7 USC 12(a): Business transactions or market positions of any person and trade secrets or names of customers, and any data or information concerning or obtained in connection with any pending investigation of any person.

          
Sec. 12a. Registration of commodity dealers and associated 
        persons; regulation of registered entities
        
    The Commission is authorized--
        (1) to register futures commission merchants, associated persons 
    of futures commission merchants, introducing brokers, associated 
    persons of introducing brokers, commodity trading advisors, 
    associated persons of commodity trading advisors, commodity pool 
    operators, associated persons of commodity pool operators, floor 
    brokers, and floor traders upon application in accordance with rules 
    and regulations and in the form and manner to be prescribed by the 
    Commission, which may require the applicant, and such persons 
    associated with the applicant as the Commission may specify, to be 
    fingerprinted and to submit, or cause to be submitted, such 
    fingerprints to the Attorney General for identification and 
    appropriate processing, and in connection therewith to fix and 
    establish from time to time reasonable fees and charges for 
    registrations and renewals thereof: Provided, That notwithstanding 
    any provision of this chapter, the Commission may grant a temporary 
    license to any applicant for registration with the Commission 
    pursuant to such rules, regulations, or orders as the Commission may 
    adopt, except that the term of any such temporary license shall not 
    exceed six months from the date of its issuance;
        (2) upon notice, but without a hearing and pursuant to such 
    rules, regulations, or orders as the Commission may adopt, to refuse 
    to register, to register conditionally, or to suspend or place 
    restrictions upon the registration of, any person and with such a 
    hearing as may be appropriate to revoke the registration of any 
    person--
            (A) if a prior registration of such person in any capacity 
        has been suspended (and the period of such suspension has not 
        expired) or has been revoked;
            (B) if registration of such person in any capacity has been 
        refused under the provisions of paragraph (3) of this section 
        within five years preceding the filing of the application for 
        registration or at any time thereafter;
            (C) if such person is permanently or temporarily enjoined by 
        order, judgment, or decree of any court of competent 
        jurisdiction (except that registration may not be revoked solely 
        on the basis of such temporary order, judgment, or decree), 
        including an order entered pursuant to an agreement of 
        settlement to which the Commission or any Federal or State 
        agency or other governmental body is a party, from (i) acting as 
        a futures commission merchant, introducing broker, floor broker, 
        floor trader, commodity trading advisor, commodity pool 
        operator, associated person of any registrant under this 
        chapter, securities broker, securities dealer, municipal 
        securities broker, municipal securities dealer, transfer agent, 
        clearing agency, securities information processor, investment 
        adviser, investment company, or affiliated person or employee of 
        any of the foregoing or (ii) engaging in or continuing any 
        activity where such activity involves embezzlement, theft, 
        extortion, fraud, fraudulent conversion, misappropriation of 
        funds, securities or property, forgery, counterfeiting, false 
        pretenses, bribery, gambling, or any transaction in or advice 
        concerning contracts of sale of a commodity for future delivery, 
        concerning matters subject to Commission regulation under 
        section 6c or 23 of this title, or concerning securities;
            (D) if such person has been convicted within ten years 
        preceding the filing of the application for registration or at 
        any time thereafter of any felony that (i) involves any 
        transactions or advice concerning any contract of sale of a 
        commodity for future delivery, or any activity subject to 
        Commission regulation under section 6c or 23 of this title, or 
        concerning a security, (ii) arises out of the conduct of the 
        business of a futures commission merchant, introducing broker, 
        floor broker, floor trader, commodity trading advisor, commodity 
        pool operator, associated person of any registrant under this 
        chapter, securities broker, securities dealer, municipal 
        securities broker, municipal securities dealer, transfer agent, 
        clearing agency, securities information processor, investment 
        adviser, investment company, or an affiliated person or employee 
        of any of the foregoing, (iii) involves embezzlement, theft, 
        extortion, fraud, fraudulent conversion, misappropriation of 
        funds, securities or property, forgery, counterfeiting, false 
        pretenses, bribery, or gambling, or (iv) involves the violation 
        of section 152, 1001, 1341, 1342, 1343, 1503, 1623, 1961, 1962, 
        1963, or 2314, or chapter 25, 47, 95, or 96 of title 18, or 
        section 7201 or 7206 of title 26;
            (E) if such person, within ten years preceding the filing of 
        the application or at any time thereafter, has been found in a 
        proceeding brought by the Commission or any Federal or State 
        agency or other governmental body, or by agreement of settlement 
        to which the Commission or any Federal or State agency or other 
        governmental body is a party, (i) to have violated any provision 
        of this chapter, the Securities Act of 1933 [15 U.S.C. 77a et 
        seq.], the Securities Exchange Act of 1934 [15 U.S.C. 78a et 
        seq.], the Public Utility Holding Company Act of 1935,\1\ the 
        Trust Indenture Act of 1939 [15 U.S.C. 77aaa et seq.], the 
        Investment Advisers Act of 1940 [15 U.S.C. 80b-1 et seq.], the 
        Investment

[[Page 66]]

        Company Act of 1940 [15 U.S.C. 80a-1 et seq.], the Securities 
        Investors \2\ Protection Act of 1970 [15 U.S.C. 78aaa et seq.], 
        the Foreign Corrupt Practices Act of 1977, chapter 96 of title 
        18, or any similar statute of a State or foreign jurisdiction, 
        or any rule, regulation, or order under any such statutes, or 
        the rules of the Municipal Securities Rulemaking Board where 
        such violation involves embezzlement, theft, extortion, fraud, 
        fraudulent conversion, misappropriation of funds, securities or 
        property, forgery, counterfeiting, false pretenses, bribery, or 
        gambling, or (ii) to have willfully aided, abetted, counseled, 
        commanded, induced, or procured such violation by any other 
        person;
---------------------------------------------------------------------------
    \1\ See References in Text note below.
    \2\ So in original. Probably should be ``Investor''.
---------------------------------------------------------------------------
            (F) if such person is subject to an outstanding order of the 
        Commission denying privileges on any registered entity to such 
        person, denying, suspending, or revoking such person's 
        membership in any registered entity or registered futures 
        association, or barring or suspending such person from being 
        associated with a registrant under this chapter or with a member 
        of a registered entity or with a member of a registered futures 
        association;
            (G) if, as to any of the matters set forth in this paragraph 
        and paragraph (3), such person willfully made any materially 
        false or misleading statement or omitted to state any material 
        fact in such person's application or any update thereto; or
            (H) if refusal, suspension, or revocation of the 
        registration of any principal of such person would be warranted 
        because of a statutory disqualification listed in this 
        paragraph:

    Provided, That such person may appeal from a decision to refuse 
    registration, condition registration, suspend, revoke or to place 
    restrictions upon registration made pursuant to the provisions of 
    this paragraph in the manner provided in sections 9 and 15 of this 
    title; and
    Provided, further, That for the purposes of paragraphs (2) and (3) 
    of this section, ``principal'' shall mean, if the person is a 
    partnership, any general partner or, if the person is a corporation, 
    any officer, director, or beneficial owner of at least 10 per centum 
    of the voting shares of the corporation, and any other person that 
    the Commission by rule, regulation, or order determines has the 
    power, directly or indirectly, through agreement or otherwise, to 
    exercise a controlling influence over the activities of such person 
    which are subject to regulation by the Commission;
        (3) to refuse to register or to register conditionally any 
    person, if it is found, after opportunity for hearing, that--
            (A) such person has been found by the Commission or by any 
        court of competent jurisdiction to have violated, or has 
        consented to findings of a violation of, any provision of this 
        chapter, or any rule, regulation, or order thereunder (other 
        than a violation set forth in paragraph (2) of this section), or 
        to have willfully aided, abetted, counseled, commanded, induced, 
        or procured the violation by any other person of any such 
        provision;
            (B) such person has been found by any court of competent 
        jurisdiction or by any Federal or State agency or other 
        governmental body, or by agreement of settlement to which any 
        Federal or State agency or other governmental body is a party, 
        (i) to have violated any provision of the Securities Act of 1933 
        [15 U.S.C. 77a et seq.], the Securities Exchange Act of 1934 [15 
        U.S.C. 78a et seq.], the Public Utility Holding Company Act of 
        1935,\1\ the Trust Indenture Act of 1939 [15 U.S.C. 77aaa et 
        seq.], the Investment Advisers Act of 1940 [15 U.S.C. 80b-1 et 
        seq.], the Investment Company Act of 1940 [15 U.S.C. 80a-1 et 
        seq.], the Securities Investors \3\ Protection Act of 1970 [15 
        U.S.C. 78aaa et seq.], the Foreign Corrupt Practices Act of 
        1977, or any similar statute of a State or foreign jurisdiction, 
        or any rule, regulation, or order under any such statutes, or 
        the rules of the Municipal Securities Rulemaking Board or (ii) 
        to have willfully aided, abetted, counseled, commanded, induced, 
        or procured such violation by any other person;
---------------------------------------------------------------------------
    \3\ So in original. Probably should be ``Investor''.
---------------------------------------------------------------------------
            (C) such person failed reasonably to supervise another 
        person, who is subject to such person's supervision, with a view 
        to preventing violations of this chapter, or of any of the 
        statutes set forth in subparagraph (B) of this paragraph, or of 
        any of the rules, regulations, or orders thereunder, and the 
        person subject to supervision committed such a violation: 
        Provided, That no person shall be deemed to have failed 
        reasonably to supervise another person, within the meaning of 
        this subparagraph if (i) there have been established procedures, 
        and a system for applying such procedures, which would 
        reasonably be expected to prevent and detect, insofar as 
        practicable, any such violation by such other person and (ii) 
        such person has reasonably discharged the duties and obligations 
        incumbent upon that person, as supervisor, by reason of such 
        procedures and system, without reasonable cause to believe that 
        such procedures and system were not being complied with;
            (D) such person pleaded guilty to or was convicted of a 
        felony other than a felony of the type specified in paragraph 
        (2)(D) of this section, or was convicted of a felony of the type 
        specified in paragraph (2)(D) of this section more than ten 
        years preceding the filing of the application;
            (E) such person pleaded guilty to or was convicted of any 
        misdemeanor which (i) involves any transaction or advice 
        concerning any contract of sale of a commodity for future 
        delivery or any activity subject to Commission regulation under 
        section 6c or 23 of this title or concerning a security, (ii) 
        arises out of the conduct of the business of a futures 
        commission merchant, introducing broker, floor broker, floor 
        trader, commodity trading advisor, commodity pool operator, 
        associated person of any registrant

