§ 7b. Suspension or revocation of designation as registered entity

Legislative history

Reconstructed from this section’s Code source credit and amendment notes, resolved against the local Statutes at Large. Editorial notes are evidence, not the law that made the change.

1. 1922

   Sept. 21, 1922, ch. 369, § 5e, formerly § 5b, as added June 15, 1936, ch. 545, § 7, 49 Stat. 1498 · 49 Stat. 1498

   Enacted · 7 U.S.C. § 7b

   Sept. 21, 1922, ch. 369, § 5e, formerly § 5b, as added June 15, 1936, ch. 545, § 7, 49 Stat. 1498

   Source evidence

   Code source credit
   Sept. 21, 1922, ch. 369, § 5e, formerly § 5b, as added June 15, 1936, ch. 545, § 7, 49 Stat. 1498

2. 1968

   Pub. L. 90–258 § 13 · 82 Stat. 26

   Substituted · 7 U.S.C. § 7b

   Pub. L. 90–258 substituted “rules, regulations, or orders of the Secretary of Agriculture or the commission” for “rules and regulations of the Secretary of Agriculture”

   Source evidence

   Code amendment note
   Pub. L. 90–258 substituted “rules, regulations, or orders of the Secretary of Agriculture or the commission” for “rules and regulations of the Secretary of Agriculture”.

   Enacted provision · exact public law section
   Sec. 13. Section 5b of the Commodity Exchange Act, as amended (7 U.S.C. 7b), is amended as follows: (a) By deleting the phrase “rides and regulations” and substituting the phrase “rules, regulations, or orders”; and (b) By adding immediately after the phrase “Secretary of Agriculture” the phrase “or the commission”.

3. 1974

   Commodity Futures Trading Commission Act of 1974

   Pub. L. 93–463 § 103(a) · 88 Stat. 1389

   1. Substituted · 7 U.S.C. § 7b

      Pub. L. 93–463, § 103(a), provided for substitution of “Commission” for “Secretary of Agriculture”

   2. Substituted · 7 U.S.C. § 7b

      Pub. L. 93–463, § 103(a), provided for substitution of “the Commission or the commission” for “the Secretary of Agriculture or the commission”

   Source evidence

   Code amendment note
   Pub. L. 93–463, § 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 the text of this section, section 103(b) did not apply to this section 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”.

   Enacted provision · exact public law section
   (a) By 7 USC 6, 6a, 6c–6g, 6i, 7, 7a, 8, 9, 11, 12, 12–1, 12a, 12b, 13b, 16. striking the word “Secretary” and the words “Secretary of Agriculture” wherever such words appear therein (except where the words “Secretary of Agriculture” first appear in section 5(a)(7 U.S.C. 7) or where said words would be stricken by subsection (b), (c), or (d) of this section) and by inserting in lieu thereof the word “Commission”.

4. 1992

   Futures Trading Practices Act of 1992

   Pub. L. 102–546 title II § 209(b)(3) · 106 Stat. 3590

   Substituted · 7 U.S.C. § 7b

   Pub. L. 102–546 substituted reference to section 8(b) of this title for reference to section 8 of this title

   Source evidence

   Code amendment note
   Pub. L. 102–546 substituted reference to section 8(b) of this title for reference to section 8 of this title.

   Enacted provision · exact public law section
   (3) in section 5b by striking “paragraph (a) of section 6” 7 USC 7b. and inserting “section 6(b)”;

5. 2000

   Consolidated Appropriations Act, 2001

   Pub. L. 106–554 § 1(a)(5)(tI)(s115) · 114 Stat. 2763

   Amended · 7 U.S.C. § 7b

   Pub. L. 106–554, § 1(a)(5) [title I, § 115], amended section generally. Prior to amendment, section read as follows: “The failure or refusal of any board of trade to comply with any of the provisions of this chapter, or any of the rules, regulations, or orders of the Commission or the commission thereunder, shall be cause for suspending for a period not to exceed six months or revoking the designation of such board of trade as a ‘contract market’ in accordance with the procedure and subject to the judicial review provided in section 8(b) of this title.”

