Source: https://www.law.cornell.edu/uscode/text/7/7a-2?qt-us_code_tabs=3
Timestamp: 2016-02-07 12:06:55
Document Index: 72378410

Matched Legal Cases: ['§ 7', '§ 7', '§ 7', '§\u2009745', '§ 5', '§ 1', '§ 113', '§ 251', '§ 13105', '§ 4', '§ 13105', '§ 717', '§ 749', '§ 745', '§ 745', '§ 717', '§ 721', '§ 745', '§ 749', '§ 13203', '§ 13105', '§ 13105', '§ 13203', '§ 13203', '§ 13203', '§ 13105', '§ 13105', '§ 13105', '§ 1', '§ 251', 'art 1', 'art 8', 'art 9', 'art 15', 'art 17', 'art 21', 'art 33', 'art 37', 'art 40', 'art 42', 'art 100', 'art 156', 'art 190']

7 U.S. Code § 7a–2 - Common provisions applicable to registered entities | US Law | LII / Legal Information Institute
U.S. Code › Title 7 › Chapter 1 › § 7a–2 7 U.S. Code § 7a–2 - Common provisions applicable to registered entities
Acceptable business practices under core principles (1)
In general Consistent with the purposes of this chapter, the Commission may issue interpretations, or approve interpretations submitted to the Commission, of sections 7
(d) and 7a–1
(c)(2) of this title, to describe what would constitute an acceptable business practice under such sections.
Effect of interpretation An interpretation issued under paragraph (1) may provide the exclusive means for complying with each section described in paragraph (1).
Delegation of functions under core principles (1)
In general A contract market, derivatives transaction execution facility, or electronic trading facility with respect to a significant price discovery contract may comply with any applicable core principle through delegation of any relevant function to a registered futures association or a registered entity that is not an electronic trading facility.
Responsibility A contract market, derivatives transaction execution facility, or electronic trading facility that delegates a function under paragraph (1) shall remain responsible for carrying out the function.
Noncompliance If a contract market, derivatives transaction execution facility, or electronic trading facility that delegates a function under paragraph (1) becomes aware that a delegated function is not being performed as required under this chapter, the contract market, derivatives transaction execution facility, or electronic trading facility shall promptly take steps to address the noncompliance.
New contracts, new rules, and rule amendments (1)
In general A registered entity may elect to list for trading or accept for clearing any new contract, or other instrument, or may elect to approve and implement any new rule or rule amendment, by providing to the Commission (and the Secretary of the Treasury, in the case of a contract of sale of a government security for future delivery (or option on such a contract) or a rule or rule amendment specifically related to such a contract) a written certification that the new contract or instrument or clearing of the new contract or instrument, new rule, or rule amendment complies with this chapter (including regulations under this chapter).
Rule review The new rule or rule amendment described in paragraph (1) shall become effective, pursuant to the certification of the registered entity and notice of such certification to its members (in a manner to be determined by the Commission), on the date that is 10 business days after the date on which the Commission receives the certification (or such shorter period as determined by the Commission by rule or regulation) unless the Commission notifies the registered entity within such time that it is staying the certification because there exist novel or complex issues that require additional time to analyze, an inadequate explanation by the submitting registered entity, or a potential inconsistency with this chapter (including regulations under this chapter).
Stay of certification for rules (A)
A notification by the Commission pursuant to paragraph (2) shall stay the certification of the new rule or rule amendment for up to an additional 90 days from the date of the notification.
A rule or rule amendment subject to a stay pursuant to subparagraph (A) shall become effective, pursuant to the certification of the registered entity, at the expiration of the period described in subparagraph (A) unless the Commission—
withdraws the stay prior to that time; or
notifies the registered entity during such period that it objects to the proposed certification on the grounds that it is inconsistent with this chapter (including regulations under this chapter).
The Commission shall provide a not less than 30-day public comment period, within the 90-day period in which the stay is in effect as described in subparagraph (A), whenever the Commission reviews a rule or rule amendment pursuant to a notification by the Commission under this paragraph.
Prior approval (A)
In general A registered entity may request that the Commission grant prior approval to any new contract or other instrument, new rule, or rule amendment.
Prior approval required Notwithstanding any other provision of this section, a designated contract market shall submit to the Commission for prior approval each rule amendment that materially changes the terms and conditions, as determined by the Commission, in any contract of sale for future delivery of a commodity specifically enumerated in section 1a
of this title (or any option thereon) traded through its facilities if the rule amendment applies to contracts and delivery months which have already been listed for trading and have open interest.
