---
kind: "section"
citation: "7 U.S.C. § 12a"
title: "7"
title_heading: "Agriculture"
number: "12a"
heading: "Registration of commodity dealers and associated persons; regulation of registered entities"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/7/12a"
units:
  - "Chapter 1 — Commodity Exchanges"
---

# §12a. Registration of commodity dealers and associated persons; regulation of registered entities


The [Commission](/usc/7/1a.md?p=8) is authorized—

- (1) to register [futures commission merchants](/usc/7/1a.md?p=28-A), associated [persons](/usc/7/1a.md?p=38) of [futures commission merchants](/usc/7/1a.md?p=28-A), [introducing brokers](/usc/7/1a.md?p=31-A), associated [persons](/usc/7/1a.md?p=38) of [introducing brokers](/usc/7/1a.md?p=31-A), [commodity trading advisors](/usc/7/1a.md?p=12-A), associated [persons](/usc/7/1a.md?p=38) of [commodity trading advisors](/usc/7/1a.md?p=12-A), [commodity pool operators](/usc/7/1a.md?p=11-A), associated [persons](/usc/7/1a.md?p=38) of [commodity pool operators](/usc/7/1a.md?p=11-A), [floor brokers](/usc/7/1a.md?p=22-A), and [floor traders](/usc/7/1a.md?p=23-A) upon application in accordance with rules and regulations and in the form and manner to be prescribed by the [Commission](/usc/7/1a.md?p=8), which may require the applicant, and such [persons](/usc/7/1a.md?p=38) associated with the applicant as the [Commission](/usc/7/1a.md?p=8) 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](/usc/7/1a.md?p=8) may grant a temporary license to any applicant for registration with the [Commission](/usc/7/1a.md?p=8) pursuant to such rules, regulations, or orders as the [Commission](/usc/7/1a.md?p=8) 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](/usc/7/1a.md?p=8) may adopt, to refuse to register, to register conditionally, or to suspend or place restrictions upon the registration of, any [person](/usc/7/1a.md?p=38) and with such a hearing as may be appropriate to revoke the registration of any [person](/usc/7/1a.md?p=38)—
  - (A) if a prior registration of such [person](/usc/7/1a.md?p=38) 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](/usc/7/1a.md?p=38) in any capacity has been refused under the provisions of [paragraph (3)](#3) of this section within five years preceding the filing of the application for registration or at any time thereafter;
  - (C) if such [person](/usc/7/1a.md?p=38) 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](/usc/7/1a.md?p=8) or any Federal or [State](/usc/7/198.md?p=5) agency or other governmental body is a party, from (i) acting as a [futures commission merchant](/usc/7/1a.md?p=28-A), [introducing broker](/usc/7/1a.md?p=31-A), [floor broker](/usc/7/1a.md?p=22-A), [floor trader](/usc/7/1a.md?p=23-A), [commodity trading advisor](/usc/7/1a.md?p=12-A), [commodity pool operator](/usc/7/1a.md?p=11-A), associated [person](/usc/7/1a.md?p=38) of any registrant under this chapter, [securities](/usc/7/1a.md?p=41) [broker](/usc/7/499a.md?p=b-7), [securities](/usc/7/1a.md?p=41) [dealer](/usc/7/499a.md?p=b-6), municipal [securities](/usc/7/1a.md?p=41) [broker](/usc/7/499a.md?p=b-7), municipal [securities](/usc/7/1a.md?p=41) [dealer](/usc/7/499a.md?p=b-6), transfer agent, clearing agency, [securities](/usc/7/1a.md?p=41) information processor, investment adviser, investment company, or affiliated [person](/usc/7/1a.md?p=38) 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](/usc/7/1a.md?p=41) or property, forgery, counterfeiting, false pretenses, bribery, gambling, or any transaction in or advice concerning contracts of sale of a [commodity](/usc/7/1a.md?p=9) for [future delivery](/usc/7/1a.md?p=27), concerning matters subject to [Commission](/usc/7/1a.md?p=8) regulation under section [6c](/usc/7/6c.md) or [23](/usc/7/23.md) of this title, or concerning [securities](/usc/7/1a.md?p=41);
