§ 12a. — Registration of commodity dealers and associated persons; regulation of registered entities.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 7USC12a]
TITLE 7--AGRICULTURE
CHAPTER 1--COMMODITY EXCHANGES
Sec. 12a. Registration of commodity dealers and associated
persons; regulation of registered entities
The Commission is authorized--
(1) to register futures commission merchants, associated persons
of futures commission merchants, introducing brokers, associated
persons of introducing brokers, commodity trading advisors,
associated persons of commodity trading advisors, commodity pool
operators, associated persons of commodity pool operators, floor
brokers, and floor traders upon application in accordance with rules
and regulations and in the form and manner to be prescribed by the
Commission, which may require the applicant, and such persons
associated with the applicant as the Commission may specify, to be
fingerprinted and to submit, or cause to be submitted, such
fingerprints to the Attorney General for identification and
appropriate processing, and in connection therewith to fix and
establish from time to time reasonable fees and charges for
registrations and renewals thereof: Provided, That notwithstanding
any provision of this chapter, the Commission may grant a temporary
license to any applicant for registration with the Commission
pursuant to such rules, regulations, or orders as the Commission may
adopt, except that the term of any such temporary license shall not
exceed six months from the date of its issuance;
(2) upon notice, but without a hearing and pursuant to such
rules, regulations, or orders as the Commission may adopt, to refuse
to register, to register conditionally, or to suspend or place
restrictions upon the registration of, any person and with such a
hearing as may be appropriate to revoke the registration of any
person--
(A) if a prior registration of such person in any capacity
has been suspended (and the period of such suspension has not
expired) or has been revoked;
(B) if registration of such person in any capacity has been
refused under the provisions of paragraph (3) of this section
within five years preceding the filing of the application for
registration or at any time thereafter;
(C) if such person is permanently or temporarily enjoined by
order, judgment, or decree of any court of competent
jurisdiction (except that registration may not be revoked solely
on the basis of such temporary order, judgment, or decree),
including an order entered pursuant to an agreement of
settlement to which the Commission or any Federal or State
agency or other governmental body is a party, from (i) acting as
a futures commission merchant, introducing broker, floor broker,
floor trader, commodity trading advisor, commodity pool
operator, associated person of any registrant under this
chapter, securities broker, securities dealer, municipal
securities broker, municipal securities dealer, transfer agent,
clearing agency, securities information processor, investment
adviser, investment company, or affiliated person or employee of
any of the foregoing or (ii) engaging in or continuing any
activity where such activity involves embezzlement, theft,
extortion, fraud, fraudulent conversion, misappropriation of
funds, securities or property, forgery, counterfeiting, false
pretenses, bribery, gambling, or any transaction in or advice
concerning contracts of sale of a commodity for future delivery,
concerning matters subject to Commission regulation under
section 6c or 23 of this title, or concerning securities;
(D) if such person has been convicted within ten years
preceding the filing of the application for registration or at
any time thereafter of any felony that (i) involves any
transactions or advice concerning any contract of sale of a
commodity for future delivery, or any activity subject to
Commission regulation under section 6c or 23 of this title, or
concerning a security, (ii) arises out of the conduct of the
business of a futures commission merchant, introducing broker,
floor broker, floor trader, commodity trading advisor, commodity
pool operator, associated person of any registrant under this
chapter, securities broker, securities dealer, municipal
securities broker, municipal securities dealer, transfer agent,
clearing agency, securities information processor, investment
adviser, investment company, or an affiliated person or employee
of any of the foregoing, (iii) involves embezzlement, theft,
extortion, fraud, fraudulent conversion, misappropriation of
funds, securities or property, forgery, counterfeiting, false
pretenses, bribery, or gambling, or (iv) involves the violation
of section 152, 1001, 1341, 1342, 1343, 1503, 1623, 1961, 1962,
1963, or 2314, or chapter 25, 47, 95, or 96 of title 18, or
section 7201 or 7206 of title 26;
(E) if such person, within ten years preceding the filing of
the application or at any time thereafter, has been found in a
proceeding brought by the Commission or any Federal or State
agency or other governmental body, or by agreement of settlement
to which the Commission or any Federal or State agency or other
governmental body is a party, (i) to have violated any provision
of this chapter, the Securities Act of 1933 [15 U.S.C. 77a et
seq.], the Securities Exchange Act of 1934 [15 U.S.C. 78a et
seq.], the Public Utility Holding Company Act of 1935 [15 U.S.C.
