---
kind: "section"
citation: "7 U.S.C. § 6d"
title: "7"
title_heading: "Agriculture"
number: "6d"
heading: "Dealing by unregistered futures commission merchants or introducing brokers prohibited; duties in handling customer receipts; conflict-of-interest systems and procedures; Chief Compliance Officer; rules to avoid duplicative regulations; swap requirements; portfolio margining accounts"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/7/6d"
units:
  - "Chapter 1 — Commodity Exchanges"
---

# §6d. Dealing by unregistered futures commission merchants or introducing brokers prohibited; duties in handling customer receipts; conflict-of-interest systems and procedures; Chief Compliance Officer; rules to avoid duplicative regulations; swap requirements; portfolio margining accounts

- (a) **Futures commission merchant registration requirements; duties of merchants in handling customer receipts—** It shall be unlawful for any [person](/usc/7/1a.md?p=38) to be a [futures commission merchant](/usc/7/1a.md?p=28-A) unless—
  - (1) such [person](/usc/7/1a.md?p=38) shall have registered, under this chapter, with the [Commission](/usc/7/1a.md?p=8) as such [futures commission merchant](/usc/7/1a.md?p=28-A) and such registration shall not have expired nor been suspended nor revoked; and
  - (2) such [person](/usc/7/1a.md?p=38) shall, whether a [member](/usc/7/1a.md?p=34) or nonmember of a contract [market](/usc/7/198.md?p=1) or derivatives transaction execution facility, treat and deal with all money, [securities](/usc/7/1a.md?p=41), and property received by such [person](/usc/7/1a.md?p=38) to margin, guarantee, or secure the trades or contracts of any [customer](/usc/7/24.md?p=b) of such [person](/usc/7/1a.md?p=38), or accruing to such [customer](/usc/7/24.md?p=b) as the result of such trades or contracts, as belonging to such [customer](/usc/7/24.md?p=b). Such money, [securities](/usc/7/1a.md?p=41), and property shall be separately accounted for and shall not be commingled with the funds of such [commission merchant](/usc/7/499a.md?p=b-5) or be used to margin or guarantee the trades or contracts, or to secure or extend the credit, of any [customer](/usc/7/24.md?p=b) or [person](/usc/7/1a.md?p=38) other than the one for whom the same are held: Provided, however, That such money, [securities](/usc/7/1a.md?p=41), and property of the [customers](/usc/7/24.md?p=b) of such [futures commission merchant](/usc/7/1a.md?p=28-A) may, for convenience, be commingled and deposited in the same account or accounts with any [bank](/usc/7/27.md?p=a) or trust company or with the clearing house organization of such contract [market](/usc/7/198.md?p=1) or derivatives transaction execution facility, and that such share thereof as in the normal course of business shall be necessary to margin, guarantee, secure, transfer, adjust, or settle the contracts or trades of such [customers](/usc/7/24.md?p=b), or resulting [market](/usc/7/198.md?p=1) positions, with the clearinghouse organization of such contract [market](/usc/7/198.md?p=1) or derivatives transaction execution facility or with any [member](/usc/7/1a.md?p=34) of such contract [market](/usc/7/198.md?p=1) or derivatives transaction execution facility, may be withdrawn and applied to such purposes, including the payment of [commissions](/usc/7/1a.md?p=8), brokerage, interest, taxes, storage, and other charges, lawfully accruing in connection with such contracts and trades: Provided further, That in accordance with such terms and conditions as the [Commission](/usc/7/1a.md?p=8) may prescribe by rule, regulation, or order, such money, [securities](/usc/7/1a.md?p=41), and property of the [customers](/usc/7/24.md?p=b) of such [futures commission merchant](/usc/7/1a.md?p=28-A) may be commingled and deposited as provided in this section with any other money, [securities](/usc/7/1a.md?p=41), and property received by such [futures commission merchant](/usc/7/1a.md?p=28-A) and required by the [Commission](/usc/7/1a.md?p=8) to be separately accounted for and treated and dealt with as belonging to the [customers](/usc/7/24.md?p=b) of such [futures commission merchant](/usc/7/1a.md?p=28-A): Provided further, That such money may be invested in obligations of the United States, in general obligations of any [State](/usc/7/198.md?p=5) or of any political subdivision thereof, and in obligations fully guaranteed as to principal and interest by the United States, such investments to be made in accordance with such rules and regulations and subject to such conditions as the [Commission](/usc/7/1a.md?p=8) may prescribe.
