7 U.S.C. § 20 — Market reports

Page 135 TITLE 7—AGRICULTURE § 20 Subsecs. (g) to (i). Pub. L. 97–444, § 231(4), redesignated subsecs. (g), (h), and (i), as (e), (f), and (g), respectively. 1978—Subsec. (a). Pub. L. 95–405, § 21(1), substituted ‘‘who is registered or required to be registered’’ for ‘‘registered’’. Subsecs. (b), (c). Pub. L. 95–405, § 21(2), (3), substituted ‘‘$5,000’’ for ‘‘$2,500’’ wherever appearing. 1975—Subsec. (i). Pub. L. 94–16 substituted ‘‘fifteen months’’ for ‘‘one year’’ in two places, and ‘‘one year’’ for ‘‘nine months’’. Statutory Notes and Related Subsidiaries 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 120 days after Jan. 11, 1983, or such earlier date as the Commission shall prescribe by regulation, 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. § 19. Consideration of costs and benefits and antitrust laws (a) Costs and benefits (1) In general Before promulgating a regulation under this chapter or issuing an order (except as provided in paragraph (3)), the Commission shall con- sider the costs and benefits of the action of the Commission. (2) Considerations The costs and benefits of the proposed Com- mission action shall be evaluated in light of— (A) considerations of protection of market participants and the public; (B) considerations of the efficiency, com- petitiveness, and financial integrity of fu- tures markets; (C) considerations of price discovery; (D) considerations of sound risk manage- ment practices; and (E) other public interest considerations. (3) Applicability This subsection does not apply to the fol- lowing actions of the Commission: (A) An order that initiates, is part of, or is the result of an adjudicatory or investiga- tive process of the Commission. (B) An emergency action. (C) A finding of fact regarding compliance with a requirement of the Commission. (b) Antitrust laws The Commission shall take into consideration the public interest to be protected by the anti- trust laws and endeavor to take the least anti- competitive means of achieving the objectives of this chapter, as well as the policies and purposes of this chapter, in issuing any order or adopting any Commission rule or regulation (including any exemption under section 6(c) or 6c(b) of this title), or in requiring or approving any bylaw, rule, or regulation of a contract market or reg- istered futures association established pursuant to section 21 of this title. (Sept. 21, 1922, ch. 369, § 15, as added Pub. L. 93–463, title I, § 107, Oct. 23, 1974, 88 Stat. 1395; amended Pub. L. 102–546, title V, § 502(b), Oct. 28, 1992, 106 Stat. 3631; Pub. L. 106–554, § 1(a)(5) [title I, § 119], Dec. 21, 2000, 114 Stat. 2763, 2763A–403.) Editorial Notes AMENDMENTS 2000—Pub. L. 106–554 inserted section catchline, added subsec. (a), designated existing provisions as subsec. (b), and inserted subsec. (b) heading. 1992—Pub. L. 102–546 substituted ‘‘regulation (includ- ing any exemption under section 6(c) or 6c(b) of this title)’’ for ‘‘regulation’’. 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. § 20. Market reports (a) Information The Commission may conduct regular inves- tigations of the markets for goods, articles, services, rights, and interests which are the sub- ject of futures contracts, and furnish reports of the findings of these investigations to the public on a regular basis. These market reports shall, where appropriate, include information on the supply, demand, prices, and other conditions in the United States and other countries with re- spect to such goods, articles, services, rights, in- terests, and information respecting the futures markets. (b) Avoidance of duplication The Commission shall cooperate with the De- partment of Agriculture and any other Depart- ment or Federal agency which makes market in- vestigations to avoid unnecessary duplication of information-gathering activities. (c) Furnishing of information; confidentiality The Department of Agriculture and any other Department or Federal agency which has mar- ket information sought by the Commission shall furnish it to the Commission upon the request of any authorized employee of the Commission. The Commission shall abide by any rules of con- fidentiality applying to such information. (d) Disclosure of business transactions, market positions, trade secrets, or names of cus- tomers The Commission shall not disclose in such re- ports data and information which would sepa- rately disclose the business transactions or mar- ket positions of any person and trade secrets or names of customers except as provided in sec- tion 12 of this title. (e) Application This section shall not apply to investigations involving any security underlying a security fu- tures product. Page 136 TITLE 7—AGRICULTURE § 21 (Sept. 21, 1922, ch. 369, § 16, as added Pub. L. 93–463, title IV, § 414, Oct. 23, 1974, 88 Stat. 1414; amended Pub. L. 97–444, title II, § 232, Jan. 11, 1983, 96 Stat. 2320; Pub. L. 106–554, § 1(a)(5) [title II, § 251(e)], Dec. 21, 2000, 114 Stat. 2763, 2763A–443.) Editorial Notes AMENDMENTS 2000—Subsec. (e). Pub. L. 106–554 added subsec. (e). 1983—Subsec. (d). Pub. L. 97–444 prohibited disclosure of market positions. 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 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. STUDY OF TRADING IN CATTLE FUTURES CONTRACTS Pub. L. 99–641, title I, § 111, Nov. 10, 1986, 100 Stat. 3561, provided that: ‘‘(a) STUDY.