§ 8. — Application for designation as contract market or derivatives transaction execution facility; time; suspension or revocation of designation; hearing; review by court of appeals.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 7USC8]
TITLE 7--AGRICULTURE
CHAPTER 1--COMMODITY EXCHANGES
Sec. 8. Application for designation as contract market or
derivatives transaction execution facility; time; suspension or
revocation of designation; hearing; review by court of appeals
(a) Any person desiring to be designated or registered as a contract
market or derivatives transaction execution facility shall make
application to the Commission for the designation or registration and
accompany the same with a showing that it complies with the conditions
set forth in this chapter, and with a sufficient assurance that it will
continue to comply with the the \1\ requirements of this chapter. The
Commission shall approve or deny an application for designation or
registration as a contract market or derivatives transaction execution
facility within 180 days of the filing of the application. If the
Commission notifies the person that its application is materially
incomplete and specifies the deficiencies in the application, the
running of the 180-day period shall be stayed from the time of such
notification until the application is resubmitted in completed form:
Provided, That the Commission shall have not less than sixty days to
approve or deny the application from the time the application is
resubmitted in completed form. If the Commission denies an application,
it shall specify the grounds for the denial. In the event of a refusal
to designate or register as a contract market or derivatives transaction
execution facility any person that has made application therefor, the
person shall be afforded an opportunity for a hearing on the record
before the Commission, with the right to appeal an adverse decision
after such hearing to the court of appeals as provided for in other
cases in subsection (b) of this section.
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\1\ So in original.
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(b) The Commission is authorized to suspend for a period not to
exceed six months or to revoke the designation or registration of any
contract market or derivatives transaction execution facility on a
showing that such contract market or derivatives transaction execution
facility is not enforcing or has not enforced its rules of government
made a condition of its designation or registration as set forth in
sections 7 through 7a-1 of this title or section 7b-1 of this title or
that such contract market or derivatives transaction execution facility,
or any director, officer, agent, or employee thereof, otherwise is
violating or has violated any of the provisions of this chapter or any
of the rules, regulations, or orders of the Commission or the Commission
\2\ thereunder. Such suspension or revocation shall only be after a
notice to the officers of the contract market or derivatives transaction
execution facility affected and upon a hearing on the record: Provided,
That such suspension or revocation shall be final and conclusive, unless
within fifteen days after such suspension or revocation by the
Commission such person appeals to the court of appeals for the circuit
in which it has its principal place of business, by filing with the
clerk of such court a written petition praying that the order of the
Commission be set aside or modified in the manner stated in the
petition, together with a bond in such sum as the court may determine,
conditioned that such person will pay the costs of the proceedings if
the court so directs. The clerk of the court in which such a petition is
filed shall immediately cause a copy thereof to be delivered to the
Commission and file in the court the record in such proceedings, as
provided in section 2112 of title 28. The testimony and evidence taken
or submitted before the Commission, duly filed as aforesaid as a part of
the record, shall be considered by the court of appeals as the evidence
in the case. Such a court may affirm or set aside the order of the
Commission or may direct it to modify its order. No such order of the
Commission shall be modified or set aside by the court of appeals unless
it is shown by the person that the order is unsupported by the weight of
the evidence or was issued without due notice and a reasonable
opportunity having been afforded to such person for a hearing, or
infringes the Constitution of the United States, or is beyond the
jurisdiction of the Commission.
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\2\ So in original. The words ``or the Commission'' probably should
not appear.
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(Sept. 21, 1922, ch. 369, Sec. 6(a), (b), formerly Sec. 6(a), 42 Stat.
1001; June 25, 1948, ch. 646, Sec. 32(a), 62 Stat. 991; May 24, 1949,
ch. 139, Sec. 127, 63 Stat. 107; Pub. L. 85-791, Sec. 7(a), Aug. 28,
1958, 72 Stat. 944; Pub. L. 90-258, Secs. 14, 15, Feb. 19, 1968, 82
Stat. 30; Pub. L. 93-463, title I, Sec. 103(a)-(c), Oct. 23, 1974, 88
Stat. 1392; Pub. L. 95-405, Sec. 13(1), (2), Sept. 30, 1978, 92 Stat.
