§ 6j. Restrictions on dual trading in security futures products on designated contract markets and registered derivatives transaction execution facilities
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(a)Issuance of regulations The Commission shall issue regulations to prohibit the privilege of dual trading in security futures products on each contract market and registered derivatives transaction execution facility. The regulations issued by the Commission under this section—
(1)shall provide that the prohibition of dual trading thereunder shall take effect upon issuance of the regulations; and
(2)shall provide exceptions, as the Commission determines appropriate, to ensure fairness and orderly trading in security futures product markets, including—
(A)exceptions for spread transactions and the correction of trading errors;
(B)allowance for a customer to designate in writing not less than once annually a named floor broker to execute orders for such customer, notwithstanding the regulations to prohibit the privilege of dual trading required under this section; and
(C)other measures reasonably designed to accommodate unique or special characteristics of individual boards of trade or contract markets, to address emergency or unusual market conditions, or otherwise to further the public interest consistent with the promotion of market efficiency, innovation, and expansion of investment opportunities, the protection of investors, and with the purposes of this section.
(b)“Dual trading” defined As used in this section, the term “dual trading” means the execution of customer orders by a floor broker during the same trading session in which the floor broker executes any trade in the same contract market or registered derivatives transaction execution facility for—
(1)the account of such floor broker;
(2)an account for which such floor broker has trading discretion; or
(3)an account controlled by a person with whom such floor broker has a relationship through membership in a broker association.
(c)“Broker association” defined As used in this section, the term “broker association” shall include two or more contract market members or registered derivatives transaction execution facility members with floor trading privileges of whom at least one is acting as a floor broker, who—
(1)engage in floor brokerage activity on behalf of the same employer,
(2)have an employer and employee relationship which relates to floor brokerage activity,
(3)share profits and losses associated with their brokerage or trading activity, or
(4)regularly share a deck of orders.
(Sept. 21, 1922, ch. 369, § 4j, as added Pub. L. 93–463, title II, § 203, Oct. 23, 1974, 88 Stat. 1396; amended Pub. L. 94–16, § 2, Apr. 16, 1975, 89 Stat. 77; Pub. L. 102–546, title I, §§ 101, 102(a), Oct. 28, 1992, 106 Stat. 3591, 3594; Pub. L. 106–554, § 1(a)(5) [title II, § 251(c)], Dec. 21, 2000, 114 Stat. 2763, 2763A–442.)
Connections31 cite this · traces to 1
Cited by 31 sections · top 25
U.S. Code
- § 78fNational securities exchanges
- § 2Jurisdiction of Commission; liability of principal for act of agent; Commodity Futures Trading Commission; transaction in interstate commerce
- § 6fRegistration and financial requirements; risk assessment
- § 6kRegistration of associates of futures commission merchants, commodity pool operators, and commodity trading advisors; required disclosure of disqualifications; exemptions for associated persons
statutes-at-large
- Public Law 93–463To amend the Commodity Exchange Act to strengthen the regulation of futures trading, to bring all agricultural and other commodities traded on exchanges under regulation, and for other purposes
- Public Law 94–16
- Public Law 106–554Making consolidated appropriations for the fiscal year ending September 30, 2001, and for other purposes
- Public Law 102–546To amend the Commodity Exchange Act to improve the regulation of futures and options traded under rules and regulations of the Commodity Futures Trading Commission; to establish registration standards for all exchange floor traders; to restrict practices which may lead to the abuse of outside custom
statute-compilations
register
bill
- Sec. 410Elimination of obsolete references to derivative transaction execution facilities
- Sec. 410Elimination of obsolete references to derivative transaction execution facilities
- Sec. 410Elimination of obsolete references to derivative transaction execution facilities
- Sec. 410Elimination of obsolete references to derivative transaction execution facilities
- Sec. 402Elimination of obsolete references to derivative transaction execution facilities
- Sec. 410Elimination of obsolete references to derivative transaction execution facilities
- Sec. 410Elimination of obsolete references to derivative transaction execution facilities
- Sec. 410Elimination of obsolete references to derivative transaction execution facilities
- Sec. 210Elimination of obsolete references to derivative transaction execution facilities
- Sec. 209Elimination of obsolete references to derivative transaction execution facilities
- Sec. 209Elimination of obsolete references to derivative transaction execution facilities
17 references not yet in our index
- Sept. 21, 1922, ch. 369, § 4j
- Pub. L. 93–463, title II, § 203
- 88 Stat. 1396
- Pub. L. 94–16, § 2
- 89 Stat. 77
- Pub. L. 102–546, title I
- 106 Stat. 3591
- Pub. L. 106–554, § 1(a)(5) [title II, § 251(c)]
- 114 Stat. 2763
- Pub. L. 106–554
- Pub. L. 102–546, § 101(a)(3)
- Pub. L. 102–546, § 101(a)(1)
- Pub. L. 102–546, § 102(a)
- Pub. L. 94–16
- Pub. L. 102–546, title I, § 102(b)
- 106 Stat. 3594
- section 418 of Pub. L. 93–463
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§ 6j
Restrictions on dual trading in security futures products on designated contract markets and registered derivatives transaction execution facilities
Bills×11
Fed. Reg.×7
Stat.×7
U.S.C.×4
Stat. Comp.×2
ActSept. 21, 1922, ch. 369, § 4j
Pub. L.Pub. L. 93–463, title II, § 203
Stat.88 Stat. 1396
Pub. L.Pub. L. 94–16, § 2
Stat.89 Stat. 77
Cites 18 · showing 6Cited by 31 across 5 sources