---
kind: "section"
citation: "7 U.S.C. § 6c"
title: "7"
title_heading: "Agriculture"
number: "6c"
heading: "Prohibited transactions"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/7/6c"
units:
  - "Chapter 1 — Commodity Exchanges"
---

# §6c. Prohibited transactions

- (a) **In general—**
  - (1) **Prohibition—** It shall be unlawful for any [person](/usc/7/1a.md?p=38) to [offer](/usc/7/1a.md?p=36) to enter into, enter into, or confirm the execution of a transaction described in [paragraph (2)](#a-2) involving the purchase or sale of any [commodity](/usc/7/1a.md?p=9) for [future delivery](/usc/7/1a.md?p=27) (or any [option](/usc/7/1a.md?p=36) on such a transaction or [option](/usc/7/1a.md?p=36) on a [commodity](/usc/7/1a.md?p=9)) or [swap](/usc/7/1a.md?p=47-A) if the transaction is used or may be used to—
    - (A) hedge any transaction in [interstate commerce](/usc/7/1a.md?p=30) in the [commodity](/usc/7/1a.md?p=9) or the product or byproduct of the [commodity](/usc/7/1a.md?p=9);
    - (B) determine the price basis of any such transaction in [interstate commerce](/usc/7/1a.md?p=30) in the [commodity](/usc/7/1a.md?p=9); or
    - (C) deliver any such [commodity](/usc/7/1a.md?p=9) sold, shipped, or received in [interstate commerce](/usc/7/1a.md?p=30) for the execution of the transaction.
  - (2) **Transaction—** A transaction referred to in [paragraph (1)](#a-1) is a transaction that—
    - (A)
      - (i) is, of the character of, or is commonly known to the trade as, a “wash sale” or “accommodation trade”; or
      - (ii) is a fictitious sale; or
    - (B) is used to cause any price to be reported, registered, or recorded that is not a true and bona fide price.
  - (3) **Contract of sale—** It shall be unlawful for any employee or agent of any department or agency of the Federal Government or any [Member](/usc/7/1a.md?p=34) of Congress or employee of Congress (as such terms are defined under section 2 of the STOCK Act) or any judicial officer or judicial employee (as such terms are defined, respectively, under section 2 of the STOCK Act) who, by virtue of the [employment](/usc/7/499a.md?p=b-10) or position of the [Member](/usc/7/1a.md?p=34), officer, employee or agent, acquires information that may affect or tend to affect the price 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), or any [swap](/usc/7/1a.md?p=47-A), and which information has not been disseminated by the department or agency of the Federal Government holding or creating the information or by Congress or by the judiciary in a manner which makes it generally available to the trading public, or disclosed in a criminal, civil, or administrative hearing, or in a congressional, administrative, or Government Accountability Office report, hearing, audit, or investigation, to use the information in his personal capacity and for personal gain to enter into, or [offer](/usc/7/1a.md?p=36) to enter into—
    - (A) 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 [option](/usc/7/1a.md?p=36) on such a contract);
    - (B) an [option](/usc/7/1a.md?p=36) (other than an [option](/usc/7/1a.md?p=36) executed or traded on a national [securities](/usc/7/1a.md?p=41) [exchange](/usc/7/1a.md?p=1-D) registered pursuant to [section 78f(a) of title 15](/usc/15/78f.md?p=a)); or
    - (C) a [swap](/usc/7/1a.md?p=47-A).
  - (4) **Nonpublic information—**
    - (A) **Imparting of nonpublic information—** It shall be unlawful for any employee or agent of any department or agency of the Federal Government or any [Member](/usc/7/1a.md?p=34) of Congress or employee of Congress or any judicial officer or judicial employee who, by virtue of the [employment](/usc/7/499a.md?p=b-10) or position of the [Member](/usc/7/1a.md?p=34), officer, employee or agent, acquires information that may affect or tend to affect the price 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), or any [swap](/usc/7/1a.md?p=47-A), and which information has not been disseminated by the department or agency of the Federal Government holding or creating the information or by Congress or by the judiciary in a manner which makes it generally available to the trading public, or disclosed in a criminal, civil, or administrative hearing, or in a congressional, administrative, or Government Accountability Office report, hearing, audit, or investigation, to impart the information in his personal capacity and for personal gain with intent to assist another [person](/usc/7/1a.md?p=38), directly or indirectly, to use the information to enter into, or [offer](/usc/7/1a.md?p=36) to enter into—
      - (i) 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 [option](/usc/7/1a.md?p=36) on such a contract);
      - (ii) an [option](/usc/7/1a.md?p=36) (other than an [option](/usc/7/1a.md?p=36) executed or traded on a national [securities](/usc/7/1a.md?p=41) [exchange](/usc/7/1a.md?p=1-D) registered pursuant to [section 78f(a) of title 15](/usc/15/78f.md?p=a)); or
      - (iii) a [swap](/usc/7/1a.md?p=47-A).
    - (B) **Knowing use—** It shall be unlawful for any [person](/usc/7/1a.md?p=38) who receives information imparted by any employee or agent of any department or agency of the Federal Government or any [Member](/usc/7/1a.md?p=34) of Congress or employee of Congress or any judicial officer or judicial employee as described in [subparagraph (A)](#a-4-A) to knowingly use such information to enter into, or [offer](/usc/7/1a.md?p=36) to enter into—
