Whitesides

BACKGROUND

21 A. Second Amended Complaint Allegations 22 E*TRADE is one of the largest online focused broker-dealers in the world. (SAC, Dkt. No. 23 28 ¶18.) Customers of E*TRADE’s platform trade securities through a web-based application or 24 by calling E*TRADE’s help center. (Id. ¶ 1.) E*TRADE’s platform allows retail investors to trade 25 26 1 All parties have consented to the jurisdiction of a magistrate judge pursuant to 28 U.S.C. Section 27 636(c). (Dkt. Nos. 6 and 9.) oil futures contracts. (Id. ¶ 2.) A futures contract is effectively a promise to deliver a commodity at a certain time. (Id. ¶ 3.) The buyer of a futures contract takes on the obligation to buy and receive the underlying asset when the contract expires. (Id. ¶ 21.) The seller of a futures contract takes on the obligation to deliver the underlying asset at expiration. (Id.) However, nearly all retail 4 investors trade commodity futures contracts without any expectation of receiving or delivering the 5 underlying asset. (Id. ¶ 22.) These investors close out their positions prior to the expiration of the 6 contract. (Id.) E*TRADE also allows customers to trade oil futures that are settled with cash…