“ALJ”). One ALJ found that Monex violated CFTC Regulation 31.23, 17 C.F.R. § 31.23 , when it refused to comply with Barry Weiss’ request to rescind two leverage contracts purchased from Monex. A second ALJ found that Weiss did not ratify the contracts and that he satisfied his duty to mitigate damages. We affirm the Commission’s order.
FACTS
On November 9,1988, Weiss, a sophisticated investor, placed two margin orders with Monex for a total of 200 bars of silver at a total cost of $1,320,000. On November 11, Monex sent Weiss two confirmation statements, one for each of the two orders. Weiss did not receive the confirmations until November 17, because Monex sent them to Weiss’ prior address. Although Weiss had orally informed Monex of his new address, he did not submit the change in writing as required by Monex and as he had agreed to do on September 6.
The confirmation statements informed Weiss that he could rescind his first leverage…