[alttag]

It's an interesting turn, because initially the concept of interstate commerce was very broadly defined to include production designated for personal, non-market consumption only, using the argument that the very act of producing it lessened the market for the product.

http://en.wikipedia.org/wiki/Wickard_v._Filburn

I'd be interested to hear an actual lawyer's opinion on the topic.

[jshintaku]

Just thinking out loud I believe wheat and other similiar commodities are traded across state lines and therefore the personal growth of a commodity can exert a substantial effect on the overall industry which because it is traded across state lines is regulated by the federal government. The source code for proprietary trading is done within the state and all for the in-house use of the firm developing the product so I am not sure if you can transfer the analogy to growth of a commodity such as wheat for personal use. A lawyers opinion would be nice to hear though. I assume because there is no substantial market for source code development of prop trading systems and because it is not traded and sold for use by multiple firms across state lines this wouldn't apply?