[[Page 67]]

        under this chapter, securities broker, securities dealer, 
        municipal securities broker, municipal securities dealer, 
        transfer agent, clearing agency, securities information 
        processor, investment adviser, investment company, or an 
        affiliated person or employee of any of the foregoing, (iii) 
        involves embezzlement, theft, extortion, fraud, fraudulent 
        conversion, misappropriation of funds, securities or property, 
        forgery, counterfeiting, false pretenses, bribery, or gambling, 
        (iv) involves the violation of section 152, 1341, 1342, or 1343 
        or chapter 25, 47, 95, or 96 of title 18, or section 7203, 7204, 
        7205, or 7207 of title 26;
            (F) such person was debarred by any agency of the United 
        States from contracting with the United States;
            (G) such person willfully made any materially false or 
        misleading statement or willfully omitted to state any material 
        fact in such person's application or any update thereto, in any 
        report required to be filed with the Commission by this chapter 
        or the regulations thereunder, in any proceeding before the 
        Commission or in any registration disqualification proceeding;
            (H) such person has pleaded nolo contendere to criminal 
        charges of felonious conduct, or has been convicted in a State 
        court, in a United States military court, or in a foreign court 
        of conduct which would constitute a felony under Federal law if 
        the offense had been committed under Federal jurisdiction;
            (I) in the case of an applicant for registration in any 
        capacity for which there are minimum financial requirements 
        prescribed under this chapter or under the rules or regulations 
        of the Commission, such person has not established that such 
        person meets such minimum financial requirements;
            (J) such person is subject to an outstanding order denying, 
        suspending, or expelling such person from membership in a 
        registered entity, a registered futures association, any other 
        self-regulatory organization, or any foreign regulatory body 
        that the Commission recognizes as having a comparable regulatory 
        program or barring or suspending such person from being 
        associated with any member or members of such registered entity, 
        association, self-regulatory organization, or foreign regulatory 
        body;
            (K) such person has been found by any court of competent 
        jurisdiction or by any Federal or State agency or other 
        governmental body, or by agreement of settlement to which any 
        Federal or State agency or other governmental body is a party, 
        (i) to have violated any statute or any rule, regulation, or 
        order thereunder which involves embezzlement, theft, extortion, 
        fraud, fraudulent conversion, misappropriation of funds, 
        securities or property, forgery, counterfeiting, false 
        pretenses, bribery, or gambling or (ii) to have willfully aided, 
        abetted, counseled, commanded, induced or procured such 
        violation by any other person;
            (L) such person has associated with such person any other 
        person and knows, or in the exercise of reasonable care should 
        know, of facts regarding such other person that are set forth as 
        statutory disqualifications in paragraph (2) of this section, 
        unless such person has notified the Commission of such facts and 
        the Commission has determined that such other person should be 
        registered or temporarily licensed;
            (M) there is other good cause; or
            (N) any principal, as defined in paragraph (2) of this 
        section, of such person has been or could be refused 
        registration:

    Provided, That pending final determination under this paragraph, 
    registration shall not be granted: Provided further, That such 
    person may appeal from a decision to refuse registration or to 
    condition registration made pursuant to this paragraph in the manner 
    provided in sections 9 and 15 of this title;
        (4) in accordance with the procedure provided for in sections 9 
    and 15 of this title, to suspend, revoke, or place restrictions upon 
    the registration of any person registered under this chapter if 
    cause exists under paragraph (3) of this section which would warrant 
    a refusal of registration of such person, and to suspend or revoke 
    the registration of any futures commission merchant or introducing 
    broker who shall knowingly accept any order for the purchase or sale 
    of any commodity for future delivery on or subject to the rules of 
    any registered entity from any person if such person has been denied 
    trading privileges on any registered entity by order of the 
    Commission under sections 9 and 15 of this title and the period of 
    denial specified in such order shall not have expired: Provided, 
    That such person may appeal from a decision to suspend, revoke, or 
    place restrictions upon registration made pursuant to this paragraph 
    in the manner provided in sections 9 and 15 of this title;
        (5) to make and promulgate such rules and regulations as, in the 
    judgment of the Commission, are reasonably necessary to effectuate 
    any of the provisions or to accomplish any of the purposes of this 
    chapter;
        (6) to communicate to the proper committee or officer of any 
    registered entity, registered futures association, or self-
    regulatory organization as defined in section 3(a)(26) of the 
    Securities Exchange Act of 1934 [15 U.S.C. 78c(a)(26)], 
    notwithstanding the provisions of section 12 of this title, the full 
    facts concerning any transaction or market operation, including the 
    names of parties thereto, which in the judgment of the Commission 
    disrupts or tends to disrupt any market or is otherwise harmful or 
    against the best interests of producers, consumers, or investors, or 
    which is necessary or appropriate to effectuate the purposes of this 
    chapter: Provided, That any information furnished by the Commission 
    under this paragraph shall not be disclosed by such registered 
    entity, registered futures association, or self-regulatory 
    organization except in any self-regulatory action or proceeding;
        (7) to alter or supplement the rules of a registered entity 
    insofar as necessary or appropriate by rule or regulation or by 
    order, if after making the appropriate request in writing to a 
    registered entity that such registered entity effect on its own 
    behalf specified

[[Page 68]]

    changes in its rules and practices, and after appropriate notice and 
    opportunity for hearing, the Commission determines that such 
    registered entity has not made the changes so required, and that 
    such changes are necessary or appropriate for the protection of 
    persons producing, handling, processing, or consuming any commodity 
    traded for future delivery on such registered entity, or the product 
    or byproduct thereof, or for the protection of traders or to insure 
    fair dealing in commodities traded for future delivery on such 
    registered entity. Such rules, regulations, or orders may specify 
    changes with respect to such matters as--
            (A) terms or conditions in contracts of sale to be executed 
        on or subject to the rules of such registered entity;
            (B) the form or manner of execution of purchases and sales 
        for future delivery;
            (C) other trading requirements, excepting the setting of 
        levels of margin;
            (D) safeguards with respect to the financial responsibility 
        of members;
            (E) the manner, method, and place of soliciting business, 
        including the content of such solicitations; and
            (F) the form and manner of handling, recording, and 
        accounting for customers' orders, transactions, and accounts;

