---
kind: "section"
citation: "7 U.S.C. § 7b–1"
title: "7"
title_heading: "Agriculture"
number: "7b–1"
heading: "Designation of securities exchanges and associations as contract markets"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/7/7b-1"
units:
  - "Chapter 1 — Commodity Exchanges"
---

# §7b–1. Designation of securities exchanges and associations as contract markets

- (a) Any [board of trade](/usc/7/1a.md?p=6) that is 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) as a national [securities](/usc/7/1a.md?p=41) [exchange](/usc/7/1a.md?p=1-D), is a national [securities](/usc/7/1a.md?p=41) association registered pursuant to [section 78o–3(a)](/usc/15/78o–3.md?p=a) of title 15, or is an [alternative trading system](/usc/7/1a.md?p=1) shall be a designated contract [market](/usc/7/198.md?p=1) in [security futures products](/usc/7/1a.md?p=45) if—
  - (1) such national [securities](/usc/7/1a.md?p=41) [exchange](/usc/7/1a.md?p=1-D), national [securities](/usc/7/1a.md?p=41) association, or [alternative trading system](/usc/7/1a.md?p=1) lists or trades no other contracts of sale for [future delivery](/usc/7/1a.md?p=27), except for [security futures products](/usc/7/1a.md?p=45);
  - (2) such national [securities](/usc/7/1a.md?p=41) [exchange](/usc/7/1a.md?p=1-D), national [securities](/usc/7/1a.md?p=41) association, or [alternative trading system](/usc/7/1a.md?p=1) files written notice with the [Commission](/usc/7/1a.md?p=8) in such form as the [Commission](/usc/7/1a.md?p=8), by rule, may prescribe containing such information as the [Commission](/usc/7/1a.md?p=8), by rule, may prescribe as necessary or appropriate in the public interest or for the protection of [customers](/usc/7/24.md?p=b); and
  - (3) the registration of such national [securities](/usc/7/1a.md?p=41) [exchange](/usc/7/1a.md?p=1-D), national [securities](/usc/7/1a.md?p=41) association, or [alternative trading system](/usc/7/1a.md?p=1) is not suspended pursuant to an order 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).

  Such designation shall be effective contemporaneously with the submission of notice, in written or electronic form, to the [Commission](/usc/7/1a.md?p=8).

- (b)
  - (1) A national [securities](/usc/7/1a.md?p=41) [exchange](/usc/7/1a.md?p=1-D), national [securities](/usc/7/1a.md?p=41) association, or [alternative trading system](/usc/7/1a.md?p=1) that is designated as a contract [market](/usc/7/198.md?p=1) pursuant to this section shall be exempt from the following provisions of this chapter and the rules thereunder:
    - (A) Subsections (c), (e), and (g) of [section 6c of this title](/usc/7/6c.md).
    - (B) [Section 6j of this title](/usc/7/6j.md).
    - (C) [Section 7 of this title](/usc/7/7.md).
    - (D) [Section 7a–2 of this title](/usc/7/7a–2.md).
    - (E) [Section 10a of this title](/usc/7/10a.md).
    - (F) [Section 12(d) of this title](/usc/7/12.md?p=d).
    - (G) [Section 13(f)](/usc/7/13.md)[^1] of this title.
    - (H) [Section 20 of this title](/usc/7/20.md).
  - (2) An [alternative trading system](/usc/7/1a.md?p=1) that is a designated contract [market](/usc/7/198.md?p=1) under this section shall be required to be a [member](/usc/7/1a.md?p=34) of a futures association registered under [section 21 of this title](/usc/7/21.md) and shall be exempt from any provision of this chapter that would require such [alternative trading system](/usc/7/1a.md?p=1) to—
    - (A) set rules governing the conduct of subscribers other than the conduct of such subscribers’ trading on such [alternative trading system](/usc/7/1a.md?p=1); or
    - (B) discipline subscribers other than by exclusion from trading.
  - (3) To the extent that an [alternative trading system](/usc/7/1a.md?p=1) is exempt from any provision of this chapter pursuant to paragraph (2) of this subsection, the futures association registered under [section 21 of this title](/usc/7/21.md) of which the [alternative trading system](/usc/7/1a.md?p=1) is a [member](/usc/7/1a.md?p=34) shall set rules governing the conduct of subscribers to the [alternative trading system](/usc/7/1a.md?p=1) and discipline the subscribers.
  - (4)
    - (A) Except as provided in [subparagraph (B)](#b-4-B), but notwithstanding any other provision of this chapter, the [Commission](/usc/7/1a.md?p=8), by rule, regulation, or order, may conditionally or unconditionally exempt any designated contract [market](/usc/7/198.md?p=1) in [security futures](/usc/7/1a.md?p=44) subject to the designation requirement of this section from any provision of this chapter or of any rule or regulation thereunder, to the extent such exemption is necessary or appropriate in the public interest and is consistent with the protection of investors.
    - (B) The [Commission](/usc/7/1a.md?p=8) shall, by rule or regulation, determine the procedures under which an exemptive order under this section is granted and may, in its sole discretion, decline to entertain any application for an order of exemption under this section.
    - (C) An [alternative trading system](/usc/7/1a.md?p=1) shall not be deemed to be an [exchange](/usc/7/1a.md?p=1-D) for any purpose as a result of the designation of such [alternative trading system](/usc/7/1a.md?p=1) as a contract [market](/usc/7/198.md?p=1) under this section.

## Footnotes

[^1]: See References in Text note below.

## Source credit

(Sept. 21, 1922, ch. 369, § 5f, as added Pub. L. 106–554, § 1(a)(5) [title II, § 252(a)], Dec. 21, 2000, 114 Stat. 2763, 2763A–445.)

## Notes

### Editorial Notes

### References in Text

Subsec. (f) of section 13 of this title, referred to in subsec. (b)(1)(G), was redesignated subsec. (e) by Pub. L. 110–246, title XIII, § 13105(h)(2), June 18, 2008, 122 Stat. 2197.