Deadline If prior approval is requested under subparagraph (A), the Commission shall take final action on the request not later than 90 days after submission of the request, unless the person submitting the request agrees to an extension of the time limitation established under this subparagraph.
Approval (A)
Rules The Commission shall approve a new rule, or rule amendment, of a registered entity unless the Commission finds that the new rule, or rule amendment, is inconsistent with this chapter (including regulations).
Contracts and instruments The Commission shall approve a new contract or other instrument unless the Commission finds that the new contract or other instrument would violate this chapter (including regulations).
Special rule for review and approval of event contracts and swaps contracts (i)
In connection with the listing of agreements, contracts, transactions, or swaps in excluded commodities that are based upon the occurrence, extent of an occurrence, or contingency (other than a change in the price, rate, value, or levels of a commodity described in section 1a
(2)(i) [2]
of this title), by a designated contract market or swap execution facility, the Commission may determine that such agreements, contracts, or transactions are contrary to the public interest if the agreements, contracts, or transactions involve—
activity that is unlawful under any Federal or State law;
assassination;
gaming; or
other similar activity determined by the Commission, by rule or regulation, to be contrary to the public interest.
No agreement, contract, or transaction determined by the Commission to be contrary to the public interest under clause (i) may be listed or made available for clearing or trading on or through a registered entity.
In connection with the listing of a swap for clearing by a derivatives clearing organization, the Commission shall determine, upon request or on its own motion, the initial eligibility, or the continuing qualification, of a derivatives clearing organization to clear such a swap under those criteria, conditions, or rules that the Commission, in its discretion, determines.
Any such criteria, conditions, or rules shall consider—
the financial integrity of the derivatives clearing organization; and
any other factors which the Commission determines may be appropriate.
The Commission shall take final action under clauses (i) and (ii) in not later than 90 days from the commencement of its review unless the party seeking to offer the contract or swap agrees to an extension of this time limitation.
Repealed. Pub. L. 111–203, title VII, § 745(c),July 21, 2010, 124 Stat. 1737 (e)
Reservation of emergency authority Nothing in this section shall limit or in any way affect the emergency powers of the Commission provided in section 12a
Rules to avoid duplicative regulation of dual registrants Consistent with this chapter, each designated contract market and registered derivatives transaction execution facility shall issue such rules as are necessary to avoid duplicative or conflicting rules applicable to any futures commission merchant registered with the Commission pursuant to section 6f
(b) of title 15 (except paragraph (11) thereof) with respect to the application of—
rules of such designated contract market or registered derivatives transaction execution facility of the type specified in section 6d
(a) of title 15 and national securities exchanges registered pursuant to section 78f
(g) of title 15 involving security futures products.
So in original. Probably should be “section 1a(9)”.
So in original. There is no section “1a(2)(i)” in this title.
(Sept. 21, 1922, ch. 369, § 5c, as added and amended Pub. L. 106–554, § 1(a)(5) [title I, § 113, title II, § 251(h)], Dec. 21, 2000, 114 Stat. 2763, 2763A–399, 2763A–444; Pub. L. 110–234, title XIII, §§ 13105(e), (f), 13203(i)–(k), May 22, 2008, 122 Stat. 1434, 1440, 1441; Pub. L. 110–246, § 4(a), title XIII, §§ 13105(e), (f), 13203(i)–(k), June 18, 2008, 122 Stat. 1664, 2196, 2202, 2203; Pub. L. 111–203, title VII, §§ 717(d), 721
(e)(7), 745, 749(c),July 21, 2010, 124 Stat. 1652, 1671, 1735, 1747.)
This chapter, referred to in subsec. (c)(5)(A), was in the original “this subtitle”, and was translated as reading “this Act” to reflect the probable intent of Congress.
2010—Subsec. (a)(1). Pub. L. 111–203, § 749(c)(1), struck out “, 7a(d),” after “7(d)” and “and section 2
(h)(7) of this title with respect to significant price discovery contracts,” before “to describe”.
Subsec. (a)(2). Pub. L. 111–203, § 745(a), added par. (2) and struck out former par. (2). Prior to amendment, text read as follows: “An interpretation issued under paragraph (1) shall not provide the exclusive means for complying with such sections.”