- (b) **Duties of clearing agencies, depositories, and others in handling customer receipts—** It shall be unlawful for any [person](/usc/7/1a.md?p=38), including but not limited to any clearing agency of a contract [market](/usc/7/198.md?p=1) or derivatives transaction execution facility and any depository, that has received any money, [securities](/usc/7/1a.md?p=41), or property for deposit in a separate account as provided in paragraph (2) of this section,[^1] to hold, dispose of, or use any such money, [securities](/usc/7/1a.md?p=41), or property as belonging to the depositing [futures commission merchant](/usc/7/1a.md?p=28-A) or any [person](/usc/7/1a.md?p=38) other than the [customers](/usc/7/24.md?p=b) of such [futures commission merchant](/usc/7/1a.md?p=28-A).
- (c) **Conflicts of interest—** The [Commission](/usc/7/1a.md?p=8) shall require that [futures commission merchants](/usc/7/1a.md?p=28-A) and [introducing brokers](/usc/7/1a.md?p=31-A) implement conflict-of-interest systems and procedures that—
  - (1) establish structural and institutional safeguards to ensure that the activities of any [person](/usc/7/1a.md?p=38) within the firm relating to research or analysis of the price or [market](/usc/7/198.md?p=1) for any [commodity](/usc/7/1a.md?p=9) are separated by appropriate informational partitions within the firm from the review, pressure, or oversight of [persons](/usc/7/1a.md?p=38) whose involvement in trading or clearing activities might potentially bias the judgment or supervision of the [persons](/usc/7/1a.md?p=38); and
  - (2) address such other issues as the [Commission](/usc/7/1a.md?p=8) determines to be appropriate.
- (d) **Designation of Chief Compliance Officer—** Each [futures commission merchant](/usc/7/1a.md?p=28-A) shall designate an individual to serve as its Chief Compliance Officer and perform such duties and responsibilities as shall be set forth in regulations to be adopted by the [Commission](/usc/7/1a.md?p=8) or rules to be adopted by a futures association registered under [section 21 of this title](/usc/7/21.md).
- (e) **Rules to avoid duplicative regulation of dual registrants—** Consistent with this chapter, the [Commission](/usc/7/1a.md?p=8), in consultation with the [Securities](/usc/7/1a.md?p=41) and [Exchange](/usc/7/1a.md?p=1-D) [Commission](/usc/7/1a.md?p=8), shall issue such rules, regulations, or orders as are necessary to avoid duplicative or conflicting regulations applicable to any [futures commission merchant](/usc/7/1a.md?p=28-A) registered with the [Commission](/usc/7/1a.md?p=8) pursuant to [section 6f(a) of this title](/usc/7/6f.md?p=a) (except [paragraph (2)](#e-2) thereof), that is also registered with the [Securities](/usc/7/1a.md?p=41) and [Exchange](/usc/7/1a.md?p=1-D) [Commission](/usc/7/1a.md?p=8) pursuant to [section 78o(b)](/usc/15/78o.md?p=b) of title 15 (except paragraph (11) thereof), involving the application of—
  - (1) section 78h, section 78o(c)(3), and [section 78q of title 15](/usc/15/78q.md) and the rules and regulations thereunder related to the treatment of [customer](/usc/7/24.md?p=b) funds, [securities](/usc/7/1a.md?p=41), or property, maintenance of books and records, financial reporting or other financial responsibility rules (as defined in [section 78c(a)(40) of title 15](/usc/15/78c.md?p=a-40)), involving [security futures products](/usc/7/1a.md?p=45); and
  - (2) similar provisions of this chapter and the rules and regulations thereunder involving [security futures products](/usc/7/1a.md?p=45).
- (f) **Swaps—**
