DRW Investments LLC, a Chicago-based investment firm, filed a preemptive lawsuit against the Commodity Futures Trading Commission seeking a court’s finding that the company didn’t breach derivatives trading regulations, Bloomberg News reported yesterday. DRW Investments and its principal, Donald R. Wilson, sued the CFTC yesterday saying that its case is a response to the agency’s “stated intention to bring an enforcement action.” At issue are interest-rate swap futures contracts traded on the Nasdaq OMX Futures Exchange and cleared through the International Derivatives Clearinghouse from August 2010 through September 2011. Wilson and the company, a unit of DRW Holdings LLC, alleged that when the trades were carried out, no regulation or rule made them illegal and any attempt by the agency to make them so now would violate their constitutional right to fair notice of what activities would be considered market manipulation.