79 et seq.], the Trust Indenture Act of 1939 [15 U.S.C. 77aaa et
seq.], the Investment Advisers Act of 1940 [15 U.S.C. 80b-1 et
seq.], the Investment Company Act of 1940 [15 U.S.C. 80a-1 et
seq.], the Securities Investors \1\ Protection Act of 1970 [15
U.S.C. 78aaa et seq.], the Foreign Corrupt Practices Act of
1977, chapter 96 of title 18, or any similar statute of a State
or foreign jurisdiction, or any rule, regulation, or order under
any such statutes, or the rules of the Municipal Securities
Rulemaking Board where such violation involves embezzlement,
theft, extortion, fraud, fraudulent conversion, misappropriation
of funds, securities or property, forgery, counterfeiting, false
pretenses, bribery, or gambling, or (ii) to have willfully
aided, abetted, counseled, commanded, induced, or procured such
violation by any other person;
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\1\ So in original. Probably should be ``Investor''.
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(F) if such person is subject to an outstanding order of the
Commission denying privileges on any registered entity to such
person, denying, suspending, or revoking such person's
membership in any registered entity or registered futures
association, or barring or suspending such person from being
associated with a registrant under this chapter or with a member
of a registered entity or with a member of a registered futures
association;
(G) if, as to any of the matters set forth in this paragraph
and paragraph (3), such person willfully made any materially
false or misleading statement or omitted to state any material
fact in such person's application or any update thereto; or
(H) if refusal, suspension, or revocation of the
registration of any principal of such person would be warranted
because of a statutory disqualification listed in this
paragraph:
Provided, That such person may appeal from a decision to refuse
registration, condition registration, suspend, revoke or to place
restrictions upon registration made pursuant to the provisions of
this paragraph in the manner provided in sections 9 and 15 of this
title; and
Provided, further, That for the purposes of paragraphs (2) and (3)
of this section, ``principal'' shall mean, if the person is a
partnership, any general partner or, if the person is a corporation,
any officer, director, or beneficial owner of at least 10 per centum
of the voting shares of the corporation, and any other person that
the Commission by rule, regulation, or order determines has the
power, directly or indirectly, through agreement or otherwise, to
exercise a controlling influence over the activities of such person
which are subject to regulation by the Commission;
(3) to refuse to register or to register conditionally any
person, if it is found, after opportunity for hearing, that--
(A) such person has been found by the Commission or by any
court of competent jurisdiction to have violated, or has
consented to findings of a violation of, any provision of this
chapter, or any rule, regulation, or order thereunder (other
than a violation set forth in paragraph (2) of this section), or
to have willfully aided, abetted, counseled, commanded, induced,
or procured the violation by any other person of any such
provision;
(B) such person has been found by any court of competent
jurisdiction or by any Federal or State agency or other
governmental body, or by agreement of settlement to which any
Federal or State agency or other governmental body is a party,
(i) to have violated any provision of the Securities Act of 1933
[15 U.S.C. 77a et seq.], the Securities Exchange Act of 1934 [15
U.S.C. 78a et seq.], the Public Utility Holding Company Act of
1935 [15 U.S.C. 79 et seq.], the Trust Indenture Act of 1939 [15
U.S.C. 77aaa et seq.], the Investment Advisers Act of 1940 [15
U.S.C. 80b-1 et seq.], the Investment Company Act of 1940 [15
U.S.C. 80a-1 et seq.], the Securities Investors \2\ Protection
Act of 1970 [15 U.S.C. 78aaa et seq.], the Foreign Corrupt
Practices Act of 1977, or any similar statute of a State or
foreign jurisdiction, or any rule, regulation, or order under
any such statutes, or the rules of the Municipal Securities
Rulemaking Board or (ii) to have willfully aided, abetted,
counseled, commanded, induced, or procured such violation by any
other person;
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\2\ So in original. Probably should be ``Investor''.