  - (1) **Registration requirement—** It shall be unlawful for any [person](/usc/7/1a.md?p=38) to accept any money, [securities](/usc/7/1a.md?p=41), or property (or to extend any credit in lieu of money, [securities](/usc/7/1a.md?p=41), or property) from, for, or on behalf of a [swaps](/usc/7/1a.md?p=47-A) [customer](/usc/7/24.md?p=b) to margin, guarantee, or secure a [swap](/usc/7/1a.md?p=47-A) cleared by or through a [derivatives clearing organization](/usc/7/1a.md?p=15-A) (including money, [securities](/usc/7/1a.md?p=41), or property accruing to the [customer](/usc/7/24.md?p=b) as the result of such a [swap](/usc/7/1a.md?p=47-A)), unless the [person](/usc/7/1a.md?p=38) shall have registered under this chapter with the [Commission](/usc/7/1a.md?p=8) as a [futures commission merchant](/usc/7/1a.md?p=28-A), and the registration shall not have expired nor been suspended nor revoked.
  - (2) **Cleared swaps—**
    - (A) **Segregation required—** A [futures commission merchant](/usc/7/1a.md?p=28-A) shall treat and deal with all money, [securities](/usc/7/1a.md?p=41), and property of any [swaps](/usc/7/1a.md?p=47-A) [customer](/usc/7/24.md?p=b) received to margin, guarantee, or secure a [swap](/usc/7/1a.md?p=47-A) cleared by or though a [derivatives clearing organization](/usc/7/1a.md?p=15-A) (including money, [securities](/usc/7/1a.md?p=41), or property accruing to the [swaps](/usc/7/1a.md?p=47-A) [customer](/usc/7/24.md?p=b) as the result of such a [swap](/usc/7/1a.md?p=47-A)) as belonging to the [swaps](/usc/7/1a.md?p=47-A) [customer](/usc/7/24.md?p=b).
    - (B) **Commingling prohibited—** Money, [securities](/usc/7/1a.md?p=41), and property of a [swaps](/usc/7/1a.md?p=47-A) [customer](/usc/7/24.md?p=b) described in [subparagraph (A)](#f-2-A) shall be separately accounted for and shall not be commingled with the funds of the [futures commission merchant](/usc/7/1a.md?p=28-A) or be used to margin, secure, or guarantee any trades or contracts of any [swaps](/usc/7/1a.md?p=47-A) [customer](/usc/7/24.md?p=b) or [person](/usc/7/1a.md?p=38) other than the [person](/usc/7/1a.md?p=38) for whom the same are held.
  - (3) **Exceptions—**
    - (A) **Use of funds—**
      - (i) **In general—** Notwithstanding [paragraph (2)](#f-2), money, [securities](/usc/7/1a.md?p=41), and property of [swap](/usc/7/1a.md?p=47-A) [customers](/usc/7/24.md?p=b) of a [futures commission merchant](/usc/7/1a.md?p=28-A) described in [paragraph (2)](#f-2) may, for convenience, be commingled and deposited in the same account or accounts with any [bank](/usc/7/27.md?p=a) or trust company or with a [derivatives clearing organization](/usc/7/1a.md?p=15-A).
      - (ii) **Withdrawal—** Notwithstanding [paragraph (2)](#f-2), such share of the money, [securities](/usc/7/1a.md?p=41), and property described in [clause (i)](#f-3-A-i) as in the normal course of business shall be necessary to margin, guarantee, secure, transfer, adjust, or settle a [cleared swap](/usc/7/1a.md?p=7) with a [derivatives clearing organization](/usc/7/1a.md?p=15-A), or with any [member](/usc/7/1a.md?p=34) of the [derivatives clearing organization](/usc/7/1a.md?p=15-A), may be withdrawn and applied to such purposes, including the payment of [commissions](/usc/7/1a.md?p=8), brokerage, interest, taxes, storage, and other charges, lawfully accruing in connection with the [cleared swap](/usc/7/1a.md?p=7).
    - (B) **Commission action—** Notwithstanding [paragraph (2)](#f-2), in accordance with such terms and conditions as the [Commission](/usc/7/1a.md?p=8) may prescribe by rule, regulation, or order, any money, [securities](/usc/7/1a.md?p=41), or property of the [swaps](/usc/7/1a.md?p=47-A) [customers](/usc/7/24.md?p=b) of a [futures commission merchant](/usc/7/1a.md?p=28-A) described in [paragraph (2)](#f-2) may be commingled and deposited in [customer](/usc/7/24.md?p=b) accounts with any other money, [securities](/usc/7/1a.md?p=41), or property received by the [futures commission merchant](/usc/7/1a.md?p=28-A) and required by the [Commission](/usc/7/1a.md?p=8) to be separately accounted for and treated and dealt with as belonging to the [swaps](/usc/7/1a.md?p=47-A) [customer](/usc/7/24.md?p=b) of the [futures commission merchant](/usc/7/1a.md?p=28-A).
