In the Matter of Fenchurch Capital Management, Ltd.

CFTC Docket No. 96-7 (1996)

Study Aids
Case Briefs Overview
Casebooks
Case Briefs
I
From our private database of 46,300+ case briefs, written and edited by humans—never with AI.

In the Matter of Fenchurch Capital Management, Ltd.

Commodity Futures Trading Commission
CFTC Docket No. 96-7 (1996)

  • Written by Brett Stavin, JD

Facts

Fenchurch Capital Management, Ltd. (Fenchurch) (defendant) was registered with the Commodity Futures Trading Commission (CFTC) (plaintiff) as a commodity trading advisor and commodity pool operator. In June 1993, Fenchurch held large futures positions in June 1993 ten-year treasury notes, giving it the right to collect such notes on the delivery date of June 30. The terms of the futures allowed for delivery of any treasury note that met certain characteristics. At the time, the cheapest-to-deliver note was the 8.5 percent February 15, 2000, treasury note. The market price of the futures contracts purchased by Fenchurch, accordingly, reflected the value of the 8.5 percent notes in the cash market. As the delivery date neared, Fenchurch accumulated a substantial portion of the available supply of 8.5 percent notes. By creating scarcity in the 8.5 percent notes market, Fenchurch stood to receive 8.875 percent notes, the next-cheapest available note. This increased the value of Fenchurch’s futures positions substantially, benefiting Fenchurch and the commodity pools that Fenchurch managed. The CFTC brought an administrative action against Fenchurch based on alleged violations of §§ 6(c) and 9(a)(2) of the Commodity Exchange Act (CEA).

Rule of Law

Issue

Holding and Reasoning (Per curiam)

What to do next…

  1. Unlock this case brief with a free (no-commitment) trial membership of Quimbee.

    You’ll be in good company: Quimbee is one of the most widely used and trusted sites for law students, serving more than 820,000 law students since 2011. Some law schools even subscribe directly to Quimbee for all their law students.

    Unlock this case briefRead our student testimonials

  2. Learn more about Quimbee’s unique (and proven) approach to achieving great grades at law school.

    Quimbee is a company hell-bent on one thing: helping you get an “A” in every course you take in law school, so you can graduate at the top of your class and get a high-paying law job. We’re not just a study aid for law students; we’re the study aid for law students.

    Learn about our approachRead more about Quimbee

Here's why 820,000 law students have relied on our case briefs:

  • Written by law professors and practitioners, not other law students. 46,300 briefs, keyed to 988 casebooks. Top-notch customer support.
  • The right amount of information, includes the facts, issues, rule of law, holding and reasoning, and any concurrences and dissents.
  • Access in your classes, works on your mobile and tablet. Massive library of related video lessons and high quality multiple-choice questions.
  • Easy to use, uniform format for every case brief. Written in plain English, not in legalese. Our briefs summarize and simplify; they don’t just repeat the court’s language.

Access this case brief for FREE

With a 7-day free trial membership
Here's why 820,000 law students have relied on our case briefs:
  • Reliable - written by law professors and practitioners, not other law students
  • The right length and amount of information - includes the facts, issue, rule of law, holding and reasoning, and any concurrences and dissents
  • Access in your class - works on your mobile and tablet
  • 46,300 briefs - keyed to 988 casebooks
  • Uniform format for every case brief
  • Written in plain English - not in legalese and not just repeating the court's language
  • Massive library of related video lessons - and practice questions
  • Top-notch customer support

Access this case brief for FREE

With a 7-day free trial membership

Casebooks

Commercial Law

Key Terms