---
kind: "section"
citation: "7 U.S.C. § 7a–2"
title: "7"
title_heading: "Agriculture"
number: "7a–2"
heading: "Common provisions applicable to registered entities"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/7/7a-2"
units:
  - "Chapter 1 — Commodity Exchanges"
---

# §7a–2. Common provisions applicable to registered entities

- (a) **Acceptable business practices under core principles—**
  - (1) **In general—** Consistent with the purposes of this chapter, the [Commission](/usc/7/1a.md?p=8) may issue interpretations, or approve interpretations submitted to the [Commission](/usc/7/1a.md?p=8), of sections [7(d)](/usc/7/7.md?p=d) and [7a–1(c)(2)](/usc/7/7a–1.md?p=c-2) of this title, to describe what would constitute an acceptable business practice under such sections.
  - (2) **Effect of interpretation—** An interpretation issued under [paragraph (1)](#a-1) may provide the exclusive means for complying with each section described in [paragraph (1)](#a-1).
- (b) **Delegation of functions under core principles—**
  - (1) **In general—** A contract [market](/usc/7/198.md?p=1), derivatives transaction execution facility, or [electronic trading facility](/usc/7/1a.md?p=16) with respect to a [significant price discovery contract](/usc/7/1a.md?p=46) may comply with any applicable core principle through delegation of any relevant function to a registered futures association or a [registered entity](/usc/7/1a.md?p=40) that is not an [electronic trading facility](/usc/7/1a.md?p=16).
  - (2) **Responsibility—** A contract [market](/usc/7/198.md?p=1), derivatives transaction execution facility, or [electronic trading facility](/usc/7/1a.md?p=16) that delegates a function under [paragraph (1)](#b-1) shall remain responsible for carrying out the function.
  - (3) **Noncompliance—** If a contract [market](/usc/7/198.md?p=1), derivatives transaction execution facility, or [electronic trading facility](/usc/7/1a.md?p=16) that delegates a function under [paragraph (1)](#b-1) becomes aware that a delegated function is not being performed as required under this chapter, the contract [market](/usc/7/198.md?p=1), derivatives transaction execution facility, or [electronic trading facility](/usc/7/1a.md?p=16) shall promptly take steps to address the noncompliance.
- (c) **New contracts, new rules, and rule amendments—**
  - (1) **In general—** A [registered entity](/usc/7/1a.md?p=40) may elect to list for trading or accept for clearing any new contract, or other instrument, or may elect to approve and implement any new rule or rule amendment, by providing to the [Commission](/usc/7/1a.md?p=8) (and the [Secretary](/usc/7/1a.md?p=47-E-v) of the Treasury, in the case of a [contract of sale](/usc/7/1a.md?p=13) of a government [security](/usc/7/1a.md?p=41) for [future delivery](/usc/7/1a.md?p=27) (or [option](/usc/7/1a.md?p=36) on such a contract) or a rule or rule amendment specifically related to such a contract) a written certification that the new contract or instrument or clearing of the new contract or instrument, new rule, or rule amendment complies with this chapter (including regulations under this chapter).
  - (2) **Rule review—** The new rule or rule amendment described in [paragraph (1)](#c-1) shall become effective, pursuant to the certification of the [registered entity](/usc/7/1a.md?p=40) and notice of such certification to its [members](/usc/7/1a.md?p=34) (in a manner to be determined by the [Commission](/usc/7/1a.md?p=8)), on the date that is 10 business days after the date on which the [Commission](/usc/7/1a.md?p=8) receives the certification (or such shorter period as determined by the [Commission](/usc/7/1a.md?p=8) by rule or regulation) unless the [Commission](/usc/7/1a.md?p=8) notifies the [registered entity](/usc/7/1a.md?p=40) within such time that it is staying the certification because there exist novel or complex issues that require additional time to analyze, an inadequate explanation by the submitting [registered entity](/usc/7/1a.md?p=40), or a potential inconsistency with this chapter (including regulations under this chapter).
