---
kind: "section"
citation: "7 U.S.C. § 6b"
title: "7"
title_heading: "Agriculture"
number: "6b"
heading: "Contracts designed to defraud or mislead"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/7/6b"
units:
  - "Chapter 1 — Commodity Exchanges"
---

# §6b. Contracts designed to defraud or mislead

- (a) **Unlawful actions—** It shall be unlawful—
  - (1) for any [person](/usc/7/1a.md?p=38), in or in connection with any order to make, or the making of, any [contract of sale](/usc/7/1a.md?p=13) of any [commodity](/usc/7/1a.md?p=9) in [interstate commerce](/usc/7/1a.md?p=30) or for [future delivery](/usc/7/1a.md?p=27) that is made, or to be made, on or subject to the rules of a designated contract [market](/usc/7/198.md?p=1), for or on behalf of any other [person](/usc/7/1a.md?p=38); or
  - (2) for any [person](/usc/7/1a.md?p=38), in or in connection with any order to make, or the making of, any [contract of sale](/usc/7/1a.md?p=13) of any [commodity](/usc/7/1a.md?p=9) for [future delivery](/usc/7/1a.md?p=27), or [swap](/usc/7/1a.md?p=47-A), that is made, or to be made, for or on behalf of, or with, any other [person](/usc/7/1a.md?p=38), other than on or subject to the rules of a designated contract [market](/usc/7/198.md?p=1)—
    - (A) to cheat or defraud or attempt to cheat or defraud the other [person](/usc/7/1a.md?p=38);
    - (B) willfully to make or cause to be made to the other [person](/usc/7/1a.md?p=38) any false report or statement or willfully to enter or cause to be entered for the other [person](/usc/7/1a.md?p=38) any false record;
    - (C) willfully to deceive or attempt to deceive the other [person](/usc/7/1a.md?p=38) by any means whatsoever in regard to any order or contract or the disposition or execution of any order or contract, or in regard to any act of agency performed, with respect to any order or contract for or, in the case of [paragraph (2)](#a-2), with the other [person](/usc/7/1a.md?p=38); or
    - (D)
      - (i) to bucket an order if the order is either represented by the [person](/usc/7/1a.md?p=38) as an order to be executed, or is required to be executed, on or subject to the rules of a designated contract [market](/usc/7/198.md?p=1); or
      - (ii) to fill an order by offset against the order or orders of any other [person](/usc/7/1a.md?p=38), or willfully and knowingly and without the prior consent of the other [person](/usc/7/1a.md?p=38) to become the buyer in respect to any selling order of the other [person](/usc/7/1a.md?p=38), or become the seller in respect to any buying order of the other [person](/usc/7/1a.md?p=38), if the order is either represented by the [person](/usc/7/1a.md?p=38) as an order to be executed, or is required to be executed, on or subject to the rules of a designated contract [market](/usc/7/198.md?p=1) unless the order is executed in accordance with the rules of the designated contract [market](/usc/7/198.md?p=1).
- (b) **Clarification—** [Subsection (a)(2)](#a-2) of this section shall not obligate any [person](/usc/7/1a.md?p=38), in or in connection with a transaction in a [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 [swap](/usc/7/1a.md?p=47-A), with another [person](/usc/7/1a.md?p=38), to disclose to the other [person](/usc/7/1a.md?p=38) nonpublic information that may be material to the [market](/usc/7/198.md?p=1) price, rate, or level of the [commodity](/usc/7/1a.md?p=9) or transaction, except as necessary to make any statement made to the other [person](/usc/7/1a.md?p=38) in or in connection with the transaction not misleading in any material respect.
- (c) **Buying and selling orders for commodity—** Nothing in this section or in any other section of this chapter shall be construed to prevent a [futures commission merchant](/usc/7/1a.md?p=28-A) or [floor broker](/usc/7/1a.md?p=22-A) who shall have in hand, simultaneously, buying and selling orders at the [market](/usc/7/198.md?p=1) for different principals for a like quantity of a [commodity](/usc/7/1a.md?p=9) for [future delivery](/usc/7/1a.md?p=27) in the same month executing such buying and selling orders at the [market](/usc/7/198.md?p=1) price: Provided, That any such execution shall take place on the floor of the [exchange](/usc/7/1a.md?p=1-D) where such orders are to be executed at public outcry across the ring and shall be duly reported, recorded, and cleared in the same manner as other orders executed on such [exchange](/usc/7/1a.md?p=1-D): And provided further, That such transactions shall be made in accordance with such rules and regulations as the [Commission](/usc/7/1a.md?p=8) may promulgate regarding the manner of the execution of such transactions.
- (d) **Inapplicability to transactions on foreign exchanges—** Nothing in this section shall apply to any activity that occurs on a [board of trade](/usc/7/1a.md?p=6), [exchange](/usc/7/1a.md?p=1-D), or [market](/usc/7/198.md?p=1), or clearinghouse for such [board of trade](/usc/7/1a.md?p=6), [exchange](/usc/7/1a.md?p=1-D), or [market](/usc/7/198.md?p=1), located outside the United States, or territories or possessions of the United States, involving 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) that is made, or to be made, on or subject to the rules of such [board of trade](/usc/7/1a.md?p=6), [exchange](/usc/7/1a.md?p=1-D), or [market](/usc/7/198.md?p=1).
- (e) **Contracts of sale on group or index of securities—** It shall be unlawful for any [person](/usc/7/1a.md?p=38), directly or indirectly, by the use of any means or instrumentality of [interstate commerce](/usc/7/1a.md?p=30), or of the mails, or of any facility of any [registered entity](/usc/7/1a.md?p=40), in or in connection with any order to make, or the making of, any [contract of sale](/usc/7/1a.md?p=13) of any [commodity](/usc/7/1a.md?p=9) for [future delivery](/usc/7/1a.md?p=27) (or [option](/usc/7/1a.md?p=36) on such a contract), or any [swap](/usc/7/1a.md?p=47-A), on a group or index of [securities](/usc/7/1a.md?p=41) (or any interest therein or based on the value thereof)—
  - (1) to [employ](/usc/7/499a.md?p=b-10) any device, scheme, or artifice to defraud;
  - (2) to make any untrue statement of a material fact or to omit to [state](/usc/7/198.md?p=5) a material fact necessary in order to make the statements made, in the light of the circumstances under which they were made, not misleading; or
  - (3) to engage in any act, practice, or course of business which operates or would operate as a fraud or deceit upon any [person](/usc/7/1a.md?p=38).