  - (D) if such [person](/usc/7/1a.md?p=38) 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](/usc/7/1a.md?p=13) of a [commodity](/usc/7/1a.md?p=9) for [future delivery](/usc/7/1a.md?p=27), or any activity subject to [Commission](/usc/7/1a.md?p=8) regulation under section [6c](/usc/7/6c.md) or [23](/usc/7/23.md) of this title, or concerning a [security](/usc/7/1a.md?p=41), (ii) arises out of the conduct of the business of a [futures commission merchant](/usc/7/1a.md?p=28-A), [introducing broker](/usc/7/1a.md?p=31-A), [floor broker](/usc/7/1a.md?p=22-A), [floor trader](/usc/7/1a.md?p=23-A), [commodity trading advisor](/usc/7/1a.md?p=12-A), [commodity pool operator](/usc/7/1a.md?p=11-A), associated [person](/usc/7/1a.md?p=38) of any registrant under this chapter, [securities](/usc/7/1a.md?p=41) [broker](/usc/7/499a.md?p=b-7), [securities](/usc/7/1a.md?p=41) [dealer](/usc/7/499a.md?p=b-6), municipal [securities](/usc/7/1a.md?p=41) [broker](/usc/7/499a.md?p=b-7), municipal [securities](/usc/7/1a.md?p=41) [dealer](/usc/7/499a.md?p=b-6), transfer agent, clearing agency, [securities](/usc/7/1a.md?p=41) information processor, investment adviser, investment company, or an affiliated [person](/usc/7/1a.md?p=38) or employee of any of the foregoing, (iii) involves embezzlement, theft, extortion, fraud, fraudulent conversion, misappropriation of funds, [securities](/usc/7/1a.md?p=41) or property, forgery, counterfeiting, false pretenses, bribery, or gambling, or (iv) involves the violation of section 152, 1001, [1341](/usc/7/1341.md), [1342](/usc/7/1342.md), [1343](/usc/7/1343.md), [1503](/usc/7/1503.md), [1623](/usc/7/1623.md), [1961](/usc/7/1961.md), [1962](/usc/7/1962.md), [1963](/usc/7/1963.md), or 2314, or chapter [25](/usc/18/chptI/ch25.md), [47](/usc/18/chptI/ch47.md), [95](/usc/18/chptI/ch95.md), or [96](/usc/18/chptI/ch96.md) of title 18, or section [7201](/usc/26/7201.md) or [7206](/usc/26/7206.md) of title 26;
  - (E) if such [person](/usc/7/1a.md?p=38), within ten years preceding the filing of the application or at any time thereafter, has been found in a proceeding brought by the [Commission](/usc/7/1a.md?p=8) or any Federal or [State](/usc/7/198.md?p=5) agency or other governmental body, or by agreement of settlement to which the [Commission](/usc/7/1a.md?p=8) or any Federal or [State](/usc/7/198.md?p=5) 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](/usc/15/77a.md) et seq.], the [Securities](/usc/7/1a.md?p=41) Exchange Act of 1934 [[15 U.S.C. 78a](/usc/15/78a.md) et seq.], the Public Utility Holding Company Act of 1935,[^1] the Trust Indenture Act of 1939 [[15 U.S.C. 77aaa](/usc/15/77aaa.md) et seq.], the Investment Advisers Act of 1940 [[15 U.S.C. 80b–1](/usc/15/80b–1.md) et seq.], the Investment Company Act of 1940 [[15 U.S.C. 80a–1](/usc/15/80a–1.md) et seq.], the [Securities](/usc/7/1a.md?p=41) Investors[^2] Protection Act of 1970 [[15 U.S.C. 78aaa](/usc/15/78aaa.md) et seq.], the Foreign Corrupt Practices Act of 1977, [chapter 96](/usc/18/chptI/ch96.md) of title 18, or any similar statute of a [State](/usc/7/198.md?p=5) or foreign jurisdiction, or any rule, regulation, or order under any such statutes, or the rules of the Municipal [Securities](/usc/7/1a.md?p=41) Rulemaking [Board](/usc/7/1a.md?p=5) where such violation involves embezzlement, theft, extortion, fraud, fraudulent conversion, misappropriation of funds, [securities](/usc/7/1a.md?p=41) 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](/usc/7/1a.md?p=38);
  - (F) if such [person](/usc/7/1a.md?p=38) is subject to an outstanding order of the [Commission](/usc/7/1a.md?p=8) denying [privileges](/usc/7/1a.md?p=36) on any [registered entity](/usc/7/1a.md?p=40) to such [person](/usc/7/1a.md?p=38), denying, suspending, or revoking such [person](/usc/7/1a.md?p=38)’s membership in any [registered entity](/usc/7/1a.md?p=40) or registered futures association, or barring or suspending such [person](/usc/7/1a.md?p=38) from being associated with a registrant under this chapter or with a [member](/usc/7/1a.md?p=34) of a [registered entity](/usc/7/1a.md?p=40) or with a [member](/usc/7/1a.md?p=34) of a registered futures association;