Subsec. (c). Pub. L. 111–203, § 745(b), added subsec. (c) and struck out former subsec. (c) which related to new contracts, new rules, and rule amendments and Commission approval upon certification of compliance with this chapter.
Subsec. (c)(1). Pub. L. 111–203, § 717(d), designated existing provisions as subpar. (A), inserted heading, and added subpar. (B).
Subsec. (c)(2)(B). Pub. L. 111–203, § 721(e)(7), substituted “section 1a
(9)” for “section 1a
Subsec. (d). Pub. L. 111–203, § 745(c), struck out subsec. (d) which related to violation of core principles.
Subsec. (f)(1). Pub. L. 111–203, § 749(c)(2), substituted “section 6d
2008—Subsec. (a)(1). Pub. L. 110–246, § 13203(i), which directed amendment of par. (1) by inserting “, and section 2
(h)(7) of this title with respect to significant price discovery contracts,” after “, and 7a–1(d)(2) of this title”, was executed by making the insertion after “, and 7a–1(c)(2) of this title” to reflect the probable intent of Congress and the intervening amendment by Pub. L. 110–246, § 13105(e). See below.
Pub. L. 110–246, § 13105(e), substituted “7a–1(c)(2)” for “7a–1(d)(2)”.
Subsec. (b)(1). Pub. L. 110–246, § 13203(j)(1), added par. (1) and struck out heading and text of former par. (1). Text read as follows: “A contract market or derivatives transaction execution facility may comply with any applicable core principle through delegation of any relevant function to a registered futures association or another registered entity.”
Subsec. (b)(2), (3). Pub. L. 110–246, § 13203(j)(2), (3), substituted “contract market, derivatives transaction execution facility, or electronic trading facility” for “contract market or derivatives transaction execution facility” wherever appearing.
Subsec. (d)(1). Pub. L. 110–246, § 13203(k), which directed amendment of par. (1) by inserting “or 2(h)(7)(C) of this title with respect to a significant price discovery contract traded or executed on an electronic trading facility,” after “7a–1(d)(2)”, was executed by making the insertion after “7a–1(c)(2)” in introductory provisions to reflect the probable intent of Congress and the intervening amendment by Pub. L. 110–246, § 13105(e). See below.
Pub. L. 110–246, § 13105(e), substituted “7a–1(c)(2)” for “7a–1(d)(2)” in introductory provisions.
Subsec. (f)(1). Pub. L. 110–246, § 13105(f), substituted “6d(c)” for “6d(3)”.
2000—Subsec. (f). Pub. L. 106–554, § 1(a)(5) [title II, § 251(h)], added subsec. (f).
Amendment by section 13203(i)–(k) of Pub. L. 110–246effective June 18, 2008, see section 13204(a) ofPub. L. 110–246, set out as a note under section 2 of this title.
This is a list of parts within the Code of Federal Regulations for which this US Code section provides rulemaking authority.This list is taken from the Parallel Table of Authorities and Rules provided by GPO [Government Printing Office].It is not guaranteed to be accurate or up-to-date, though we do refresh the database weekly. More limitations on accuracy are described at the GPO site.17 CFR - Commodity and Securities Exchanges17 CFR Part 1 - GENERAL REGULATIONS UNDER THE COMMODITY EXCHANGE ACT17 CFR Part 8 - [Reserved]17 CFR Part 9 - RULES RELATING TO REVIEW OF EXCHANGE DISCIPLINARY, ACCESS DENIAL OR OTHER ADVERSE ACTIONS17 CFR Part 15 - REPORTS—GENERAL PROVISIONS17 CFR Part 17 - REPORTS BY REPORTING MARKETS, FUTURES COMMISSION MERCHANTS, CLEARING MEMBERS, AND FOREIGN BROKERS17 CFR Part 21 - SPECIAL CALLS17 CFR Part 33 - REGULATION OF COMMODITY OPTION TRANSACTIONS THAT ARE OPTIONS ON CONTRACTS OF SALE OF A COMMODITY FOR FUTURE DELIVERY17 CFR Part 37 - SWAP EXECUTION FACILITIES17 CFR Part 40 - PROVISIONS COMMON TO REGISTERED ENTITIES17 CFR Part 42 - ANTI-MONEY LAUNDERING, TERRORIST FINANCING17 CFR Part 100 - DELIVERY PERIOD REQUIRED17 CFR Part 156 - BROKER ASSOCIATIONS17 CFR Part 190 - BANKRUPTCY
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