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(C) such person failed reasonably to supervise another
person, who is subject to such person's supervision, with a view
to preventing violations of this chapter, or of any of the
statutes set forth in subparagraph (B) of this paragraph, or of
any of the rules, regulations, or orders thereunder, and the
person subject to supervision committed such a violation:
Provided, That no person shall be deemed to have failed
reasonably to supervise another person, within the meaning of
this subparagraph if (i) there have been established procedures,
and a system for applying such procedures, which would
reasonably be expected to prevent and detect, insofar as
practicable, any such violation by such other person and (ii)
such person has reasonably discharged the duties and obligations
incumbent upon that person, as supervisor, by reason of such
procedures and system, without reasonable cause to believe that
such procedures and system were not being complied with;
(D) such person pleaded guilty to or was convicted of a
felony other than a felony of the type specified in paragraph
(2)(D) of this section, or was convicted of a felony of the type
specified in paragraph (2)(D) of this section more than ten
years preceding the filing of the application;
(E) such person pleaded guilty to or was convicted of any
misdemeanor which (i) involves any transaction or advice
concerning any contract of sale of a commodity for future
delivery or any activity subject to Commission regulation under
section 6c or 23 of this title or concerning a security, (ii)
arises out of the conduct of the business of a futures
commission merchant, introducing broker, floor broker, floor
trader, commodity trading advisor, commodity pool operator,
associated person of any registrant under this chapter,
securities broker, securities dealer, municipal securities
broker, municipal securities dealer, transfer agent, clearing
agency, securities information processor, investment adviser,
investment company, or an affiliated person or employee of any
of the foregoing, (iii) involves embezzlement, theft, extortion,
fraud, fraudulent conversion, misappropriation of funds,
securities or property, forgery, counterfeiting, false
pretenses, bribery, or gambling, (iv) involves the violation of
section 152, 1341, 1342, or 1343 or chapter 25, 47, 95, or 96 of
title 18, or section 7203, 7204, 7205, or 7207 of title 26;
(F) such person was debarred by any agency of the United
States from contracting with the United States;
(G) such person willfully made any materially false or
misleading statement or willfully omitted to state any material
fact in such person's application or any update thereto, in any
report required to be filed with the Commission by this chapter
or the regulations thereunder, in any proceeding before the
Commission or in any registration disqualification proceeding;
(H) such person has pleaded nolo contendere to criminal
charges of felonious conduct, or has been convicted in a State
court, in a United States military court, or in a foreign court
of conduct which would constitute a felony under Federal law if
the offense had been committed under Federal jurisdiction;
(I) in the case of an applicant for registration in any
capacity for which there are minimum financial requirements
prescribed under this chapter or under the rules or regulations
of the Commission, such person has not established that such
person meets such minimum financial requirements;
(J) such person is subject to an outstanding order denying,
suspending, or expelling such person from membership in a
registered entity, a registered futures association, any other
self-regulatory organization, or any foreign regulatory body
that the Commission recognizes as having a comparable regulatory
program or barring or suspending such person from being
associated with any member or members of such registered entity,
association, self-regulatory organization, or foreign regulatory
body;
(K) such person has been found by any court of competent
jurisdiction or by any Federal or State agency or other
governmental body, or by agreement of settlement to which any
Federal or State agency or other governmental body is a party,
(i) to have violated any statute or any rule, regulation, or
order thereunder which involves embezzlement, theft, extortion,
fraud, fraudulent conversion, misappropriation of funds,
securities or property, forgery, counterfeiting, false
pretenses, bribery, or gambling or (ii) to have willfully aided,
abetted, counseled, commanded, induced or procured such
violation by any other person;
(L) such person has associated with such person any other
person and knows, or in the exercise of reasonable care should
know, of facts regarding such other person that are set forth as
statutory disqualifications in paragraph (2) of this section,
unless such person has notified the Commission of such facts and
the Commission has determined that such other person should be
registered or temporarily licensed;
(M) there is other good cause; or
(N) any principal, as defined in paragraph (2) of this
section, of such person has been or could be refused
registration:
Provided, That pending final determination under this paragraph,
registration shall not be granted: Provided further, That such
person may appeal from a decision to refuse registration or to
condition registration made pursuant to this paragraph in the manner
provided in sections 9 and 15 of this title;
(4) in accordance with the procedure provided for in sections 9
and 15 of this title, to suspend, revoke, or place restrictions upon
the registration of any person registered under this chapter if
cause exists under paragraph (3) of this section which would warrant
a refusal of registration of such person, and to suspend or revoke
the registration of any futures commission merchant or introducing
broker who shall knowingly accept any order for the purchase or sale
of any commodity for future delivery on or subject to the rules of
any registered entity from any person if such person has been denied
trading privileges on any registered entity by order of the
Commission under sections 9 and 15 of this title and the period of
denial specified in such order shall not have expired: Provided,