—The Comptroller General of the United States shall conduct and complete a comprehensive study of the effect of trading in contracts for the future delivery of live cattle on the cash market price of live cattle, with particular emphasis on— ‘‘(1) whether the reaction of the live cattle futures market to the results of the milk production termi- nation program in March 1986, conducted under sec- tion 201(d)(3) of the Agricultural Act of 1949 (7 U.S.C. 1446(d)(3)), was based on and accurately reflected the then prevailing conditions of supply and demand; ‘‘(2) the effect of the trading in contracts for the fu- ture delivery of live cattle on— ‘‘(i) the price relationship between feeder cattle and fed cattle; ‘‘(ii) the price discovery process with respect to live cattle; and ‘‘(iii) price competition within the cattle indus- try; ‘‘(3) the effect of the use of packer contracts, as a means of obtaining slaughter cattle, on the increase in short hedging in contracts for the future delivery of live cattle and the effect of this increase in short hedging on prices in the futures and cash markets; ‘‘(4) the effect on the ability of the cash markets to accurately reflect prevailing conditions of supply and demand if packer contracts become the prevalent method of marketing fed cattle; ‘‘(5) whether the present delivery system for con- tracts for the future delivery of live cattle creates any bias (either upward or downward) in the cash price for cattle; ‘‘(6) whether the present delivery system for con- tracts for the future delivery of live cattle creates price volatility during the delivery month; and ‘‘(7) whether there are advantages or disadvantages to a cash settlement system in lieu of the present de- livery system in the case of contracts for the future delivery of live cattle. ‘‘(b) REPORTS.— ‘‘(1) PRELIMINARY REPORT.—Not later than January 15, 1987, the Comptroller General shall submit a pre- liminary report on the results of the study required under subsection (a) to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Sen- ate. ‘‘(2) FINAL REPORT.—Not later than 1 year after the date of enactment of this Act [Nov. 10, 1986], the Comptroller General shall submit to such committees a detailed final report of the results of the study re- quired under subsection (a).’’ POTATO FUTURES STUDY; SUBMISSION OF REPORT TO CONGRESS Pub. L. 95–405, § 27, Sept. 30, 1978, 92 Stat. 877, re- quired, within one year of Oct. 1, 1978, Secretary of Ag- riculture to (1) conduct a comprehensive study of mar- keting of Irish potatoes and of making and trading of contracts of sale for future delivery of Irish potatoes, including rules and regulations pertaining to such trad- ing issued by Commodity Futures Trading Commission or any contract market designated by Commission; and (2) submit to each House of Congress a detailed report on results of such study, and that report should also in- clude any proposals Secretary may have concerning any legislation needed to implement such recommenda- tions and concerning any modifications and rules and regulations needed to improve regulation of such con- tracts by Commission or any contract market des- ignated by Commission. § 21. Registered futures associations (a) Registration statement Any association of persons may be registered with the Commission as a registered futures as- sociation pursuant to subsection (b) of this sec- tion, under the terms and conditions hereinafter provided in this section, by filing with the Com- mission for review and approval a registration statement in such form as the Commission may prescribe, setting forth the information, and ac- companied by the documents, below specified: (1) Data as to its organization, membership, and rules of procedure, and such other infor- mation as the Commission may by rules and regulations require as necessary or appro- priate in the public interest; and (2) Copies of its constitution, charter, or ar- ticles of incorporation or association, with all amendments thereto, and of its bylaws, and of any rules or instruments corresponding to the foregoing, whatever the name, hereinafter in this section collectively referred to as the ‘‘rules of the association’’. (b) Standards for registration; Commission find- ings An applicant association shall not be reg- istered as a futures association unless the Com- mission finds, under standards established by the Commission, that— (1) such association is in the public interest and that it will be able to comply with the provisions of this section and the rules and regulations thereunder and to carry out the purposes of this section; (2) the rules of the association provide that any person registered under this chapter, reg- istered entity, or any other person designated pursuant to the rules of the Commission as el- igible for membership may become a member of such association, except such as are ex- cluded pursuant to paragraph (3) or (4) of this subsection, or a rule of the association per- mitted under this subparagraph. The rules of the association may restrict membership in such association on such specified basis relat- ing to the type of business done by its mem- bers, or on such other specified and appro- priate basis, as appears to the Commission to be necessary or appropriate in the public in-