Strategic Income Fund, L.L.C., Hennessy Cadillac, Inc. v. Spear, Leeds & Kellogg Corporation, First Options of Chicago, Inc.

TJOFLAT, Circuit Judge:

I

This case arises out of the relationship between Strategic Income Fund (“SIF”), a Georgia limited liability company 1 formed for the purpose of trading in options primarily through the Chicago Board Options Exchange (the “CBOE”); SIF’s individual members (the “Members”); E. Thomas Jung, the manager of SIF and the general partner of ETJ Partners (“ETJ”), a purported broker-dealer and market maker at the CBOE; 2 and LIT Clearing Services, Inc. (“LIT”), a firm that provided clearing services for broker-dealers and market makers at the CBOE, including ETJ. 3

Between…