That such person may appeal from a decision to suspend, revoke, or
place restrictions upon registration made pursuant to this paragraph
in the manner provided in sections 9 and 15 of this title;
(5) to make and promulgate such rules and regulations as, in the
judgment of the Commission, are reasonably necessary to effectuate
any of the provisions or to accomplish any of the purposes of this
chapter;
(6) to communicate to the proper committee or officer of any
registered entity, registered futures association, or self-
regulatory organization as defined in section 3(a)(26) of the
Securities Exchange Act of 1934 [15 U.S.C. 78c(a)(26)],
notwithstanding the provisions of section 12 of this title, the full
facts concerning any transaction or market operation, including the
names of parties thereto, which in the judgment of the Commission
disrupts or tends to disrupt any market or is otherwise harmful or
against the best interests of producers, consumers, or investors, or
which is necessary or appropriate to effectuate the purposes of this
chapter: Provided, That any information furnished by the Commission
under this paragraph shall not be disclosed by such registered
entity, registered futures association, or self-regulatory
organization except in any self-regulatory action or proceeding;
(7) to alter or supplement the rules of a registered entity
insofar as necessary or appropriate by rule or regulation or by
order, if after making the appropriate request in writing to a
registered entity that such registered entity effect on its own
behalf specified changes in its rules and practices, and after
appropriate notice and opportunity for hearing, the Commission
determines that such registered entity has not made the changes so
required, and that such changes are necessary or appropriate for the
protection of persons producing, handling, processing, or consuming
any commodity traded for future delivery on such registered entity,
or the product or byproduct thereof, or for the protection of
traders or to insure fair dealing in commodities traded for future
delivery on such registered entity. Such rules, regulations, or
orders may specify changes with respect to such matters as--
(A) terms or conditions in contracts of sale to be executed
on or subject to the rules of such registered entity;
(B) the form or manner of execution of purchases and sales
for future delivery;
(C) other trading requirements, excepting the setting of
levels of margin;
(D) safeguards with respect to the financial responsibility
of members;
(E) the manner, method, and place of soliciting business,
including the content of such solicitations; and
(F) the form and manner of handling, recording, and
accounting for customers' orders, transactions, and accounts;
(8) to make and promulgate such rules and regulations with
respect to those persons registered under this chapter, who are not
members of a registered entity, as in the judgment of the Commission
are reasonably necessary to protect the public interest and promote
just and equitable principles of trade, including but not limited to
the manner, method, and place of soliciting business, including the
content of such solicitation;
(9) to direct the registered entity, whenever it has reason to
believe that an emergency exists, to take such action as in the
Commission's judgment is necessary to maintain or restore orderly
trading in or liquidation of any futures contract, including, but
not limited to, the setting of temporary emergency margin levels on
any futures contract, and the fixing of limits that may apply to a
market position acquired in good faith prior to the effective date
of the Commission's action. The term ``emergency'' as used herein
shall mean, in addition to threatened or actual market manipulations
and corners, any act of the United States or a foreign government
affecting a commodity or any other major market disturbance which
prevents the market from accurately reflecting the forces of supply
and demand for such commodity. Any action taken by the Commission
under this paragraph shall be subject to review only in the United
States Court of Appeals for the circuit in which the party seeking
review resides or has its principal place of business, or in the
United States Court of Appeals for the District of Columbia Circuit.
Such review shall be based upon an examination of all the
information before the Commission at the time the determination was
made. The court reviewing the Commission's action shall not enter a
stay or order of mandamus unless it has determined, after notice and
hearing before a panel of the court, that the agency action
complained of was arbitrary, capricious, an abuse of discretion, or
otherwise not in accordance with law. Nothing herein shall be deemed
to limit the meaning or interpretation given by a registered entity
to the terms ``market emergency'', ``emergency'', or equivalent
language in its own bylaws, rules, regulations, or resolutions;
(10) to authorize any person to perform any portion of the
registration functions under this chapter, in accordance with rules,
notwithstanding any other provision of law, adopted by such person
and submitted to the Commission for approval or, if applicable, for
review pursuant to section 21(j) of this title, and subject to the
provisions of this chapter applicable to registrations granted by
the Commission; and
(11)(A) by written notice served on the person and pursuant to
such rules, regulations, and orders as the Commission may adopt, to
suspend or modify the registration of any person registered under
this chapter who is charged (in any information, indictment, or
complaint authorized by a United States attorney or an appropriate
official of any State) with the commission of or participation in a
crime involving a violation of this chapter, or a violation of any
other provision of Federal or State law that would reflect on the
honesty or the fitness of the person to act as a fiduciary
(including an offense specified in subparagraph (D) or (E) of
paragraph (2)) that is punishable by imprisonment for a term
exceeding one year, if the Commission determines that continued
registration of the person may pose a threat to the public interest
or may threaten to impair public confidence in any market regulated
by the Commission.
