Sec. 6. [APPLICATION FOR DESIGNATION AS CONTRACT MARKET OR DERIVATIVES TRANSACTION EXECUTION FACILITY]

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## Sec. 6 **[**APPLICATION FOR DESIGNATION AS CONTRACT MARKET OR DERIVATIVES TRANSACTION EXECUTION FACILITY**]** **[**[7 U.S.C. 8](/us/usc/t7/s8)**]** 29

(a)Any person desiring to be designated or registered as a contract market or derivatives transaction execution facility shall make application to the Commission for the designation or registration and accompany the same with a showing that it complies with the conditions set forth in this Act, and with a sufficient assurance that it will continue to comply with the the30 requirements of this Act. The Commission shall approve or deny an application for designation or registration as a contract market or derivatives transaction execution facility within 180 days of the filing of the application. If the Commission notifies the person that its application is materially incomplete and specifies the deficiencies in the application, the running of the 180-day period shall be stayed from the time of such notification until the application is resubmitted in completed form: *Provided, *That the Commission shall have not less than sixty days to approve or deny the application from the time the application is resubmitted in completed form. If the Commission denies an application, it shall specify the grounds for the denial. In the event of a refusal to designate or register as a contract market or derivatives transaction execution facility any person that has made application therefor, the person shall be afforded an opportunity for a hearing on the record before the Commission, with the right to appeal an adverse decision after such hearing to the court of appeals as provided for in other cases in subsection

(b)of this section. 29Subsections

(a)and

(b)of section 6 are classified to 7 U.S.C. 8. 30So in original. Probably should strike second “the”. ###

(b)The Commission is authorized to suspend for a period not to exceed 6 months or to revoke the designation or registration of any contract market or derivatives transaction execution facility on a showing that the contract market or derivatives transaction execution facility is not enforcing or has not enforced its rules of government, made a condition of its designation or registration as set forth in sections 5 through 5b or section 5f, or that the contract market or derivatives transaction execution facility or electronic trading facility, or any director, officer, agent, or employee thereof, otherwise is violating or has violated any of the provisions of this Act or any of the rules, regulations, or orders of the Commission thereunder. Such suspension or revocation shall only be made after a notice to the officers of the contract market or derivatives transaction execution facility or electronic trading facility affected and upon a hearing on the record: *Provided,* That such suspension or revocation shall be final and conclusive, unless within fifteen days after such suspension or revocation by the Commission such person appeals to the court of appeals for the circuit in which it has its principal place of business, by filing with the clerk of such court a written petition praying that the order of the Commission be set aside or modified in the manner stated in the petition, together with a bond in such sum as the court may determine, conditioned that such person will pay the costs of the proceedings if the court so directs. The clerk of the court in which such a petition is filed shall immediately cause a copy thereof to be delivered to the Commission and file in the court the record in such proceedings, as provided in section 2112 of title 28, United States Code. The testimony and evidence taken or submitted before the Commission, duly filed as aforesaid as a part of the record, shall be considered by the court of appeals as the evidence in the case. Such a court may affirm or set aside the order of the Commission or may direct it to modify its order. No such order of the Commission shall be modified or set aside by the court of appeals unless it is shown by the person that the order is unsupported by the weight of the evidence or was issued without due notice and a reasonable opportunity having been afforded to such person for a hearing, or infringes the Constitution of the United States, or is beyond the jurisdiction of the Commission. ###

(c)Prohibition Regarding Manipulation and False Information **[**[7 U.S.C. 9](/us/usc/t7/s9)**]** ####

(1)Prohibition against manipulation It shall be unlawful for any person, directly or indirectly, to use or employ, or attempt to use or employ, in connection with any swap, or a contract of sale of any commodity in interstate commerce, or for future delivery on or subject to the rules of any registered entity, any manipulative or deceptive device or contrivance, in contravention of such rules and regulations as the Commission shall promulgate by not later than 1 year after the date of enactment of the Dodd-Frank Wall Street Reform and Consumer Protection Act, provided no rule or regulation promulgated by the Commission shall require any person to disclose to another person nonpublic information that may be material to the market price, rate, or level of the commodity transaction, except as necessary to make any statement made to the other person in or in connection with the transaction not misleading in any material respect. #####

