§ 14.4 Violation of Commodity Exchange Act.

The Commission may deny, temporarily or permanently, the privilege of appearing or practicing before it in any way to any person who is found by the Commission, after notice of and opportunity for hearing in the matter, to have violated, caused, or aided and abetted any violation of the Commodity Exchange Act, as amended, 7 U.S.C. 1, et seq., or the rules and regulations adopted thereunder.

§ 14.5 Criminal conviction.

Any person who after licensing or certification to practice his profession by any competent authority has been convicted of any felony or of a misdemeanor involving fraud or involving moral turpitude in matters related to the regulatory responsibilities of the Commission, and whose conviction has not been reversed by an appellate court, may not appear or practice before the Commission. A conviction within the meaning of this section shall be deemed to have occurred when the convicting court enters its judgment or order, regardless of whether an appeal is pending or could be taken, and includes a judgment on a plea of nolo contendere.

§ 14.6 Disbarment or suspension by licensing authority.

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ed, disbarred, or otherwise disqualified from practice before a court or in a jurisdiction continues in professional comp good standing before other courts or in other jurisdictions.

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(a) Temporary suspension. The Com-t mission, with due regard to the public interest, and without preliminary hearing, may by order temporarily suspend from appearing or practicing before it any person who, on or after the effective date of this rule has been by name:

(1) Permanently enjoined by reason of his misconduct by any court of competent jurisdiction (i) whether by consent, default, upon summary judgment or after trial, in any action brought by the Commission based upon violations of any provision of the Commodity Exchange Act, as amended, or of the rules and regulations adopted thereunder, or (ii) after trial or upon summary judgment in any action brought by the United States Securities and Exchange Commission based upon any violation of the federal securities laws (15 U.S.C. 77a to 80b-20) or of rules and regulations adopted thereunder;

Any attorney who has been suspended or disbarred by a Court of the United States or any state or territory or the District of Columbia and any person whose license to practice as an accountant has been revoked or suspended in any state or territory or the District of Columbia may not appear or practice before the Commission during the period when such suspension or revocation is in effect. A suspension or revocation shall be deemed to have occurred when the disbarring, suspending or revoking agency or tribunal enters its order, regardless of whether appeal is pending or could be taken, and includes a judgment or order on a plea of nolo contendere or the procedural equivalent of such a plea. For purposes of this section it shall be irrelevant that any attorney or accountant who has been suspend

(2) Found by any court of competent jurisdiction (whether by consent, default, upon summary judgment or after trial) in any action brought by the Commission to which he is a party, or found by the Commission (whether by consent, default, upon summary disposition or after hearing) in any administrative proceeding in which the Commission is a complainant and to which he is a party, to have committed, caused, or aided and abetted a violation of any provision of the Commodity Exchange Act, as amended, or of the rules and regulations promulgated under any of those statutes;

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(3) Found upon summary judgment or after trial by any court of competent jurisdiction in any action brought by the United States Securities and Exchange Commission to which he is a party, or found by the Securities and Exchange Commission, upon summary disposition or after hearing, in any administrative proceeding in which the

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Securities and Exchange Commission is a complainant and to which he is a party, to have committed, caused, or aided or abetted a violation of any provision of the federal securities laws (15 U.S.C. 77a to 80b-20) or of the rules and regulations adopted thereunder.

(b) Petition to lift suspension. Any me person temporarily suspended from E appearing and practicing before the Commission in accordance with paragraph (a) of this section may, within 30 days after service upon him of temporary suspension, petition the Commission to lift the temporary suspension. If no petition has been received re by the Commission within 30 days after service of the order by mail the suspension shall become permanent.

(c) Consideration of Petition. Within 30 days after the filing of the petition described in paragraph (b) of this section the Commission shall either lift the temporary suspension or set the matter down for hearing or both. After opportunity for hearing, the Commission may censure the petitioner or may disqualify the petitioner from appearing or practicing before the Commission for a period of time or permanently or may determine that no action is appropriate.