      - (i) 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 [option](/usc/7/1a.md?p=36) on such a contract);
      - (ii) an [option](/usc/7/1a.md?p=36) (other than an [option](/usc/7/1a.md?p=36) executed or traded on a national [securities](/usc/7/1a.md?p=41) [exchange](/usc/7/1a.md?p=1-D) registered pursuant to [section 78f(a) of title 15](/usc/15/78f.md?p=a)); or
      - (iii) a [swap](/usc/7/1a.md?p=47-A).
    - (C) **Theft of nonpublic information—** It shall be unlawful for any [person](/usc/7/1a.md?p=38) to steal, convert, or misappropriate, by any means whatsoever, information held or created by any department or agency of the Federal Government or by Congress or by the judiciary that may affect or tend to affect the price 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), or any [swap](/usc/7/1a.md?p=47-A), where such [person](/usc/7/1a.md?p=38) knows, or acts in reckless disregard of the fact, that such information has not been disseminated by the department or agency of the Federal Government holding or creating the information or by Congress or by the judiciary in a manner which makes it generally available to the trading public, or disclosed in a criminal, civil, or administrative hearing, or in a congressional, administrative, or Government Accountability Office report, hearing, audit, or investigation, and to use such information, or to impart such information with the intent to assist another [person](/usc/7/1a.md?p=38), directly or indirectly, to use such information to enter into, or [offer](/usc/7/1a.md?p=36) to enter into—
      - (i) 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 [option](/usc/7/1a.md?p=36) on such a contract);
      - (ii) an [option](/usc/7/1a.md?p=36) (other than an [option](/usc/7/1a.md?p=36) executed or traded on a national [securities](/usc/7/1a.md?p=41) [exchange](/usc/7/1a.md?p=1-D) registered pursuant to [section 78f(a) of title 15](/usc/15/78f.md?p=a)); or
      - (iii) a [swap](/usc/7/1a.md?p=47-A), provided, however, that nothing in this subparagraph shall preclude a [person](/usc/7/1a.md?p=38) that has provided information concerning, or generated by, the [person](/usc/7/1a.md?p=38), its operations or activities, to any employee or agent of any department or agency of the Federal Government, to Congress, any [Member](/usc/7/1a.md?p=34) of Congress, any employee of Congress, any judicial officer, or any judicial employee, voluntarily or as required by law, from using such information to enter into, or [offer](/usc/7/1a.md?p=36) to enter into, a [contract of sale](/usc/7/1a.md?p=13), [option](/usc/7/1a.md?p=36), or [swap](/usc/7/1a.md?p=47-A) described in clauses[^1] (i), (ii), or (iii).
  - (5) **Disruptive practices—** It shall be unlawful for any [person](/usc/7/1a.md?p=38) to engage in any trading, practice, or conduct on or subject to the rules of a [registered entity](/usc/7/1a.md?p=40) that—
    - (A) violates [bids](/usc/7/1a.md?p=36) or [offers](/usc/7/1a.md?p=36);
    - (B) demonstrates intentional or reckless disregard for the orderly execution of transactions during the closing period; or
    - (C) is, is of the character of, or is commonly known to the trade as, “spoofing” (bidding or offering with the intent to cancel the [bid](/usc/7/1a.md?p=36) or [offer](/usc/7/1a.md?p=36) before execution).
  - (6) **Rulemaking authority—** The [Commission](/usc/7/1a.md?p=8) may make and promulgate such rules and regulations as, in the judgment of the [Commission](/usc/7/1a.md?p=8), are reasonably necessary to prohibit the trading practices described in [paragraph (5)](#a-5) and any other trading practice that is disruptive of fair and equitable trading.
  - (7) **Use of swaps to defraud—** It shall be unlawful for any [person](/usc/7/1a.md?p=38) to enter into a [swap](/usc/7/1a.md?p=47-A) knowing, or acting in reckless disregard of the fact, that its counterparty will use the [swap](/usc/7/1a.md?p=47-A) as part of a device, scheme, or artifice to defraud any third party.
- (b) **Regulated option trading—** No [person](/usc/7/1a.md?p=38) shall [offer](/usc/7/1a.md?p=36) to enter into, enter into or confirm the execution of, any transaction involving any [commodity](/usc/7/1a.md?p=9) regulated under this chapter which is of the character of, or is commonly known to the trade as, an “[option](/usc/7/1a.md?p=36)”, “[privilege](/usc/7/1a.md?p=36)”, “[indemnity](/usc/7/1a.md?p=36)”, “[bid](/usc/7/1a.md?p=36)”, “[offer](/usc/7/1a.md?p=36)”, “[put](/usc/7/1a.md?p=36)”, “[call](/usc/7/1a.md?p=36)”, “[advance guaranty](/usc/7/1a.md?p=36)”, or “[decline guaranty](/usc/7/1a.md?p=36)”, contrary to any rule, regulation, or order of the [Commission](/usc/7/1a.md?p=8) prohibiting any such transaction or allowing any such transaction under such terms and conditions as the [Commission](/usc/7/1a.md?p=8) shall prescribe. Any such order, rule, or regulation may be made only after notice and opportunity for hearing, and the [Commission](/usc/7/1a.md?p=8) may set different terms and conditions for different [markets](/usc/7/198.md?p=1).
- (c) **Regulations for elimination of pilot status of commodity option transactions; terms and conditions of options trading—** Not later than 90 days after November 10, 1986, the [Commission](/usc/7/1a.md?p=8) shall issue regulations—