(A)Special provision for manipulation by false reporting Unlawful manipulation for purposes of this paragraph shall include, but not be limited to, delivering, or causing to be delivered for transmission through the mails or interstate commerce, by any means of communication whatsoever, a false or misleading or inaccurate report concerning crop or market information or conditions that affect or tend to affect the price of any commodity in interstate commerce, knowing, or acting in reckless disregard of the fact that such report is false, misleading or inaccurate. #####

(B)Effect on other law Nothing in this paragraph shall affect, or be construed to affect, the applicability of section 9(a)(2). #####

(C)Good faith mistakes Mistakenly transmitting, in good faith, false or misleading or inaccurate information to a price reporting service would not be sufficient to violate subsection (c)(1)(A). ####

(2)Prohibition regarding false information It shall be unlawful for any person to make any false or misleading statement of a material fact to the Commission, including in any registration application or any report filed with the Commission under this Act, or any other information relating to a swap, or a contract of sale of a commodity, in interstate commerce, or for future delivery on or subject to the rules of any registered entity, or to omit to state in any such statement any material fact that is necessary to make any statement of a material fact made not misleading in any material respect, if the person knew, or reasonably should have known, the statement to be false or misleading. ####

(3)Other manipulation In addition to the prohibition in paragraph (1), it shall be unlawful for any person, directly or indirectly, to manipulate or attempt to manipulate the price of any swap, or of any commodity in interstate commerce, or for future delivery on or subject to the rules of any registered entity. ####

(4)Enforcement #####

(A)Authority of commission If the Commission has reason to believe that any person (other than a registered entity) is violating or has violated this subsection, or any other provision of this Act (including any rule, regulation, or order of the Commission promulgated in accordance with this subsection or any other provision of this Act), the Commission may serve upon the person a complaint. #####

(B)Contents of complaint A complaint under subparagraph

(A)shall— ######

(i)contain a description of the charges against the person that is the subject of the complaint; and ######

(ii)have attached or contain a notice of hearing that specifies the date and location of the hearing regarding the complaint. #####

(C)Hearing A hearing described in subparagraph (B)(ii)— ######

(i)shall be held not later than 3 days after service of the complaint described in subparagraph (A); ######

(ii)shall require the person to show cause regarding why— ######

(I)an order should not be made— ######

(aa)to prohibit the person from trading on, or subject to the rules of, any registered entity; and ######

(bb)to direct all registered entities to refuse all privileges to the person until further notice of the Commission; and ######

(II)the registration of the person, if registered with the Commission in any capacity, should not be suspended or revoked; and ######

(iii)may be held before— ######

(I)the Commission; or ######

(II)an administrative law judge designated by the Commission, under which the administrative law judge shall ensure that all evidence is recorded in written form and submitted to the Commission. ####

(5)Subpoena For the purpose of securing effective enforcement of the provisions of this Act, for the purpose of any investigation or proceeding under this Act, and for the purpose of any action taken under section 12(f), any member of the Commission or any Administrative Law Judge or other officer designated by the Commission (except as provided in paragraph (7)) may administer oaths and affirmations, subpoena witnesses, compel their attendance, take evidence, and require the production of any books, papers, correspondence, memoranda, or other records that the Commission deems relevant or material to the inquiry. ####

(6)Witnesses The attendance of witnesses and the production of any such records may be required from any place in the United States, any State, or any foreign country or jurisdiction at any designated place of hearing. ####

(7)Service A subpoena issued under this section may be served upon any person who is not to be found within the territorial jurisdiction of any court of the United States in such manner as the Federal Rules of Civil Procedure prescribe for service of process in a foreign country, except that a subpoena to be served on a person who is not to be found within the territorial jurisdiction of any court of the United States may be issued only on the prior approval of the Commission. ####

(8)Refusal to obey In case of contumacy by, or refusal to obey a subpoena issued to, any person, the Commission may invoke the aid of any court of the United States within the jurisdiction in which the investigation or proceeding is conducted, or where such person resides or transacts business, in requiring the attendance and testimony of witnesses and the production of books, papers, correspondence, memoranda, and other records. Such court may issue an order requiring such person to appear before the Commission or member or Administrative Law Judge or other officer designated by the Commission, there to produce records, if so ordered, or to give testimony touching the matter under investigation or in question. ####