(B) Prior to the suspension or modification of the registration
of a person under this paragraph, the person shall be afforded an
opportunity for a hearing at which the Commission shall have the
burden of showing that the continued registration of the person
does, or is likely to, pose a threat to the public interest or
threaten to impair public confidence in any market regulated by the
Commission.
(C) Any notice of suspension or modification issued under this
paragraph shall remain in effect until such information, indictment,
or complaint is disposed of or until terminated by the Commission.
(D) On disposition of such information, indictment, or
complaint, the Commission may issue and serve on such person an
order pursuant to paragraph (2) or (4) to suspend, restrict, or
revoke the registration of such person.
(E) A finding of not guilty or other disposition of the charge
shall not preclude the Commission from thereafter instituting any
other proceedings under this chapter.
(F) A person aggrieved by an order issued under this paragraph
may obtain review of such order in the same manner and on the same
terms and conditions as are provided in section 8(b) of this title.
(Sept. 21, 1922, ch. 369, Sec. 8a, as added June 15, 1936, ch. 545,
Sec. 10, 49 Stat. 1500; amended Aug. 5, 1955, ch. 574, 69 Stat. 535;
Pub. L. 90-258, Secs. 20-23, Feb. 19, 1968, 82 Stat. 32, 33; Pub. L. 93-
463, title I, Sec. 103(a), title II, Secs. 204(c), 205(c), 213-215, Oct.
23, 1974, 88 Stat. 1392, 1397, 1400, 1404; Pub. L. 95-405, Sec. 17,
Sept. 30, 1978, 92 Stat. 874; Pub. L. 97-444, title I, Sec. 104, title
II, Secs. 223-225, Jan. 11, 1983, 96 Stat. 2297, 2310-2315; Pub. L. 102-
546, title II, Secs. 207(b)(3), (4), 208, 209(b)(6), 227, title IV,
Sec. 402(10), Oct. 28, 1992, 106 Stat. 3604, 3607, 3618, 3625; Pub. L.
106-554, Sec. 1(a)(5) [title I, Sec. 123(a)(19)], Dec. 21, 2000, 114
Stat. 2763, 2763A-410.)
References in Text
The Securities Act of 1933, referred to in pars. (2)(E) and (3)(B),
is title I of act May 27, 1933, ch. 38, 48 Stat. 74, as amended, which
is classified generally to subchapter I (Sec. 77a et seq.) of chapter 2A
of Title 15, Commerce and Trade. For complete classification of this Act
to the Code, see section 77a of Title 15 and Tables.
The Securities Exchange Act of 1934, referred to in pars. (2)(E) and
(3)(B), is act June 6, 1934, ch. 404, 48 Stat. 881, as amended, which is
classified principally to chapter 2B (Sec. 78a et seq.) of Title 15. For
complete classification of this Act to the Code, see section 78a of
Title 15 and Tables.
The Public Utility Holding Company Act of 1935, referred to in pars.
(2)(E) and (3)(B), is title I of act Aug. 26, 1935, ch. 687, 49 Stat.
838, as amended, which is classified generally to chapter 2C (Sec. 79 et
seq.) of Title 15. For complete classification of this Act to the Code,
see section 79 of Title 15 and Tables.
The Trust Indenture Act of 1939, referred to in pars. (2)(E) and
(3)(B), is title III of act May 27, 1933, ch. 38, as added Aug. 3, 1939,
ch. 411, 53 Stat. 1149, as amended, which is classified generally to
subchapter III (Sec. 77aaa et seq.) of chapter 2A of Title 15. For
complete classification of this Act to the Code, see section 77aaa of
Title 15 and Tables.
The Investment Advisers Act of 1940, referred to in pars. (2)(E) and
(3)(B), is title II of act Aug. 22, 1940, ch. 686, 54 Stat. 847, as
amended, which is classified generally to subchapter II (Sec. 80b-1 et
seq.) of chapter 2D of Title 15. For complete classification of this Act
to the Code, see section 80b-20 of Title 15 and Tables.