   Source evidence

   Code amendment note
   Pub. L. 106–554, § 1(a)(5) [title I, § 115], amended section generally. Prior to amendment, section read as follows: “The failure or refusal of any board of trade to comply with any of the provisions of this chapter, or any of the rules, regulations, or orders of the Commission or the commission thereunder, shall be cause for suspending for a period not to exceed six months or revoking the designation of such board of trade as a ‘contract market’ in accordance with the procedure and subject to the judicial review provided in section 8(b) of this title.”

   Enacted provision · exact public law section
   (5) H.R. 5660, as introduced on December 14, 2000.

6. 2008

   CFTC Reauthorization Act of 2008

   Pub. L. 110–246 § 13203 · 122 Stat. 1651

   Inserted · 7 U.S.C. § 7b

   Pub. L. 110–246, § 13203(l), inserted “, or revocation of the right of an electronic trading facility to rely on the exemption set forth in section 2(h)(3) of this title with respect to a significant price discovery contract,” after “designation as a registered entity”

   Source evidence

   Code amendment note
   Pub. L. 110–246, § 13203(l), inserted “, or revocation of the right of an electronic trading facility to rely on the exemption set forth in section 2(h)(3) of this title with respect to a significant price discovery contract,” after “designation as a registered entity”.

   Enacted provision · exact public law section
   SEC. 13203. CONFORMING AMENDMENTS. (a) Section 1a(12)(A)(x) of the Commodity Exchange Act (7 U.S.C. 1a(12)(A)(x)) is amended by inserting “(other than an electronic trading facility with respect to a significant price discovery contract)” after “registered entity”. (b) Section 1a(29) of such Act (7 U.S.C. 1a(29)) is amended— (1) in subparagraph (C), by striking “and” at the end; (2) in subparagraph (D), by striking the period and inserting “; and”; and (3) by adding at the end the following: “(E) with respect to a contract that the Commission determines is a significant price discovery contract, any electronic trading facility on which the contract is executed or traded.” . (c) Section 2(a)(1)(A) of such Act (7 U.S.C. 2(a)(1)(A)) is amended by inserting after “future delivery” the following: “(including significant price discovery contracts)”. (d) Section 2(h)(3) of such Act (7 U.S.C. 2(h)(3)) is amended by striking “paragraph (4)” and inserting “paragraphs (4) and (7)”. (e) Section 2(h)(4) of such Act (7 U.S.C. 2(h)(4)) is amended— (1) in subparagraph (B), by inserting “and, for a significant price discovery contract, requiring large trader reporting,” after “proscribing fraud”; (2) by striking “and” at the end of subparagraph (C); and (3) by striking subparagraph (D) and inserting the following: “(D) such rules, regulations, and orders as the Commission may issue to ensure timely compliance with any of the provisions of this Act applicable to a significant price discovery contract traded on or executed on any electronic trading facility; and “(E) such other provisions of this Act as are applicable by their terms to significant price discovery contracts or to registered entities or electronic trading facilities with respect to significant price discovery contracts.” . (f) Section 2(h)(5)(B)(iii)(I) of such Act (7 U.S.C. 2(h)(5)(B)(iii)(I)) is amended by inserting “or to make the determination described in subparagraph (B) of paragraph (7)” after “paragraph (4)”. (g) Section 4a of such Act (7 U.S.C. 6a) is amended— (1) in subsection (a)— (A) in the first sentence, by inserting “, or on electronic trading facilities with respect to a significant price discovery contract” after “derivatives transaction execution facilities”; and (B) in the second sentence, by inserting “, or on an electronic trading facility with respect to a significant price discovery contract,” after “derivatives transaction execution facility”; and (2) in subsection (b)— (A) in paragraph (1), by inserting “or electronic trading facility with respect to a significant price discovery contract” after “facility or facilities”; and (B) in paragraph (2), by inserting “or electronic trading facility with respect to a significant price discovery contract” after “derivatives transaction execution facility”; and (3) in subsection (e)— (A) in the first sentence— (i) by inserting “or by any electronic trading facility” after “registered by the Commission”; (ii) by inserting “or on an electronic trading facility” after “derivatives transaction execution facility” the second place it appears; and (iii) by inserting “or electronic trading facility” before “or such board of trade” each place it appears; and (B) in the second sentence, by inserting “or electronic trading facility with respect to a significant price discovery contract” after “registered by the Commission”. (h) Section 5a(d) of such Act (7 U.S.C. 7a(d)(1)) is amended— (1) by redesignating paragraphs (4) through (9) as paragraphs (5) through (10); and (2) by inserting after paragraph (3) the following: “(4) Position limitations or accountability.— To reduce the potential threat of market manipulation or congestion, especially during trading in the delivery month, the derivatives transaction execution facility shall adopt position limits or position accountability for speculators, where necessary and appropriate for a contract, agreement or transaction with an underlying commodity that has a physically deliverable supply.” . (i) Section 5c(a) of such Act (7 U.S.C. 7a–2(a)) is amended in paragraph (1) by inserting “, and section 2(h)(7) with respect to significant price discovery contracts,” after “, and 5b(d)(2)”. (j) Section 5c(b) of such Act (7 U.S.C. 7a–2(b)) is amended— (1) by striking paragraph (1) and inserting the following: “(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.” ; (2) in paragraph (2), by striking “contract market or derivatives transaction execution facility” and inserting “contract market, derivatives transaction execution facility, or electronic trading facility”; and (3) in paragraph (3), by striking “contract market or derivatives transaction execution facility” each place it appears and inserting “contract market, derivatives transaction execution facility, or electronic trading facility”. (k) Section 5c(d)(1) of such Act (7 U.S.C. 7a–2(d)(1)) is amended by inserting “or 2(h)(7)(C) with respect to a significant price discovery contract traded or executed on an electronic trading facility,” after “5b(d)(2)”. (l) Section 5e of such Act (7 U.S.C. 7b) is amended by inserting “, or revocation of the right of an electronic trading facility to rely on the exemption set forth in section 2(h)(3) with respect to a significant price discovery contract,” after “revocation of designation as a registered entity”. (m) Section 6(b) of the Commodity Exchange Act (7 U.S.C. 8(b)) is amended by striking the first sentence and all that follows through “hearing on the record: Provided,” and inserting the following:   “The Contracts. Commission is authorized to suspend for a period not to exceed 6 months or to revoke the designation or registration of any contract market or derivatives transaction execution facility, or to revoke the right of an electronic trading facility to rely on the exemption set forth in section 2(h)(3) with respect to a significant price discovery contract, on a showing that the 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 5 through 5b or section 5f, or that the contract market or derivatives transaction execution facility or electronic trading facility, or any director, officer, agent, or employee thereof, otherwise is violating or has violated any of the provisions of this Act or any of the rules, regulations, or orders of the Commission thereunder. Notice. Such suspension or revocation shall only be made after a notice to the officers of the contract market or derivatives transaction execution facility or electronic trading facility affected and upon a hearing on the record: Provided,” . (n) Section 22(b)(1) of such Act (7 U.S.C. 25(b)(1)) is amended by inserting “section 2(h)(7) or” before “sections 5”.