871; Pub. L. 97-444, title II, Sec. 218, Jan. 11, 1983, 96 Stat. 2308;
Pub. L. 98-620, title IV, Sec. 402(3), Nov. 8, 1984, 98 Stat. 3357;
renumbered Sec. 6(a), (b) and amended Pub. L. 102-546, title II,
Sec. 209(a)(1)-(3), title IV, Sec. 402(1)(B), (9)(A), Oct. 28, 1992, 106
Stat. 3606, 3624, 3625; Pub. L. 106-554, Sec. 1(a)(5) [title I,
Sec. 123(a)(12)(A), (B)], Dec. 21, 2000, 114 Stat. 2763, 2763A-408.)
Codification
Section is comprised of subsecs. (a) and (b) of section 6 of act
Sept. 21, 1922. Subsec. (c) of section 6 is classified to sections 9 and
15 of this title. Subsecs. (d), (e), (f), and (g) of section 6 are
classified to sections 13b, 9a, 9b, and 9c of this title, respectively.
Amendments
2000--Subsec. (a). Pub. L. 106-554, Sec. 1(a)(5) [title I,
Sec. 123(a)(12)(A)(iv)], substituted ``designate or register as a
contract market or derivatives transaction execution facility any person
that has made application therefor, the person'' for ``designate as a
`contract market' any board of trade that has made application therefor,
such board of trade'' in last sentence.
Pub. L. 106-554, Sec. 1(a)(5) [title I, Sec. 123(a)(12)(A)(iii)], in
third sentence, substituted ``person'' for ``board of trade'' and ``180-
day period'' for ``one-year period''.
Pub. L. 106-554, Sec. 1(a)(5) [title I, Sec. 123(a)(12)(A)(ii)],
substituted ``designation or registration as a contract market or
derivatives transaction execution facility within 180 days'' for
``designation as a contract market within one year'' in second sentence.
Pub. L. 106-554, Sec. 1(a)(5) [title I, Sec. 123(a)(12)(A)(i)], in
first sentence, substituted ``person desiring to be designated or
registered as a contract market or derivatives transaction execution
facility shall make application to the Commission for the designation or
registration'' for ``board of trade desiring to be designated a
`contract market' shall make application to the Commission for such
designation'', ``conditions set forth in this chapter'' for ``above
conditions'', and ``the requirements of this chapter'' for ``above
requirements''.
Subsec. (b). Pub. L. 106-554, Sec. 1(a)(5) [title I,
Sec. 123(a)(12)(B)(iii)], substituted ``person'' for ``board of trade''
in two places in last sentence.
Pub. L. 106-554, Sec. 1(a)(5) [title I, Sec. 123(a)(12)(B)(ii)], in
second sentence, substituted ``contract market or derivatives
transaction execution facility affected'' for ``board of trade
affected'', ``person appeals'' for ``board of trade appeals'' and
``person will'' for ``board of trade will''.
Pub. L. 106-554, Sec. 1(a)(5) [title I, Sec. 123(a)(12)(B)(i)], in
first sentence, substituted ``designation or registration of any
contract market or derivatives transaction execution facility on'' for
``designation of any board of trade as a `contract market' upon'',
``contract market or derivatives transaction execution facility'' for
``board of trade'' in two places, and ``designation or registration as
set forth in sections 7 through 7a-1 of this title or section 7b-1 of
this title'' for ``designation as set forth in section 7 of this
title''.
1992--Pub. L. 102-546, Sec. 209(a)(1), (2), designated first par. as
subsec. (a) and redesignated former par. (a) as subsec. (b).
Subsec. (a). Pub. L. 102-546, Sec. 209(a)(3), substituted
``subsection (b)'' for ``paragraph (a)''.
Subsec. (b). Pub. L. 102-546, Sec. 402(9)(A), which directed
amendment of first sentence by striking ``the Secretary of Agriculture
or'', could not be executed because of amendment by Pub. L. 93-463,
Sec. 103(a). See 1974 Amendment note below.