(9)Failure to obey Any failure to obey such order of the court may be punished by the court as a contempt thereof. All process in any such case may be served in the judicial district wherein such person is an inhabitant or transacts business or wherever such person may be found. ####

(10)Evidence On the receipt of evidence under paragraph (4)(C)(iii), the Commission may— #####

(A)prohibit the person that is the subject of the hearing from trading on, or subject to the rules of, any registered entity and require all registered entities to refuse the person all privileges on the registered entities for such period as the Commission may require in the order; #####

(B)if the person is registered with the Commission in any capacity, suspend, for a period not to exceed 180 days, or revoke, the registration of the person; #####

(C)assess such person— ######

(i)a civil penalty of not more than an amount equal to the greater of— ######

(I)$140,000; or ######

(II)triple the monetary gain to such person for each such violation; or ######

(ii)in any case of manipulation or attempted manipulation in violation of this subsection or section 9(a)(2), a civil penalty of not more than an amount equal to the greater of— ######

(I)$1,000,000; or ######

(II)triple the monetary gain to the person for each such violation; and #####

(D)require restitution to customers of damages proximately caused by violations of the person. ####

(11)Orders #####

(A)Notice The Commission shall provide to a person described in paragraph

(10)and the appropriate governing board of the registered entity notice of the order described in paragraph

(10)by— ######

(i)registered mail; ######

(ii)certified mail; or ######

(iii)personal delivery. #####

(B)Review ######

(i)In general A person described in paragraph

(10)may obtain a review of the order or such other equitable relief as determined to be appropriate by a court described in clause (ii). ######

(ii)Petition To obtain a review or other relief under clause (i), a person may, not later than 15 days after notice is given to the person under clause (i), file a written petition to set aside the order with the United States Court of Appeals— ######

(I)for the circuit in which the petitioner carries out the business of the petitioner; or ######

(II)in the case of an order denying registration, the circuit in which the principal place of business of the petitioner is located, as listed on the application for registration of the petitioner. #####

(C)Procedure ######

(i)Duty of clerk of appropriate court The clerk of the appropriate court under subparagraph (B)(ii) shall transmit to the Commission a copy of a petition filed under subparagraph (B)(ii). ######

(ii)Duty of commission In accordance with section 2112 of title 28, United States Code, the Commission shall file in the appropriate court described in subparagraph (B)(ii) the record theretofore made. ######

(iii)Jurisdiction of appropriate court Upon the filing of a petition under subparagraph (B)(ii), the appropriate court described in subparagraph (B)(ii) may affirm, set aside, or modify the order of the Commission. ###

(d)**[**CEASE AND DESIST ORDERS; FINES**]** **[**[7 U.S.C. 13b](/us/usc/t7/s13b)**]** If any person (other than a registered entity), is violating or has violated subsection

(c)or any other provisions of this Act or of the rules, regulations, or orders of the Commission thereunder, the Commission may, upon notice and hearing, and subject to appeal as in other cases provided for in subsection (c), make and enter an order directing that such person shall cease and desist therefrom and, if such person thereafter and after the lapse of the period allowed for appeal of such order or after the affirmance of such order, shall knowingly fail or refuse to obey or comply with such order, such person, upon conviction thereof, shall be fined not more than the higher of $140,000 or triple the monetary gain to such person, or imprisoned for not more than 1 year, or both, except that if such knowing failure or refusal to obey or comply with such order involves any offense within subsection

(a)or

(b)of section 9, such person, upon conviction thereof, shall be subject to the penalties of said subsection

(a)or (b): * Provided*, That any such cease and desist order under this subsection against any respondent in any case of manipulation shall be issued only in conjunction with an order issued against such respondent under subsection (c). ###

(e)**[**ASSESSMENT OF MONEY PENALTIES**]** **[**[7 U.S.C. 9a](/us/usc/t7/s9a)**]** ####

(1)In determining the amount of the money penalty assessed under subsection (c), the Commission shall consider the appropriateness of such penalty to the gravity of the violation. ####