  - (3) **Stay of certification for rules—**
    - (A) A notification by the [Commission](/usc/7/1a.md?p=8) pursuant to [paragraph (2)](#c-2) shall stay the certification of the new rule or rule amendment for up to an additional 90 days from the date of the notification.
    - (B) A rule or rule amendment subject to a stay pursuant to [subparagraph (A)](#c-3-A) shall become effective, pursuant to the certification of the [registered entity](/usc/7/1a.md?p=40), at the expiration of the period described in [subparagraph (A)](#c-3-A) unless the [Commission](/usc/7/1a.md?p=8)—
      - (i) withdraws the stay prior to that time; or
      - (ii) notifies the [registered entity](/usc/7/1a.md?p=40) during such period that it objects to the proposed certification on the grounds that it is inconsistent with this chapter (including regulations under this chapter).
    - (C) The [Commission](/usc/7/1a.md?p=8) shall provide a not less than 30-day public comment period, within the 90-day period in which the stay is in effect as described in [subparagraph (A)](#c-3-A), whenever the [Commission](/usc/7/1a.md?p=8) reviews a rule or rule amendment pursuant to a notification by the [Commission](/usc/7/1a.md?p=8) under this paragraph.
  - (4) **Prior approval—**
    - (A) **In general—** A [registered entity](/usc/7/1a.md?p=40) may request that the [Commission](/usc/7/1a.md?p=8) grant prior approval to any new contract or other instrument, new rule, or rule amendment.
    - (B) **Prior approval required—** Notwithstanding any other provision of this section, a designated contract [market](/usc/7/198.md?p=1) shall submit to the [Commission](/usc/7/1a.md?p=8) for prior approval each rule amendment that materially changes the terms and conditions, as determined by the [Commission](/usc/7/1a.md?p=8), in any [contract of sale](/usc/7/1a.md?p=13) for [future delivery](/usc/7/1a.md?p=27) of a [commodity](/usc/7/1a.md?p=9) specifically enumerated in [section 1a(10)](/usc/7/1a.md?p=10)[^1] of this title (or any [option](/usc/7/1a.md?p=36) thereon) traded through its facilities if the rule amendment applies to contracts and delivery months which have already been listed for trading and have open interest.
    - (C) **Deadline—** If prior approval is requested under [subparagraph (A)](#c-4-A), the [Commission](/usc/7/1a.md?p=8) shall take final action on the request not later than 90 days after submission of the request, unless the [person](/usc/7/1a.md?p=38) submitting the request agrees to an extension of the time limitation established under this subparagraph.
  - (5) **Approval—**
    - (A) **Rules—** The [Commission](/usc/7/1a.md?p=8) shall approve a new rule, or rule amendment, of a [registered entity](/usc/7/1a.md?p=40) unless the [Commission](/usc/7/1a.md?p=8) finds that the new rule, or rule amendment, is inconsistent with this chapter (including regulations).
    - (B) **Contracts and instruments—** The [Commission](/usc/7/1a.md?p=8) shall approve a new contract or other instrument unless the [Commission](/usc/7/1a.md?p=8) finds that the new contract or other instrument would violate this chapter (including regulations).
    - (C) **Special rule for review and approval of event contracts and swaps contracts—**