        (8) to make and promulgate such rules and regulations with 
    respect to those persons registered under this chapter, who are not 
    members of a registered entity, as in the judgment of the Commission 
    are reasonably necessary to protect the public interest and promote 
    just and equitable principles of trade, including but not limited to 
    the manner, method, and place of soliciting business, including the 
    content of such solicitation;
        (9) to direct the registered entity, whenever it has reason to 
    believe that an emergency exists, to take such action as in the 
    Commission's judgment is necessary to maintain or restore orderly 
    trading in or liquidation of any futures contract, including, but 
    not limited to, the setting of temporary emergency margin levels on 
    any futures contract, and the fixing of limits that may apply to a 
    market position acquired in good faith prior to the effective date 
    of the Commission's action. The term ``emergency'' as used herein 
    shall mean, in addition to threatened or actual market manipulations 
    and corners, any act of the United States or a foreign government 
    affecting a commodity or any other major market disturbance which 
    prevents the market from accurately reflecting the forces of supply 
    and demand for such commodity. Any action taken by the Commission 
    under this paragraph shall be subject to review only in the United 
    States Court of Appeals for the circuit in which the party seeking 
    review resides or has its principal place of business, or in the 
    United States Court of Appeals for the District of Columbia Circuit. 
    Such review shall be based upon an examination of all the 
    information before the Commission at the time the determination was 
    made. The court reviewing the Commission's action shall not enter a 
    stay or order of mandamus unless it has determined, after notice and 
    hearing before a panel of the court, that the agency action 
    complained of was arbitrary, capricious, an abuse of discretion, or 
    otherwise not in accordance with law. Nothing herein shall be deemed 
    to limit the meaning or interpretation given by a registered entity 
    to the terms ``market emergency'', ``emergency'', or equivalent 
    language in its own bylaws, rules, regulations, or resolutions;
        (10) to authorize any person to perform any portion of the 
    registration functions under this chapter, in accordance with rules, 
    notwithstanding any other provision of law, adopted by such person 
    and submitted to the Commission for approval or, if applicable, for 
    review pursuant to section 21(j) of this title, and subject to the 
    provisions of this chapter applicable to registrations granted by 
    the Commission; and
        (11)(A) by written notice served on the person and pursuant to 
    such rules, regulations, and orders as the Commission may adopt, to 
    suspend or modify the registration of any person registered under 
    this chapter who is charged (in any information, indictment, or 
    complaint authorized by a United States attorney or an appropriate 
    official of any State) with the commission of or participation in a 
    crime involving a violation of this chapter, or a violation of any 
    other provision of Federal or State law that would reflect on the 
    honesty or the fitness of the person to act as a fiduciary 
    (including an offense specified in subparagraph (D) or (E) of 
    paragraph (2)) that is punishable by imprisonment for a term 
    exceeding one year, if the Commission determines that continued 
    registration of the person may pose a threat to the public interest 
    or may threaten to impair public confidence in any market regulated 
    by the Commission.
        (B) Prior to the suspension or modification of the registration 
    of a person under this paragraph, the person shall be afforded an 
    opportunity for a hearing at which the Commission shall have the 
    burden of showing that the continued registration of the person 
    does, or is likely to, pose a threat to the public interest or 
    threaten to impair public confidence in any market regulated by the 
    Commission.
        (C) Any notice of suspension or modification issued under this 
    paragraph shall remain in effect until such information, indictment, 
    or complaint is disposed of or until terminated by the Commission.
        (D) On disposition of such information, indictment, or 
    complaint, the Commission may issue and serve on such person an 
    order pursuant to paragraph (2) or (4) to suspend, restrict, or 
    revoke the registration of such person.
        (E) A finding of not guilty or other disposition of the charge 
    shall not preclude the Commission from thereafter instituting any 
    other proceedings under this chapter.
        (F) A person aggrieved by an order issued under this paragraph 
    may obtain review of such order in the same manner and on the same 
    terms and conditions as are provided in section 8(b) of this title.

(Sept. 21, 1922, ch. 369, Sec. 8a, as added June 15, 1936, ch. 545, 
Sec. 10, 49 Stat. 1500; amended Aug. 5, 1955, ch. 574, 69 Stat. 535; 
Pub. L. 90-258, Secs. 20-23,

[[Page 69]]

Feb. 19, 1968, 82 Stat. 32, 33; Pub. L. 93-463, title I, Sec. 103(a), 
title II, Secs. 204(c), 205(c), 213-215, Oct. 23, 1974, 88 Stat. 
1392, 1397, 1400, 1404; Pub. L. 95-405, Sec. 17, Sept. 30, 1978, 92 
Stat. 874; Pub. L. 97-444, title I, Sec. 104, title II, Secs. 223-
225, Jan. 11, 1983, 96 Stat. 2297, 2310-2315; Pub. L. 102-546, title II, 
Secs. 207(b)(3), (4), 208, 209(b)(6), 227, title IV, Sec. 402(10), 
Oct. 28, 1992, 106 Stat. 3604, 3607, 3618, 3625; Pub. L. 106-554, 
Sec. 1(a)(5) [title I, Sec. 123(a)(19)], Dec. 21, 2000, 114 Stat. 2763, 
2763A-410.)

                       References in Text

    The Securities Act of 1933, referred to in pars. (2)(E) and (3)(B), 
is title I of act May 27, 1933, ch. 38, 48 Stat. 74, as amended, which 
is classified generally to subchapter I (Sec. 77a et seq.) of chapter 2A 
of Title 15, Commerce and Trade. For complete classification of this Act 
to the Code, see section 77a of Title 15 and Tables.
    The Securities Exchange Act of 1934, referred to in pars. (2)(E) and 
(3)(B), is act June 6, 1934, ch. 404, 48 Stat. 881, as amended, which is 
classified principally to chapter 2B (Sec. 78a et seq.) of Title 15. For 
complete classification of this Act to the Code, see section 78a of 
Title 15 and Tables.
    The Public Utility Holding Company Act of 1935, referred to in pars. 
(2)(E) and (3)(B), is title I of act Aug. 26, 1935, ch. 687, 49 Stat. 
803, as amended, which was classified generally to chapter 2C (Sec. 79 
et seq.) of Title 15, Commerce and Trade, prior to repeal by Pub. L. 
109-58, title XII, Sec. 1263, Aug. 8, 2005, 119 Stat. 974. For complete 
classification of this Act to the Code, see Tables.
    The Trust Indenture Act of 1939, referred to in pars. (2)(E) and 
(3)(B), is title III of act May 27, 1933, ch. 38, as added Aug. 3, 1939, 
ch. 411, 53 Stat. 1149, as amended, which is classified generally to 
subchapter III (Sec. 77aaa et seq.) of chapter 2A of Title 15. For 
complete classification of this Act to the Code, see section 77aaa of 
Title 15 and Tables.
    The Investment Advisers Act of 1940, referred to in pars. (2)(E) and 
(3)(B), is title II of act Aug. 22, 1940, ch. 686, 54 Stat. 847, as 
amended, which is classified generally to subchapter II (Sec. 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 Investment Company Act of 1940, referred to in pars. (2)(E) and 
(3)(B), is title I of act Aug. 22, 1940, ch. 686, 54 Stat. 789, as 
amended, which is classified generally to subchapter I (Sec. 80a-1 et 
seq.) of chapter 2D of Title 15. For complete classification of this Act 
to the Code, see section 80a-51 of Title 15 and Tables.
    The Securities Investor Protection Act of 1970, referred to in pars. 
(2)(E) and (3)(B), is Pub. L. 91-598, Dec. 30, 1970, 84 Stat. 1636, as 
amended, which is classified generally to chapter 2B-1 (Sec. 78aaa et 
seq.) of Title 15. For complete classification of this Act to the Code, 
see section 78aaa of Title 15 and Tables.
    The Foreign Corrupt Practices Act of 1977, referred to in pars. 
(2)(E) and (3)(B), is title I of Pub. L. 95-213, Dec. 19, 1977, 91 Stat. 
1494, as amended, which enacted sections 78dd-1 to 78dd-3 of Title 15, 
Commerce and Trade, and amended sections 78m and 78ff of Title 15. For 
complete classification of this Act to the Code, see Short Title of 1977 
Amendment note set out under section 78a of Title 15 and Tables.