  - (4) **Permitted investments—** Money described in [paragraph (2)](#f-2) may be invested in obligations of the United States, in general obligations of any [State](/usc/7/198.md?p=5) or of any political subdivision of a [State](/usc/7/198.md?p=5), and in obligations fully guaranteed as to principal and interest by the United States, or in any other investment that the [Commission](/usc/7/1a.md?p=8) may by rule or regulation prescribe, and such investments shall be made in accordance with such rules and regulations and subject to such conditions as the [Commission](/usc/7/1a.md?p=8) may prescribe.
  - (5) **Commodity contract—** A [swap](/usc/7/1a.md?p=47-A) cleared by or through a [derivatives clearing organization](/usc/7/1a.md?p=15-A) shall be considered to be a [commodity contract](/usc/7/24.md?p=b) as such term is defined in [section 761 of title 11](/usc/11/761.md), with regard to all money, [securities](/usc/7/1a.md?p=41), and property of any [swaps](/usc/7/1a.md?p=47-A) [customer](/usc/7/24.md?p=b) received by a [futures commission merchant](/usc/7/1a.md?p=28-A) or a [derivatives clearing organization](/usc/7/1a.md?p=15-A) to margin, guarantee, or secure the [swap](/usc/7/1a.md?p=47-A) (including money, [securities](/usc/7/1a.md?p=41), or property accruing to the [customer](/usc/7/24.md?p=b) as the result of the [swap](/usc/7/1a.md?p=47-A)).
  - (6) **Prohibition—** It shall be unlawful for any [person](/usc/7/1a.md?p=38), including any [derivatives clearing organization](/usc/7/1a.md?p=15-A) and any depository institution, that has received any money, [securities](/usc/7/1a.md?p=41), or property for deposit in a separate account or accounts as provided in [paragraph (2)](#f-2) to hold, dispose of, or use any such money, [securities](/usc/7/1a.md?p=41), or property as belonging to the depositing [futures commission merchant](/usc/7/1a.md?p=28-A) or any [person](/usc/7/1a.md?p=38) other than the [swaps](/usc/7/1a.md?p=47-A) [customer](/usc/7/24.md?p=b) of the [futures commission merchant](/usc/7/1a.md?p=28-A).
- (g) **Introducing broker registration requirements—** It shall be unlawful for any [person](/usc/7/1a.md?p=38) to be an [introducing broker](/usc/7/1a.md?p=31-A) unless such [person](/usc/7/1a.md?p=38) shall have registered under this chapter with the [Commission](/usc/7/1a.md?p=8) as an [introducing broker](/usc/7/1a.md?p=31-A) and such registration shall not have expired nor been suspended nor revoked.
- (h) **Contracts held in portfolio margining accounts—** Notwithstanding [subsection (a)(2)](#a-2) or the rules and regulations thereunder, and pursuant to an exemption granted by the [Commission](/usc/7/1a.md?p=8) under [section 6(c) of this title](/usc/7/6.md?p=c) or pursuant to a rule or regulation, a [futures commission merchant](/usc/7/1a.md?p=28-A) that is registered pursuant to [section 6f(a)(1) of this title](/usc/7/6f.md?p=a-1) and also registered as a [broker](/usc/7/499a.md?p=b-7) or [dealer](/usc/7/499a.md?p=b-6) pursuant to section 78(o)(b)(1) of title 15 may, pursuant to a portfolio margining program approved by the [Securities](/usc/7/1a.md?p=41) and [Exchange](/usc/7/1a.md?p=1-D) [Commission](/usc/7/1a.md?p=8) pursuant to [section 78s(b) of title 15](/usc/15/78s.md?p=b), hold in a portfolio margining account carried as a [securities](/usc/7/1a.md?p=41) account subject to section 78(o)(c)(3) of title 15 and the rules and regulations thereunder, a contract for the purchase or sale of a [commodity](/usc/7/1a.md?p=9) for [future delivery](/usc/7/1a.md?p=27) or an [option](/usc/7/1a.md?p=36) on such a contract, and any money, [securities](/usc/7/1a.md?p=41) or other property received from a [customer](/usc/7/24.md?p=b) to margin, guarantee or secure such a contract, or accruing to a [customer](/usc/7/24.md?p=b) as the result of such a contract. The [Commission](/usc/7/1a.md?p=8) shall consult with the [Securities](/usc/7/1a.md?p=41) and [Exchange](/usc/7/1a.md?p=1-D) [Commission](/usc/7/1a.md?p=8) to adopt rules to ensure that such transactions and accounts are subject to comparable requirements to the extent practical for similar products.