(d) Hearing. A showing that the petitioner has been enjoined or has been found to have committed, caused or aided or abetted violations as described in paragraph (a) of this section, without more, may be a basis for censure or disqualification; that showing having been made, the burden shall then be on the petitioner to show why he should not be censured or disqualified. A petitioner will not be heard to contest any findings against him or admissions made by him in the judicial or administrative proceedings upon which the proposed censure or disqualification is based. A petitioner who has consented to the entry of a permanent injunction as described in paragraph (a)(1) of this section without admitting the facts set forth in the complaint shall nevertheless be presumed for all purposes under this section to have been enjoined by reason of the misconduct alleged in the complaint.

§ 14.8 Lack of requisite qualifications, character and integrity.

In addition to those matters specifically referred to in §§ 14.4 through 14.7, the Commission may, after notice and opportunity for hearing in the matter, deny, temporarily or permanently, the privilege of appearing or practicing before it to any person who is found by the Commission by a preponderance of the evidence:

(a) Not to possess the requisite qualifications to represent others; or

(b) To be lacking in character or integrity; or

(c) To have engaged in unethical or improper unprofessional conduct either in the course of an adjudicatory, investigative, rulemaking or other proceeding before the Commission or otherwise.

§ 14.9 Duty to file information concerning adverse judicial or administrative action.

Any person appearing or practicing before the Commission who has been the subject of a conviction, suspension, disbarment, revocation, injunction or finding of the kind described in §§ 14.5 through 14.7, unless based on action instituted by the Commission, shall promptly file a copy of the relevant order, judgment or decree with the Secretariat of the Commission at 2033 K Street, NW., Washington, D.C. 20581, together with any related opinion or statement of the agency or tribunal involved. Any person who has been the subject of administrative or judicial action of the kind described in §§ 14.5 through 14.7 and who has not filed a copy of the order, judgment or decree within thirty days after its entry shall for that reason alone be disqualified from appearing or practicing before the Commission until such time as the appropriate filing shall be made, but neither the filing of these documents nor the failure of a person to file them shall in any way affect the operations of any other provision of this part.

§ 15.00

Definition of terms used in Parts 15 to 21 of this chapter.

(a)(1) "Foreign broker" means any person who resides or is domiciled outside of the United States, its territories or possessions and carries an account in commodity futures contracts traded on any contract market for any other person.

(2) "Foreign trader" means any trader (as defined in paragraph (e) of this section) who resides or is domiciled outside of the United States, its territories or possessions.

(b) "Reportable position" means:

(1) Any open contract position in any one future of any commodity on any one contract market, excluding positions against which notices of delivery have been stopped by a trader or issued by the clearing organization of a contract market, which at the close of the market on any business day, equals or exceeds the quantity specified below for reporting purposes for the particular commodity:

(i) For the purposes of reports required by Part 17 and § 18.04, the quantity specified in § 15.03(a).

(ii) For the purposes of reports required by § 18.00, the quantities specified in § 15.03(c).

(2) For the purposes of reports required by Part 19 any open contract position in any one future or all futures combined, either gross long or gross short, of any commodity on any one contract market, excluding positions against which notices of delivery have been stopped by a trader or issued by the clearing organization of a contract market which, at the close of the market on the last business day of the week, equals or exceeds the quantity fixed in § 15.03(b) for reporting purposes for the particular commodity.

(c) "Special Account" means any commodity futures account in which there is a reportable position.

(d) "Cash" or "Spot", when used in connection with any commodity, they refer to the actual commodity as distinguished from a futures contract in such commodity on a contract market.

(e) "Trader" means a person who, for his own account or for an account which he controls, makes transactions in commodity futures or has such transactions made.

(f) Customer Trading Program. This term means any system of trading offered, sponsored, promoted, managed or in any other way supported by, or affiliated with, a futures commission merchant, a commodity trading advisor, a commodity pool operator, or other trader, or any of its officers, partners or employees, and which by agreement, recommendations, advice or otherwise directly or indirectly controls trading done and positions held by any other person. The term includes but is not limited to, arrangements where a program participant enters into an expressed or implied agreement not obtained from other customers and makes a minimum deposit in excess of that required of other customers for the purpose of receiving specific advice or recommendations which are not made available to other customers. The term includes any program which is of the character of, or is commonly known to the trade as, a managed account, guided account, discretionary account, commodity pool or partnership account.

