§ 12c. — Disciplinary actions.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 7USC12c]
TITLE 7--AGRICULTURE
CHAPTER 1--COMMODITY EXCHANGES
Sec. 12c. Disciplinary actions
(a) Action taken; written notice of reasons for action
(1) Any exchange or the Commission if the exchange fails to act, may
suspend, expel, or otherwise discipline any person who is a member of
that exchange, or deny any person access to the exchange. Any such
action shall be taken solely in accordance with the rules of that
exchange.
(2) Any suspension, expulsion, disciplinary, or access denial
procedure established by an exchange rule shall provide for written
notice to the Commission and to the person who is suspended, expelled,
or disciplined, or denied access, within thirty days, which includes the
reasons for the exchange action in the form and manner the Commission
prescribes. An exchange shall make public its findings and the reasons
for the exchange action in any such proceeding, including the action
taken or the penalty imposed, but shall not disclose the evidence
therefor, except to the person who is suspended, expelled, or
disciplined, or denied access, and to the Commission.
(b) Review by Commission
The Commission may, in its discretion and in accordance with such
standards and procedures as it deems appropriate, review any decision by
an exchange whereby a person is suspended, expelled, otherwise
disciplined, or denied access to the exchange. In addition, the
Commission may, in its discretion and upon application of any person who
is adversely affected by any other exchange action, review such action.
(c) Affirmance, modification, set aside, or remand of action
The Commission may affirm, modify, set aside, or remand any exchange
decision it reviews pursuant to subsection (b) of this section, after a
determination on the record whether the action of the exchange was in
accordance with the policies of this chapter. Subject to judicial
review, any order of the Commission entered pursuant to subsection (b)
of this section shall govern the exchange in its further treatment of
the matter.
(d) Stay of action
The Commission, in its discretion, may order a stay of any action
taken pursuant to subsection (a) of this section pending review thereof.
(e) Major disciplinary rule violations
(1) The Commission shall issue regulations requiring each registered
entity to establish and make available to the public a schedule of major
violations of any rule within the disciplinary jurisdiction of such
registered entity.
(2) The regulations issued by the Commission pursuant to this
subsection shall prohibit, for a period of time to be determined by the
Commission, any individual who is found to have committed any major
violation from service on the governing board of any registered entity
or registered futures association, or on any disciplinary committee
thereof.
(Sept. 21, 1922, ch. 369, Sec. 8c, as added Pub. L. 93-463, title II,
Sec. 216, Oct. 23, 1974, 88 Stat. 1405; amended Pub. L. 95-405, Sec. 18,
Sept. 30, 1978, 92 Stat. 874; Pub. L. 102-546, title II, Sec. 206(a)(2),
Oct. 28, 1992, 106 Stat. 3602; Pub. L. 106-554, Sec. 1(a)(5) [title I,
Sec. 123(a)(20)], Dec. 21, 2000, 114 Stat. 2763, 2763A-410.)
Amendments
2000--Subsec. (e). Pub. L. 106-554 substituted ``registered entity''
for ``contract market'' wherever appearing.
1992--Pub. L. 102-546 redesignated pars. (1) to (4) as subsecs. (a)
to (d), respectively, in subsec. (a) redesignated subpars. (A) and (B)
as pars. (1) and (2), respectively, in subsec. (c) substituted
references to subsection (b) for references to paragraph (2), in subsec.
(d) substituted reference to subsection (a) for reference to paragraph
(1), and added subsec. (e).
1978--Par. (1)(B). Pub. L. 95-405 substituted ``An exchange shall
make public its findings and the reasons for the exchange action in any
such proceeding, including the action taken or the penalty imposed, but
shall not disclose the evidence therefor, except to the person who is
suspended, expelled, or disciplined or denied access, and to the
Commission'' for ``Otherwise the notice and reasons shall be kept
confidential''.
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
For effective date of section, see section 418 of Pub. L. 93-463,
set out as an Effective Date of 1968 Amendment note under section 2 of
this title.