                               Amendments

    2000--Pub. L. 106-554, Sec. 1(a)(5) [title I, Sec. 123(a)(19)(A)], 
substituted ``registered entity'' for ``contract market'' wherever 
appearing.
    Par. (2)(F). Pub. L. 106-554, Sec. 1(a)(5) [title I, 
Sec. 123(a)(19)(B)], substituted ``privileges'' for ``trading 
privileges''.
    1992--Par. (1). Pub. L. 102-546, Sec. 207(b)(3), substituted ``floor 
brokers, and floor traders'' for ``and floor brokers''.
    Par. (2). Pub. L. 102-546, Sec. 209(b)(6)(A), made technical 
amendment to reference to sections 9 and 15 of this title in concluding 
provisions to reflect change in reference to corresponding section of 
original act.
    Par. (2)(C)(i). Pub. L. 102-546, Sec. 207(b)(4), inserted ``floor 
trader,'' after ``floor broker,''.
    Par. (2)(C)(ii). Pub. L. 102-546, Sec. 208(a), amended cl. (ii) 
generally. Prior to amendment, cl. (ii) read as follows: ``engaging in 
or continuing any activity involving any transaction in or advice 
concerning contracts of sale of a commodity for future delivery, 
concerning matters subject to Commission regulation under section 6c or 
23 of this title, or concerning securities''.
    Par. (2)(D)(ii). Pub. L. 102-546, Sec. 207(b)(4), inserted ``floor 
trader,'' after ``floor broker,''.
    Par. (2)(D)(iv). Pub. L. 102-546, Sec. 208(b), inserted references 
to sections 1001, 1503, 1623, 1961 to 1963, and 2314 of title 18 and 
sections 7201 and 7206 of title 26.
    Par. (2)(E). Pub. L. 102-546, Sec. 208(c), substituted ``in a 
proceeding brought'' for ``by any court of competent jurisdiction,'' and 
in cl. (i) inserted reference to chapter 96 of title 18.
    Par. (2)(G). Pub. L. 102-546, Sec. 208(d), substituted ``this 
paragraph and paragraph (3)'' for ``subparagraphs (A) through (F) of 
this paragraph'', ``materially false'' for ``material false'', and 
``application or any update thereto'' for ``application''.
    Par. (3). Pub. L. 102-546, Sec. 209(b)(6)(B), made technical 
amendment to reference to sections 9 and 15 of this title in concluding 
provisions to reflect change in reference to corresponding section of 
original act.
    Par. (3)(D). Pub. L. 102-546, Sec. 208(e), inserted ``pleaded guilty 
to or'' after ``person'', substituted ``section,'' for ``section within 
ten years preceding the filing of the application or at any time 
thereafter,'' and ``felony of the type specified in paragraph (2)(D) of 
this section more'' for ``felony, including a felony of the type 
specified in paragraph (2)(D) of this section, more''.
    Par. (3)(E). Pub. L. 102-546, Sec. 208(f)(1), (2), inserted 
``pleaded guilty to or'' after ``person'' and struck out ``within ten 
years preceding the filing of the application for registration or at any 
time thereafter'' before ``of any misdemeanor''.
    Par. (3)(E)(ii). Pub. L. 102-546, Sec. 207(b)(4), inserted ``floor 
trader,'' after ``floor broker,''.
    Par. (3)(E)(iv). Pub. L. 102-546, Sec. 208(f)(3), inserted reference 
to sections 7203 to 7205 and 7207 of title 26.
    Par. (3)(G). Pub. L. 102-546, Sec. 208(g)(5), which directed the 
insertion of ``or in any registration disqualification proceeding'' 
after ``Commission'', was executed by making the insertion after 
``Commission'' the second time it appeared to reflect the probable 
intent of Congress.
    Pub. L. 102-546, Sec. 208(g)(1)-(4), substituted ``materially 
false'' for ``material false'', ``application or any update thereto,'' 
for ``application,'' and struck out ``or'' after ``thereunder,''.
    Par. (3)(H). Pub. L. 102-546, Sec. 208(h), inserted ``, in a United 
States military court,'' after ``State court''.
    Par. (3)(J). Pub. L. 102-546, Sec. 208(i), struck out ``or'' before 
``any other self-regulatory'', inserted ``or any foreign regulatory body 
that the Commission recognizes as having a comparable regulatory 
program'', and substituted ``association, self-regulatory organization, 
or foreign regulatory body'' for ``association, or self-regulatory 
organization''.
    Par. (4). Pub. L. 102-546, Sec. 209(b)(6)(C), made technical 
amendment to references to sections 9 and 15 of this title in concluding 
provisions to reflect change in references to corresponding section of 
original act.
    Par. (5). Pub. L. 102-546, Sec. 402(10)(A), struck out ``and'' at 
end.
    Par. (7). Pub. L. 102-546, Sec. 402(10)(B), substituted ``matters 
as--'' for ``matters as:'' in introductory provisions.
    Par. (11). Pub. L. 102-546, Sec. 227, added par. (11).
    1983--Par. (1). Pub. L. 97-444, Sec. 223, substituted authorization 
for registration of ``associated persons of futures commission 
merchants'' for ``and persons associated therewith as described in 
section 6k of this title''; authorized registration of introducing 
brokers, associated persons of introducing brokers, associated persons 
of commodity trading advisors and associated persons

[[Page 70]]

of commodity pool operators, substituted ``such persons'' for ``any 
persons'' before ``associated with the applicant'', and authorized 
establishment of registration and renewal fees and charges and granting 
of temporary licenses for terms not exceeding six months from date of 
issuance.
    Par. (2). Pub. L. 97-444, Sec. 224(1), added par. (2) and struck out 
prior par. (2) which authorized Commission ``to refuse to register any 
person--
        ``(A) if the prior registration of such person has been 
    suspended (and the period of such suspension shall not have expired) 
    or has been revoked;
        ``(B) if it is found, after opportunity for hearing, that the 
    applicant is unfit to engage in the business for which the 
    application for registration is made, (i) because such applicant, 
    or, if the applicant is a partnership, any general partner, or, if 
    the applicant is a corporation, any officer or holder of more than 
    10 per centum of the stock, at any time engaged in any practice of 
    the character prohibited by this chapter or was convicted of a 
    felony in any State or Federal court, or was debarred by any agency 
    of the United States from contracting with the United States, or the 
    applicant willfully made any material false or misleading statement 
    in his application or willfully omitted to state any material fact 
    in connection with the application, or (ii) for other good cause 
    shown; or
        ``(C) in the case of an applicant for registration as futures 
    commission merchant, if it is found after opportunity for hearing 
    that the applicant has not established that he meets the minimum 
    financial requirements under section 6f of this title: Provided, 
    That pending final determination under subparagraph (B) or (C), 
    registration shall not be granted: And provided further, That the 
    applicant may appeal from the refusal of registration under 
    subparagraph (B) or (C) in the manner provided in sections 9 and 15 
    of this title; and''.
    Par. (3). Pub. L. 97-444, Sec. 224(3), added par. (3). Former par. 
(3) redesignated (4).
    Par. (4). Pub. L. 97-444, Sec. 224(2), (4), struck out par. (4) 
provision for establishment of registration and renewal fees and 
charges, covered in par. (1), redesignated par. (3) as (4), and in 
redesignated par. (4), authorized placing of restrictions on 
registrations, suspension or revocation of registration of an 
introducing broker and appeals from registration decisions made pursuant 
to this paragraph as provided in sections 9 and 15 of this title, and 
substituted ``if cause exists under paragraph (3) of this section'' for 
``if cause exists under paragraph (2)(B) or (C) of this section''.
    Par. (6). Pub. L. 97-444, Sec. 104, authorized communication of full 
facts respecting transactions or market operations to registered futures 
associations and self-regulatory organizations, included concern for 
investors, provided for communications when necessary or appropriate to 
effectuate purposes of this chapter, and prohibited disclosure of 
furnished information except in self-regulatory actions or proceedings.
    Pars. (6) to (8). Pub. L. 97-444, Sec. 224(5), struck out ``and'' at 
end of pars. (6), (7), and (8).
    Par. (9). Pub. L. 97-444, Sec. 225, authorized Commission to direct 
the contract market to take certain action, including, but not limited 
to, setting of temporary emergency margin levels on any futures 
contract, and fixing of limits that may apply to a market position 
acquired in good faith prior to the effective date of Commission's 
action and inserted provisions respecting judicial review.
    Par. (10). Pub. L. 97-444, Sec. 224(6), added par. (10).
    1978--Par. (1). Pub. L. 95-405, Sec. 17(1), inserted ``, which may 
require the applicant, and any persons associated with the applicant as 
the Commission may specify, to be fingerprinted and to submit, or cause 
to be submitted, such fingerprints to the Attorney General for 
identification and appropriate processing'' after ``by the Commission''.
    Par. (6). Pub. L. 95-405, Sec. 17(2), struck out ``and to publish'' 
after ``any contract market''.
    1974--Pub. L. 93-463, Sec. 103(a), substituted ``Commission'' for 
``Secretary of Agriculture'' in provisions preceding par. (1).
    Par. (1). Pub. L. 93-463, Secs. 103(a), 204(c), 205(c), 
substituted ``Commission'' for ``Secretary of Agriculture'', inserted 
``and persons associated therewith as described in section 6k of this 
title,'' after ``futures commission merchants'', and inserted 
``commodity trading advisors, commodity pool operators'' before ``and 
floor brokers''.
    Pars. (3), (5), (6). Pub. L. 93-463, Sec. 103(a), substituted 
``Commission'' for ``Secretary of Agriculture''.
    Par. (7). Pub. L. 93-463, Sec. 213, amended par. (7) generally, 
substituting provisions covering the altering or supplementing of the 
rules of a contract market for provisions covering the disapproval of 
bylaws, rules, regulations, and resolutions made, issued, or proposed by 
a contract market.
    Par. (8). Pub. L. 93-463, Sec. 214, added par. (8).
    Par. (9). Pub. L. 93-463, Sec. 215, added par. (9).
    1968--Par. (2). Pub. L. 90-258, Sec. 20, designated existing 
provisions as subpar. (A), substituted ``if the prior registration of 
such person'' for ``if such person has violated any of the provisions of 
this chapter or any of the rules or regulations promulgated by the 
Secretary of Agriculture hereunder for which the registration of such 
person'' and added subpars. (B) and (C).
    Par. (3). Pub. L. 90-258, Sec. 21, authorized Secretary of 
Agriculture, in accordance with procedure provided for in sections 9 and 
15 of this title, to suspend or revoke the registration of any person 
registered under this chapter if cause exists under par. (2)(B) or (C) 
of this section which would warrant a refusal of registration of such 
person.
    Par. (4). Pub. L. 90-258, Sec. 22, struck out authorization for 
establishment of fees for copies of registration certificates.
    Par. (7). Pub. L. 90-258, Sec. 23, added par. (7).
    1955--Par. (4). Act Aug. 5, 1955, authorized Secretary to fix and 
establish reasonable fees for registrations and renewals, and struck out 
provisions which set the fee for each registration and renewal at not 
more than $10.


                    Effective Date of 1992 Amendment

    Amendment by section 207(b)(3), (4) of Pub. L. 102-546 effective 180 
days after Oct. 28, 1992, with Commodity Futures Trading Commission to 
issue any regulations necessary to implement such amendment no later 
than 180 days after Oct. 28, 1992, see section 207(c) of Pub. L. 102-
546, set out as a note under section 6e of this title.


                    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 1978 Amendment

    Amendment by Pub. L. 95-405 effective Oct. 1, 1978, see section 28 
of Pub. L. 95-405, 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

    For effective date of section, see section 13 of act June 15, 1936, 
set out as an Effective Date of 1936 Amendment note under section 1 of 
this title.