## Source credit

(Sept. 21, 1922, ch. 369, § 4b, as added June 15, 1936, ch. 545, § 5, 49 Stat. 1493; amended Pub. L. 90–258, § 5, Feb. 19, 1968, 82 Stat. 27; Pub. L. 93–463, title IV, § 405, Oct. 23, 1974, 88 Stat. 1413; Pub. L. 99–641, title I, § 101, Nov. 10, 1986, 100 Stat. 3557; Pub. L. 102–546, title IV, § 402(3), Oct. 28, 1992, 106 Stat. 3624; Pub. L. 106–554, § 1(a)(5) [title I, § 123(a)(5)], Dec. 21, 2000, 114 Stat. 2763, 2763A–407; Pub. L. 110–234, title XIII, § 13102, May 22, 2008, 122 Stat. 1432; Pub. L. 110–246, § 4(a), title XIII, § 13102, June 18, 2008, 122 Stat. 1664, 2194; Pub. L. 111–203, title VII, § 741(b)(1), July 21, 2010, 124 Stat. 1730.)

## Notes

### Editorial Notes

### Codification

Pub. L. 110–234 and Pub. L. 110–246 made identical amendments to this section. The amendments by Pub. L. 110–234 were repealed by section 4(a) of Pub. L. 110–246.

### Amendments

2010—Subsec. (a)(2). Pub. L. 111–203, § 741(b)(1)(A), substituted “or swap,” for “or other agreement, contract, or transaction subject to paragraphs (1) and (2) of section 7a(g) of this title,”.

Subsec. (b). Pub. L. 111–203, § 741(b)(1)(B), substituted “or swap,” for “or other agreement, contract or transaction subject to paragraphs (1) and (2) of section 7a(g) of this title,”.

Subsec. (e). Pub. L. 111–203, § 741(b)(1)(C), added subsec. (e).

2008—Pub. L. 110–246, § 13102, inserted section catchline, added subsecs. (a) and (b), redesignated former subsecs. (b) and (c) as (c) and (d), respectively, and struck out former subsec. (a) which related to contracts designed to defraud or mislead and bucketing orders.

2000—Subsec. (a)(1). Pub. L. 106–554 substituted “registered entity” for “contract market” in two places.

1992—Pub. L. 102–546 designated first par. as subsec. (a), redesignated cls. (a) to (c) as subpars. (A) to (C), respectively, and subpars. (A) to (D) as cls. (i) to (iv), respectively, and designated second and third undesignated pars. as subsecs. (b) and (c), respectively.

1986—Pub. L. 99–641 struck out “on or subject to the rules of any contract market,” after “to be made” in cl. (2) of first par. and added concluding paragraph that this section not apply to activity on board of trade, exchange, market, or clearinghouse located outside United States involving contract of sale of commodity for future delivery.

1974—Pub. L. 93–463 substituted “a commodity” for “cotton” in provisions following subpar. (D) and inserted requirement that execution of buying and selling orders for commodities held simultaneously by the same merchant or broker be carried out in accordance with such rules and regulations as the Commission may promulgate regarding the manner of the execution of such transactions.

1968—Pub. L. 90–258 relocated cl. (1) designation in first par. to follow “unlawful” rather than to precede “any contract of sale”, provided in such cl. (1) for orders to make or making of contracts of sale “made, or to be made on or subject to the rules of any contract market, for or on behalf of any other person” and in cl. (2) “for any person, in or in connection with any order to make, or the making of,” any contract of sale of any commodity for future delivery for or on behalf of any “other” person; and inserted “other” before “person” in subpar. (A) and in subpars. (B) and (C) where appearing for first time, respectively.

### 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 2008 Amendment

Amendment of this section and repeal of Pub. L. 110–234 by Pub. L. 110–246 effective May 22, 2008, the date of enactment of Pub. L. 110–234, see section 4 of Pub. L. 110–246, set out as an Effective Date note under section 8701 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.