Source: https://www.law.cornell.edu/uscode/text/7/6?qt-us_code_tabs=1
Timestamp: 2016-02-13 00:55:26
Document Index: 143617528

Matched Legal Cases: ['§ 6', '§ 6', '§ 6', '§\u202f6', '§\u202f4', '§\u202f2', '§\u202f103', '§\u202f204', '§\u202f502', '§\u202f1', '§\u202f123', '§\u202f721', '§\u202f721', '§\u202f1', '§\u202f123', '§\u202f80', '§\u202f80', '§\u202f78', '§\u202f738', '§\u202f738', '§\u202f738', '§\u202f721', '§\u202f722', '§\u202f738', '§\u202f1', '§\u202f123', '§\u202f1', '§\u202f123', '§\u202f1', '§\u202f123', '§\u202f1', '§\u202f123', '§\u202f1', '§\u202f123', '§\u202f502', '§\u202f502', '§\u202f2', '§\u202f4', 'art 1', 'art 4', 'art 5', 'art 20', 'art 23', 'art 30', 'art 34', 'art 35', 'art 36', 'art 37', 'art 38', 'art 40', 'art 42', 'art 48', 'art 151']

7 U.S. Code § 6 - Regulation of futures trading and foreign transactions | US Law | LII / Legal Information Institute
U.S. Code › Title 7 › Chapter 1 › § 6 7 U.S. Code § 6 - Regulation of futures trading and foreign transactions
§ 6.
(a) Restriction on futures tradingUnless exempted by the Commission pursuant to subsection (c) or by subsection (e), it shall be unlawful for any person to offer to enter into, to enter into, to execute, to confirm the execution of, or to conduct any office or business anywhere in the United States, its territories or possessions, for the purpose of soliciting or accepting any order for, or otherwise dealing in, any transaction in, or in connection with, a contract for the purchase or sale of a commodity for future delivery (other than a contract which is made on or subject to the rules of a board of trade, exchange, or market located outside the United States, its territories or possessions) unless—
(b) Regulation of foreign transactions by United States persons
(1) Foreign boards of trade
(A) RegistrationThe Commission may adopt rules and regulations requiring registration with the Commission for a foreign board of trade that provides the members of the foreign board of trade or other participants located in the United States with direct access to the electronic trading and order matching system of the foreign board of trade, including rules and regulations prescribing procedures and requirements applicable to the registration of such foreign boards of trade. For purposes of this paragraph, “direct access” refers to an explicit grant of authority by a foreign board of trade to an identified member or other participant located in the United States to enter trades directly into the trade matching system of the foreign board of trade. In adopting such rules and regulations, the commission [1] shall consider—
any previous commission 1 findings that the foreign board of trade is subject to comparable comprehensive supervision and regulation by the appropriate government authorities in the foreign board of trade’s home country.
(B) Linked contractsThe Commission may not permit a foreign board of trade to provide to the members of the foreign board of trade or other participants located in the United States direct access to the electronic trading and order-matching system of the foreign board of trade with respect to an agreement, contract, or transaction that settles against any price (including the daily or final settlement price) of 1 or more contracts listed for trading on a registered entity, unless the Commission determines that—
(ii) the foreign board of trade (or the foreign futures authority that oversees the foreign board of trade)—
(III) agrees to promptly notify the Commission, with regard to the agreement, contract, or transaction that settles against any price (including the daily or final settlement price) of 1 or more contracts listed for trading on a registered entity, of any change regarding—
(C) Existing foreign boards of trade
Subparagraphs (A) and (B) shall not be effective with respect to any foreign board of trade to which, prior to July 21, 2010, the Commission granted direct access permission until the date that is 180 days after July 21, 2010.
(2) Persons located in the United States
The Commission may adopt rules and regulations proscribing fraud and requiring minimum financial standards, the disclosure of risk, the filing of reports, the keeping of books and records, the safeguarding of customers’ funds, and registration with the Commission by any person located in the United States, its territories or possessions, who engages in the offer or sale of any contract of sale of a commodity for future delivery that is made or to be made on or subject to the rules of a board of trade, exchange, or market located outside the United States, its territories or possessions.