 
        

            
 
          
Sec. 12a. Registration of commodity dealers and associated 
        persons; regulation of registered entities
        
    The Commission is authorized--
        (1) to register futures commission merchants, associated persons 
    of futures commission merchants, introducing brokers, associated 
    persons of introducing brokers, commodity trading advisors, 
    associated persons of commodity trading advisors, commodity pool 
    operators, associated persons of commodity pool operators, floor 
    brokers, and floor traders upon application in accordance with rules 
    and regulations and in the form and manner to be prescribed by the 
    Commission, which may require the applicant, and such persons 
    associated with the applicant as the Commission may specify, to be 
    fingerprinted and to submit, or cause to be submitted, such 
    fingerprints to the Attorney General for identification and 
    appropriate processing, and in connection therewith to fix and 
    establish from time to time reasonable fees and charges for 
    registrations and renewals thereof: Provided, That notwithstanding 
    any provision of this chapter, the Commission may grant a temporary 
    license to any applicant for registration with the Commission 
    pursuant to such rules, regulations, or orders as the Commission may 
    adopt, except that the term of any such temporary license shall not 
    exceed six months from the date of its issuance;
        (2) upon notice, but without a hearing and pursuant to such 
    rules, regulations, or orders as the Commission may adopt, to refuse 
    to register, to register conditionally, or to suspend or place 
    restrictions upon the registration of, any person and with such a 
    hearing as may be appropriate to revoke the registration of any 
    person--
            (A) if a prior registration of such person in any capacity 
        has been suspended (and the period of such suspension has not 
        expired) or has been revoked;
            (B) if registration of such person in any capacity has been 
        refused under the provisions of paragraph (3) of this section 
        within five years preceding the filing of the application for 
        registration or at any time thereafter;
            (C) if such person is permanently or temporarily enjoined by 
        order, judgment, or decree of any court of competent 
        jurisdiction (except that registration may not be revoked solely 
        on the basis of such temporary order, judgment, or decree), 
        including an order entered pursuant to an agreement of 
        settlement to which the Commission or any Federal or State 
        agency or other governmental body is a party, from (i) acting as 
        a futures commission merchant, introducing broker, floor broker, 
        floor trader, commodity trading advisor, commodity pool 
        operator, associated person of any registrant under this 
        chapter, securities broker, securities dealer, municipal 
        securities broker, municipal securities dealer, transfer agent, 
        clearing agency, securities information processor, investment 
        adviser, investment company, or affiliated person or employee of 
        any of the foregoing or (ii) engaging in or continuing any 
        activity where such activity involves embezzlement, theft, 
        extortion, fraud, fraudulent conversion, misappropriation of 
        funds, securities or property, forgery, counterfeiting, false 
        pretenses, bribery, gambling, or any transaction in or advice 
        concerning contracts of sale of a commodity for future delivery, 
        concerning matters subject to Commission regulation under 
        section 6c or 23 of this title, or concerning securities;
            (D) if such person has been convicted within ten years 
        preceding the filing of the application for registration or at 
        any time thereafter of any felony that (i) involves any 
        transactions or advice concerning any contract of sale of a 
        commodity for future delivery, or any activity subject to 
        Commission regulation under section 6c or 23 of this title, or 
        concerning a security, (ii) arises out of the conduct of the 
        business of a futures commission merchant, introducing broker, 
        floor broker, floor trader, commodity trading advisor, commodity 
        pool operator, associated person of any registrant under this 
        chapter, securities broker, securities dealer, municipal 
        securities broker, municipal securities dealer, transfer agent, 
        clearing agency, securities information processor, investment 
        adviser, investment company, or an affiliated person or employee 
        of any of the foregoing, (iii) involves embezzlement, theft, 
        extortion, fraud, fraudulent conversion, misappropriation of 
        funds, securities or property, forgery, counterfeiting, false 
        pretenses, bribery, or gambling, or (iv) involves the violation 
        of section 152, 1001, 1341, 1342, 1343, 1503, 1623, 1961, 1962, 
        1963, or 2314, or chapter 25, 47, 95, or 96 of title 18, or 
        section 7201 or 7206 of title 26;
            (E) if such person, within ten years preceding the filing of 
        the application or at any time thereafter, has been found in a 
        proceeding brought by the Commission or any Federal or State 
        agency or other governmental body, or by agreement of settlement 
        to which the Commission or any Federal or State agency or other 
        governmental body is a party, (i) to have violated any provision 
        of this chapter, the Securities Act of 1933 [15 U.S.C. 77a et 
        seq.], the Securities Exchange Act of 1934 [15 U.S.C. 78a et 
        seq.], the Public Utility Holding Company Act of 1935,\1\ the 
        Trust Indenture Act of 1939 [15 U.S.C. 77aaa et seq.], the 
        Investment Advisers Act of 1940 [15 U.S.C. 80b-1 et seq.], the 
        Investment

[[Page 66]]

        Company Act of 1940 [15 U.S.C. 80a-1 et seq.], the Securities 
        Investors \2\ Protection Act of 1970 [15 U.S.C. 78aaa et seq.], 
        the Foreign Corrupt Practices Act of 1977, chapter 96 of title 
        18, or any similar statute of a State or foreign jurisdiction, 
        or any rule, regulation, or order under any such statutes, or 
        the rules of the Municipal Securities Rulemaking Board where 
        such violation involves embezzlement, theft, extortion, fraud, 
        fraudulent conversion, misappropriation of funds, securities or 
        property, forgery, counterfeiting, false pretenses, bribery, or 
        gambling, or (ii) to have willfully aided, abetted, counseled, 
        commanded, induced, or procured such violation by any other 
        person;
---------------------------------------------------------------------------
    \1\ See References in Text note below.
    \2\ So in original. Probably should be ``Investor''.
---------------------------------------------------------------------------
            (F) if such person is subject to an outstanding order of the 
        Commission denying privileges on any registered entity to such 
        person, denying, suspending, or revoking such person's 
        membership in any registered entity or registered futures 
        association, or barring or suspending such person from being 
        associated with a registrant under this chapter or with a member 
        of a registered entity or with a member of a registered futures 
        association;
            (G) if, as to any of the matters set forth in this paragraph 
        and paragraph (3), such person willfully made any materially 
        false or misleading statement or omitted to state any material 
        fact in such person's application or any update thereto; or
            (H) if refusal, suspension, or revocation of the 
        registration of any principal of such person would be warranted 
        because of a statutory disqualification listed in this 
        paragraph:

    Provided, That such person may appeal from a decision to refuse 
    registration, condition registration, suspend, revoke or to place 
    restrictions upon registration made pursuant to the provisions of 
    this paragraph in the manner provided in sections 9 and 15 of this 
    title; and
    Provided, further, That for the purposes of paragraphs (2) and (3) 
    of this section, ``principal'' shall mean, if the person is a 
    partnership, any general partner or, if the person is a corporation, 
    any officer, director, or beneficial owner of at least 10 per centum 
    of the voting shares of the corporation, and any other person that 
    the Commission by rule, regulation, or order determines has the 
    power, directly or indirectly, through agreement or otherwise, to 
    exercise a controlling influence over the activities of such person 
    which are subject to regulation by the Commission;
        (3) to refuse to register or to register conditionally any 
    person, if it is found, after opportunity for hearing, that--
            (A) such person has been found by the Commission or by any 
        court of competent jurisdiction to have violated, or has 
        consented to findings of a violation of, any provision of this 
        chapter, or any rule, regulation, or order thereunder (other 
        than a violation set forth in paragraph (2) of this section), or 
        to have willfully aided, abetted, counseled, commanded, induced, 
        or procured the violation by any other person of any such 
        provision;
            (B) such person has been found by any court of competent 
        jurisdiction or by any Federal or State agency or other 
        governmental body, or by agreement of settlement to which any 
        Federal or State agency or other governmental body is a party, 
        (i) to have violated any provision of the Securities Act of 1933 
        [15 U.S.C. 77a et seq.], the Securities Exchange Act of 1934 [15 
        U.S.C. 78a et seq.], the Public Utility Holding Company Act of 
        1935,\1\ the Trust Indenture Act of 1939 [15 U.S.C. 77aaa et 
        seq.], the Investment Advisers Act of 1940 [15 U.S.C. 80b-1 et 
        seq.], the Investment Company Act of 1940 [15 U.S.C. 80a-1 et 
        seq.], the Securities Investors \3\ Protection Act of 1970 [15 
        U.S.C. 78aaa et seq.], the Foreign Corrupt Practices Act of 
        1977, or any similar statute of a State or foreign jurisdiction, 
        or any rule, regulation, or order under any such statutes, or 
        the rules of the Municipal Securities Rulemaking Board or (ii) 
        to have willfully aided, abetted, counseled, commanded, induced, 
        or procured such violation by any other person;
---------------------------------------------------------------------------
    \3\ So in original. Probably should be ``Investor''.
---------------------------------------------------------------------------
            (C) such person failed reasonably to supervise another 
        person, who is subject to such person's supervision, with a view 
        to preventing violations of this chapter, or of any of the 
        statutes set forth in subparagraph (B) of this paragraph, or of 
        any of the rules, regulations, or orders thereunder, and the 
        person subject to supervision committed such a violation: 
        Provided, That no person shall be deemed to have failed 
        reasonably to supervise another person, within the meaning of 
        this subparagraph if (i) there have been established procedures, 
        and a system for applying such procedures, which would 
        reasonably be expected to prevent and detect, insofar as 
        practicable, any such violation by such other person and (ii) 
        such person has reasonably discharged the duties and obligations 
        incumbent upon that person, as supervisor, by reason of such 
        procedures and system, without reasonable cause to believe that 
        such procedures and system were not being complied with;
            (D) such person pleaded guilty to or was convicted of a 
        felony other than a felony of the type specified in paragraph 
        (2)(D) of this section, or was convicted of a felony of the type 
        specified in paragraph (2)(D) of this section more than ten 
        years preceding the filing of the application;
            (E) such person pleaded guilty to or was convicted of any 
        misdemeanor which (i) involves any transaction or advice 
        concerning any contract of sale of a commodity for future 
        delivery or any activity subject to Commission regulation under 
        section 6c or 23 of this title or concerning a security, (ii) 
        arises out of the conduct of the business of a futures 
        commission merchant, introducing broker, floor broker, floor 
        trader, commodity trading advisor, commodity pool operator, 
        associated person of any registrant

