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

Summary

A national securities exchange, a national securities association registered under section 78o–3(a) of title 15, or an alternative trading system becomes a designated contract market for security futures products if it only lists or trades security futures (no other futures), files a written notice with the Commission in the form and with the information the Commission requires, and its SEC registration is not suspended. A market designated this way is exempt from certain parts of this chapter: subsections (c), (e), and (g) of section 6c; section 6j; section 7; section 7a–2; section 10a; section 12(d); section 13(f); and section 20. An alternative trading system must join a futures association under section 21 and is exempt from rules that would force it to set non‑trading conduct rules for subscribers or to discipline subscribers except by blocking trading. The futures association must set those subscriber rules and handle discipline. The Commission may, by rule, regulation, or order, grant further conditional or unconditional exemptions when needed in the public interest and consistent with investor protection, and it will set the procedures for such exemptions and may refuse applications. Designation of an alternative trading system as a contract market does not make it an exchange for any purpose.