  - (G) if, as to any of the matters set forth in this paragraph and [paragraph (3)](#3), such [person](/usc/7/1a.md?p=38) willfully made any materially false or misleading statement or omitted to [state](/usc/7/198.md?p=5) any material fact in such [person](/usc/7/1a.md?p=38)’s application or any update thereto; or
  - (H) if refusal, suspension, or revocation of the registration of any principal of such [person](/usc/7/1a.md?p=38) would be warranted because of a statutory disqualification listed in this paragraph:
- (3) to refuse to register or to register conditionally any [person](/usc/7/1a.md?p=38), if it is found, after opportunity for hearing, that—
  - (A) such [person](/usc/7/1a.md?p=38) has been found by the [Commission](/usc/7/1a.md?p=8) 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)](#2) of this section), or to have willfully aided, abetted, counseled, commanded, induced, or procured the violation by any other [person](/usc/7/1a.md?p=38) of any such provision;
  - (B) such [person](/usc/7/1a.md?p=38) has been found by any court of competent jurisdiction or by any Federal or [State](/usc/7/198.md?p=5) agency or other governmental body, or by agreement of settlement to which any Federal or [State](/usc/7/198.md?p=5) 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](/usc/15/77a.md) et seq.], the [Securities](/usc/7/1a.md?p=41) Exchange Act of 1934 [[15 U.S.C. 78a](/usc/15/78a.md) et seq.], the Public Utility Holding Company Act of 1935,[^1] the Trust Indenture Act of 1939 [[15 U.S.C. 77aaa](/usc/15/77aaa.md) et seq.], the Investment Advisers Act of 1940 [[15 U.S.C. 80b–1](/usc/15/80b–1.md) et seq.], the Investment Company Act of 1940 [[15 U.S.C. 80a–1](/usc/15/80a–1.md) et seq.], the [Securities](/usc/7/1a.md?p=41) Investors[^2] Protection Act of 1970 [[15 U.S.C. 78aaa](/usc/15/78aaa.md) et seq.], the Foreign Corrupt Practices Act of 1977, or any similar statute of a [State](/usc/7/198.md?p=5) or foreign jurisdiction, or any rule, regulation, or order under any such statutes, or the rules of the Municipal [Securities](/usc/7/1a.md?p=41) Rulemaking [Board](/usc/7/1a.md?p=5) or (ii) to have willfully aided, abetted, counseled, commanded, induced, or procured such violation by any other [person](/usc/7/1a.md?p=38);
  - (C) such [person](/usc/7/1a.md?p=38) failed reasonably to supervise another [person](/usc/7/1a.md?p=38), who is subject to such [person](/usc/7/1a.md?p=38)’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](/usc/7/1a.md?p=38) subject to supervision committed such a violation: Provided, That no [person](/usc/7/1a.md?p=38) shall be deemed to have failed reasonably to supervise another [person](/usc/7/1a.md?p=38), 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](/usc/7/1a.md?p=38) and (ii) such [person](/usc/7/1a.md?p=38) has reasonably discharged the duties and obligations incumbent upon that [person](/usc/7/1a.md?p=38), 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](/usc/7/1a.md?p=38) pleaded guilty to or was convicted of a felony other than a felony of the type specified in [paragraph (2)(D)](#2-D) of this section, or was convicted of a felony of the type specified in [paragraph (2)(D)](#2-D) of this section more than ten years preceding the filing of the application;
  - (E) such [person](/usc/7/1a.md?p=38) pleaded guilty to or was convicted of any misdemeanor which (i) involves any transaction or advice concerning any [contract of sale](/usc/7/1a.md?p=13) of a [commodity](/usc/7/1a.md?p=9) for [future delivery](/usc/7/1a.md?p=27) or any activity subject to [Commission](/usc/7/1a.md?p=8) regulation under section [6c](/usc/7/6c.md) or [23](/usc/7/23.md) of this title or concerning a [security](/usc/7/1a.md?p=41), (ii) arises out of the conduct of the business of a [futures commission merchant](/usc/7/1a.md?p=28-A), [introducing broker](/usc/7/1a.md?p=31-A), [floor broker](/usc/7/1a.md?p=22-A), [floor trader](/usc/7/1a.md?p=23-A), [commodity trading advisor](/usc/7/1a.md?p=12-A), [commodity pool operator](/usc/7/1a.md?p=11-A), associated [person](/usc/7/1a.md?p=38) of any registrant under this chapter, [securities](/usc/7/1a.md?p=41) [broker](/usc/7/499a.md?p=b-7), [securities](/usc/7/1a.md?p=41) [dealer](/usc/7/499a.md?p=b-6), municipal [securities](/usc/7/1a.md?p=41) [broker](/usc/7/499a.md?p=b-7), municipal [securities](/usc/7/1a.md?p=41) [dealer](/usc/7/499a.md?p=b-6), transfer agent, clearing agency, [securities](/usc/7/1a.md?p=41) information processor, investment adviser, investment company, or an affiliated [person](/usc/7/1a.md?p=38) or employee of any of the foregoing, (iii) involves embezzlement, theft, extortion, fraud, fraudulent conversion, misappropriation of funds, [securities](/usc/7/1a.md?p=41) or property, forgery, counterfeiting, false pretenses, bribery, or gambling, (iv) involves the violation of section 152, [1341](/usc/7/1341.md), [1342](/usc/7/1342.md), or [1343](/usc/7/1343.md) or chapter [25](/usc/18/chptI/ch25.md), [47](/usc/18/chptI/ch47.md), [95](/usc/18/chptI/ch95.md), or [96](/usc/18/chptI/ch96.md) of title 18, or section [7203](/usc/26/7203.md), [7204](/usc/26/7204.md), [7205](/usc/26/7205.md), or [7207](/usc/26/7207.md) of title 26;
  - (F) such [person](/usc/7/1a.md?p=38) was debarred by any agency of the United States from contracting with the United States;
  - (G) such [person](/usc/7/1a.md?p=38) willfully made any materially false or misleading statement or willfully omitted to [state](/usc/7/198.md?p=5) any material fact in such [person](/usc/7/1a.md?p=38)’s application or any update thereto, in any report required to be filed with the [Commission](/usc/7/1a.md?p=8) by this chapter or the regulations thereunder, in any proceeding before the [Commission](/usc/7/1a.md?p=8) or in any registration disqualification proceeding;
  - (H) such [person](/usc/7/1a.md?p=38) has pleaded nolo contendere to criminal charges of felonious conduct, or has been convicted in a [State](/usc/7/198.md?p=5) 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](/usc/7/1a.md?p=8), such [person](/usc/7/1a.md?p=38) has not established that such [person](/usc/7/1a.md?p=38) meets such minimum financial requirements;
  - (J) such [person](/usc/7/1a.md?p=38) is subject to an outstanding order denying, suspending, or expelling such [person](/usc/7/1a.md?p=38) from membership in a [registered entity](/usc/7/1a.md?p=40), a registered futures association, any other self-regulatory organization, or any foreign regulatory body that the [Commission](/usc/7/1a.md?p=8) recognizes as having a comparable regulatory program or barring or suspending such [person](/usc/7/1a.md?p=38) from being associated with any [member](/usc/7/1a.md?p=34) or [members](/usc/7/1a.md?p=34) of such [registered entity](/usc/7/1a.md?p=40), association, self-regulatory organization, or foreign regulatory body;
  - (K) such [person](/usc/7/1a.md?p=38) has been found by any court of competent jurisdiction or by any Federal or [State](/usc/7/198.md?p=5) agency or other governmental body, or by agreement of settlement to which any Federal or [State](/usc/7/198.md?p=5) 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](/usc/7/1a.md?p=41) 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](/usc/7/1a.md?p=38);
  - (L) such [person](/usc/7/1a.md?p=38) has associated with such [person](/usc/7/1a.md?p=38) any other [person](/usc/7/1a.md?p=38) and knows, or in the exercise of reasonable care should know, of facts regarding such other [person](/usc/7/1a.md?p=38) that are set forth as statutory disqualifications in [paragraph (2)](#2) of this section, unless such [person](/usc/7/1a.md?p=38) has notified the [Commission](/usc/7/1a.md?p=8) of such facts and the [Commission](/usc/7/1a.md?p=8) has determined that such other [person](/usc/7/1a.md?p=38) should be registered or temporarily licensed;
  - (M) there is other good cause; or
  - (N) any principal, as defined in [paragraph (2)](#2) of this section, of such [person](/usc/7/1a.md?p=38) has been or could be refused registration:
