568
20) is amended by adding at the end the fol-
lowing:
‘‘(e) The provisions of this section shall not
apply to investigations involving any security
underlying a security future product.’’.
SEC. 222. APPLICATION OF THE COMMODITY EXCHANGE
ACT TO NATIONAL SECURITIES EXCHANGES
AND NATIONAL SECURITIES ASSOCIATIONS
THAT TRADE SECURITY FUTURES.
(a) NOTICE DESIGNATION OF NATIONAL SE-
CURITIES EXCHANGES AND NATIONAL SECURITIES
ASSOCIATIONS.—The Commodity Exchange Act
is amended by inserting after section 5e (7
U.S.C. 7b), as amended by section 115, the fol-
lowing:
‘‘SEC. 5f. 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 na-
tional securities association registered pursu-
ant to section 15A(a) of the Securities Ex-
change Act of 1934, or is an alternative trad-
ing system shall be a designated contract mar-
ket in security future products if—
569
‘‘(1) 
such 
national 
securities 
ex-
change, national securities association, or
alternative trading system lists or trades
no other contracts of sale for future deliv-
ery, except for security future products;
‘‘(2) 
such 
national 
securities 
ex-
change, 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 Com-
mission, by rule, may prescribe as nec-
essary or appropriate in the public inter-
est or for the protection of customers; and
‘‘(3) the registration of such national
securities exchange, association, or alter-
native trading system is not suspended
pursuant to an order by the Securities
and Exchange Commission.
Such designation shall be effective imme-
diately upon filing of the written notice with
the Commission.
‘‘(b)(1) A national securities exchange, na-
tional securities association, or alternative
trading system that is designated as a con-
570
tract market pursuant to section 5f of this Act
shall be exempt from the following provisions
of this Act and the rules thereunder:
‘‘(A) Subsections (c), (e), and (g) of sec-
tion 4c.
‘‘(B) Subsections (a) and (d) of section
4j.
‘‘(C) Section 5.
‘‘(D) Section 5c.
‘‘(E) Section 6a.
‘‘(F) Section 8(d).
‘‘(G) Section 8e.
‘‘(H) Section 9(f).
‘‘(I) Section 16.
‘‘(J) Section 22(b).
‘‘(2)(A) Except as provided in subpara-
graph (B), but notwithstanding any other pro-
vision of this Act, the Commission, by rule, reg-
ulation, or order, may conditionally or uncon-
ditionally exempt any designated contract
market in security futures subject to the des-
ignation requirement of this section from any
provision of this Act or of any rule or regula-
tion thereunder, to the extent such exemption
is necessary or appropriate in the public inter-
571
est and is consistent with the protection of in-
vestors.
‘‘(B) The Commission shall, by rule or reg-
ulation, 
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 ex-
emption under this section.’’.
(b) NOTICE REGISTRATION OF CERTAIN SECU-
RITIES BROKER-DEALERS; EXEMPTION FROM REG-
ISTRATION
FOR CERTAIN SECURITIES BROKER-
DEALERS.—Section 4f(a) of the Commodity Ex-
change Act (7 U.S.C. 6f(a)) is amended—
(1) by inserting ‘‘(1)’’ after ‘‘(a)’’; and
(2) by adding at the end the following:
‘‘(2) Notwithstanding paragraph (1), and
except as provided in paragraph (3), any
broker or dealer that is registered with the Se-
curities and Exchange Commission shall be
registered as a futures commission merchant
or introducing broker, as applicable, if—
‘‘(A) such broker or dealer limits its
solicitation of orders, acceptance of or-
ders, or execution of orders, or placing of
orders on behalf of others involving any