7 USC 7a-2 - Common provisions applicable to registered entities

U.S Code last checked for updates: Nov 22, 2024

§ 7a–2.

Common provisions applicable to registered entities

(a)

Acceptable business practices under core principles

(1)

In general

(2)

Effect of interpretation

(b)

Delegation of functions under core principles

(1)

In general

(2)

Responsibility

(3)

Noncompliance

(c)

New contracts, new rules, and rule amendments

(1)

In general

(2)

Rule review

(3)

Stay of certification for rules

(A)

A notification by the Commission pursuant to paragraph (2) shall stay the certification of the new rule or rule amendment for up to an additional 90 days from the date of the notification.

(B)

A rule or rule amendment subject to a stay pursuant to subparagraph (A) shall become effective, pursuant to the certification of the registered entity, at the expiration of the period described in subparagraph (A) unless the Commission—

(i)

withdraws the stay prior to that time; or

(ii)

notifies the registered entity during such period that it objects to the proposed certification on the grounds that it is inconsistent with this chapter (including regulations under this chapter).

(C)

The Commission shall provide a not less than 30-day public comment period, within the 90-day period in which the stay is in effect as described in subparagraph (A), whenever the Commission reviews a rule or rule amendment pursuant to a notification by the Commission under this paragraph.

(4)

Prior approval

(A)

In general

(B)

Prior approval required

(C)

Deadline

(5)

Approval

(A)

Rules

(B)

Contracts and instruments

(C)

Special rule for review and approval of event contracts and swaps contracts

(i)

Event contracts

In connection with the listing of agreements, contracts, transactions, or swaps in excluded commodities that are based upon the occurrence, extent of an occurrence, or contingency (other than a change in the price, rate, value, or levels of a commodity described in section 1a(2)(i) 2

 So in original. There is no section “1a(2)(i)” in this title.

of this title), by a designated contract market or swap execution facility, the Commission may determine that such agreements, contracts, or transactions are contrary to the public interest if the agreements, contracts, or transactions involve—

(I)

activity that is unlawful under any Federal or State law;

(II)

terrorism;

(III)

assassination;

(IV)

war;

(V)

gaming; or

(VI)

other similar activity determined by the Commission, by rule or regulation, to be contrary to the public interest.

(ii)

Prohibition

(iii)

Swaps contracts

(I)

In general

(II)

Requirements

Any such criteria, conditions, or rules shall consider—

(aa)

the financial integrity of the derivatives clearing organization; and

(bb)

any other factors which the Commission determines may be appropriate.

(iv)

Deadline

(d)

Repealed. Pub. L. 111–203, title VII, § 745(c), July 21, 2010, 124 Stat. 1737

(e)

Reservation of emergency authority

(f)

Rules to avoid duplicative regulation of dual registrants

Consistent with this chapter, each designated contract market and registered derivatives transaction execution facility shall issue such rules as are necessary to avoid duplicative or conflicting rules applicable to any futures commission merchant registered with the Commission pursuant to section 6f(a) of this title (except paragraph (2) thereof), that is also registered with the Securities and Exchange Commission pursuant to section 78o(b) of title 15 (except paragraph (11) thereof) with respect to the application of—

(1)

rules of such designated contract market or registered derivatives transaction execution facility of the type specified in section 6d(e) of this title involving security futures products; and

(2)

similar rules of national securities associations registered pursuant to section 78o–3(a) of title 15 and national securities exchanges registered pursuant to section 78f(g) of title 15 involving security futures products.

(Sept. 21, 1922, ch. 369, § 5c, as added and amended Pub. L. 106–554, § 1(a)(5) [title I, § 113, title II, § 251(h)], Dec. 21, 2000, 114 Stat. 2763, 2763A–399, 2763A–444; Pub. L. 110–234, title XIII, §§ 13105(e), (f), 13203(i)–(k), May 22, 2008, 122 Stat. 1434, 1440, 1441; Pub. L. 110–246, § 4(a), title XIII, §§ 13105(e), (f), 13203(i)–(k), June 18, 2008, 122 Stat. 1664, 2196, 2202, 2203; Pub. L. 111–203, title VII, §§ 717(d), 721(e)(7), 745, 749(c), July 21, 2010, 124 Stat. 1652, 1671, 1735, 1747.)

cite as: 7 USC 7a-2