7. 2010

   Wall Street Transparency and Accountability Act of 2010

   Pub. L. 111–203 title VII § 749(d) · 124 Stat. 1376

   Struck · 7 U.S.C. § 7b

   Pub. L. 111–203 struck out “or revocation of the right of an electronic trading facility to rely on the exemption set forth in section 2(h)(3) of this title with respect to a significant price discovery contract,” after “or revocation of designation as a registered entity,”

   Source evidence

   Code amendment note
   Pub. L. 111–203 struck out “or revocation of the right of an electronic trading facility to rely on the exemption set forth in section 2(h)(3) of this title with respect to a significant price discovery contract,” after “or revocation of designation as a registered entity,”.

   Enacted provision · exact public law section
   (d) Section 5e of the Commodity Exchange Act (7 U.S.C. 7b) is amended by striking “or revocation of the right of an electronic trading facility to rely on the exemption set forth in section 2(h)(3) with respect to a significant price discovery contract,”.

   Effective date note
   Amendment by Pub. L. 111–203 effective on the later of 360 days after July 21, 2010, or, to the extent a provision of subtitle A (§§ 711–754) of title VII of Pub. L. 111–203 requires a rulemaking, not less than 60 days after publication of the final rule or regulation implementing such provision of subtitle A, see section 754 of Pub. L. 111–203, set out as a note under section 1a of this title.

7 of 8 references resolved to an enrolled provision · 1 partial