(g) Guided Account Program. This term shall mean any customer trading program which limits trading to the

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(h) Discretionary Account. This term means a commodity futures trading account for which buying and/or selling orders can be placed or originated, or for which transactions can be effected, under a general authorization and without the specific consent of the customer, whether the general authorization for such orders or transactions is pursuant to a written agreement, power of attorney, or otherwise.

(i) Managed Account Program. This term means a customer trading program which includes two or more discretionary accounts traded pursuant to a common plan, advice or recommendations.

(Secs. 4g(1), 4(i) and 8a(5) of the Act, 7 U.S.C. 6g(1), 6(i), and 12a(5)(1976); secs. 4a, 4f, 4g, 4i and 8a(5) of the Commodity Exchange Act, 7 U.S.C. 6a, 6f, 6g, 6i and 12a(5), as amended, Pub. L. 95-405, secs. 5 and 6, 92 Stat. 869 (1978); secs. 2(a)(1), 3, 4i, 6(b) and 8a(5) of the Commodity Exchange Act, as amended, 7 U.S.C. 4, 5, 6i, 9 and 12a(5); secs. 4g, 41, 5(d), and 8a(5) of the Commodity Exchange Act, 7 U.S.C., 6g, 6i, 7(d) and 12a(5) (1976))

[41 FR 3206, Jan. 21, 1976, as amended at 41 FR 48112, Nov. 2, 1976; 43 FR 45827, Oct. 4, 1978; 44 FR 33846, June 13, 1979; 45 FR 30429, May 8, 1980; 45 FR 31713, May 14, 1980; 46 FR 18529, Mar. 25, 1981]

EFFECTIVE DATE NOTE: At 46 FR 18529, Mar. 25, 1981, § 15.00(b) was revised, effective May 15, 1981. For the convenience of the user, the superseded text is set out below.

(b) "Reportable position" means:

(1) Any open contract position in any one future of any commodity on any one contract market, which, at the close of the market on any business day, equals or exceeds the quantity specified below for reporting purposes for the particular commodity:

(i) For the purposes of reports required by Part 17 and § 18.04, the quantity specified in § 15.03(a).

(ii) For the purposes of reports required by § 18.00, the quantities specified in § 15.03(c).

(2) For the purpose of reports required by Part 19, any open contract position in any one future or all futures combined, either gross long or gross short, of any commodity on any one contract market, which, at the close of the market on the last business day of the week, equals or exceeds the quantity fixed in § 15.03(b) for reporting purposes for the particular commodity.

§ 15.01 Persons required to report.

Pursuant to the provisions of the Act, the following persons shall file reports with the Commission with respect to such commodities, on such form, at such time, and in accordance with such directions as are hereinafter set forth:

(a) Contract Markets—as specified in Part 16 of this chapter.

(b) Futures commission merchants and foreign brokers-as specified in Part 17 of this chapter.

(c) Traders who hold or control open contracts which equal or exceed the fixed quantity for reporting in § 15.03(a), as specified in Part 18 of this chapter.

(d) Persons holding or controlling positions for future delivery (any part of which constitutes bona fide hedging positions as defined in § 1.3(z)) in the commodities enumerated in § 15.03(b) that exceed the amounts set forth in that section and merchants, processors, and dealers of cotton holding or controlling positions for future delivery in cotton that equal or exceed the amount set forth in § 15.03(b), as specified in Part 19 of this chapter.

(e) Members of contract markets-as specified in Part 20 of this Chapter.

(Secs. 4g, 5, 49 Stat. 1496, 88 Stat. 1392; 7 U.S.C. 6g, 7; secs. 4g(1), 4(i) and 8a(5) of the Act, 7 U.S.C. 6g(1), 6(i), and 12a(5)(1976)) [41 FR 3206, Jan. 21, 1976, as amended at 41 FR 48112, Nov. 2, 1976; 43 FR 45827, Oct. 4, 1978]

§ 15.02 Reporting forms.

Forms on which to report may be obtained from any office of the Commission. Reporting forms are identified by number as to the commodity and class of person reporting. The initial digit or digits of the form number identify the commodity or commod

§ 15.03 Quantities fixed for reporting.

(a) The quantities fixed for the purpose of reports filed under Part 17 and § 18.04 of this chapter are as follows:

(b) The quantities fixed for the purpose of reports filed under Part 19 of this chapter are as follows:

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