(2)Unless the person against whom a money penalty is assessed under subsection

(c)shows to the satisfaction of the Commission within fifteen days from the expiration of the period allowed for payment of such penalty that either an appeal as authorized by subsection

(c)has been taken or payment of the full amount of the penalty then due has been made, at the end of such fifteen-day period and until such person shows to the satisfaction of the Commission that payment of such amount with interest thereon to date of payment has been made— #####

(A)such person shall be prohibited automatically from the privileges of all registered entities; and #####

(B)if such person is registered with the Commission, such registration shall be suspended automatically. ####

(3)If a person against whom a money penalty is assessed under subsection

(c)takes an appeal and if the Commission prevails or the appeal is dismissed, unless such person shows to the satisfaction of the Commission that payment of the full amount of the penalty then due has been made by the end of thirty days from the date of entry of judgment on the appeal— #####

(A)such person shall be prohibited automatically from the privileges of all registered entities; and #####

(B)if such person is registered with the Commission, such registration shall be suspended automatically. If the person against whom the money penalty is assessed fails to pay such penalty after the lapse of the period allowed for appeal or after the affirmance of such penalty, the Commission may refer the matter to the Attorney General who shall recover such penalty by action in the appropriate United States district court. ####

(4)Any designated clearing organization that knowingly or recklessly evades or participates in or facilitates an evasion of the requirements of section 2(h) shall be liable for a civil money penalty in twice the amount otherwise available for a violation of section 2(h). ####

(5)Any swap dealer or major swap participant that knowingly or recklessly evades or participates in or facilitates an evasion of the requirements of section 2(h) shall be liable for a civil money penalty in twice the amount otherwise available for a violation of section 2(h). ###

(f)**[**TELEMARKETING RULES**]** **[**[7 U.S.C. 9b](/us/usc/t7/s9b)**]** ####

(1)Except as provided in paragraph (2), not later than six months after the effective date of rules promulgated by the Federal Trade Commission under section 3(a) of the Telemarketing and Consumer Fraud and Abuse Prevention Act, the Commission shall promulgate, or require each registered futures association to promulgate, rules substantially similar to such rules to prohibit deceptive and other abusive telemarketing acts or practices by any person registered or exempt from registration under this Act in connection with such person's business as a futures commission merchant, introducing broker, commodity trading advisor, commodity pool operator, leverage transaction merchant, floor broker, or floor trader, or a person associated with any such person. ####

(2)The Commission is not required to promulgate rules under paragraph

(1)if it determines that— #####

(A)rules adopted by the Commission under this Act provide protection from deceptive and abusive telemarketing by persons described under paragraph

(1)substantially similar to that provided by rules promulgated by the Federal Trade Commission under section 3(a) of the Telemarketing and Consumer Fraud and Abuse Prevention Act; or #####

(B)such a rule promulgated by the Commission is not necessary or appropriate in the public interest, or for the pro- tection of customers in the futures and options markets, or would be inconsistent with the maintenance of fair and orderly markets. If the Commission determines that an exception described in subparagraph

(A)or

(B)applies, the Commission shall publish in the Federal Register its determination with the reasons for it. ###

(g)**[**NOTIFICATION OF INVESTIGATIONS AND ENFORCEMENT ACTIONS**]** **[**[7 U.S.C. 9c](/us/usc/t7/s9c)**]** The Commission shall provide the Securities and Exchange Commission with notice of the commencement of any proceeding and a copy of any order entered by the Commission pursuant to subsections

(c)and

(d)of this section against any futures commission merchant or introducing broker registered pursuant to section 4f(a)(2), any floor broker or floor trader exempt from registration pursuant to section 4f(a)(3), any associated person exempt from registration pursuant to section 4k(6), or any board of trade designated as a contract market pursuant to section 5f.

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Sec. 6

**[**APPLICATION FOR DESIGNATION AS CONTRACT MARKET OR DERIVATIVES TRANSACTION EXECUTION FACILITY**]**

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Sec. 6. **[**APPLICATION FOR DESIGNATION AS CONTRACT MARKET OR DERIVATIVES TRANSACTION EXECUTION FACILITY**]**

Sec. 6. [APPLICATION FOR DESIGNATION AS CONTRACT MARKET OR DERIVATIVES TRANSACTION EXECUTION FACILITY]