[[Page 67]]

        under this chapter, securities broker, securities dealer, 
        municipal securities broker, municipal securities dealer, 
        transfer agent, clearing agency, securities information 
        processor, investment adviser, investment company, or an 
        affiliated person or employee of any of the foregoing, (iii) 
        involves embezzlement, theft, extortion, fraud, fraudulent 
        conversion, misappropriation of funds, securities or property, 
        forgery, counterfeiting, false pretenses, bribery, or gambling, 
        (iv) involves the violation of section 152, 1341, 1342, or 1343 
        or chapter 25, 47, 95, or 96 of title 18, or section 7203, 7204, 
        7205, or 7207 of title 26;
            (F) such person was debarred by any agency of the United 
        States from contracting with the United States;
            (G) such person willfully made any materially false or 
        misleading statement or willfully omitted to state any material 
        fact in such person's application or any update thereto, in any 
        report required to be filed with the Commission by this chapter 
        or the regulations thereunder, in any proceeding before the 
        Commission or in any registration disqualification proceeding;
            (H) such person has pleaded nolo contendere to criminal 
        charges of felonious conduct, or has been convicted in a State 
        court, in a United States military court, or in a foreign court 
        of conduct which would constitute a felony under Federal law if 
        the offense had been committed under Federal jurisdiction;
            (I) in the case of an applicant for registration in any 
        capacity for which there are minimum financial requirements 
        prescribed under this chapter or under the rules or regulations 
        of the Commission, such person has not established that such 
        person meets such minimum financial requirements;
            (J) such person is subject to an outstanding order denying, 
        suspending, or expelling such person from membership in a 
        registered entity, a registered futures association, any other 
        self-regulatory organization, or any foreign regulatory body 
        that the Commission recognizes as having a comparable regulatory 
        program or barring or suspending such person from being 
        associated with any member or members of such registered entity, 
        association, self-regulatory organization, or foreign regulatory 
        body;
            (K) such person has been found by any court of competent 
        jurisdiction or by any Federal or State agency or other 
        governmental body, or by agreement of settlement to which any 
        Federal or State agency or other governmental body is a party, 
        (i) to have violated any statute or any rule, regulation, or 
        order thereunder which involves embezzlement, theft, extortion, 
        fraud, fraudulent conversion, misappropriation of funds, 
        securities or property, forgery, counterfeiting, false 
        pretenses, bribery, or gambling or (ii) to have willfully aided, 
        abetted, counseled, commanded, induced or procured such 
        violation by any other person;
            (L) such person has associated with such person any other 
        person and knows, or in the exercise of reasonable care should 
        know, of facts regarding such other person that are set forth as 
        statutory disqualifications in paragraph (2) of this section, 
        unless such person has notified the Commission of such facts and 
        the Commission has determined that such other person should be 
        registered or temporarily licensed;
            (M) there is other good cause; or
            (N) any principal, as defined in paragraph (2) of this 
        section, of such person has been or could be refused 
        registration:

    Provided, That pending final determination under this paragraph, 
    registration shall not be granted: Provided further, That such 
    person may appeal from a decision to refuse registration or to 
    condition registration made pursuant to this paragraph in the manner 
    provided in sections 9 and 15 of this title;
        (4) in accordance with the procedure provided for in sections 9 
    and 15 of this title, to suspend, revoke, or place restrictions upon 
    the registration of any person registered under this chapter if 
    cause exists under paragraph (3) of this section which would warrant 
    a refusal of registration of such person, and to suspend or revoke 
    the registration of any futures commission merchant or introducing 
    broker who shall knowingly accept any order for the purchase or sale 
    of any commodity for future delivery on or subject to the rules of 
    any registered entity from any person if such person has been denied 
    trading privileges on any registered entity by order of the 
    Commission under sections 9 and 15 of this title and the period of 
    denial specified in such order shall not have expired: Provided, 
    That such person may appeal from a decision to suspend, revoke, or 
    place restrictions upon registration made pursuant to this paragraph 
    in the manner provided in sections 9 and 15 of this title;
        (5) to make and promulgate such rules and regulations as, in the 
    judgment of the Commission, are reasonably necessary to effectuate 
    any of the provisions or to accomplish any of the purposes of this 
    chapter;
        (6) to communicate to the proper committee or officer of any 
    registered entity, registered futures association, or self-
    regulatory organization as defined in section 3(a)(26) of the 
    Securities Exchange Act of 1934 [15 U.S.C. 78c(a)(26)], 
    notwithstanding the provisions of section 12 of this title, the full 
    facts concerning any transaction or market operation, including the 
    names of parties thereto, which in the judgment of the Commission 
    disrupts or tends to disrupt any market or is otherwise harmful or 
    against the best interests of producers, consumers, or investors, or 
    which is necessary or appropriate to effectuate the purposes of this 
    chapter: Provided, That any information furnished by the Commission 
    under this paragraph shall not be disclosed by such registered 
    entity, registered futures association, or self-regulatory 
    organization except in any self-regulatory action or proceeding;
        (7) to alter or supplement the rules of a registered entity 
    insofar as necessary or appropriate by rule or regulation or by 
    order, if after making the appropriate request in writing to a 
    registered entity that such registered entity effect on its own 
    behalf specified

[[Page 68]]

    changes in its rules and practices, and after appropriate notice and 
    opportunity for hearing, the Commission determines that such 
    registered entity has not made the changes so required, and that 
    such changes are necessary or appropriate for the protection of 
    persons producing, handling, processing, or consuming any commodity 
    traded for future delivery on such registered entity, or the product 
    or byproduct thereof, or for the protection of traders or to insure 
    fair dealing in commodities traded for future delivery on such 
    registered entity. Such rules, regulations, or orders may specify 
    changes with respect to such matters as--
            (A) terms or conditions in contracts of sale to be executed 
        on or subject to the rules of such registered entity;
            (B) the form or manner of execution of purchases and sales 
        for future delivery;
            (C) other trading requirements, excepting the setting of 
        levels of margin;
            (D) safeguards with respect to the financial responsibility 
        of members;
            (E) the manner, method, and place of soliciting business, 
        including the content of such solicitations; and
            (F) the form and manner of handling, recording, and 
        accounting for customers' orders, transactions, and accounts;