      - (i) **Event contracts—** In connection with the listing of agreements, contracts, transactions, or [swaps](/usc/7/1a.md?p=47-A) in [excluded commodities](/usc/7/1a.md?p=19) that are based upon the occurrence, extent of an occurrence, or contingency (other than a change in the price, rate, value, or levels of a [commodity](/usc/7/1a.md?p=9) described in [section 1a(2)(i)](/usc/7/1a.md)[^2] of this title), by a designated contract [market](/usc/7/198.md?p=1) or [swap execution facility](/usc/7/1a.md?p=50), the [Commission](/usc/7/1a.md?p=8) may determine that such agreements, contracts, or transactions are contrary to the public interest if the agreements, contracts, or transactions involve—
        - (I) activity that is unlawful under any Federal or [State](/usc/7/198.md?p=5) law;
        - (II) terrorism;
        - (III) assassination;
        - (IV) war;
        - (V) gaming; or
        - (VI) other similar activity determined by the [Commission](/usc/7/1a.md?p=8), by rule or regulation, to be contrary to the public interest.
      - (ii) **Prohibition—** No agreement, contract, or transaction determined by the [Commission](/usc/7/1a.md?p=8) to be contrary to the public interest under [clause (i)](#c-5-C-i) may be listed or made available for clearing or trading on or through a [registered entity](/usc/7/1a.md?p=40).
      - (iii) **Swaps contracts—**
        - (I) **In general—** In connection with the listing of a [swap](/usc/7/1a.md?p=47-A) for clearing by a [derivatives clearing organization](/usc/7/1a.md?p=15-A), the [Commission](/usc/7/1a.md?p=8) shall determine, upon request or on its own motion, the initial eligibility, or the continuing qualification, of a [derivatives clearing organization](/usc/7/1a.md?p=15-A) to clear such a [swap](/usc/7/1a.md?p=47-A) under those criteria, conditions, or rules that the [Commission](/usc/7/1a.md?p=8), in its discretion, determines.
        - (II) **Requirements—** Any such criteria, conditions, or rules shall consider—
          - (aa) the financial integrity of the [derivatives clearing organization](/usc/7/1a.md?p=15-A); and
          - (bb) any other factors which the [Commission](/usc/7/1a.md?p=8) determines may be appropriate.
      - (iv) **Deadline—** The [Commission](/usc/7/1a.md?p=8) shall take final action under clauses [(i)](#c-5-C-i) and [(ii)](#c-5-C-ii) in not later than 90 days from the commencement of its review unless the party seeking to [offer](/usc/7/1a.md?p=36) the contract or [swap](/usc/7/1a.md?p=47-A) agrees to an extension of this time limitation.
- (d) **Repealed. Pub. L. 111–203, title VII, § 745(c), July 21, 2010, 124 Stat. 1737—**
- (e) **Reservation of emergency authority—** Nothing in this section shall limit or in any way affect the emergency powers of the [Commission](/usc/7/1a.md?p=8) provided in [section 12a(9) of this title](/usc/7/12a.md?p=9).
- (f) **Rules to avoid duplicative regulation of dual registrants—** Consistent with this chapter, each designated contract [market](/usc/7/198.md?p=1) and registered derivatives transaction execution facility shall issue such rules as are necessary to avoid duplicative or conflicting rules 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)](#f-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) with respect to the application of—
  - (1) rules of such designated contract [market](/usc/7/198.md?p=1) or registered derivatives transaction execution facility of the type specified in [section 6d(e) of this title](/usc/7/6d.md?p=e) involving [security futures products](/usc/7/1a.md?p=45); and
  - (2) similar rules of national [securities](/usc/7/1a.md?p=41) associations registered pursuant to [section 78o–3(a)](/usc/15/78o–3.md?p=a) of title 15 and national [securities](/usc/7/1a.md?p=41) [exchanges](/usc/7/1a.md?p=1-D) registered pursuant to [section 78f(g) of title 15](/usc/15/78f.md?p=g) involving [security futures products](/usc/7/1a.md?p=45).

