7 U.S.C. § 23 — Standardized contracts for certain commod-

Page 144 TITLE 7—AGRICULTURE § 22 sion of subtitle A (§§ 711–754) of title VII of Pub. L. 111–203 requires a rulemaking, not less than 60 days after publication of the final rule or regulation imple- menting such provision of subtitle A, see section 754 of Pub. L. 111–203, set out as a note under section 1a of this title. EFFECTIVE DATE OF 2008 AMENDMENT Amendment of this section and repeal of Pub. L. 110–234 by Pub. L. 110–246 effective May 22, 2008, the date of enactment of Pub. L. 110–234, see section 4 of Pub. L. 110–246, set out as an Effective Date note under section 8701 of this title. EFFECTIVE DATE OF 1983 AMENDMENT Amendment by Pub. L. 97–444 effective Jan. 11, 1983, see section 239 of Pub. L. 97–444, set out as a note under section 2 of this title. EFFECTIVE DATE OF 1978 AMENDMENT Amendment 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. EFFECTIVE DATE For effective date of section, see section 418 of Pub. L. 93–463, set out as an Effective Date of 1974 Amend- ment note under section 2 of this title. IMPLEMENTATION Pub. L. 102–546, title II, § 204(b), Oct. 28, 1992, 106 Stat. 3600, provided that: ‘‘The guidelines required under sec- tion 17(p)(4) of the Commodity Exchange Act [7 U.S.C. 21(p)(4)] (as added by subsection (a) of this section) shall be submitted by a futures association registered with the Commodity Futures Trading Commission on the date of enactment of this Act [Oct. 28, 1992] to the Commission for the approval of the Commission not later than one hundred and eighty days after the date of enactment of this Act.’’ STUDY ON COMPUTERIZED FUTURES TRADING Pub. L. 102–546, title II, § 220(b), (c), Oct. 28, 1992, 106 Stat. 3614, required the Commodity Futures Trading Commission to conduct a study related to trading in fu- tures and options subject to the jurisdiction of the Commission under the Commodity Exchange Act through computers or by other electronic means, and also required the Commission, not later than two years after Oct. 28, 1992, to submit to Congress a report con- taining the results of the study and any appropriate recommendations. § 22. Research and information programs; reports to Congress (a) The Commission shall establish and main- tain, as part of its ongoing operations, research and information programs to (1) determine the feasibility of trading by computer, and the ex- panded use of modern information system tech- nology, electronic data processing, and modern communication systems by commodity ex- changes, boards of trade, and by the Commission itself for purposes of improving, strengthening, facilitating, or regulating futures trading oper- ations; (2) assist in the development of edu- cational and other informational materials re- garding futures trading for dissemination and use among producers, market users, and the gen- eral public; and (3) carry out the general pur- poses of this chapter. (b) The Commission shall include in its annual reports to Congress plans and findings with re- spect to implementing this section. (Sept. 21, 1922, ch. 369, § 18, as added Pub. L. 93–463, title IV, § 416, Oct. 23, 1974, 88 Stat. 1415.) Statutory Notes and Related Subsidiaries EFFECTIVE DATE For effective date of section, see section 418 of Pub. L. 93–463, set out as an Effective Date of 1974 Amend- ment note under section 2 of this title. § 23. Standardized contracts for certain commod- ities (a) Margin accounts or contracts and leverage accounts or contracts prohibited except as authorized Except as authorized under subsection (b), no person shall offer to enter into, enter into, or confirm the execution of, any transaction for the delivery of any commodity under a stand- ardized contract commonly known to the trade as a margin account, margin contract, leverage account, or leverage contract, or under any con- tract, account, arrangement, scheme, or device that the Commission determines serves the same function or functions as such a standard- ized contract, or is marketed or managed in sub- stantially the same manner as such a standard- ized contract. (b) Permission to enter into contracts for deliv- ery of silver or gold bullion, bulk silver or gold coins, or platinum; rules and regula- tions (1) Subject to paragraph (2), no person shall offer to enter into, enter into, or confirm the execution of, any transaction for the delivery of silver bullion, gold bullion, bulk silver coins, bulk gold coins, or platinum under a standard- ized contract described in subsection (a), con- trary to the terms of any rule, regulation, or order that the Commission shall prescribe, which may include terms designed to ensure the financial solvency of the transaction or prevent manipulation or fraud. Such rule, regulation, or order may be made only after notice and oppor- tunity for hearing. The Commission may set dif- ferent terms and conditions for transactions in- volving different commodities. (2) No person may engage in any activity de- scribed in paragraph (1) who is not permitted to engage in such activity, by the rules, regula- tions, and orders of the Commission in effect on November 10, 1986, until the Commission permits such person to engage in such activity in ac- cordance with regulations issued in accordance with subsection (c)(2). (c) Survey of persons interested in engaging in transactions of silver and gold, etc.; assist- ance of futures association; regulations (1)(A) Not later than 2 years after November 10, 1986, the Commission shall— (i) with the assistance of a futures associa- tion registered under this chapter, conduct a survey concerning the persons interested in engaging in the business of offering to enter into, entering into, or confirming the execu- tion of, the transactions described in sub- section (b)(1); and (ii) transmit a report of the results of the survey to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate. Page 145 TITLE 7—AGRICULTURE § 24 (B) Notwithstanding any other provision of law, for purposes of completing such report the Commission may direct, by rule, regulation, or order, a futures association registered under this chapter to render such