        (8) to make and promulgate such rules and regulations with 
    respect to those persons registered under this chapter, who are not 
    members of a registered entity, as in the judgment of the Commission 
    are reasonably necessary to protect the public interest and promote 
    just and equitable principles of trade, including but not limited to 
    the manner, method, and place of soliciting business, including the 
    content of such solicitation;
        (9) to direct the registered entity, whenever it has reason to 
    believe that an emergency exists, to take such action as in the 
    Commission's judgment is necessary to maintain or restore orderly 
    trading in or liquidation of any futures contract, including, but 
    not limited to, the setting of temporary emergency margin levels on 
    any futures contract, and the fixing of limits that may apply to a 
    market position acquired in good faith prior to the effective date 
    of the Commission's action. The term ``emergency'' as used herein 
    shall mean, in addition to threatened or actual market manipulations 
    and corners, any act of the United States or a foreign government 
    affecting a commodity or any other major market disturbance which 
    prevents the market from accurately reflecting the forces of supply 
    and demand for such commodity. Any action taken by the Commission 
    under this paragraph shall be subject to review only in the United 
    States Court of Appeals for the circuit in which the party seeking 
    review resides or has its principal place of business, or in the 
    United States Court of Appeals for the District of Columbia Circuit. 
    Such review shall be based upon an examination of all the 
    information before the Commission at the time the determination was 
    made. The court reviewing the Commission's action shall not enter a 
    stay or order of mandamus unless it has determined, after notice and 
    hearing before a panel of the court, that the agency action 
    complained of was arbitrary, capricious, an abuse of discretion, or 
    otherwise not in accordance with law. Nothing herein shall be deemed 
    to limit the meaning or interpretation given by a registered entity 
    to the terms ``market emergency'', ``emergency'', or equivalent 
    language in its own bylaws, rules, regulations, or resolutions;
        (10) to authorize any person to perform any portion of the 
    registration functions under this chapter, in accordance with rules, 
    notwithstanding any other provision of law, adopted by such person 
    and submitted to the Commission for approval or, if applicable, for 
    review pursuant to section 21(j) of this title, and subject to the 
    provisions of this chapter applicable to registrations granted by 
    the Commission; and
        (11)(A) by written notice served on the person and pursuant to 
    such rules, regulations, and orders as the Commission may adopt, to 
    suspend or modify the registration of any person registered under 
    this chapter who is charged (in any information, indictment, or 
    complaint authorized by a United States attorney or an appropriate 
    official of any State) with the commission of or participation in a 
    crime involving a violation of this chapter, or a violation of any 
    other provision of Federal or State law that would reflect on the 
    honesty or the fitness of the person to act as a fiduciary 
    (including an offense specified in subparagraph (D) or (E) of 
    paragraph (2)) that is punishable by imprisonment for a term 
    exceeding one year, if the Commission determines that continued 
    registration of the person may pose a threat to the public interest 
    or may threaten to impair public confidence in any market regulated 
    by the Commission.
        (B) Prior to the suspension or modification of the registration 
    of a person under this paragraph, the person shall be afforded an 
    opportunity for a hearing at which the Commission shall have the 
    burden of showing that the continued registration of the person 
    does, or is likely to, pose a threat to the public interest or 
    threaten to impair public confidence in any market regulated by the 
    Commission.
        (C) Any notice of suspension or modification issued under this 
    paragraph shall remain in effect until such information, indictment, 
    or complaint is disposed of or until terminated by the Commission.
        (D) On disposition of such information, indictment, or 
    complaint, the Commission may issue and serve on such person an 
    order pursuant to paragraph (2) or (4) to suspend, restrict, or 
    revoke the registration of such person.
        (E) A finding of not guilty or other disposition of the charge 
    shall not preclude the Commission from thereafter instituting any 
    other proceedings under this chapter.
        (F) A person aggrieved by an order issued under this paragraph 
    may obtain review of such order in the same manner and on the same 
    terms and conditions as are provided in section 8(b) of this title.

(Sept. 21, 1922, ch. 369, Sec. 8a, as added June 15, 1936, ch. 545, 
Sec. 10, 49 Stat. 1500; amended Aug. 5, 1955, ch. 574, 69 Stat. 535; 
Pub. L. 90-258, Secs. 20-23,

[[Page 69]]

Feb. 19, 1968, 82 Stat. 32, 33; Pub. L. 93-463, title I, Sec. 103(a), 
title II, Secs. 204(c), 205(c), 213-215, Oct. 23, 1974, 88 Stat. 
1392, 1397, 1400, 1404; Pub. L. 95-405, Sec. 17, Sept. 30, 1978, 92 
Stat. 874; Pub. L. 97-444, title I, Sec. 104, title II, Secs. 223-
225, Jan. 11, 1983, 96 Stat. 2297, 2310-2315; Pub. L. 102-546, title II, 
Secs. 207(b)(3), (4), 208, 209(b)(6), 227, title IV, Sec. 402(10), 
Oct. 28, 1992, 106 Stat. 3604, 3607, 3618, 3625; Pub. L. 106-554, 
Sec. 1(a)(5) [title I, Sec. 123(a)(19)], Dec. 21, 2000, 114 Stat. 2763, 
2763A-410.)

                       References in Text

    The Securities Act of 1933, referred to in pars. (2)(E) and (3)(B), 
is title I of act May 27, 1933, ch. 38, 48 Stat. 74, as amended, which 
is classified generally to subchapter I (Sec. 77a et seq.) of chapter 2A 
of Title 15, Commerce and Trade. For complete classification of this Act 
to the Code, see section 77a of Title 15 and Tables.
    The Securities Exchange Act of 1934, referred to in pars. (2)(E) and 
(3)(B), is act June 6, 1934, ch. 404, 48 Stat. 881, as amended, which is 
classified principally to chapter 2B (Sec. 78a et seq.) of Title 15. For 
complete classification of this Act to the Code, see section 78a of 
Title 15 and Tables.
    The Public Utility Holding Company Act of 1935, referred to in pars. 
(2)(E) and (3)(B), is title I of act Aug. 26, 1935, ch. 687, 49 Stat. 
803, as amended, which was classified generally to chapter 2C (Sec. 79 
et seq.) of Title 15, Commerce and Trade, prior to repeal by Pub. L. 
109-58, title XII, Sec. 1263, Aug. 8, 2005, 119 Stat. 974. For complete 
classification of this Act to the Code, see Tables.
    The Trust Indenture Act of 1939, referred to in pars. (2)(E) and 
(3)(B), is title III of act May 27, 1933, ch. 38, as added Aug. 3, 1939, 
ch. 411, 53 Stat. 1149, as amended, which is classified generally to 
subchapter III (Sec. 77aaa et seq.) of chapter 2A of Title 15. For 
complete classification of this Act to the Code, see section 77aaa of 
Title 15 and Tables.
    The Investment Advisers Act of 1940, referred to in pars. (2)(E) and 
(3)(B), is title II of act Aug. 22, 1940, ch. 686, 54 Stat. 847, as 
amended, which is classified generally to subchapter II (Sec. 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 Investment Company Act of 1940, referred to in pars. (2)(E) and 
(3)(B), is title I of act Aug. 22, 1940, ch. 686, 54 Stat. 789, as 
amended, which is classified generally to subchapter I (Sec. 80a-1 et 
seq.) of chapter 2D of Title 15. For complete classification of this Act 
to the Code, see section 80a-51 of Title 15 and Tables.
    The Securities Investor Protection Act of 1970, referred to in pars. 
(2)(E) and (3)(B), is Pub. L. 91-598, Dec. 30, 1970, 84 Stat. 1636, as 
amended, which is classified generally to chapter 2B-1 (Sec. 78aaa et 
seq.) of Title 15. For complete classification of this Act to the Code, 
see section 78aaa of Title 15 and Tables.
    The Foreign Corrupt Practices Act of 1977, referred to in pars. 
(2)(E) and (3)(B), is title I of Pub. L. 95-213, Dec. 19, 1977, 91 Stat. 
1494, as amended, which enacted sections 78dd-1 to 78dd-3 of Title 15, 
Commerce and Trade, and amended sections 78m and 78ff of Title 15. For 
complete classification of this Act to the Code, see Short Title of 1977 
Amendment note set out under section 78a of Title 15 and Tables.