- (4) in accordance with the procedure provided for in [section 9 of this title](/usc/7/9.md), to suspend, revoke, or place restrictions upon the registration of any [person](/usc/7/1a.md?p=38) registered under this chapter if cause exists under [paragraph (3)](#3) of this section which would warrant a refusal of registration of such [person](/usc/7/1a.md?p=38), and to suspend or revoke the registration of any [futures commission merchant](/usc/7/1a.md?p=28-A) or [introducing broker](/usc/7/1a.md?p=31-A) who shall knowingly accept any order for the purchase or sale of any [commodity](/usc/7/1a.md?p=9) for [future delivery](/usc/7/1a.md?p=27) on or subject to the rules of any [registered entity](/usc/7/1a.md?p=40) from any [person](/usc/7/1a.md?p=38) if such [person](/usc/7/1a.md?p=38) has been denied trading [privileges](/usc/7/1a.md?p=36) on any [registered entity](/usc/7/1a.md?p=40) by order of the [Commission](/usc/7/1a.md?p=8) under [section 9 of this title](/usc/7/9.md) and the period of denial specified in such order shall not have expired: Provided, That such [person](/usc/7/1a.md?p=38) may appeal from a decision to suspend, revoke, or place restrictions upon registration made pursuant to this paragraph in the manner provided in [section 9 of this title](/usc/7/9.md);
- (5) to make and promulgate such rules and regulations as, in the judgment of the [Commission](/usc/7/1a.md?p=8), 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](/usc/7/1a.md?p=40), registered futures association, or self-regulatory organization as defined in section 3(a)(26) of the [Securities](/usc/7/1a.md?p=41) Exchange Act of 1934 [[15 U.S.C. 78c(a)(26)](/usc/15/78c.md?p=a-26)], notwithstanding the provisions of [section 12 of this title](/usc/7/12.md), the full facts concerning any transaction or [market](/usc/7/198.md?p=1) operation, including the names of parties thereto, which in the judgment of the [Commission](/usc/7/1a.md?p=8) disrupts or tends to disrupt any [market](/usc/7/198.md?p=1) 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](/usc/7/1a.md?p=8) under this paragraph shall not be disclosed by such [registered entity](/usc/7/1a.md?p=40), 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](/usc/7/1a.md?p=40) insofar as necessary or appropriate by rule or regulation or by order, if after making the appropriate request in writing to a [registered entity](/usc/7/1a.md?p=40) that such [registered entity](/usc/7/1a.md?p=40) effect on its own behalf specified changes in its rules and practices, and after appropriate notice and opportunity for hearing, the [Commission](/usc/7/1a.md?p=8) determines that such [registered entity](/usc/7/1a.md?p=40) has not made the changes so required, and that such changes are necessary or appropriate for the protection of [persons](/usc/7/1a.md?p=38) producing, handling, processing, or consuming any [commodity](/usc/7/1a.md?p=9) traded for [future delivery](/usc/7/1a.md?p=27) on such [registered entity](/usc/7/1a.md?p=40), or the product or byproduct thereof, or for the protection of traders or to insure fair dealing in [commodities](/usc/7/1a.md?p=9) traded for [future delivery](/usc/7/1a.md?p=27) on such [registered entity](/usc/7/1a.md?p=40). 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](/usc/7/1a.md?p=40);
  - (B) the form or manner of execution of purchases and sales for [future delivery](/usc/7/1a.md?p=27);
  - (C) other trading requirements;
  - (D) margin requirements, provided that the rules, regulations, or orders shall—
    - (i) be limited to protecting the financial integrity of the [derivatives clearing organization](/usc/7/1a.md?p=15-A);
    - (ii) be designed for risk management purposes to protect the financial integrity of transactions; and
    - (iii) not set specific margin amounts;
  - (E) safeguards with respect to the financial responsibility of [members](/usc/7/1a.md?p=34);
  - (F) the manner, method, and place of soliciting business, including the content of such solicitations; and
  - (G) the form and manner of handling, recording, and accounting for [customers](/usc/7/24.md?p=b)’ orders, transactions, and accounts;