  - (1) to eliminate the pilot status of its program for [commodity](/usc/7/1a.md?p=9) [option](/usc/7/1a.md?p=36) transactions involving the trading of [options](/usc/7/1a.md?p=36) on contract [markets](/usc/7/198.md?p=1), including any numerical restrictions on the number of [commodities](/usc/7/1a.md?p=9) or [option](/usc/7/1a.md?p=36) contracts for which a contract [market](/usc/7/198.md?p=1) may be designated; and
  - (2) otherwise to continue to permit the trading of such [commodity](/usc/7/1a.md?p=9) [options](/usc/7/1a.md?p=36) under such terms and conditions that the [Commission](/usc/7/1a.md?p=8) from time to time may prescribe.
- (d) **Dealer options exempt from subsections (b) and (c) prohibitions; requirements—** Notwithstanding the provisions of [subsection (c)](#c) of this section—
  - (1) any [person](/usc/7/1a.md?p=38) domiciled in the United States who on May 1, 1978, was in the business of granting an [option](/usc/7/1a.md?p=36) on a physical [commodity](/usc/7/1a.md?p=9), other than a [commodity](/usc/7/1a.md?p=9) specifically set forth in [section 2(a) of this title](/usc/7/2.md?p=a) prior to October 23, 1974, and was in the business of buying, selling, producing, or otherwise using that [commodity](/usc/7/1a.md?p=9), may continue to grant or issue [options](/usc/7/1a.md?p=36) on that [commodity](/usc/7/1a.md?p=9) in accordance with [Commission](/usc/7/1a.md?p=8) regulations in effect on August 17, 1978, until thirty days after the effective date of regulations issued by the [Commission](/usc/7/1a.md?p=8) under clause (2) of this subsection: Provided, That if such [person](/usc/7/1a.md?p=38) files an application for registration under the regulations issued under clause (2) of this subsection within thirty days after the effective date of such regulations, that [person](/usc/7/1a.md?p=38) may continue to grant or issue [options](/usc/7/1a.md?p=36) pending a final determination by the [Commission](/usc/7/1a.md?p=8) on the application; and
  - (2) the [Commission](/usc/7/1a.md?p=8) shall issue regulations that permit grantors and [futures commission merchants](/usc/7/1a.md?p=28-A) to [offer](/usc/7/1a.md?p=36) to enter into, enter into, or confirm the execution of, any [commodity](/usc/7/1a.md?p=9) [option](/usc/7/1a.md?p=36) transaction on a physical [commodity](/usc/7/1a.md?p=9) subject to the provisions of [subsection (b)](#b) of this section, other than a [commodity](/usc/7/1a.md?p=9) specifically set forth in [section 2(a) of this title](/usc/7/2.md?p=a) prior to October 23, 1974, if—
    - (A) the grantor is a [person](/usc/7/1a.md?p=38) domiciled in the United States who—
      - (i) is in the business of buying, selling, producing, or otherwise using the underlying [commodity](/usc/7/1a.md?p=9);
      - (ii) at all times has a net worth of at least $5,000,000 certified annually by an independent public accountant using generally accepted accounting principles;
      - (iii) notifies the [Commission](/usc/7/1a.md?p=8) and every [futures commission merchant](/usc/7/1a.md?p=28-A) offering the grantor’s [option](/usc/7/1a.md?p=36) if the grantor knows or has reason to believe that the grantor’s net worth has fallen below $5,000,000;
      - (iv) segregates daily, exclusively for the benefit of purchasers, money, exempted [securities](/usc/7/1a.md?p=41) (within the meaning of [section 78c(a)(12) of title 15](/usc/15/78c.md?p=a-12)), commercial paper, bankers’ acceptances, commercial bills, or unencumbered warehouse receipts, equal to an amount by which the value of each transaction exceeds the amount received or to be received by the grantor for such transaction;
      - (v) provides an identification number for each transaction; and
      - (vi) provides confirmation of all orders for such transactions executed, including the execution price and a transaction identification number;
    - (B) the [futures commission merchant](/usc/7/1a.md?p=28-A) is a [person](/usc/7/1a.md?p=38) who—
      - (i) has evidence that the grantor meets the requirements specified in subclause (A) of this clause;
      - (ii) treats and deals with all money, [securities](/usc/7/1a.md?p=41), or property received from its [customers](/usc/7/24.md?p=b) as payment of the purchase price in connection with such transactions, as belonging to such [customers](/usc/7/24.md?p=b) until the expiration of the term of the [option](/usc/7/1a.md?p=36), or, if the [customer](/usc/7/24.md?p=b) exercises the [option](/usc/7/1a.md?p=36), until all rights of the [customer](/usc/7/24.md?p=b) under the [commodity](/usc/7/1a.md?p=9) [option](/usc/7/1a.md?p=36) transaction have been fulfilled;
      - (iii) records each transaction in its [customer](/usc/7/24.md?p=b)’s name by the transaction identification number provided by the grantor;
      - (iv) provides a disclosure statement to its [customers](/usc/7/24.md?p=b), under regulations of the [Commission](/usc/7/1a.md?p=8), that discloses, among other things, all costs, including any markups or [commissions](/usc/7/1a.md?p=8) involved in such transaction; and
    - (C) the grantor and [futures commission merchant](/usc/7/1a.md?p=28-A) comply with any additional uniform and reasonable terms and conditions the [Commission](/usc/7/1a.md?p=8) may prescribe, including registration with the [Commission](/usc/7/1a.md?p=8).

