§ 9. — Exclusion of persons from privilege of "registered entities"; procedure for exclusion; 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: 7USC9]
TITLE 7--AGRICULTURE
CHAPTER 1--COMMODITY EXCHANGES
Sec. 9. Exclusion of persons from privilege of ``registered
entities''; procedure for exclusion; review by court of appeals
If the Commission has reason to believe that any person (other than
a registered entity) is manipulating or attempting to manipulate or has
manipulated or attempted to manipulate the market price of any
commodity, in interstate commerce, or for future delivery on or subject
to the rules of any registered entity, or has willfully made any false
or misleading statement of a material fact in any registration
application or any report filed with the Commission under this chapter,
or willfully omitted to state in any such application or report any
material fact which is required to be stated therein, or otherwise is
violating or has violated any of the provisions of this chapter or of
the rules, regulations, or orders of the Commission or the Commission
\1\ thereunder, it may serve upon such person a complaint stating its
charges in that respect, which complaint shall have attached or shall
contain therein a notice of hearing, specifying a day and place not less
than three days after the service thereof, requiring such person to show
cause why an order should not be made prohibiting him from trading on or
subject to the rules of any registered entity, and directing that all
registered entities refuse all privileges to such person, until further
notice of the Commission, and to show cause why the registration of such
person, if registered with the Commission in any capacity, should not be
suspended or revoked. Said hearing may be held in Washington, District
of Columbia, or elsewhere, before the Commission, or before an
Administrative Law Judge designated by the Commission, which
Administrative Law Judge shall cause all evidence to be reduced to
writing and forthwith transmit the same to the Commission. Upon evidence
received, the Commission may (1) prohibit such person from trading on or
subject to the rules of any registered entity and require all registered
entities to refuse such person all trading privileges thereon for such
period as may be specified in the order, (2) if such person is
registered with the Commission in any capacity, suspend, for a period
not to exceed six months, or revoke, the registration of such person,
(3) assess such person a civil penalty of not more than the higher of
$100,000 or triple the monetary gain to such person for each such
violation \2\ and (4) require restitution to customers of damages
proximately caused by violations of such persons. Notice of such order
shall be sent forthwith by registered mail or by certified mail or
delivered to the offending person and to the governing boards of said
registered entities. After the issuance of the order by the Commission,
the person against whom it is issued may obtain a review of such order
or such other equitable relief as to the court may seem just by filing
in the United States court of appeals of the circuit in which the
petitioner is doing business, or in the case of an order denying
registration, the circuit in which the petitioner's principal place of
business listed on petitioner's application for registration is located,
a written petition, within fifteen days after the notice of such order
is given to the offending person praying that the order of the
Commission be set aside. A copy of such petition shall be forthwith
transmitted by the clerk of the court to the Commission and thereupon
the Commission shall file in the court the record theretofore made, as
provided in section 2112 of title 28. Upon the filing of the petition
the court shall have jurisdiction to affirm, to set aside, or modify the
order of the Commission, and the findings of the Commission as to the
facts, if supported by the weight of evidence, shall in like manner be
conclusive.
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\1\ So in original. The words ``or the Commission'' probably should
not appear.
\2\ So in original. Probably should be followed by a comma.
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(Sept. 21, 1922, ch. 369, Sec. 6(c), formerly Sec. 6(b), 42 Stat. 1002;
June 15, 1936, ch. 545, Sec. 8(a)-(d), (h)-(j), 49 Stat. 1498, 1499;
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(b), Aug. 28, 1958, 72
Stat. 944; Pub. L. 86-507, Sec. 1(2), June 11, 1960, 74 Stat. 200; Pub.
L. 90-258, Sec. 16, Feb. 19, 1968, 82 Stat. 30; Pub. L. 93-463, title I,
Sec. 103(a), (b), (e), title II, Secs. 204(b), 205(b), 212(a)(1), (2),
title IV, Sec. 408, Oct. 23, 1974, 88 Stat. 1392, 1397, 1400, 1403,
1414; Pub. L. 97-444, title II, Sec. 219, Jan. 11, 1983, 96 Stat. 2308;
renumbered Sec. 6(c) and amended Pub. L. 102-546, title II,
Secs. 209(a)(1), 212(b), 223, title IV, Sec. 402(1)(C), (6), (9)(B),
Oct. 28, 1992, 106 Stat. 3606, 3609, 3617, 3624, 3625; Pub. L. 106-554,
Sec. 1(a)(5) [title I, Sec. 123(a)(12)(C)], Dec. 21, 2000, 114 Stat.