- (8) to make and promulgate such rules and regulations with respect to those [persons](/usc/7/1a.md?p=38) registered under this chapter, who are not [members](/usc/7/1a.md?p=34) of a [registered entity](/usc/7/1a.md?p=40), as in the judgment of the [Commission](/usc/7/1a.md?p=8) 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](/usc/7/1a.md?p=40), whenever it has reason to believe that an emergency exists, to take such action as in the [Commission](/usc/7/1a.md?p=8)’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](/usc/7/198.md?p=1) position acquired in good faith prior to the effective date of the [Commission](/usc/7/1a.md?p=8)’s action. The term “emergency” as used herein shall mean, in addition to threatened or actual [market](/usc/7/198.md?p=1) manipulations and corners, any act of the United States or a foreign government affecting a [commodity](/usc/7/1a.md?p=9) or any other major [market](/usc/7/198.md?p=1) disturbance which prevents the [market](/usc/7/198.md?p=1) from accurately reflecting the forces of supply and demand for such [commodity](/usc/7/1a.md?p=9). Any action taken by the [Commission](/usc/7/1a.md?p=8) 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](/usc/7/1a.md?p=8) at the time the determination was made. The court reviewing the [Commission](/usc/7/1a.md?p=8)’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](/usc/7/1a.md?p=40) to the terms “[market](/usc/7/198.md?p=1) emergency”, “emergency”, or equivalent language in its own bylaws, rules, regulations, or resolutions;
- (10) to authorize any [person](/usc/7/1a.md?p=38) 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](/usc/7/1a.md?p=38) and submitted to the [Commission](/usc/7/1a.md?p=8) for approval or, if applicable, for review pursuant to [section 21(j) of this title](/usc/7/21.md?p=j), and subject to the provisions of this chapter applicable to registrations granted by the [Commission](/usc/7/1a.md?p=8); and
- (11)
  - (A) by written notice served on the [person](/usc/7/1a.md?p=38) and pursuant to such rules, regulations, and orders as the [Commission](/usc/7/1a.md?p=8) may adopt, to suspend or modify the registration of any [person](/usc/7/1a.md?p=38) 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](/usc/7/198.md?p=5)) with the [commission](/usc/7/1a.md?p=8) of or participation in a crime involving a violation of this chapter, or a violation of any other provision of Federal or [State](/usc/7/198.md?p=5) law that would reflect on the honesty or the fitness of the [person](/usc/7/1a.md?p=38) to act as a fiduciary (including an offense specified in subparagraph [(D)](#2-D) or [(E)](#2-E) of paragraph (2)) that is punishable by imprisonment for a term exceeding one year, if the [Commission](/usc/7/1a.md?p=8) determines that continued registration of the [person](/usc/7/1a.md?p=38) may pose a threat to the public interest or may threaten to impair public confidence in any [market](/usc/7/198.md?p=1) regulated by the [Commission](/usc/7/1a.md?p=8).
  - (B) Prior to the suspension or modification of the registration of a [person](/usc/7/1a.md?p=38) under this paragraph, the [person](/usc/7/1a.md?p=38) shall be afforded an opportunity for a hearing at which the [Commission](/usc/7/1a.md?p=8) shall have the burden of showing that the continued registration of the [person](/usc/7/1a.md?p=38) does, or is likely to, pose a threat to the public interest or threaten to impair public confidence in any [market](/usc/7/198.md?p=1) regulated by the [Commission](/usc/7/1a.md?p=8).
  - (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](/usc/7/1a.md?p=8).
  - (D) On disposition of such information, indictment, or complaint, the [Commission](/usc/7/1a.md?p=8) may issue and serve on such [person](/usc/7/1a.md?p=38) an order pursuant to paragraph [(2)](#2) or [(4)](#4) to suspend, restrict, or revoke the registration of such [person](/usc/7/1a.md?p=38).
  - (E) A finding of not guilty or other disposition of the charge shall not preclude the [Commission](/usc/7/1a.md?p=8) from thereafter instituting any other proceedings under this chapter.
  - (F) A [person](/usc/7/1a.md?p=38) 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](/usc/7/8.md?p=b).