  The [Commission](/usc/7/1a.md?p=8) may permit [persons](/usc/7/1a.md?p=38) not domiciled in the United States to grant [options](/usc/7/1a.md?p=36) under this subsection, other than [options](/usc/7/1a.md?p=36) on a [commodity](/usc/7/1a.md?p=9) specifically set forth in [section 2(a) of this title](/usc/7/2.md?p=a) prior to October 23, 1974, under such additional rules, regulations, and orders as the [Commission](/usc/7/1a.md?p=8) may adopt to provide protection to purchasers that are substantially the equivalent of those applicable to grantors domiciled in the United States. The [Commission](/usc/7/1a.md?p=8) may terminate the right of any [person](/usc/7/1a.md?p=38) to grant, [offer](/usc/7/1a.md?p=36), or sell [options](/usc/7/1a.md?p=36) under this subsection only after a hearing, including a finding that the continuation of such right is contrary to the public interest: Provided, That pending the completion of such termination proceedings, the [Commission](/usc/7/1a.md?p=8) may suspend the right to grant, [offer](/usc/7/1a.md?p=36), or sell [options](/usc/7/1a.md?p=36) of any [person](/usc/7/1a.md?p=38) whose activities in the [Commission](/usc/7/1a.md?p=8)’s judgment present a substantial risk to the public interest.

