7 U.S.C. § 1 — Short title

Page 5 TITLE 7—AGRICULTURE § 1 § 1. Short title This chapter may be cited as the ‘‘Commodity Exchange Act.’’ (Sept. 21, 1922, ch. 369, § 1, 42 Stat. 998; June 15, 1936, ch. 545, § 1, 49 Stat. 1491.) Editorial Notes PRIOR PROVISIONS This chapter superseded act Aug. 24, 1921, ch. 86, 42 Stat. 187, known as ‘‘The Future Trading Act,’’ which act was declared unconstitutional, at least in part, in Hill v. Wallace, Ill. 1922, 42 S.Ct. 453, 259 U.S. 44, 66 L.Ed. 822. Section 3 of that act was found unconstitutional as imposing a penalty in Trusler v. Crooks, Mo. 1926, 46 S.Ct. 165, 269 U.S. 475, 70 L.Ed. 365. AMENDMENTS 1936—Act June 15, 1936, substituted ‘‘Commodity Ex- change Act’’ for ‘‘The Grain Futures Act’’. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 1936 AMENDMENT Act June 15, 1936, ch. 545, § 13, 49 Stat. 1501, provided that: ‘‘All provisions of this Act [see Tables for classi- fication] authorizing the registration of futures com- mission merchants and floor brokers, the fixing of fees and charges therefor, the promulgation of rules, regula- tions and orders, and the holding of hearings precedent to the promulgation of rules, regulations, and orders shall be effective immediately. All other provisions of this Act shall take effect ninety days after the enact- ment of this Act [June 15, 1936].’’ SHORT TITLE OF 2015 AMENDMENT Pub. L. 114–1, title III, § 301, Jan. 12, 2015, 129 Stat. 28, provided that: ‘‘This title [amending section 6s of this title and section 78o–10 of Title 15, Commerce and Trade, and enacting provisions set out as a note under section 6s of this title] may be cited as the ‘Business Risk Mitigation and Price Stabilization Act of 2015’.’’ SHORT TITLE OF 2008 AMENDMENT Pub. L. 110–234, title XIII, § 13001, May 22, 2008, 122 Stat. 1427, and Pub. L. 110–246, § 4(a), title XIII, § 13001, June 18, 2008, 122 Stat. 1664, 2189, provided that: ‘‘This title [amending sections 1a, 2, 6a, 6b, 6f, 6g, 6i, 6k, 6o–1, 6q, 7a, 7a–2, 7b, 8, 9, 12, 13, 13a, 13a–1, 16, 18, 21, and 25 of this title and enacting provisions set out as notes under section 2 of this title] may be cited as the ‘CFTC Reauthorization Act of 2008’.’’ [Pub. L. 110–234 and Pub. L. 110–246 enacted identical provisions. Pub. L. 110–234 was repealed by section 4(a) of Pub. L. 110–246, set out as a note under section 8701 of this title.] SHORT TITLE OF 2000 AMENDMENT Pub. L. 106–554, § 1(a)(5) [§ 1(a)], Dec. 21, 2000, 114 Stat. 2763, 2763A–365, provided that: ‘‘This Act [H.R. 5660, as enacted by section 1(a)(5) of Pub. L. 106–554, enacting sections 5, 6o–1, 7 to 7a–3, 7b–1, 7b–2, 9c, and 27 to 27f of this title, sections 781 to 784 of Title 11, Bankruptcy, sections 339a, 4421, and 4422 of Title 12, Banks and Banking, and sections 77b–1 and 78c–1 of Title 15, Com- merce and Trade, amending sections 1a, 2, 2a, 4, 4a, 6 to 6m, 6p, 7a–2, 7b, 8 to 9a, 10a, 11, 12, 12a to 12c, 13, 13a to 13b, 16, 18 to 21, and 25 of this title, sections 101, 103, 109, and 761 of Title 11, sections 624 and 4402 of Title 12, and sections 77b, 77c, 77l, 77q, 78c, 78f, 78g, 78i, 78j, 78k–1, 78l, 78o, 78o–3, 78p, 78q, 78q–1, 78s, 78t, 78u, 78u–1, 78bb, 78ee, 78ccc, 78lll, 80a–2, 80b–2, and 80b–3 of Title 15, repealing sections 5, 7, 7a, and 12e of this title, and enacting pro- visions set out as notes under this section, section 2 of this title, and section 78c of Title 15] may be cited as the ‘Commodity Futures Modernization Act of 2000’.’’ Pub. L. 106–554, § 1(a)(5) [title IV, § 401], Dec. 21, 2000, 114 Stat. 2763, 2763A–457, provided that: ‘‘This title [title IV of H.R. 5660, as enacted by section 1(a)(5) of Pub. L. 106–554, enacting sections 27 to 27f of this title] may be cited as the ‘Legal Certainty for Bank Products Act of 2000’.’’ SHORT TITLE OF 1995 AMENDMENT Pub. L. 104–9, § 1, Apr. 21, 1995, 109 Stat. 154, provided that: ‘‘This Act [amending section 16 of this title] may be cited as the ‘CFTC Reauthorization Act of 1995’.’’ SHORT TITLE OF 1992 AMENDMENT Pub. L. 102–546, § 1(a), Oct. 28, 1992, 106 Stat. 3590, pro- vided that: ‘‘This Act [enacting sections 1a and 12e of this title, amending sections 2, 2a, 4, 4a, 6 to 6c, 6e to 6g, 6j, 6p, 7 to 9a, 10a, 12, 12a, 12c, 13 to 13c, 15, 16, 18, 19, 21, and 25 of this title, repealing section 26 of this title, enacting provisions set out as notes under sec- tions 1a, 4a, 6c, 6e, 6j, 6p, 7a, 13, 16a, 21, and 22 of this title, and repealing provisions set out as a note under section 4a of this title] may be cited as the ‘Futures Trading Practices Act of 1992’.’’ SHORT TITLE OF 1986 AMENDMENT Pub. L. 99–641, § 1, Nov. 10, 1986, 100 Stat. 3556, pro- vided that: ‘‘This Act [enacting section 2271a of this title, amending sections 2a, 6b, 6c, 7a, 13, 13a–1, 15, 16, 21, 23, 74, 87b, 1444, 1445b–3, and 1445c–2 of this title, sec- tions 590h and 3831 of Title 16, Conservation, sections 606, 609, 621, 671, and 676 of Title 21, Food and Drugs, re- pealing section 14 of this title, and enacting provisions set out as notes under sections 20, 71, 76, 87b, and 2271a of this title and sections 601, 606, 609, 621, 671, and 676 of Title 21] may be cited as the ‘Futures Trading Act of 1986’.’’ SHORT TITLE OF 1983 AMENDMENT Pub. L. 97–444, § 1, Jan. 11, 1983, 96 Stat. 2294, provided: ‘‘That this Act [enacting sections 2a, 12d, 25, and 26 of this title, amending sections 2, 4, 4a, 5, 6, 6a, 6c, 6d, 6f, 6g, 6h, 6i, 6k, 6m, 6n, 6o, 6p, 7a, 8, 9, 12, 12a, 13, 13a–1, 13a–2, 13c, 16, 16a, 18, 20, 21, 23, and 612c–3 of this title, and enacting provisions set out as a note under section 2 of this title] may be cited as the ‘Futures Trading Act of 1982’.’’ SHORT TITLE OF 1978 AMENDMENT Pub. L. 95–405, § 1, Sept. 30, 1978, 92 Stat. 865, provided: ‘‘That this Act [enacting sections 13a–2, 16a, and 23 of this title, amending sections 2, 4a, 6c, 6d, 6f, 6g, 6k, 6m, 6n, 6o, 7a, 8, 12, 12a, 12c, 13, 13a, 15, 16, 18, and 21 of this title and section 6001 of Title 18, Crimes and Criminal Procedure, repealing section 15a of this title, omitting sections 12–1 to 12–3 of this title, and enacting provi- sions set out as notes under sections 2 and 20 of this title] may be cited as the ‘Futures Trading Act of 1978’.’’ SHORT TITLE OF 1974 AMENDMENT Pub. L. 93–463, § 1, Oct. 23, 1974, 88 Stat. 1389, provided: ‘‘That this Act [enacting sections 4a, 6j, 6k, 6l, 6m, 6n, 6o, 6p, 9a, 12–2, 13–3, 12c, 13a–1, 15a, 18, 19, 20, 21, and 22 of this title, amending sections 2, 4, 6, 6a, 6b, 6c, 6d, 6e, 6f, 6g, 6i, 7, 7a, 7b, 8, 9, 11, 12, 12–1, 12a, 12b, 13, 13a, 13b, 13c, 15, and 16 of this title and sections 5314, 5315, 5316, and 5108 of Title 5, Government Organization and Em- ployees, and enacting provisions set out as notes under sections 2, 4a, and 6a of this title] may be cited as the ‘Commodity Futures Trading Commission Act of 1974’.’’ SAVINGS PROVISIONS FOR 2000 AMENDMENT Pub. L. 106–554, § 1(a)(5) [title III, § 304], Dec. 21, 2000, 114 Stat. 2763, 2763A–457, provided that: ‘‘Nothing in this Act [see Short Title of 2000 Amendment note above] or the amendments made by this Act shall be construed as finding or implying that any swap agreement is or is not a security for any purpose under the securities Page 6 TITLE 7—AGRICULTURE § 1a laws. Nothing in this Act or the amendments made by this Act shall be construed as finding or implying that any swap agreement is or is not a futures contract or commodity option for any purpose under the Com- modity Exchange Act [7 U.S.C. 1 et seq.].’’ CONSTRUCTION OF 2000 AMENDMENT Pub. L. 106–554, § 1(a)(5) [title I, § 122], Dec. 21, 2000, 114 Stat. 2763, 2763A–405, provided that: ‘‘Except as ex- pressly provided in this Act [see Short Title of 2000 Amendment note above] or an amendment made by this Act, nothing in this Act or an amendment made by this Act supersedes, affects, or otherwise limits or expands the scope and applicability of laws governing the Secu- rities and Exchange Commission.’’ PURPOSES OF 2000 AMENDMENT Pub. L. 106–554, § 1(a)(5) [§ 2], Dec. 21, 2000, 114 Stat. 2763, 2763A–366, provided that: ‘‘The purposes of this Act [see Short Title of 2000 Amendment note above] are— ‘‘(1) to reauthorize the appropriation for the Com- modity Futures Trading Commission; ‘‘(2) to streamline and eliminate unnecessary regu- lation for the commodity futures exchanges and other entities regulated under the Commodity Ex- change Act [7 U.S.C. 1 et seq.]; ‘‘(3) to transform the role of the Commodity Fu- tures Trading Commission to oversight of the futures markets; ‘‘(4) to provide a statutory and regulatory frame- work for allowing the trading of futures on securities; ‘‘(5) to clarify the jurisdiction of the Commodity Futures Trading Commission over certain retail for- eign exchange transactions and bucket shops that may not be otherwise regulated; ‘‘(6) to promote innovation for futures and deriva- tives and to reduce systemic risk by enhancing legal certainty in the markets for certain futures and de- rivatives transactions; ‘‘(7) to reduce systemic risk and provide greater stability to markets during times of market disorder by allowing the clearing of transactions in over-the- counter derivatives through appropriately regulated clearing organizations; and ‘‘(8) to enhance the competitive position of United States financial institutions and financial markets.’’ REPORT TO CONGRESS Pub. L. 106–554, § 1(a)(5) [title I, § 125], Dec. 21, 2000, 114 Stat. 2763, 2763A–411, provided that: ‘‘(a) The Commodity Futures Trading Commission (in this section referred to as the ‘Commission’) shall un- dertake and complete a study of the Commodity Ex- change Act [7 U.S.C. 1 et seq.] (in this section referred to as ‘the Act’) and the Commission’s rules, regulations and orders governing the conduct of persons required to be registered under the Act, not later than 1 year after the date of the enactment of this Act [Dec. 21, 2000]. The study shall identify— ‘‘(1) the core principles and interpretations of ac- ceptable business practices that the Commission has adopted or intends to adopt to replace the provisions of the Act and the Commission’s rules and regula- tions thereunder; ‘‘(2) the rules and regulations that the Commission has determined must be retained and the reasons therefor; ‘‘(3) the extent to which the Commission believes it can effect the changes identified in paragraph (1) of this subsection through its exemptive authority under section 4(c) of the Act [7 U.S.C. 6(c)]; and ‘‘(4) the regulatory functions the Commission cur- rently performs that can be delegated to a registered futures association (within the meaning of the Act) and the regulatory functions that the Commission has determined must be retained and the reasons therefor. ‘‘(b) In conducting the study, the Commission shall solicit the views of the public as well as Commission registrants, registered entities, and registered futures associations (all within the meaning of the Act). ‘‘(c) The Commission shall transmit to the Com- mittee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and For- estry of the Senate a report of the results of its study, which shall include an analysis of comments received.’’ § 1a. Definitions As used in this chapter: (1) Alternative trading system The term ‘‘alternative trading system’’ means an organization, association, or group of persons that— (A) is registered as a broker or dealer pur- suant to section 15(b) of the Securities Ex- change Act of 1934 [15 U.S.C. 78o(b)] (except paragraph (11) thereof); (B) performs the functions commonly per- formed by an exchange (as defined in section 3(a)(1) of the Securities Exchange Act of 1934 [15 U.S.C. 78c(a)(1)]); (C) does not— (i) set rules governing the conduct of subscribers other than the conduct of such subscribers’ trading on the alternative trading system; or (ii) discipline subscribers other than by exclusion from trading; and (D) is exempt from the definition of the term ‘‘exchange’’ under such section 3(a)(1) [15 U.S.C. 78c(a)(1)] by rule or regulation of the Securities and Exchange Commission on terms that require compliance with regula- tions of its trading functions. (2) Appropriate Federal banking agency The term ‘‘appropriate Federal banking agency’’— (A) has the meaning given the term in sec- tion 1813 of title 12; (B) means the Board in the case of a non- insured State bank; and (C) is the Farm Credit Administration for farm credit system institutions. (3) Associated person of a security-based swap dealer or major security-based swap partic- ipant The term ‘‘associated person of a security- based swap dealer or major security-based swap participant’’ has the meaning given the term in section 3(a) of the Securities Exchange Act of 1934 (15 U.S.C. 78c(a)). (4) Associated person of a swap dealer or major swap participant (A) In general The term ‘‘associated person of a swap dealer or major swap participant’’ means a person who is associated with a swap dealer or major swap participant as a partner, offi- cer, employee, or agent (or any person occu- pying a similar status or performing similar functions), in any capacity that involves— (i) the solicitation or acceptance of swaps; or (ii) the supervision of any person or per- sons so engaged. (B) Exclusion Other than for purposes of section 6s(b)(6) of this title, the term ‘‘associated person of