7 USC 27d - Administration of the predominance test

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

§ 27d.

Administration of the predominance test

(a)

In general

No provision of the Commodity Exchange Act [7 U.S.C. 1 et seq.] shall apply to, and the Commodity Futures Trading Commission shall not regulate, a hybrid instrument, unless the Commission determines, by or under a rule issued in accordance with this section, that—

(1)

the action is necessary and appropriate in the public interest;

(2)

the action is consistent with the Commodity Exchange Act [7 U.S.C. 1 et seq.] and the purposes of the Commodity Exchange Act; and

(3)

the hybrid instrument is not predominantly a banking product under the predominance test set forth in section 27c(b) of this title.

(b)

Consultation

Before commencing a rulemaking or making a determination pursuant to a rule issued under sections 27 to 27f of this title, the Commodity Futures Trading Commission shall consult with and seek the concurrence of the Board of Governors of the Federal Reserve System concerning—

(1)

the nature of the hybrid instrument; and

(2)

the history, purpose, extent, and appropriateness of the regulation of the hybrid instrument under the Commodity Exchange Act [7 U.S.C. 1 et seq.] and under appropriate banking laws.

(c)

Objection to Commission regulation

(1)

Filing of petition for review

(2)

Transmittal of petition and record

(3)

Exclusive jurisdiction

(4)

Standard of review

The court shall determine to affirm and enforce or set aside a rule or determination of the Commodity Futures Trading Commission under this section, based on the determination of the court as to whether—

(A)

the subject product is predominantly a banking product; and

(B)

making the provision or provisions of the Commodity Exchange Act [7 U.S.C. 1 et seq.] at issue applicable to the subject instrument is appropriate in light of the history, purpose, and extent of regulation under such Act, sections 27 to 27f of this title, and under the appropriate banking laws, giving deference neither to the views of the Commodity Futures Trading Commission nor the Board of Governors of the Federal Reserve System.

(5)

Judicial stay

(6)

Other authority to challenge

(Pub. L. 106–554, § 1(a)(5) [title IV, § 406], Dec. 21, 2000, 114 Stat. 2763, 2763A–459.)

cite as: 7 USC 27d