- (e) **Rules and regulations—** The [Commission](/usc/7/1a.md?p=8) may adopt rules and regulations, after public notice and opportunity for a hearing on the record, prohibiting the granting, issuance, or sale of [options](/usc/7/1a.md?p=36) permitted under [subsection (d)](#d) of this section if the [Commission](/usc/7/1a.md?p=8) determines that such [options](/usc/7/1a.md?p=36) are contrary to the public interest.
- (f) **Nonapplicability to foreign currency options—** Nothing in this chapter shall be deemed to govern or in any way be applicable to any transaction in an [option](/usc/7/1a.md?p=36) on foreign currency traded on a national [securities](/usc/7/1a.md?p=41) [exchange](/usc/7/1a.md?p=1-D).
- (g) **Oral orders—** The [Commission](/usc/7/1a.md?p=8) shall adopt rules requiring that a contemporaneous written record be made, as practicable, of all orders for execution on the floor or subject to the rules of each contract [market](/usc/7/198.md?p=1) or derivatives transaction execution facility placed by a [member](/usc/7/1a.md?p=34) of the contract [market](/usc/7/198.md?p=1) or derivatives transaction execution facility who is present on the floor at the time such order is placed.

## Footnotes

[^1]: So in original. Probably should be “clause”.

## Source credit

(Sept. 21, 1922, ch. 369, § 4c, as added June 15, 1936, ch. 545, § 5, 49 Stat. 1494; amended Pub. L. 93–463, title I, § 103(a), title IV, § 402, Oct. 23, 1974, 88 Stat. 1392, 1412; Pub. L. 95–405, § 3, Sept. 30, 1978, 92 Stat. 867; Pub. L. 97–444, title I, § 102, title II, § 206, Jan. 11, 1983, 96 Stat. 2296, 2301; Pub. L. 99–641, title I, § 102, Nov. 10, 1986, 100 Stat. 3557; Pub. L. 102–546, title II, § 203(a), title IV, § 402(4), Oct. 28, 1992, 106 Stat. 3600, 3624; Pub. L. 106–554, § 1(a)(5) [title I, §§ 109, 123(a)(6)], Dec. 21, 2000, 114 Stat. 2763, 2763A–383, 2763A–407; Pub. L. 111–203, title VII, §§ 741(b)(2), 746, 747, July 21, 2010, 124 Stat. 1731, 1737, 1739; Pub. L. 112–105, § 5, Apr. 4, 2012, 126 Stat. 293.)