The Investment Company Act of 1940, referred to in pars. (2)(E) and
(3)(B), is title I of act Aug. 22, 1940, ch. 686, 54 Stat. 789, as
amended, which is classified generally to subchapter I (Sec. 80a-1 et
seq.) of chapter 2D of Title 15. For complete classification of this Act
to the Code, see section 80a-51 of Title 15 and Tables.
The Securities Investor Protection Act of 1970, referred to in pars.
(2)(E) and (3)(B), is Pub. L. 91-598, Dec. 30, 1970, 84 Stat. 1636, as
amended, which is classified generally to chapter 2B-1 (Sec. 78aaa et
seq.) of Title 15. For complete classification of this Act to the Code,
see section 78aaa of Title 15 and Tables.
The Foreign Corrupt Practices Act of 1977, referred to in pars.
(2)(E) and (3)(B), is title I of Pub. L. 95-213, Dec. 19, 1977, 91 Stat.
1494, as amended, which enacted sections 78dd-1 and 78dd-2 of Title 15,
and amended sections 78m and 78ff of Title 15. For complete
classification of this Act to the Code, see Short Title of 1977
Amendment note set out under section 78a of Title 15 and Tables.
Amendments
2000--Pub. L. 106-554, Sec. 1(a)(5) [title I, Sec. 123(a)(19)(A)],
substituted ``registered entity'' for ``contract market'' wherever
appearing.
Par. (2)(F). Pub. L. 106-554, Sec. 1(a)(5) [title I,
Sec. 123(a)(19)(B)], substituted ``privileges'' for ``trading
privileges''.
1992--Par. (1). Pub. L. 102-546, Sec. 207(b)(3), substituted ``floor
brokers, and floor traders'' for ``and floor brokers''.
Par. (2). Pub. L. 102-546, Sec. 209(b)(6)(A), made technical
amendment to reference to sections 9 and 15 of this title in concluding
provisions to reflect change in reference to corresponding section of
original act.
Par. (2)(C)(i). Pub. L. 102-546, Sec. 207(b)(4), inserted ``floor
trader,'' after ``floor broker,''.
Par. (2)(C)(ii). Pub. L. 102-546, Sec. 208(a), amended cl. (ii)
generally. Prior to amendment, cl. (ii) read as follows: ``engaging in
or continuing any activity involving any transaction in or advice
concerning contracts of sale of a commodity for future delivery,
concerning matters subject to Commission regulation under section 6c or
23 of this title, or concerning securities''.
Par. (2)(D)(ii). Pub. L. 102-546, Sec. 207(b)(4), inserted ``floor
trader,'' after ``floor broker,''.
Par. (2)(D)(iv). Pub. L. 102-546, Sec. 208(b), inserted references
to sections 1001, 1503, 1623, 1961 to 1963, and 2314 of title 18 and
sections 7201 and 7206 of title 26.
Par. (2)(E). Pub. L. 102-546, Sec. 208(c), substituted ``in a
proceeding brought'' for ``by any court of competent jurisdiction,'' and
in cl. (i) inserted reference to chapter 96 of title 18.
Par. (2)(G). Pub. L. 102-546, Sec. 208(d), substituted ``this
paragraph and paragraph (3)'' for ``subparagraphs (A) through (F) of
this paragraph'', ``materially false'' for ``material false'', and
``application or any update thereto'' for ``application''.
Par. (3). Pub. L. 102-546, Sec. 209(b)(6)(B), made technical
amendment to reference to sections 9 and 15 of this title in concluding
provisions to reflect change in reference to corresponding section of
original act.
Par. (3)(D). Pub. L. 102-546, Sec. 208(e), inserted ``pleaded guilty
to or'' after ``person'', substituted ``section,'' for ``section within
ten years preceding the filing of the application or at any time
thereafter,'' and ``felony of the type specified in paragraph (2)(D) of
this section more'' for ``felony, including a felony of the type
specified in paragraph (2)(D) of this section, more''.
Par. (3)(E). Pub. L. 102-546, Sec. 208(f)(1), (2), inserted
``pleaded guilty to or'' after ``person'' and struck out ``within ten
years preceding the filing of the application for registration or at any
time thereafter'' before ``of any misdemeanor''.
Par. (3)(E)(ii). Pub. L. 102-546, Sec. 207(b)(4), inserted ``floor
trader,'' after ``floor broker,''.
Par. (3)(E)(iv). Pub. L. 102-546, Sec. 208(f)(3), inserted reference
to sections 7203 to 7205 and 7207 of title 26.
