--- kind: "section" citation: "7 U.S.C. § 12c" title: "7" title_heading: "Agriculture" number: "12c" heading: "Disciplinary actions" release: "119-102" date: "2026-07-12" url: "https://uscodex.org/usc/7/12c" units: - "Chapter 1 — Commodity Exchanges" --- # §12c. Disciplinary actions - (a) **Action taken; written notice of reasons for action—** - (1) Any [exchange](/usc/7/1a.md?p=1-D) or the [Commission](/usc/7/1a.md?p=8) if the [exchange](/usc/7/1a.md?p=1-D) fails to act, may suspend, expel, or otherwise discipline any [person](/usc/7/1a.md?p=38) who is a [member](/usc/7/1a.md?p=34) of that [exchange](/usc/7/1a.md?p=1-D), or deny any [person](/usc/7/1a.md?p=38) access to the [exchange](/usc/7/1a.md?p=1-D). Any such action shall be taken solely in accordance with the rules of that [exchange](/usc/7/1a.md?p=1-D). - (2) Any suspension, expulsion, disciplinary, or access denial procedure established by an [exchange](/usc/7/1a.md?p=1-D) rule shall provide for written notice to the [Commission](/usc/7/1a.md?p=8) and to the [person](/usc/7/1a.md?p=38) who is suspended, expelled, or disciplined, or denied access, within thirty days, which includes the reasons for the [exchange](/usc/7/1a.md?p=1-D) action in the form and manner the [Commission](/usc/7/1a.md?p=8) prescribes. An [exchange](/usc/7/1a.md?p=1-D) shall make public its findings and the reasons for the [exchange](/usc/7/1a.md?p=1-D) action in any such proceeding, including the action taken or the penalty imposed, but shall not disclose the evidence therefor, except to the [person](/usc/7/1a.md?p=38) who is suspended, expelled, or disciplined, or denied access, and to the [Commission](/usc/7/1a.md?p=8). - (b) **Review by Commission—** The [Commission](/usc/7/1a.md?p=8) may, in its discretion and in accordance with such standards and procedures as it deems appropriate, review any decision by an [exchange](/usc/7/1a.md?p=1-D) whereby a [person](/usc/7/1a.md?p=38) is suspended, expelled, otherwise disciplined, or denied access to the [exchange](/usc/7/1a.md?p=1-D). In addition, the [Commission](/usc/7/1a.md?p=8) may, in its discretion and upon application of any [person](/usc/7/1a.md?p=38) who is adversely affected by any other [exchange](/usc/7/1a.md?p=1-D) action, review such action. - (c) **Affirmance, modification, set aside, or remand of action—** The [Commission](/usc/7/1a.md?p=8) may affirm, modify, set aside, or remand any [exchange](/usc/7/1a.md?p=1-D) decision it reviews pursuant to [subsection (b)](#b), after a determination on the record whether the action of the [exchange](/usc/7/1a.md?p=1-D) was in accordance with the policies of this chapter. Subject to judicial review, any order of the [Commission](/usc/7/1a.md?p=8) entered pursuant to [subsection (b)](#b) shall govern the [exchange](/usc/7/1a.md?p=1-D) in its further treatment of the matter. - (d) **Stay of action—** The [Commission](/usc/7/1a.md?p=8), in its discretion, may order a stay of any action taken pursuant to [subsection (a)](#a) pending review thereof. - (e) **Major disciplinary rule violations—** - (1) The [Commission](/usc/7/1a.md?p=8) shall issue regulations requiring each [registered entity](/usc/7/1a.md?p=40) to establish and make available to the public a schedule of major violations of any rule within the disciplinary jurisdiction of such [registered entity](/usc/7/1a.md?p=40). - (2) The regulations issued by the [Commission](/usc/7/1a.md?p=8) pursuant to this subsection shall prohibit, for a period of time to be determined by the [Commission](/usc/7/1a.md?p=8), any individual who is found to have committed any major violation from service on the governing [board](/usc/7/1a.md?p=5) of any [registered entity](/usc/7/1a.md?p=40) or registered futures association, or on any disciplinary committee thereof. ## Source credit (Sept. 21, 1922, ch. 369, § 8c, as added Pub. L. 93–463, title II, § 216, Oct. 23, 1974, 88 Stat. 1405; amended Pub. L. 95–405, § 18, Sept. 30, 1978, 92 Stat. 874; Pub. L. 102–546, title II, § 206(a)(2), Oct. 28, 1992, 106 Stat. 3602; Pub. L. 106–554, § 1(a)(5) [title I, § 123(a)(20)], Dec. 21, 2000, 114 Stat. 2763, 2763A–410.) ## Notes ### Editorial Notes ### Amendments 2000—Subsec. (e). Pub. L. 106–554 substituted “registered entity” for “contract market” wherever appearing. 1992—Pub. L. 102–546 redesignated pars. (1) to (4) as subsecs. (a) to (d), respectively, in subsec. (a) redesignated subpars. (A) and (B) as pars. (1) and (2), respectively, in subsec. (c) substituted references to subsection (b) for references to paragraph (2), in subsec. (d) substituted reference to subsection (a) for reference to paragraph (1), and added subsec. (e). 1978—Par. (1)(B). Pub. L. 95–405 substituted “An exchange shall make public its findings and the reasons for the exchange action in any such proceeding, including the action taken or the penalty imposed, but shall not disclose the evidence therefor, except to the person who is suspended, expelled, or disciplined or denied access, and to the Commission” for “Otherwise the notice and reasons shall be kept confidential”. ### Statutory Notes and Related Subsidiaries ### 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 For effective date of section, see section 418 of Pub. L. 93–463, set out as an Effective Date of 1968 Amendment note under section 2 of this title.