## Notes

### Editorial Notes

### References in Text

Section 2 of the STOCK Act, referred to in subsec. (a)(3), is section 2 of Pub. L. 112–105, which is set out as a note under section 13101 of Title 5, Government Organization and Employees.

### Amendments

2012—Subsec. (a)(3). Pub. L. 112–105, § 5(1), inserted in introductory provisions “or any Member of Congress or employee of Congress (as such terms are defined under section 2 of the STOCK Act) or any judicial officer or judicial employee (as such terms are defined, respectively, under section 2 of the STOCK Act)” after “any department or agency of the Federal Government”, “Member, officer,” after “position of the”, and “or by Congress or by the judiciary” after “creating the information”.

Subsec. (a)(4)(A). Pub. L. 112–105, § 5(2)(A), inserted in introductory provisions “or any Member of Congress or employee of Congress or any judicial officer or judicial employee” after “any department or agency of the Federal Government”, “Member, officer,” after “position of the”, and “or by Congress or by the judiciary” after “creating the information”.

Subsec. (a)(4)(B). Pub. L. 112–105, § 5(2)(B), inserted “or any Member of Congress or employee of Congress or any judicial officer or judicial employee” after “Federal Government” in introductory provisions.

Subsec. (a)(4)(C). Pub. L. 112–105, § 5(2)(C)(i), inserted “or by Congress or by the judiciary” in two places in introductory provisions.

Subsec. (a)(4)(C)(iii). Pub. L. 112–105, § 5(2)(C)(ii), inserted “to Congress, any Member of Congress, any employee of Congress, any judicial officer, or any judicial employee,” after “Federal Government,”.

2010—Subsec. (a)(1). Pub. L. 111–203, § 741(b)(2), inserted “or swap” before “if the transaction is used or may be used”.

Subsec. (a)(3), (4). Pub. L. 111–203, § 746, added pars. (3) and (4).

Subsec. (a)(5) to (7). Pub. L. 111–203, § 747, added pars. (5) to (7).

2000—Pub. L. 106–554, § 1(a)(5) [title I, § 109], inserted section catchline.

Subsec. (a). Pub. L. 106–554, § 1(a)(5) [title I, § 109], added subsec. (a) and struck out former subsec. (a) which read as follows: “It shall be unlawful for any person to offer to enter into, enter into, or confirm the execution of, any transaction involving any commodity, which is or may be used for (1) hedging any transaction in interstate commerce in such commodity or the products or byproducts thereof, or (2) determining the price basis of any such transaction in interstate commerce in such commodity, or (3) delivering any such commodity sold, shipped, or received in interstate commerce for the fulfillment thereof—

“(A) if such transaction is, is of the character of, or is commonly known to the trade as, a ‘wash sale,’ ‘cross trade,’ or ‘accommodation trade,’ or is a fictitious sale; or

“(B) if such transaction is used to cause any price to be reported, registered, or recorded which is not a true and bona fide price.

Nothing in this section shall be construed to prevent the exchange of futures in connection with cash commodity transactions or of futures for cash commodities, or of transfer trades or office trades if made in accordance with board of trade rules applying to such transactions and such rules shall have been approved by the Commission.”

Subsec. (g). Pub. L. 106–554, § 1(a)(5) [title I, § 123(a)(6)], inserted “or derivatives transaction execution facility” after “contract market” in two places.

1992—Subsec. (d)(2). Pub. L. 102–546, § 402(4), made technical amendments to references to section 78c(a)(12) of title 15 in subpar. (A)(iv) and to section 2(a) of this title in concluding provisions.

Subsec. (g). Pub. L. 102–546, § 203(a), added subsec. (g).

1986—Subsec. (c). Pub. L. 99–641, amended subsec. (c) generally, substituting provisions relating to regulations to eliminate pilot status of program for commodity option transactions for provisions relating to commodity option transactions, pilot program and permanent authorization, conditions ending prohibition, and excepted persons.