Par. (3)(G). Pub. L. 102-546, Sec. 208(g)(5), which directed the
insertion of ``or in any registration disqualification proceeding''
after ``Commission'', was executed by making the insertion after
``Commission'' the second time it appeared to reflect the probable
intent of Congress.
Pub. L. 102-546, Sec. 208(g)(1)-(4), substituted ``materially
false'' for ``material false'', ``application or any update thereto,''
for ``application,'' and struck out ``or'' after ``thereunder,''.
Par. (3)(H). Pub. L. 102-546, Sec. 208(h), inserted ``, in a United
States military court,'' after ``State court''.
Par. (3)(J). Pub. L. 102-546, Sec. 208(i), struck out ``or'' before
``any other self-regulatory'', inserted ``or any foreign regulatory body
that the Commission recognizes as having a comparable regulatory
program'', and substituted ``association, self-regulatory organization,
or foreign regulatory body'' for ``association, or self-regulatory
organization''.
Par. (4). Pub. L. 102-546, Sec. 209(b)(6)(C), made technical
amendment to references to sections 9 and 15 of this title in concluding
provisions to reflect change in references to corresponding section of
original act.
Par. (5). Pub. L. 102-546, Sec. 402(10)(A), struck out ``and'' at
end.
Par. (7). Pub. L. 102-546, Sec. 402(10)(B), substituted ``matters
as--'' for ``matters as:'' in introductory provisions.
Par. (11). Pub. L. 102-546, Sec. 227, added par. (11).
1983--Par. (1). Pub. L. 97-444, Sec. 223, substituted authorization
for registration of ``associated persons of futures commission
merchants'' for ``and persons associated therewith as described in
section 6k of this title''; authorized registration of introducing
brokers, associated persons of introducing brokers, associated persons
of commodity trading advisors and associated persons of commodity pool
operators, substituted ``such persons'' for ``any persons'' before
``associated with the applicant'', and authorized establishment of
registration and renewal fees and charges and granting of temporary
licenses for terms not exceeding six months from date of issuance.
Par. (2). Pub. L. 97-444, Sec. 224(1), added par. (2) and struck out
prior par. (2) which authorized Commission ``to refuse to register any
person--
``(A) if the prior registration of such person has been
suspended (and the period of such suspension shall not have expired)
or has been revoked;
``(B) if it is found, after opportunity for hearing, that the
applicant is unfit to engage in the business for which the
application for registration is made, (i) because such applicant,
or, if the applicant is a partnership, any general partner, or, if
the applicant is a corporation, any officer or holder of more than
10 per centum of the stock, at any time engaged in any practice of
the character prohibited by this chapter or was convicted of a
felony in any State or Federal court, or was debarred by any agency
of the United States from contracting with the United States, or the
applicant willfully made any material false or misleading statement
in his application or willfully omitted to state any material fact
in connection with the application, or (ii) for other good cause
shown; or
``(C) in the case of an applicant for registration as futures
commission merchant, if it is found after opportunity for hearing
that the applicant has not established that he meets the minimum
financial requirements under section 6f of this title: Provided,
That pending final determination under subparagraph (B) or (C),
registration shall not be granted: And provided further, That the
applicant may appeal from the refusal of registration under
subparagraph (B) or (C) in the manner provided in sections 9 and 15
of this title; and''.
Par. (3). Pub. L. 97-444, Sec. 224(3), added par. (3). Former par.
(3) redesignated (4).
Par. (4). Pub. L. 97-444, Sec. 224(2), (4), struck out par. (4)
provision for establishment of registration and renewal fees and
charges, covered in par. (1), redesignated par. (3) as (4), and in
redesignated par. (4), authorized placing of restrictions on
registrations, suspension or revocation of registration of an
introducing broker and appeals from registration decisions made pursuant
to this paragraph as provided in sections 9 and 15 of this title, and
substituted ``if cause exists under paragraph (3) of this section'' for
``if cause exists under paragraph (2)(B) or (C) of this section''.
Par. (6). Pub. L. 97-444, Sec. 104, authorized communication of full
facts respecting transactions or market operations to registered futures
associations and self-regulatory organizations, included concern for
investors, provided for communications when necessary or appropriate to
effectuate purposes of this chapter, and prohibited disclosure of
furnished information except in self-regulatory actions or proceedings.
Pars. (6) to (8). Pub. L. 97-444, Sec. 224(5), struck out ``and'' at
end of pars. (6), (7), and (8).