## Footnotes

[^1]: See References in Text note below.
[^2]: So in original. Probably should be “Investor”.

## Source credit

(Sept. 21, 1922, ch. 369, § 8a, as added June 15, 1936, ch. 545, § 10, 49 Stat. 1500; amended Aug. 5, 1955, ch. 574, 69 Stat. 535; Pub. L. 90–258, §§ 20–23, Feb. 19, 1968, 82 Stat. 32, 33; Pub. L. 93–463, title I, § 103(a), title II, §§ 204(c), 205(c), 213–215, Oct. 23, 1974, 88 Stat. 1392, 1397, 1400, 1404; Pub. L. 95–405, § 17, Sept. 30, 1978, 92 Stat. 874; Pub. L. 97–444, title I, § 104, title II, §§ 223–225, Jan. 11, 1983, 96 Stat. 2297, 2310–2315; Pub. L. 102–546, title II, §§ 207(b)(3), (4), 208, 209(b)(6), 227, title IV, § 402(10), Oct. 28, 1992, 106 Stat. 3604, 3607, 3618, 3625; Pub. L. 106–554, § 1(a)(5) [title I, § 123(a)(19)], Dec. 21, 2000, 114 Stat. 2763, 2763A–410; Pub. L. 111–203, title VII, § 736, July 21, 2010, 124 Stat. 1722.)

## Notes

### Editorial Notes

### 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, which is classified generally to subchapter I (§ 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, which is classified principally to chapter 2B (§ 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, which was classified generally to chapter 2C (§ 79 et seq.) of Title 15, Commerce and Trade, prior to repeal by Pub. L. 109–58, title XII, § 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, which is classified generally to subchapter III (§ 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, which is classified generally to subchapter II (§ 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, which is classified generally to subchapter I (§ 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, which is classified generally to chapter 2B–1 (§ 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, 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

2010—Par. (7)(C). Pub. L. 111–203, § 736(1), struck out “, excepting the setting of levels of margin” after “requirements”.

Par. (7)(D) to (G). Pub. L. 111–203, § 736(2), (3), added subpar. (D) and redesignated former subpars. (D) to (F) as (E) to (G), respectively.

2000—Pub. L. 106–554, § 1(a)(5) [title I, § 123(a)(19)(A)], substituted “registered entity” for “contract market” wherever appearing.

Par. (2)(F). Pub. L. 106–554, § 1(a)(5) [title I, § 123(a)(19)(B)], substituted “privileges” for “trading privileges”.

1992—Par. (1). Pub. L. 102–546, § 207(b)(3), substituted “floor brokers, and floor traders” for “and floor brokers”.

Par. (2). Pub. L. 102–546, § 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, § 207(b)(4), inserted “floor trader,” after “floor broker,”.

Par. (2)(C)(ii). Pub. L. 102–546, § 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, § 207(b)(4), inserted “floor trader,” after “floor broker,”.

Par. (2)(D)(iv). Pub. L. 102–546, § 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, § 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, § 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, § 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, § 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, § 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, § 207(b)(4), inserted “floor trader,” after “floor broker,”.

Par. (3)(E)(iv). Pub. L. 102–546, § 208(f)(3), inserted reference to sections 7203 to 7205 and 7207 of title 26.

Par. (3)(G). Pub. L. 102–546, § 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, § 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, § 208(h), inserted “, in a United States military court,” after “State court”.

Par. (3)(J). Pub. L. 102–546, § 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, § 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, § 402(10)(A), struck out “and” at end.

Par. (7). Pub. L. 102–546, § 402(10)(B), substituted “matters as—” for “matters as:” in introductory provisions.

Par. (11). Pub. L. 102–546, § 227, added par. (11).

1983—Par. (1). Pub. L. 97–444, § 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 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, § 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, § 224(3), added par. (3). Former par. (3) redesignated (4).

Par. (4). Pub. L. 97–444, § 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, § 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, § 224(5), struck out “and” at end of pars. (6), (7), and (8).

Par. (9). Pub. L. 97–444, § 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, § 224(6), added par. (10).

1978—Par. (1). Pub. L. 95–405, § 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, § 17(2), struck out “and to publish” after “any contract market”.

1974—Pub. L. 93–463, § 103(a), substituted “Commission” for “Secretary of Agriculture” in provisions preceding par. (1).

Par. (1). Pub. L. 93–463, §§ 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, § 103(a), substituted “Commission” for “Secretary of Agriculture”.

Par. (7). Pub. L. 93–463, § 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, § 214, added par. (8).

Par. (9). Pub. L. 93–463, § 215, added par. (9).

1968—Par. (2). Pub. L. 90–258, § 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, § 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, § 22, struck out authorization for establishment of fees for copies of registration certificates.

Par. (7). Pub. L. 90–258, § 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.

### Statutory Notes and Related Subsidiaries

### Effective Date of 2010 Amendment

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

### 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.