(B) Different requirements
Rules and regulations described in subparagraph (A) may impose different requirements for such persons depending upon the particular foreign board of trade, exchange, or market involved.
(C) ProhibitionExcept as provided in paragraphs (1) and (2), no rule or regulation may be adopted by the Commission under this subsection that—
(1) In order to promote responsible economic or financial innovation and fair competition, the Commission by rule, regulation, or order, after notice and opportunity for hearing, may (on its own initiative or on application of any person, including any board of trade designated or registered as a contract market or derivatives transaction execution facility for transactions for future delivery in any commodity under section 7 of this title) exempt any agreement, contract, or transaction (or class thereof) that is otherwise subject to subsection (a) (including any person or class of persons offering, entering into, rendering advice or rendering other services with respect to, the agreement, contract, or transaction), either unconditionally or on stated terms or conditions or for stated periods and either retroactively or prospectively, or both, from any of the requirements of subsection (a), or from any other provision of this chapter (except subparagraphs (C)(ii) and (D) of section 2(a)(1) of this title, [2] except that—
(A) unless the Commission is expressly authorized by any provision described in this subparagraph to grant exemptions, with respect to amendments made by subtitle A of the Wall Street Transparency and Accountability Act of 2010—
(i) with respect to—
paragraphs (2), (3), (4), (5), and (7), paragraph (18)(A)(vii)(III), paragraphs (23), (24), (31), (32), (38), (39), (41), (42), (46), (47), (48), and (49) of section 1a of this title, and sections 2(a)(13), 2(c)(1)(D), 6a(a), 6a(b), 6d(c), 6d(d), 6r, 6s, 7a–1(a), 7a–1(b), 7(d), 7(g), 7(h),[3] 7a–1(c), 7a–1(i), 12(e),[4] and 24a of this title; and
section 206(e) [5] of the Gramm-Leach-Bliley Act (Public Law 106–102; 15 U.S.C. 78c note); and
the Commission and the Securities and Exchange Commission may by rule, regulation, or order jointly exclude any agreement, contract, or transaction from section 2(a)(1)(D) of this title) [6] if the Commissions determine that the exemption would be consistent with the public interest.
(2) The Commission shall not grant any exemption under paragraph (1) from any of the requirements of subsection (a) unless the Commission determines that—
(3) For purposes of this subsection, the term “appropriate person” shall be limited to the following persons or classes thereof:
Any governmental entity (including the United States, any state,[7] or any foreign government) or political subdivision thereof, or any multinational or supranational entity or any instrumentality, agency, or department of any of the foregoing.
(6) If the Commission determines that the exemption would be consistent with the public interest and the purposes of this chapter, the Commission shall, in accordance with paragraphs (1) and (2), exempt from the requirements of this chapter an agreement, contract, or transaction that is entered into—
between entities described in section 824(f) of title 16.
(d) Effect of exemption on investigative authority of Commission
The granting of an exemption under this section shall not affect the authority of the Commission under any other provision of this chapter to conduct investigations in order to determine compliance with the requirements or conditions of such exemption or to take enforcement action for any violation of any provision of this chapter or any rule, regulation or order thereunder caused by the failure to comply with or satisfy such conditions or requirements.
(e) Liability of registered persons trading on a foreign board of trade
(1) In generalA person registered with the Commission, or exempt from registration by the Commission, under this chapter may not be found to have violated subsection (a) with respect to a transaction in, or in connection with, a contract of sale of a commodity for future delivery if the person—
(A) has reason to believe that the transaction and the contract is made on or subject to the rules of a foreign board of trade that is—
Nothing in this subsection shall be construed as implying or creating any presumption that a board of trade, exchange, or market is located outside the United States, or its territories or possessions, for purposes of subsection (a).