Par. (9). Pub. L. 97-444, Sec. 225, authorized Commission to direct
the contract market to take certain action, including, but not limited
to, setting of temporary emergency margin levels on any futures
contract, and fixing of limits that may apply to a market position
acquired in good faith prior to the effective date of Commission's
action and inserted provisions respecting judicial review.
Par. (10). Pub. L. 97-444, Sec. 224(6), added par. (10).
1978--Par. (1). Pub. L. 95-405, Sec. 17(1), inserted ``, which may
require the applicant, and any persons associated with the applicant as
the Commission may specify, to be fingerprinted and to submit, or cause
to be submitted, such fingerprints to the Attorney General for
identification and appropriate processing'' after ``by the Commission''.
Par. (6). Pub. L. 95-405, Sec. 17(2), struck out ``and to publish''
after ``any contract market''.
1974--Pub. L. 93-463, Sec. 103(a), substituted ``Commission'' for
``Secretary of Agriculture'' in provisions preceding par. (1).
Par. (1). Pub. L. 93-463, Secs. 103(a), 204(c), 205(c), substituted
``Commission'' for ``Secretary of Agriculture'', inserted ``and persons
associated therewith as described in section 6k of this title,'' after
``futures commission merchants'', and inserted ``commodity trading
advisors, commodity pool operators'' before ``and floor brokers''.
Pars. (3), (5), (6). Pub. L. 93-463, Sec. 103(a), substituted
``Commission'' for ``Secretary of Agriculture''.
Par. (7). Pub. L. 93-463, Sec. 213, amended par. (7) generally,
substituting provisions covering the altering or supplementing of the
rules of a contract market for provisions covering the disapproval of
bylaws, rules, regulations, and resolutions made, issued, or proposed by
a contract market.
Par. (8). Pub. L. 93-463, Sec. 214, added par. (8).
Par. (9). Pub. L. 93-463, Sec. 215, added par. (9).
1968--Par. (2). Pub. L. 90-258, Sec. 20, designated existing
provisions as subpar. (A), substituted ``if the prior registration of
such person'' for ``if such person has violated any of the provisions of
this chapter or any of the rules or regulations promulgated by the
Secretary of Agriculture hereunder for which the registration of such
person'' and added subpars. (B) and (C).
Par. (3). Pub. L. 90-258, Sec. 21, authorized Secretary of
Agriculture, in accordance with procedure provided for in sections 9 and
15 of this title, to suspend or revoke the registration of any person
registered under this chapter if cause exists under par. (2)(B) or (C)
of this section which would warrant a refusal of registration of such
person.
Par. (4). Pub. L. 90-258, Sec. 22, struck out authorization for
establishment of fees for copies of registration certificates.
Par. (7). Pub. L. 90-258, Sec. 23, added par. (7).
1955--Par. (4). Act Aug. 5, 1955, authorized Secretary to fix and
establish reasonable fees for registrations and renewals, and struck out
provisions which set the fee for each registration and renewal at not
more than $10.
Effective Date of 1992 Amendment
Amendment by section 207(b)(3), (4) of Pub. L. 102-546 effective 180
days after Oct. 28, 1992, with Commodity Futures Trading Commission to
issue any regulations necessary to implement such amendment no later
than 180 days after Oct. 28, 1992, see section 207(c) of Pub. L. 102-
546, set out as a note under section 6e of this title.
Effective Date of 1983 Amendment
Amendment by Pub. L. 97-444 effective Jan. 11, 1983, see section 239
of Pub. L. 97-444, set out as a note under section 2 of this title.
Effective Date of 1978 Amendment
Amendment by Pub. L. 95-405 effective Oct. 1, 1978, see section 28
of Pub. L. 95-405, set out as a note under section 2 of this title.
Effective Date of 1974 Amendment
For effective date of amendment by Pub. L. 93-463, see section 418
of Pub. L. 93-463, set out as a note under section 2 of this title.
Effective Date of 1968 Amendment
Amendment by Pub. L. 90-258 effective 120 days after Feb. 19, 1968,
see section 28 of Pub. L. 90-258, set out as a note under section 2 of
this title.
Effective Date
For effective date of section, see section 13 of act June 15, 1936,
set out as an Effective Date of 1936 Amendment note under section 1 of
this title.
Section Referred to in Other Sections
This section is referred to in sections 2, 6f, 6k, 7a-2, 21 of this
title.
