§ 7b-1. — Designation of securities exchanges and associations as contract markets.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 7USC7b-1]
TITLE 7--AGRICULTURE
CHAPTER 1--COMMODITY EXCHANGES
Sec. 7b-1. Designation of securities exchanges and associations
as contract markets
(a) Any board of trade that is registered with the Securities and
Exchange Commission as a national securities exchange, is a national
securities association registered pursuant to section 78o-3(a) of title
15, or is an alternative trading system shall be a designated contract
market in security futures products if--
(1) such national securities exchange, national securities
association, or alternative trading system lists or trades no other
contracts of sale for future delivery, except for security futures
products;
(2) such national securities exchange, national securities
association, or alternative trading system files written notice with
the Commission in such form as the Commission, by rule, may
prescribe containing such information as the Commission, by rule,
may prescribe as necessary or appropriate in the public interest or
for the protection of customers; and
(3) the registration of such national securities exchange,
national securities association, or alternative trading system is
not suspended pursuant to an order by the Securities and Exchange
Commission.
Such designation shall be effective contemporaneously with the
submission of notice, in written or electronic form, to the Commission.
(b)(1) A national securities exchange, national securities
association, or alternative trading system that is designated as a
contract market pursuant to this section shall be exempt from the
following provisions of this chapter and the rules thereunder:
(A) Subsections (c), (e), and (g) of section 6c of this title.
(B) Section 6j of this title.
(C) Section 7 of this title.
(D) Section 7a-2 of this title.
(E) Section 10a of this title.
(F) Section 12(d) of this title.
(G) Section 13(f) of this title.
(H) Section 20 of this title.
(2) An alternative trading system that is a designated contract
market under this section shall be required to be a member of a futures
association registered under section 21 of this title and shall be
exempt from any provision of this chapter that would require such
alternative trading system to--
(A) set rules governing the conduct of subscribers other than
the conduct of such subscribers' trading on such alternative trading
system; or
(B) discipline subscribers other than by exclusion from trading.
(3) To the extent that an alternative trading system is exempt from
any provision of this chapter pursuant to paragraph (2) of this
subsection, the futures association registered under section 21 of this
title of which the alternative trading system is a member shall set
rules governing the conduct of subscribers to the alternative trading
system and discipline the subscribers.
(4)(A) Except as provided in subparagraph (B), but notwithstanding
any other provision of this chapter, the Commission, by rule,
regulation, or order, may conditionally or unconditionally exempt any
designated contract market in security futures subject to the
designation requirement of this section from any provision of this
chapter or of any rule or regulation thereunder, to the extent such
exemption is necessary or appropriate in the public interest and is
consistent with the protection of investors.
(B) The Commission shall, by rule or regulation, determine the
procedures under which an exemptive order under this section is granted
and may, in its sole discretion, decline to entertain any application
for an order of exemption under this section.
(C) An alternative trading system shall not be deemed to be an
exchange for any purpose as a result of the designation of such
alternative trading system as a contract market under this section.
(Sept. 21, 1922, ch. 369, Sec. 5f, as added Pub. L. 106-554,
Sec. 1(a)(5) [title II, Sec. 252(a)], Dec. 21, 2000, 114 Stat. 2763,
2763A-445.)
Section Referred to in Other Sections
This section is referred to in sections 1a, 2, 8, 9c, 12, 13a-1 of
this title.
