BRITISH AMERICAN COMMODITY OPTIONS CORP. v. BAGLEY

Nos. 863, 864, 865, Dockets 77-6010, 77-6011 and 77-6019.

552 F.2d 482 (1977)

BRITISH AMERICAN COMMODITY OPTIONS CORP. and Lloyd, Carr & Co., Plaintiffs-Appellants-Cross Appellees, v. William T. BAGLEY, Chairman of the Commodity Futures Trading Commission, et al., Defendants-Appellees-Cross Appellants. NATIONAL ASSOCIATION OF COMMODITY OPTIONS DEALERS, a non-profit association, et al., Plaintiffs-Appellants-Cross Appellees, v. The COMMODITY FUTURES TRADING COMMISSION et al., Defendants-Appellees-Cross Appellants.

United States Court of Appeals, Second Circuit.

Decided April 4, 1977.


Attorney(s) appearing for the Case

Charles J. Hecht, New York City (Haig Costikyan and Gusrae, Greene & Kaplan, David Greene, Martin Kaplan, New York City, on the brief), for plaintiffs-appellants-cross appellees British American Commodity Options Corporation and Lloyd, Carr & Co.

Leonard R. Goldstein, College Park, Md., for plaintiffs-appellants-cross appellees National Association of Commodity Options Dealers, Bristol Options, Inc., Chartered Systems Corporation, Cleary Trading Company, Inc., First New York Commodity Options, Inc. of Los Angeles, Williston Corporation and International Commodity Options, Ltd.

Frederic T. Spindel, Washington, D.C. (Richard E. Nathan, Acting Gen. Counsel, Commodity Futures Trading Commission, Washington, D.C., and Virginia F. Crisman, Omaha, Neb., on the brief), for defendants-appellees-cross appellants The Commodity Futures Trading Commission, William T. Bagley, John V. Rainbolt, II, Gary Seevers, Read P. Dunn and Robert L. Martin.

Before FEINBERG, GURFEIN and MESKILL, Circuit Judges.


FEINBERG, Circuit Judge:

Nine commodity options dealers and the National Association of Commodity Option Dealers (NASCOD) in this consolidated action challenge new rules that regulate the commodity options industry. The Commodity Futures Trading Commission (Commission) promulgated the rules under authority granted in 1974 by the Commodity Futures Trading Commission Act, Pub.L. 93-463, 88 Stat. 1389, 7 U.S.C. §§ 1-22 (Supp. V, 1975). Plaintiffs claim that...

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