## Footnotes

[^1]: So in original. Probably should be “section 1a(9)”.
[^2]: So in original. There is no section “1a(2)(i)” in this title.

## Source credit

(Sept. 21, 1922, ch. 369, § 5c, as added and amended Pub. L. 106–554, § 1(a)(5) [title I, § 113, title II, § 251(h)], Dec. 21, 2000, 114 Stat. 2763, 2763A–399, 2763A–444; Pub. L. 110–234, title XIII, §§ 13105(e), (f), 13203(i)–(k), May 22, 2008, 122 Stat. 1434, 1440, 1441; Pub. L. 110–246, § 4(a), title XIII, §§ 13105(e), (f), 13203(i)–(k), June 18, 2008, 122 Stat. 1664, 2196, 2202, 2203; Pub. L. 111–203, title VII, §§ 717(d), 721(e)(7), 745, 749(c), July 21, 2010, 124 Stat. 1652, 1671, 1735, 1747.)

## Notes

### Editorial Notes

### References in Text

This chapter, referred to in subsec. (c)(5)(A), was in the original “this subtitle”, and was translated as reading “this Act” to reflect the probable intent of Congress.

### 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)(1). Pub. L. 111–203, § 749(c)(1), struck out “, 7a(d),” after “7(d)” and “and section 2(h)(7) of this title with respect to significant price discovery contracts,” before “to describe”.

Subsec. (a)(2). Pub. L. 111–203, § 745(a), added par. (2) and struck out former par. (2). Prior to amendment, text read as follows: “An interpretation issued under paragraph (1) shall not provide the exclusive means for complying with such sections.”

Subsec. (c). Pub. L. 111–203, § 745(b), added subsec. (c) and struck out former subsec. (c) which related to new contracts, new rules, and rule amendments and Commission approval upon certification of compliance with this chapter.

Subsec. (c)(1). Pub. L. 111–203, § 717(d), designated existing provisions as subpar. (A), inserted heading, and added subpar. (B).

Subsec. (c)(2)(B). Pub. L. 111–203, § 721(e)(7), substituted “section 1a(9)” for “section 1a(4)”.

Subsec. (d). Pub. L. 111–203, § 745(c), struck out subsec. (d) which related to violation of core principles.

Subsec. (f)(1). Pub. L. 111–203, § 749(c)(2), substituted “section 6d(e) of this title” for “section 6d(c) of this title”.

2008—Subsec. (a)(1). Pub. L. 110–246, § 13203(i), which directed amendment of par. (1) by inserting “, and section 2(h)(7) of this title with respect to significant price discovery contracts,” after “, and 7a–1(d)(2) of this title”, was executed by making the insertion after “, and 7a–1(c)(2) of this title” to reflect the probable intent of Congress and the intervening amendment by Pub. L. 110–246, § 13105(e). See below.

Pub. L. 110–246, § 13105(e), substituted “7a–1(c)(2)” for “7a–1(d)(2)”.

Subsec. (b)(1). Pub. L. 110–246, § 13203(j)(1), added par. (1) and struck out heading and text of former par. (1). Text read as follows: “A contract market or derivatives transaction execution facility may comply with any applicable core principle through delegation of any relevant function to a registered futures association or another registered entity.”

Subsec. (b)(2), (3). Pub. L. 110–246, § 13203(j)(2), (3), substituted “contract market, derivatives transaction execution facility, or electronic trading facility” for “contract market or derivatives transaction execution facility” wherever appearing.

Subsec. (d)(1). Pub. L. 110–246, § 13203(k), which directed amendment of par. (1) by inserting “or 2(h)(7)(C) of this title with respect to a significant price discovery contract traded or executed on an electronic trading facility,” after “7a–1(d)(2)”, was executed by making the insertion after “7a–1(c)(2)” in introductory provisions to reflect the probable intent of Congress and the intervening amendment by Pub. L. 110–246, § 13105(e). See below.

Pub. L. 110–246, § 13105(e), substituted “7a–1(c)(2)” for “7a–1(d)(2)” in introductory provisions.

Subsec. (f)(1). Pub. L. 110–246, § 13105(f), substituted “6d(c)” for “6d(3)”.

2000—Subsec. (f). Pub. L. 106–554, § 1(a)(5) [title II, § 251(h)], added subsec. (f).

### 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, except as otherwise provided, see section 4 of Pub. L. 110–246, set out as an Effective Date note under section 8701 of this title.

Amendment by section 13203(i)–(k) of Pub. L. 110–246 effective June 18, 2008, see section 13204(a) of Pub. L. 110–246, set out as a note under section 2 of this title.