assistance as the Commission shall specify. (C) Such report shall include the findings and any recommendations of the Commission con- cerning— (i) whether such transactions serve an eco- nomic purpose; (ii) the most efficient manner, consistent with the public interest, to permit additional persons to engage in the business of offering to enter into, entering into, and confirming the execution of such transactions; and (iii) the appropriate regulatory scheme to govern such transactions to ensure the finan- cial solvency of such transactions and to pre- vent manipulation or fraud. (2) The report shall also include Commission regulations governing such transactions. The regulations shall provide for permitting addi- tional persons to engage in such transactions. The regulations shall become effective on the expiration of 90 calendar days on which either House of Congress is in session after the date of the transmittal of the report to Congress. The regulations— (A) may authorize or require, notwith- standing any other provision of law, a futures association registered under this chapter to perform such responsibilities in connection with such transactions as the Commission may specify; and (B) may require that permission for addi- tional persons to engage in such business be given on a gradual basis, so as not to place an undue burden on the resources of the Commis- sion. (d) Savings provision This section shall not affect any rights or obli- gations arising out of any transaction subject to this section, as in effect before November 10, 1986, that was entered into, or the execution of which was confirmed, before November 10, 1986. (Sept. 21, 1922, ch. 369, § 19, as added Pub. L. 95–405, § 23, Sept. 30, 1978, 92 Stat. 876; amended Pub. L. 97–444, title II, § 234, Jan. 11, 1983, 96 Stat. 2322; Pub. L. 99–641, title I, § 109, Nov. 10, 1986, 100 Stat. 3560.) Editorial Notes PRIOR PROVISIONS Provisions similar to those appearing in subsec. (b) were formerly contained in section 15a of this title. AMENDMENTS 1986—Subsec. (a). Pub. L. 99–641 amended subsec. (a) generally. Prior to amendment, subsec. (a) read as fol- lows: ‘‘No person shall offer to enter into, enter into, or confirm the execution of, any transaction for the deliv- ery of any commodity specifically set forth in section 2 of this title prior to October 23, 1974, under a stand- ardized contract commonly known to the trade as a margin account, margin contract, leverage account, or leverage contract, or under any contract, account, ar- rangement, scheme, or device that the Commission de- termines serves the same function or functions as such a standardized contract, or is marketed or managed in substantially the same manner as such a standardized contract.’’ Subsec. (b). Pub. L. 99–641 amended subsec. (b) gen- erally. Prior to amendment, subsec. (b) read as follows: ‘‘No person shall offer to enter into, enter into, or con- firm the execution of any transaction for the delivery of silver bullion, gold bullion, or bulk silver coins or bulk gold coins, under a standardized contract de- scribed in subsection (a) of this section, contrary to any rule, regulation, or order of the Commission de- signed to ensure the financial solvency of the trans- action or prevent manipulation or fraud: Provided, That such rule, regulation, or order may be made only after notice and opportunity for hearing.’’ Subsec. (c). Pub. L. 99–641 amended subsec. (c) gen- erally. Prior to amendment, subsec. (c) read as follows: ‘‘The Commission shall regulate any transactions under a standardized contract described in subsection (a) of this section involving commodities described in subsection (b) of this section or any other commodities (except those commodities described in subsection (a) of this section) under such terms and conditions as the Commission shall prescribe by rule, regulation, or order made only after notice and opportunity for a hearing. The Commission may set different terms and conditions for such transactions involving different commodities. Notwithstanding any other provision of this section, the Commission may prohibit any trans- action for the delivery of any commodity under a standardized contract described in subsection (a) of this section that is not permitted by the rules, regula- tions and orders of the Commission in effect on Decem- ber 9, 1982, if the Commission determines that any such transactions would be contrary to the public interest.’’ Subsec. (d). Pub. L. 99–641, in amending section gen- erally, added subsec. (d). 1983—Subsec. (c). Pub. L. 97–444, § 234(1), substituted ‘‘shall regulate’’ for ‘‘may prohibit or regulate’’ and au- thorized Commission prohibition of transactions for de- livery of commodities under a standardized contract that was not permitted by the rules, regulations and orders of the Commission in effect on Dec. 9, 1982, where transactions are determined to be contrary to the public interest. Subsec. (d). Pub. L. 97–444, § 234(2), struck out subsec. (d) which provided for regulation of transactions in ac- cordance with applicable provisions of this chapter where Commission determined the transactions under subsecs. (b) and (c) of this section were contracts for fu- ture delivery within the meaning of this chapter. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 1983 AMENDMENT Amendment by Pub. L. 97–444 effective Jan. 11, 1983, see section 239 of Pub. L. 97–444, set out as a note under section 2 of this title. EFFECTIVE DATE Section effective Oct. 1, 1978, see section 28 of Pub. L. 95–405, set out as an Effective Date of 1978 Amendment note under section 2 of this title. § 24. Customer property with respect to com- modity broker debtors; definitions (a) Regulations respecting commodity broker debtors Notwithstanding title 11, the Commission may provide, with respect to a commodity broker that is a debtor under chapter 7 of title 11, by rule or regulation— (1) that certain cash, securities, other prop- erty, or commodity contracts are to be in- cluded in or excluded from customer property or member property; (2) that certain cash, securities, other prop- erty, or commodity contracts are to be specifi-