## Footnotes

[^1]: So in original. Probably means subsection (a)(2) of this section.

## Source credit

(Sept. 21, 1922, ch. 369, § 4d, as added June 15, 1936, ch. 545, § 5, 49 Stat. 1494; amended Pub. L. 90–258, § 6, Feb. 19, 1968, 82 Stat. 27; Pub. L. 93–463, title I, § 103(a), Oct. 23, 1974, 88 Stat. 1392; Pub. L. 95–405, § 4, Sept. 30, 1978, 92 Stat. 869; Pub. L. 97–444, title II, § 207, Jan. 11, 1983, 96 Stat. 2302; Pub. L. 106–554, § 1(a)(5) [title I, § 123(a)(6), title II, § 251(f)], Dec. 21, 2000, 114 Stat. 2763, 2763A–407, 2763A–443; Pub. L. 111–203, title VII, §§ 713(b), 724(a), 732, 749(a), July 21, 2010, 124 Stat. 1646, 1682, 1712, 1746.)

## Notes

### Editorial Notes

### Amendments

2010—Subsec. (a). Pub. L. 111–203, § 749(a)(1)(A), in introductory provisions, substituted “be a” for “engage as” and struck out “or introducing broker in soliciting orders or accepting orders for the purchase or sale of any commodity for future delivery, or involving any contracts of sale of any commodity for future delivery, on or subject to the rules of any contract market or derivatives transaction execution facility” after “merchant”.

Subsec. (a)(1). Pub. L. 111–203, § 749(a)(1)(B), struck out “or introducing broker” after “merchant”.

Subsec. (a)(2). Pub. L. 111–203, § 749(a)(1)(C), struck out “if a futures commission merchant,” after “such person shall,”.

Subsecs. (c) to (e). Pub. L. 111–203, § 732, added subsecs. (c) and (d) and redesignated former subsec. (c) as (e).

Subsec. (f). Pub. L. 111–203, § 724(a), which directed amendment of section by adding subsec. (f) at end, was executed by making the addition after subsec. (e) to reflect the probable intent of Congress and the addition of subsec. (h) by section 713(b) of Pub. L. 111–203.

Subsec. (g). Pub. L. 111–203, § 749(a)(2), which directed amendment of section by adding subsec. (g) at end, was executed by making the addition after subsec. (f) to reflect the probable intent of Congress and the addition of subsec. (h) by section 713(b) of Pub. L. 111–203.

Subsec. (h). Pub. L. 111–203, § 713(b), added subsec. (h).

2000—Pub. L. 106–554, § 1(a)(5) [title II, § 251(f)], designated first undesignated par. as subsec. (a), designated second undesignated par. as subsec. (b), and added subsec. (c).

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

1983—Pub. L. 97–444, § 207(1), inserted reference to introducing brokers in provisions preceding par. (1).

Par. (1). Pub. L. 97–444, § 207(2), inserted “or introducing broker” after “futures commission merchant”.

Par. (2). Pub. L. 97–444, § 207(3), inserted “if a futures commission merchant,” after “such person shall,”.

1978—Pub. L. 95–405 in par. (2) inserted provisions authorizing Commission to prescribe terms and conditions under which funds and property commingled and deposited as permitted by par. (2) may be commingled and deposited with other funds and property received by a futures commission merchant and required by Commission to be separately accounted for and treated as belonging to its customers.

1974—Pub. L. 93–463 substituted “Commission” for “Secretary of Agriculture” in pars. (1) and (2).

1968—Pub. L. 90–258 struck out from second proviso of first par. authorization for investment of customer funds in investment securities of the kind national banking associations may buy or in loans secured by negotiable warehouse receipts conveying or securing title to readily marketable commodities to the extent of the current loan value of such receipts and added second par., making it unlawful for any person, including a clearing agency of a contract market or any depository, to treat customer funds as belonging to any person other than the customer, 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 1983 Amendment

Amendment by Pub. L. 97–444 effective 120 days after Jan. 11, 1983, or such earlier date as the Commission shall prescribe by regulation, 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.