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Securities Exchanges

CHAPTER 1Commodity Futures Trading Commission . . . . . . .

CHAPTER I-Securities and Exchange Commission ........






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General regulations under the Commodity Exchange Act ...
Official seal . . . . . . . . . . . . . . . . . . .
Rules of practice . . . . . . . . . . . . . . .
Rules relating to investigations . . . . . . . . . .
Rules relating to reparation proceedings .........
Public rulemaking procedures ............
Rules relating to suspension or disbarment from appearance and

practice .... . . . . . . . . . . . . . . . .
Reports General provisions . . . . . . . . . . . . .
Reports by contract markets ...............
Reports by futures commission merchants and foreign brokers
Reports by traders .................
Reports by merchants, processors, and dealers ....
Reports by members of contract markets ..........
Special calls for information from futures commission merchants,

foreign brokers, and members of contract markets. . . . .
Fraud in connection with commodity transactions ......
Regulation of commodity option transactions .......
Delivery period required ...............
Organization, functions, and procedures of the Commission ...
Commission records and information ........
Records maintained on individuals ........
Open Commission meetings .......

130 Limits on positions and trading ............ 136 Trading standards . . . . . . . . . . . . . . . . .

141 Arbitration or other dispute settlement procedures...... 143


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DEFINITIONS Seo. 1.1 Words in singular and plural form. 1.2 Llability of principal for act of agent. 1.3 Definitions.

Registration required of futures com-

mission merchants. 1.8 Registration required of floor brokers. 1.9 Registration as one type of person not

included in registration as any

other type of person. 1.10 Application for registration and i

nancial reports. 1.104 (Reserved] 1.10b Applications for registration of asso

ciated persons. 1.100 Applications for registration of com

modity trading advisors. 1.100 Applications for registration of com

modity pool operators. 1.11 Registration fees; form of remittance. 1.18 Deposit of registration fee; feo not

subject to refund after registration. 1.14 Deficiencies, inaccuracies, and

changes, to be reported. 1.15 Changes requiring new registration. 1.17 Minimum anancial requirements. 1.18 Records for and relating to financial

reporting and monthly computa

tion, PROHIBITED TRADING IN COMMODITY OPTIONS 1.19 Prohibited trading in "puts" and

"calls" in commodities. CUSTOMERS' MONEY, SECURITIES, AND PROPERTY 1.20 Customers' money, securities, and

property to be segregated and sop

aratoly accounted for. 1.21 Oaro of money and equities accruing

to customer. 1.22 Uso of money, securities, or property

of customer restricted. 1.28 Interest of futures commission mer

chant in sogregated funds, additions

and withdrawals. 1.24 Segregated funds; exclusions thero

from. 1.26 Investment of customers' funds. 1.26 Deposit of obligations purchased with

customers' funds. 1.27 Record of investments. 1.28 Appraisal of obligations purchased

with customers' funds. 1.29 Incromont or interest rosulting from

investmont of customors' funds. 1.80 Loans by futures commission mer

chants; treatment of proceods.

RECORD KEEPING 1.91 Books and records; kooping and in


Sec. 182 Segregated account; dally computa

tion and record. Monthly statement for customer and

record of customer's position in each

future. 1.33a Controlled accounts. 1.34 Monthly record, "point balanco". 1.88 Records of cash commodity and fu

tures transactions. Record of securities and property ro

ceived from customers. 1.87 1.87 Customer's name, address, and Oc

cupation recorded; record of guar

antor or controller of account. 1.88 Execution of transactions. 1.89 Simultaneous buying and selling or

ders of different principals; execution of, for and botweon principals.

MISCELLANEOUS 1.40 Crop, market information lottors, ro

ports; coples required. 1.41 Contract market rules, submission of

rules to Commission, exemption of temporary emergency rules and certain operational and Administrative

rules, emergencies. 1.418 Delegation of authority to the Execu

tive Director and the Director of the Division of Trading and Mar


Delivery notico; Miling of copy. 1.43

Information required concerning

warehouses, depositories, and other

similar entities. 1.44 Records and reports of warohouses,

depositories, and other simllar on

titles; visitation of promisos. 1.45 Dellvery of commodities conforming

to United States standards. 1.46 Application and closing out of o

setting long and short positions. Hodging anticipated requtromonts for

processing or manufacturing or livestock and poultry production under $ 1.3(z) (4) of the regulations under

the Act. 1.80 Filing of information by contract

markets. 1.51 Contract Market Program for Enforce

ment. 1.53 Enforcement of contract market by

laws, rules, regulations and resolu

tions. 1.84 Contract market rules submitted to

and approved or not disapproved by

the Secretary of Agriculture. 1.60 Pending legal proceedings.

