§12c — Title 7 Agriculture | U.S. Code

Summary

Exchanges may suspend, expel, discipline, or bar members; if an exchange does not act, the Commission may step in. Any action must follow the exchange’s rules. An exchange must notify the person and the Commission in writing within thirty days and give reasons in the form the Commission requires. The exchange must publish its findings and the penalty but may only share the evidence with the person involved and the Commission. The Commission can review decisions, keep, change, cancel, or send them back; its orders guide what happens next and can be reviewed by a court. The Commission must also require each registered entity to post major rule violations and may bar anyone found to have committed a major violation from serving on governing boards or disciplinary committees for a time the Commission decides.

Title 7, §12c

Agriculture — Source: USLM XML via OLRC

(a)(1)Any exchange or the Commission if the exchange fails to act, may suspend, expel, or otherwise discipline any person who is a member of that exchange, or deny any person access to the exchange. Any such action shall be taken solely in accordance with the rules of that exchange.

(2)Any suspension, expulsion, disciplinary, or access denial procedure established by an exchange rule shall provide for written notice to the Commission and to the person who is suspended, expelled, or disciplined, or denied access, within thirty days, which includes the reasons for the exchange action in the form and manner the Commission prescribes. An exchange shall make public its findings and the reasons for the exchange action in any such proceeding, including the action taken or the penalty imposed, but shall not disclose the evidence therefor, except to the person who is suspended, expelled, or disciplined, or denied access, and to the Commission.

(b)The Commission may, in its discretion and in accordance with such standards and procedures as it deems appropriate, review any decision by an exchange whereby a person is suspended, expelled, otherwise disciplined, or denied access to the exchange. In addition, the Commission may, in its discretion and upon application of any person who is adversely affected by any other exchange action, review such action.

(c)The Commission may affirm, modify, set aside, or remand any exchange decision it reviews pursuant to subsection (b), after a determination on the record whether the action of the exchange was in accordance with the policies of this chapter. Subject to judicial review, any order of the Commission entered pursuant to subsection (b) shall govern the exchange in its further treatment of the matter.

(d)The Commission, in its discretion, may order a stay of any action taken pursuant to subsection (a) pending review thereof.

(e)(1)The Commission shall issue regulations requiring each registered entity to establish and make available to the public a schedule of major violations of any rule within the disciplinary jurisdiction of such registered entity.

(2)The regulations issued by the Commission pursuant to this subsection shall prohibit, for a period of time to be determined by the Commission, any individual who is found to have committed any major violation from service on the governing board of any registered entity or registered futures association, or on any disciplinary committee thereof.

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Editorial Notes

Amendments

2000—Subsec. (e). Pub. L. 106–554 substituted “registered entity” for “contract market” wherever appearing. 1992—Pub. L. 102–546 redesignated pars. (1) to (4) as subsecs. (a) to (d), respectively, in subsec. (a) redesignated subpars. (A) and (B) as pars. (1) and (2), respectively, in subsec. (c) substituted references to subsection (b) for references to paragraph (2), in subsec. (d) substituted reference to subsection (a) for reference to paragraph (1), and added subsec. (e). 1978—Par. (1)(B). Pub. L. 95–405 substituted “An exchange shall make public its findings and the reasons for the exchange action in any such proceeding, including the action taken or the penalty imposed, but shall not disclose the evidence therefor, except to the person who is suspended, expelled, or disciplined or denied access, and to the Commission” for “Otherwise the notice and reasons shall be kept confidential”.

Statutory Notes and Related Subsidiaries

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of 1978 AmendmentAmendment 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.

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For

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of section, see section 418 of Pub. L. 93–463, set out as an

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of 1968 Amendment note under section 2 of this title.

§12c Disciplinary Actions

Summary

Title 7, §12c

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