1983—Subsec. (a)(B), (C). Pub. L. 97–444, § 206(1), redesignated par. (C) as (B). Former par. (B), relating to transactions involving any commodity specifically set forth in section 2(a) of this title, prior to October 23, 1974, if such transactions were of the character of, or were commonly known to the trade as, an “option”, “privilege”, “indemnity”, “bid”, “offer”, “put”, “call”, “advance guaranty”, or “decline guaranty”, was struck out.

Subsec. (b). Pub. L. 97–444, § 206(2), in revising section generally, struck out references to any transaction subject to provisions of subsection (a) of this section and to any commodity not specifically set forth in section 2(a) of this title, prior to October 23, 1974, and struck out “within one year after the effective date of the Commodity Futures Trading Commission Act of 1974 unless the Commission determines and notifies the Senate Committee on Agriculture, Nutrition, and Forestry and the House Committee on Agriculture that it is unable to prescribe such terms and conditions within such period of time:” after “such terms and conditions as the Commission shall prescribe”.

Subsec. (c). Pub. L. 97–444, § 206(3), inserted “With respect to any commodity regulated under this chapter and specifically set forth in section 2(a) of this title prior to October 23, 1974, the Commission may, pursuant to the procedures set forth in this subsection, establish a pilot program for a period not to exceed three years to permit such commodity option transactions. The Commission may authorize commodity option transactions during the pilot program in as many commodities as will provide an adequate test of the trading of such option transactions. After completion of the pilot program, the Commission may authorize commodity option transactions without regard to the restrictions in the pilot program after the Commission transmits to the House Committee on Agriculture and the Senate Committee on Agriculture, Nutrition, and Forestry the documentation required under clause (1) of the first sentence of this subsection and the expiration of thirty calendar days of continuous session of Congress after the date of such transmittal.”

Subsec. (d)(1). Pub. L. 97–444, § 206(4)(A), inserted “, other than a commodity specifically set forth in section 2(a) of this title prior to October 23, 1974,” after “physical commodity”.

Subsec. (d)(2). Pub. L. 97–444, § 206(4)(B), inserted “, other than a commodity specifically set forth in section 2(a) of this title prior to October 23, 1974,” after “subsection (b) of this section” in provisions preceding subpar. (A).

Pub. L. 97–444, § 206(4)(C), inserted “, other than options on a commodity specifically set forth in section 2(a) of this title prior to October 23, 1974,” after “The Commission may permit persons not domiciled in the United States to grant options under this subsection” in provisions following par. (2).

Subsec. (f). Pub. L. 97–444, § 102, added subsec. (f).

1978—Subsec. (a). Pub. L. 95–405, § 3(1), in provisions following par. (C) substituted “have been approved” for “not have been disapproved”.

Subsec. (b). Pub. L. 95–405, § 3(2), substituted “Senate Committee on Agriculture, Nutrition, and Forestry” for “Senate Committee on Agriculture and Forestry”.

Subsecs. (c) to (e). Pub. L. 95–405, § 3(3), added subsecs. (c) to (e).

1974—Subsec. (a). Pub. L. 93–463, §§ 103(a), 402(a), (b), (d), designated existing provisions as subsec. (a), in par. (B) of subsec. (a) as so designated inserted “if such transaction involves any commodity specifically set forth in section 2(a) of this title, prior to the enactment of the Commodity Futures Trading Commission Act of 1974, and” and “option”, and in provisions following par. (C), struck out provisions prohibiting a construction of this section or section 6b of this title which would impair any State law applicable to any transaction enumerated or described in this section or section 6b of this title and substituted “Commission” for “Secretary of Agriculture”.

Subsec. (b). Pub. L. 93–463, § 402(c), added subsec. (b).

### 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

Pub. L. 102–546, title II, § 203(b), Oct. 28, 1992, 106 Stat. 3600, provided that: “The Commission shall adopt the rules required by the amendment made under subsection (a) [amending this section] within two hundred and seventy days after the date of enactment of this Act [Oct. 28, 1992].”

### 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

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.