2763, 2763A-409.)
Codification
Section is comprised of part of subsec. (c) of section 6 of act
Sept. 21, 1922. A further provision of subsec. (c) is contained in
section 15 of this title. Subsecs. (a) and (b) of section 6 are
classified to section 8 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--Pub. L. 106-554 substituted ``registered entity'' for
``contract market'' wherever appearing, ``registered entities'' for
``contract markets'' wherever appearing, and ``privileges'' for
``trading privileges'' in two places.
1992--Pub. L. 102-546, Sec. 402(9)(B), 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, Secs. 209(a)(1), 212(b), 223, 402(1)(C), (6),
substituted, in first sentence, ``Commission thereunder'' for
``commission thereunder'', in sentence beginning ``Upon evidence
received'', inserted ``(1)'', substituted ``(2) if'' for ``and, if'',
``suspend'' for ``may suspend'', ``(3)'' for ``and may'', ``the higher
of $100,000 or triple the monetary gain to such person'' for
``$100,000'', and inserted before period ``and (4) require restitution
to customers of damages proximately caused by violations of such
persons'', and in sentence beginning ``After the issuance'', substituted
``offending person'' for ``offending person.''.
1983--Pub. L. 97-444 struck out ``as futures commission merchant or
any person associated therewith as described in section 6k of this
title, commodity trading advisor, commodity pool operator, or as floor
broker hereunder'' after ``such person, if registered'' and also after
``such person is registered'' and inserted ``, or in the case of an
order denying registration, the circuit in which the petitioner's
principal place of business listed on petitioner's application for
registration is located,'' after ``court of appeals of the circuit in
which the petitioner is doing business''.
1974--Pub. L. 93-463, Secs. 103(e), 204(b), 205(b), 212(a)(1), (2),
408, substituted ``it'' for ``he'', inserted ``or any person associated
therewith as described in section 6k of this title,'' after ``futures
commission merchant'' wherever appearing, inserted ``commodity trading
advisor, commodity pool operator'' before ``or as floor broker''
wherever appearing, inserted provision for the assessment of civil
penalties of not more than $100,000 for each violation, set a limit of
fifteen days after the issuance of an order within which period the
person against whom the order was issued must file with the court of
appeals his petition that the order be set aside, and substituted ``an
Administrative Law Judge'' and ``Administrative Law Judge'' for ``a
referee'' and ``referee'', respectively.
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''. Section 103(a) was
executed wherever the term ``Secretary of Agriculture'' appeared in this
section including in the phrase ``the Secretary of Agriculture or the
commission'' in the first sentence. Because the word ``commission'' was
not capitalized in that phrase in the first sentence, section 103(b) did
not apply to that phrase 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 amended first sentence generally, providing for
denial of trading privileges to persons other than contract markets and
suspension or revocation of registration of futures commission merchants
and floor brokers, who are manipulating or have attempted to manipulate
prices, for willful, material, misstatements in, or omissions from,
reports or registration statements, and for violations of orders of
Secretary of Agriculture or commission, and authorizing the Secretary to
prohibit such persons from trading on or subject to rules of any
contract market.
1960--Pub. L. 86-507 inserted ``or by certified mail'' after
``registered mail''.
1958--Pub. L. 85-791 substituted ``transmitted by the clerk of the
court to the Secretary of Agriculture and thereupon the Secretary of
Agriculture shall file in the court the record theretofore made, as
provided in section 2112 of Title 28'' for ``served upon the Secretary
of Agriculture by delivering such copy to him and thereupon the
Secretary of Agriculture shall forthwith certify and file in the court a
transcript of the record theretofore made, including evidence received''
in seventh sentence, and substituted ``petition'' for ``transcript'' in
eighth sentence.
1936--Act June 15, 1936, among other changes, amended section by
inserting provisions relating to the service of complaints and penalties
for violations of this chapter.
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 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 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 of 1936 Amendment
Amendment by act June 15, 1936, effective 90 days after June 15,
1936, see section 13 of act June 15, 1936, set out as a note under
section 1 of this title.
Section Referred to in Other Sections
This section is referred to in sections 2, 7a-3, 9a, 9c, 12, 12a,
13b, 18, 21, 27d of this title.