(Sept. 21, 1922, ch. 369, § 4, 42 Stat. 999; June 15, 1936, ch. 545, §§ 2, 4, 49 Stat. 1491, 1492; Pub. L. 93–463, title I, § 103(a), (f), Oct. 23, 1974, 88 Stat. 1392; Pub. L. 97–444, title II, § 204, Jan. 11, 1983, 96 Stat. 2299; Pub. L. 102–546, title V, § 502(a), Oct. 28, 1992, 106 Stat. 3629; Pub. L. 106–554, § 1(a)(5) [title I, § 123(a)(3)], Dec. 21, 2000, 114 Stat. 2763, 2763A–406; Pub. L. 111–203, title VII, §§ 721(d), 722(f), 738(a), (b), July 21, 2010, 124 Stat. 1671, 1674, 1726, 1728.)
[1]  So in original. Probably should be “Commission”.[2]  So in original. A closing parenthesis probably should precede the comma.[3]  So in original. [3] does not contain subsecs. (g) and (h).[4]  See References in Text note below.[5]  So in original. Section 206 of the Act does not contain a subsec. (e).[6]  So in original. The closing parenthesis probably should not appear.[7]  So in original. Probably should be capitalized.
Subtitle A of the Wall Street Transparency and Accountability Act of 2010, referred to in subsec. (c)(1)(A), is subtitle A (§§ 721–754) of title VII of Pub. L. 111–203, July 21, 2010, 124 Stat. 1641. For complete classification of subtitle A to the Code, see Tables.
Section 12(e) of this title, referred to in subsec. (c)(1)(A)(i)(I), was in the original a reference to section “8e” and has been translated as if the reference had been to section “8(e)” to reflect the probable intent of Congress. Section 8e of act Sept. 21, 1922, which was formerly classified to section 12e of this title, was repealed by Pub. L. 106–554, § 1(a)(5) [title I, § 123(a)(21)], Dec. 21, 2000, 114 Stat. 2763, 2763A–410.
The Dodd-Frank Wall Street Reform and Consumer Protection Act, referred to in subsec. (c)(1)(A)(ii), is Pub. L. 111–203, July 21, 2010, 124 Stat. 1376. Section 721(c) of the Act is classified to section 8321(b) of Title 15, Commerce and Trade. Section 742 of the Act amended section 2 of this title and provisions set out as a note under section 78c of Title 15. For complete classification of this Act to the Code, see Short Title note set out under section 5301 of Title 12, Banks and Banking, and Tables.
The Investment Company Act of 1940, referred to in subsec. (c)(3)(D), is title I of act Aug. 22, 1940, ch. 686, 54 Stat. 789, as amended, which is classified generally to subchapter I (§ 80a–1 et seq.) of chapter 2D of Title 15, Commerce and Trade. For complete classification of this Act to the Code, see section 80a–51 of Title 15 and Tables.
The Investment Advisers Act of 1940, referred to in subsec. (c)(3)(G), is title II of act Aug. 22, 1940, ch. 686, 54 Stat. 847, as amended, which is classified generally to subchapter II (§ 80b–1 et seq.) of chapter 2D of Title 15. For complete classification of this Act to the Code, see section 80b–20 of Title 15 and Tables.
The Securities Exchange Act of 1934, referred to in subsec. (c)(3)(I), is act June 6, 1934, ch. 404, 48 Stat. 881, as amended, which is classified principally to chapter 2B (§ 78a et seq.) of Title 15. For complete classification of this Act to the Code, see section 78a of Title 15 and Tables.
2010—Subsec. (a). Pub. L. 111–203, § 738(b)(1), inserted “or by subsection (e)” after “Unless exempted by the Commission pursuant to subsection (c)” in introductory provisions.
Subsec. (b). Pub. L. 111–203, § 738(a)(1)–(3), designated existing provisions as par. (2), designated the first to third sentences as subpars. (A) to (C), respectively, redesignated former pars. (1) and (2) as cls. (i) and (ii), respectively, of subpar. (C), inserted headings, in subpar. (B), substituted “Rules and regulations described in subparagraph (A)” for “Such rules and regulations”, in the introductory provisions of subpar. (C), substituted “Except as provided in paragraphs (1) and (2), no rule or regulation” for “No rule or regulation” and “that—” for “that”, and, in subpar. (C)(i), substituted “market; or” for “market, or”.
Subsec. (b)(1). Pub. L. 111–203, § 738(a)(4), added par. (1).