AUTHORITY: Sec. 88, 49 Stat. 1500, as amended, 88 Stat. 1892; 7 U.S.C. 12a, unless otherwise noted.

SOURCE: 41 FR 3194, Jan. 21, 1976, unless otherwise noted.



lard, tallow, cottonseed oil, peanut oil, 8 1.1 Words in singular and plural

soybean o11, and all other fats and oils),

cottonseed meal, cottonseed, peanuts, form.

soybeans, soybean meal, livestock, liveWords used in the singular form in stock products, and frozen concentrated the rules and regulations in this part

orange juice, and all other goods and shall be deemed to import the plural, and articles, except onions as provided in vice versa, as the case may require. Pub. L. 85-839, and all services, rights § 1.2 Liability of principal for act of

and interests in which contracts for agent.

future delivery are presently or in the

future dealt in. The act, omission, or failure of any

(Sec. 2(a) (1), 88 Stat. 1395; 7 0.8.c. 2(1)) oficial, agent, or other person acting for any individual, association, partnership, (f) Commodity Exchange Act; the Act. corporation, or trust, within the scope These terms mean the Commodity Exof his employment or office, shall be change Act, as amended, 7 U.S.C. 1 et deemed the act, omission, or failure of seq. such individual, association, partnership, (g) (Reserved] corporation, or trust as well as of such (h) Contract Market. This term means oficial, agent, or other person.

a board of trade designated by the Com(Sec. 2, 42 Stat. 998; 7 U.S.C 4)

mission as a contract market under the

Commodity Exchange Act. 8 1.3 Definitions.

(1) Contract of sale. This term inThe following terms, as used in the cludes sales, purchases, agreements of Commodity Exchange Act, or in the rules sale or purchase and agreements to sell and regulations in this chapter, shall or purchase. have the meanings hereby assigned to (j) Controlled account. An account them, unless the context otherwise re shall be deemed to be controlled by a quires:

person if such person by power of at(a) Board of Trade. This term means torney or otherwise actually directs tradany exchange or association, whether in- ing for such account. corporated or unincorporated, of persons (k) Customer; commodity customer. who shall be engaged in the business of These terms have the same meaning and buying or selling any commodity or re- refer to a customer trading in any comceiving the same for sale on consignment. modity named in the definition of com

(b) Business day. This term means any modity herein: Provided, however, An day other than a Sunday or holiday. In owner or holder of a proprietary acall notices required by the act or by the count as defined in paragraph (y) of rules and regulations in this chapter to this section shall not be deemed to be a be given in terms of business days the customer within the meaning of section rule for computing time shall be to ex- 4d of the Act, the regulations that impleclude the day on which notice is given ment sections 4d and 4f of the Act and and include the day on which shall take $ 1.35, and such an owner or holder of place the act of which notice is given. such a proprietary account shall other

(c) Clearing member. This term means wise be deemed to be a customer within any person who is a member of, or enjoys the meaning of the Act and 88 1.37 and the privilege of clearing trades in his 1.46 and all other sections of these rules, own name through, the clearing organi- regulations and orders which do not imzation of a contract market.

plement sections 4d and 4f. (d) Clearing organization. This term (1) Delivery month. This term means means the person or organization which the month of delivery specified in a conacts as a medium for clearing transac- tract of sale of any commodity for tions in commodities for future delivery, future delivery. or for effecting settlements of contracts (m) [Reserved] for future delivery, for and between (n) Floor broker. This term means members of any board of trade.

any person who, in or surrounding any (e) Commodity. This term means and pit, ring, post, or other place provided includes wheat, cotton, rice, corn, oats, by a contract market for the meeting barley, rye, flaxseed, grain sorghums, of persons similarly engaged, shall purmillfeeds, butter, eggs, Irish potatoes, chase or sell for any other person any wool, wool tops, fats and oils (including commodity for future delivery on or

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