Pub. L. 102-546, Sec. 402(1)(B), substituted ``Commission'' for
``commission'' wherever appearing.
1984--Par. (a). Pub. L. 98-620 struck out provisions requiring
proceedings in such cases in the court of appeals to be made a preferred
cause and expedited in every way.
1983--Pub. L. 97-444 required approval or denial of application
within one year period of filing of application, stay of such period
following notification that application was incomplete and deficient
until resubmission of application, minimum period prior to acting upon
resubmitted application, and specification of grounds for denial of
application.
1978--Pub. L. 95-405, Sec. 13(1), in provisions before par. (a)
inserted ``on the record'' after ``opportunity for a hearing''.
Par. (a). Pub. L. 95-405, Sec. 13(2), inserted ``on the record''
after ``upon a hearing''.
1974--Pub. L. 93-463, Sec. 103(a), substituted ``Commission'' for
``Secretary of Agriculture'' in first par.
Par. (a). Pub. L. 93-463, Sec. 103(c), struck out ``the Secretary of
Agriculture, who shall thereupon notify the other members of'' after
``The clerk of the court in which such a petition is filed shall
immediately cause a copy thereof to be delivered to''.
Pub. L. 93-463, Sec. 103(a), provided for substitution of
``Commission'' for ``Secretary of Agriculture'' except where such words
would be stricken by section 103(b), which directed striking the words
``the Secretary of Agriculture or'' where they appeared in the phrase
``the Secretary of Agriculture or the Commission''. Because the word
``commission'' was not capitalized in that phrase in par. (a), section
103(b) did not apply to par. (a) and therefore section 103(a) was
executed, resulting in the substitution of ``the Commission or the
commission'' for ``the Secretary of Agriculture or the commission''.
1968--Pub. L. 90-258, Sec. 14, inserted provision affording any
board of trade refused a contract market designation a hearing before
the Commission with right to appeal in adverse decision to the court of
appeals as provided for in par. (a) of this section at end of first par.
Par. (a). Pub. L. 90-258, Sec. 15, amended par. (a) generally,
striking out such parts both of first sentence and of proviso of last
sentence as described the commission as made up of the Secretary of
Agriculture, Secretary of Commerce, and Attorney General (covered in
definition of ``Commission'' in section 2 of this title, including
representation of such officials by their designees), extending grounds
for suspension or revocation of designation to include violations of any
provisions of this chapter or rules, regulations, or orders of the
Secretary of Agriculture or commission, requiring delivery of appeal
petitions to Secretary of Agriculture rather than any member of the
commission, who would notify the other members, and filing of commission
records of proceedings on appeal by the Secretary of Agriculture and not
the commission, striking out provisions describing Secretary of
Agriculture as Chairman (now found in section 2 of this title),
superseding such part of proviso of seventh sentence as authorized
appeals to the commission from Secretary of Agriculture's refusal of a
contract market designation by provisions of first par. of this section,
and striking out such other part as made decision of court on appeal
from commission final and binding on the parties.
1958--Pub. L. 85-791 substituted ``thereupon file in the court the
record in such proceedings, as provided in section 2112 of title 28''
for ``forthwith prepare, certify, and file in the court a full and
accurate transcript of the record in such proceedings including the
notice to the board of trade, a copy of the charges, the evidence, and
the report and order'' in third notice, and struck out ``certified and''
after ``duly'' in fourth sentence.
Change of Name
Act June 25, 1948, as amended by act May 24, 1949, substituted
``court of appeals'' for ``circuit court of appeals'' wherever appearing
in this section.
Effective Date of 1984 Amendment
Amendment by Pub. L. 98-620 not applicable to cases pending on Nov.
8, 1984, see section 403 of Pub. L. 98-620, set out as an Effective Date
note under section 1657 of Title 28, Judiciary and Judicial Procedure.
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.
Section Referred to in Other Sections
This section is referred to in sections 7b, 10a, 12, 12a, 13a of
this title.