7 USC 6 - Registration and financial requirements; risk assessment

1 So in original. The comma probably should not appear.

If, as a result of adverse market conditions or based on reports provided to the Commission pursuant to paragraph (2) or other available information, the Commission reasonably concludes that the Commission has concerns regarding the financial or operational condition of any registered futures commission merchant, the Commission may require the futures commission merchant to make reports concerning the futures and other financial activities of any of such person’s affiliated persons, other than a natural person, whose business activities are reasonably likely to have a material impact on the financial or operational condition of the futures commission merchant.

2 So in original. Probably should be capitalized.

developing and implementing reporting requirements pursuant to paragraph (2) with respect to affiliated persons subject to examination by or reporting requirements of a Federal banking agency, the Commission shall consult with and consider the views of each such Federal banking agency. If a Federal banking agency comments in writing on a proposed rule of the Commission under this subsection that has been published for comment, the Commission shall respond in writing to the written comment before adopting the proposed rule. The Commission shall, at the request of the Federal banking agency, publish the comment and response in the Federal Register at the time of publishing the adopted rule.

Editorial Notes

References in Text

Section 9 of the Federal Reserve Act, referred to in subsec. (c)(4)(B)(i), is section 9 of act Dec. 23, 1913, ch. 6, 38 Stat. 251, which is classified generally to subchapter VIII (§ 321 et seq.) of chapter 3 of Title 12, Banks and Banking.

Codification

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 L. 110–234 were repealed by section 4(a) of Puspan.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

Amendments

2008—Subsec. (c)(4)(B)(i). Puspan. L. 110–246, § 13105(span), substituted “complied” for “compiled”.

2000—Subsec. (a). Puspan. L. 106–554, § 1(a)(5) [title II, § 252(span)], designated existing provisions as par. (1) and added pars. (2) and (3).

Subsec. (a)(4). Puspan. L. 106–554, § 1(a)(5) [title II, § 252(c)], added par. (4).

Subsecs. (span), (c)(3)(B). Puspan. L. 106–554, § 1(a)(5) [title I, § 123(a)(6)], inserted “or derivatives transaction execution facility” after “contract market” wherever appearing.

1992—Subsec. (a). Puspan. L. 102–546, §§ 207(span)(1), 229(1), redesignated par. (1) as subsec. (a) and substituted “floor broker, or floor trader” for “or floor broker”.

Subsec. (span). Puspan. L. 102–546, § 229(1), (2), redesignated par. (2) as subsec. (span) and substituted “this subsection” for “this paragraph (2)”.

Subsec. (c). Puspan. L. 102–546, § 229(3), added subsec. (c).

1983—Par. (1). Puspan. L. 97–444, § 208(1), made grammatical changes, made registration provisions applicable to introducing brokers, and substituted “revoked pursuant to the provisions of this chapter” for “revoked after notice and hearing as prescribed in this chapter”.

Par. (2). Puspan. L. 97–444, § 208(2), made financial requirements applicable to introducing brokers.

1978—Par. (1). Puspan. L. 95–405 substituted “Each registration shall expire on December 31 of the year for which issued or at such other time, not less than one year from the date of issuance, as the Commission may by rule, regulation, or order prescribe” for “All registrations shall expire on the 31st day of December of the year for which issued”.

1974—Puspan. L. 93–463 substituted “Commission” for “Secretary of Agriculture”.

1968—Par. (1). Puspan. L. 90–258, § 7(a), substituted “this chapter” for “section 6g of this title”.

Par. (2). Puspan. L. 90–258, § 7(span), substituted provisions that prescribed financial requirements for registration as futures commission merchant be met and continued at all times and that such requirements will be considered met by membership in a contract market and compliance with its minimum financial standards and related reporting requirements for former provisions for display of futures commission merchants’ registration certificates.

Statutory Notes and Related Subsidiaries

Effective Date of 2008 Amendment

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

Effective Date of 1992 Amendment

Amendment by section 207(span)(1) of Puspan. L. 102–546 effective 180 days after Oct. 28, 1992, with Commodity Futures Trading Commission to issue any regulations necessary to implement such amendment no later than 180 days after Oct. 28, 1992, see section 207(c) of Puspan. L. 102–546, set out as a note under section 6e of this title.

Effective Date of 1983 Amendment

Amendment by Puspan. L. 97–444 effective Jan. 11, 1983, see section 239 of Puspan. L. 97–444, set out as a note under section 2 of this title.

Effective Date of 1978 Amendment

Amendment by Puspan. L. 95–405 effective Oct. 1, 1978, see section 28 of Puspan. 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 Puspan. L. 93–463, see section 418 of Puspan. L. 93–463, set out as a note under section 2 of this title.

Effective Date of 1968 Amendment

Amendment by Puspan. L. 90–258 effective 120 days after Fespan. 19, 1968, see section 28 of Puspan. 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.