                               Amendments

    2000--Pub. L. 106-554, Sec. 1(a)(5) [title I, Sec. 123(a)(19)(A)], 
substituted ``registered entity'' for ``contract market'' wherever 
appearing.
    Par. (2)(F). Pub. L. 106-554, Sec. 1(a)(5) [title I, 
Sec. 123(a)(19)(B)], substituted ``privileges'' for ``trading 
privileges''.
    1992--Par. (1). Pub. L. 102-546, Sec. 207(b)(3), substituted ``floor 
brokers, and floor traders'' for ``and floor brokers''.
    Par. (2). Pub. L. 102-546, Sec. 209(b)(6)(A), made technical 
amendment to reference to sections 9 and 15 of this title in concluding 
provisions to reflect change in reference to corresponding section of 
original act.
    Par. (2)(C)(i). Pub. L. 102-546, Sec. 207(b)(4), inserted ``floor 
trader,'' after ``floor broker,''.
    Par. (2)(C)(ii). Pub. L. 102-546, Sec. 208(a), amended cl. (ii) 
generally. Prior to amendment, cl. (ii) read as follows: ``engaging in 
or continuing any activity involving any transaction in or advice 
concerning contracts of sale of a commodity for future delivery, 
concerning matters subject to Commission regulation under section 6c or 
23 of this title, or concerning securities''.
    Par. (2)(D)(ii). Pub. L. 102-546, Sec. 207(b)(4), inserted ``floor 
trader,'' after ``floor broker,''.
    Par. (2)(D)(iv). Pub. L. 102-546, Sec. 208(b), inserted references 
to sections 1001, 1503, 1623, 1961 to 1963, and 2314 of title 18 and 
sections 7201 and 7206 of title 26.
    Par. (2)(E). Pub. L. 102-546, Sec. 208(c), substituted ``in a 
proceeding brought'' for ``by any court of competent jurisdiction,'' and 
in cl. (i) inserted reference to chapter 96 of title 18.
    Par. (2)(G). Pub. L. 102-546, Sec. 208(d), substituted ``this 
paragraph and paragraph (3)'' for ``subparagraphs (A) through (F) of 
this paragraph'', ``materially false'' for ``material false'', and 
``application or any update thereto'' for ``application''.
    Par. (3). Pub. L. 102-546, Sec. 209(b)(6)(B), made technical 
amendment to reference to sections 9 and 15 of this title in concluding 
provisions to reflect change in reference to corresponding section of 
original act.
    Par. (3)(D). Pub. L. 102-546, Sec. 208(e), inserted ``pleaded guilty 
to or'' after ``person'', substituted ``section,'' for ``section within 
ten years preceding the filing of the application or at any time 
thereafter,'' and ``felony of the type specified in paragraph (2)(D) of 
this section more'' for ``felony, including a felony of the type 
specified in paragraph (2)(D) of this section, more''.
    Par. (3)(E). Pub. L. 102-546, Sec. 208(f)(1), (2), inserted 
``pleaded guilty to or'' after ``person'' and struck out ``within ten 
years preceding the filing of the application for registration or at any 
time thereafter'' before ``of any misdemeanor''.
    Par. (3)(E)(ii). Pub. L. 102-546, Sec. 207(b)(4), inserted ``floor 
trader,'' after ``floor broker,''.
    Par. (3)(E)(iv). Pub. L. 102-546, Sec. 208(f)(3), inserted reference 
to sections 7203 to 7205 and 7207 of title 26.
    Par. (3)(G). Pub. L. 102-546, Sec. 208(g)(5), which directed the 
insertion of ``or in any registration disqualification proceeding'' 
after ``Commission'', was executed by making the insertion after 
``Commission'' the second time it appeared to reflect the probable 
intent of Congress.
    Pub. L. 102-546, Sec. 208(g)(1)-(4), substituted ``materially 
false'' for ``material false'', ``application or any update thereto,'' 
for ``application,'' and struck out ``or'' after ``thereunder,''.
    Par. (3)(H). Pub. L. 102-546, Sec. 208(h), inserted ``, in a United 
States military court,'' after ``State court''.
    Par. (3)(J). Pub. L. 102-546, Sec. 208(i), struck out ``or'' before 
``any other self-regulatory'', inserted ``or any foreign regulatory body 
that the Commission recognizes as having a comparable regulatory 
program'', and substituted ``association, self-regulatory organization, 
or foreign regulatory body'' for ``association, or self-regulatory 
organization''.
    Par. (4). Pub. L. 102-546, Sec. 209(b)(6)(C), made technical 
amendment to references to sections 9 and 15 of this title in concluding 
provisions to reflect change in references to corresponding section of 
original act.
    Par. (5). Pub. L. 102-546, Sec. 402(10)(A), struck out ``and'' at 
end.
    Par. (7). Pub. L. 102-546, Sec. 402(10)(B), substituted ``matters 
as--'' for ``matters as:'' in introductory provisions.
    Par. (11). Pub. L. 102-546, Sec. 227, added par. (11).
    1983--Par. (1). Pub. L. 97-444, Sec. 223, substituted authorization 
for registration of ``associated persons of futures commission 
merchants'' for ``and persons associated therewith as described in 
section 6k of this title''; authorized registration of introducing 
brokers, associated persons of introducing brokers, associated persons 
of commodity trading advisors and associated persons

[[Page 70]]

of commodity pool operators, substituted ``such persons'' for ``any 
persons'' before ``associated with the applicant'', and authorized 
establishment of registration and renewal fees and charges and granting 
of temporary licenses for terms not exceeding six months from date of 
issuance.
    Par. (2). Pub. L. 97-444, Sec. 224(1), added par. (2) and struck out 
prior par. (2) which authorized Commission ``to refuse to register any 
person--
        ``(A) if the prior registration of such person has been 
    suspended (and the period of such suspension shall not have expired) 
    or has been revoked;
        ``(B) if it is found, after opportunity for hearing, that the 
    applicant is unfit to engage in the business for which the 
    application for registration is made, (i) because such applicant, 
    or, if the applicant is a partnership, any general partner, or, if 
    the applicant is a corporation, any officer or holder of more than 
    10 per centum of the stock, at any time engaged in any practice of 
    the character prohibited by this chapter or was convicted of a 
    felony in any State or Federal court, or was debarred by any agency 
    of the United States from contracting with the United States, or the 
    applicant willfully made any material false or misleading statement 
    in his application or willfully omitted to state any material fact 
    in connection with the application, or (ii) for other good cause 
    shown; or
        ``(C) in the case of an applicant for registration as futures 
    commission merchant, if it is found after opportunity for hearing 
    that the applicant has not established that he meets the minimum 
    financial requirements under section 6f of this title: Provided, 
    That pending final determination under subparagraph (B) or (C), 
    registration shall not be granted: And provided further, That the 
    applicant may appeal from the refusal of registration under 
    subparagraph (B) or (C) in the manner provided in sections 9 and 15 
    of this title; and''.
    Par. (3). Pub. L. 97-444, Sec. 224(3), added par. (3). Former par. 
(3) redesignated (4).
    Par. (4). Pub. L. 97-444, Sec. 224(2), (4), struck out par. (4) 
provision for establishment of registration and renewal fees and 
charges, covered in par. (1), redesignated par. (3) as (4), and in 
redesignated par. (4), authorized placing of restrictions on 
registrations, suspension or revocation of registration of an 
introducing broker and appeals from registration decisions made pursuant 
to this paragraph as provided in sections 9 and 15 of this title, and 
substituted ``if cause exists under paragraph (3) of this section'' for 
``if cause exists under paragraph (2)(B) or (C) of this section''.
    Par. (6). Pub. L. 97-444, Sec. 104, authorized communication of full 
facts respecting transactions or market operations to registered futures 
associations and self-regulatory organizations, included concern for 
investors, provided for communications when necessary or appropriate to 
effectuate purposes of this chapter, and prohibited disclosure of 
furnished information except in self-regulatory actions or proceedings.
    Pars. (6) to (8). Pub. L. 97-444, Sec. 224(5), struck out ``and'' at 
end of pars. (6), (7), and (8).
    Par. (9). Pub. L. 97-444, Sec. 225, authorized Commission to direct 
the contract market to take certain action, including, but not limited 
to, setting of temporary emergency margin levels on any futures 
contract, and fixing of limits that may apply to a market position 
acquired in good faith prior to the effective date of Commission's 
action and inserted provisions respecting judicial review.
    Par. (10). Pub. L. 97-444, Sec. 224(6), added par. (10).
    1978--Par. (1). Pub. L. 95-405, Sec. 17(1), inserted ``, which may 
require the applicant, and any persons associated with the applicant as 
the Commission may specify, to be fingerprinted and to submit, or cause 
to be submitted, such fingerprints to the Attorney General for 
identification and appropriate processing'' after ``by the Commission''.
    Par. (6). Pub. L. 95-405, Sec. 17(2), struck out ``and to publish'' 
after ``any contract market''.
    1974--Pub. L. 93-463, Sec. 103(a), substituted ``Commission'' for 
``Secretary of Agriculture'' in provisions preceding par. (1).
    Par. (1). Pub. L. 93-463, Secs. 103(a), 204(c), 205(c), 
substituted ``Commission'' for ``Secretary of Agriculture'', inserted 
``and persons associated therewith as described in section 6k of this 
title,'' after ``futures commission merchants'', and inserted 
``commodity trading advisors, commodity pool operators'' before ``and 
floor brokers''.
    Pars. (3), (5), (6). Pub. L. 93-463, Sec. 103(a), substituted 
``Commission'' for ``Secretary of Agriculture''.
    Par. (7). Pub. L. 93-463, Sec. 213, amended par. (7) generally, 
substituting provisions covering the altering or supplementing of the 
rules of a contract market for provisions covering the disapproval of 
bylaws, rules, regulations, and resolutions made, issued, or proposed by 
a contract market.
    Par. (8). Pub. L. 93-463, Sec. 214, added par. (8).
    Par. (9). Pub. L. 93-463, Sec. 215, added par. (9).
    1968--Par. (2). Pub. L. 90-258, Sec. 20, designated existing 
provisions as subpar. (A), substituted ``if the prior registration of 
such person'' for ``if such person has violated any of the provisions of 
this chapter or any of the rules or regulations promulgated by the 
Secretary of Agriculture hereunder for which the registration of such 
person'' and added subpars. (B) and (C).
    Par. (3). Pub. L. 90-258, Sec. 21, authorized Secretary of 
Agriculture, in accordance with procedure provided for in sections 9 and 
15 of this title, to suspend or revoke the registration of any person 
registered under this chapter if cause exists under par. (2)(B) or (C) 
of this section which would warrant a refusal of registration of such 
person.
    Par. (4). Pub. L. 90-258, Sec. 22, struck out authorization for 
establishment of fees for copies of registration certificates.
    Par. (7). Pub. L. 90-258, Sec. 23, added par. (7).
    1955--Par. (4). Act Aug. 5, 1955, authorized Secretary to fix and 
establish reasonable fees for registrations and renewals, and struck out 
provisions which set the fee for each registration and renewal at not 
more than $10.


                    Effective Date of 1992 Amendment

    Amendment by section 207(b)(3), (4) of Pub. L. 102-546 effective 180 
days after Oct. 28, 1992, with Commodity Futures Trading Commission to 
issue any regulations necessary to implement such amendment no later 
than 180 days after Oct. 28, 1992, see section 207(c) of Pub. L. 102-
546, set out as a note under section 6e of this title.


                    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 1978 Amendment

    Amendment by Pub. L. 95-405 effective Oct. 1, 1978, see section 28 
of Pub. L. 95-405, 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

    For effective date of section, see section 13 of act June 15, 1936, 
set out as an Effective Date of 1936 Amendment note under section 1 of 
this title.