Subsec. (c)(1). Pub. L. 111–203, § 721(d), substituted “except that—” for “except that the Commission and the Securities and Exchange Commission may by rule, regulation, or order jointly exclude any agreement, contract, or transaction from section 2(a)(1)(D) of this title), if the Commission determines that the exemption would be consistent with the public interest.” and added subpars. (A) and (B).
Subsec. (c)(6). Pub. L. 111–203, § 722(f), added par. (6).
Subsec. (e). Pub. L. 111–203, § 738(b)(2), added subsec. (e).
2000—Subsec. (a)(1). Pub. L. 106–554, § 1(a)(5) [title I, § 123(a)(3)(A)(i)], substituted “designated or registered by the Commission as a contract market or derivatives transaction execution facility for” for “designated by the Commission as a ‘contract market’ for”.
Subsec. (a)(2). Pub. L. 106–554, § 1(a)(5) [title I, § 123(a)(3)(A)(ii)], struck out “member of such” after “by or through a”.
Subsec. (a)(3). Pub. L. 106–554, § 1(a)(5) [title I, § 123(a)(3)(A)(iii)], inserted “or derivatives transaction execution facility” after “contract market”.
Subsec. (c)(1). Pub. L. 106–554, § 1(a)(5) [title I, § 123(a)(3)(B)(i)], substituted “designated or registered as a contract market or derivatives transaction execution facility” for “designated as a contract market” and “subparagraphs (C)(ii) and (D) of section 2(a)(1) of this title, except that the Commission and the Securities and Exchange Commission may by rule, regulation, or order jointly exclude any agreement, contract, or transaction from section 2(a)(1)(D) of this title” for “section 2a of this title”.
Subsec. (c)(2)(B)(ii). Pub. L. 106–554, § 1(a)(5) [title I, § 123(a)(3)(B)(ii)], inserted “or derivatives transaction execution facility” after “contract market”.
1992—Subsec. (a). Pub. L. 102–546, § 502(a)(1), substituted “Unless exempted by the Commission pursuant to subsection (c) of this section, it shall be unlawful” for “It shall be unlawful”.
Subsecs. (c), (d). Pub. L. 102–546, § 502(a)(2), added subsecs. (c) and (d).
1983—Pub. L. 97–444 amended section generally, combining into subsec. (a) existing provisions of this section together with provisions formerly contained in section 6h(1) of this title, relating to the conduct of offices or places of business anywhere in the United States or its territories that are used for dealing in commodities for future delivery unless such dealings are executed or consummated by or through a member of a contract market, and adding subsec. (b).
1974—Pub. L. 93–463 substituted “Commission” for “Secretary of Agriculture” and “United States Department of Agriculture”.
1936—Act June 15, 1936, § 2, substituted “commodity” for “grain” wherever appearing.
Act June 15, 1936, § 4, struck out par. (a) and combined par. (b) with first par.
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 4 - COMMODITY POOL OPERATORS AND COMMODITY TRADING ADVISORS17 CFR Part 5 - OFF-EXCHANGE FOREIGN CURRENCY TRANSACTIONS17 CFR Part 20 - LARGE TRADER REPORTING FOR PHYSICAL COMMODITY SWAPS17 CFR Part 23 - SWAP DEALERS AND MAJOR SWAP PARTICIPANTS17 CFR Part 30 - FOREIGN FUTURES AND FOREIGN OPTIONS TRANSACTIONS17 CFR Part 34 - REGULATION OF HYBRID INSTRUMENTS17 CFR Part 35 - SWAPS IN AN AGRICULTURAL COMMODITY (AGRICULTURAL SWAPS)17 CFR Part 36 - EXEMPT MARKETS17 CFR Part 37 - SWAP EXECUTION FACILITIES17 CFR Part 38 - DESIGNATED CONTRACT MARKETS17 CFR Part 40 - PROVISIONS COMMON TO REGISTERED ENTITIES17 CFR Part 42 - ANTI-MONEY LAUNDERING, TERRORIST FINANCING17 CFR Part 48 - REGISTRATION OF FOREIGN BOARDS OF TRADE17 CFR Part 151 - POSITION LIMITS FOR FUTURES AND SWAPS