PUBLIC LAW 106-554—APPENDIX E 114 STAT. 2763A-401 "(A) notify the registered entity in writing of the determination; and "(B) afford the registered entity an opportunity to make appropriate changes to bring the registered entity into comphance with the core principles. "(2) FAILURE TO MAKE CHANGES. — I f, not later than 30 days after receiving a notification under paragraph (1), a registered entity fails to make changes that, in the opinion of the Commission, are necessary to comply with the core principles, the Commission may take further action in accordance with this Act. "(e) RESERVATION OF EMERGENCY AUTHORITY.—Nothing in this section shall limit or in any way affect the emergency powers of the Commission provided in section 8a(9).". SEC. 114. EXEMPT BOARDS OF TRADE. The Commodity Exchange Act (7 U.S.C. 1 et seq.) is amended by inserting after section 5c (as added by section 113) the following: "SEC. 5d. EXEMPT BOARDS OF TRADE. "(a) ELECTION TO REGISTER WITH THE COMMISSION.— A board of trade that meets the requirements of subsection (b) of this section may operate as an exempt board of trade on receipt from the board of trade of a notice, provided in such manner as the Commission may by rule or regulation prescribe, that the board of trade elects to operate as an exempt board of trade. Except as otherwise provided in this section, no provision of this Act (other than subparagraphs (C) and (D) of sections 2(a)(1) and 12(e)(2)(B)) shall apply with respect to a contract of sale of a commodity for future delivery (or option on such a contract) traded on or through the facilities of an exempt board of trade. "(b) CRITERIA FOR EXEMPTION.—To qualify for an exemption under subsection (a), a board of trade shall limit trading on or through the facilities of the board of trade to contracts of sale of a commodity for future delivery (or options on such contracts or on a commodity)— "(1) for which the underlying commodity has— "(A) a nearly inexhaustible deliverable supply; "(B) a deliverable supply that is sufficiently large, and a cash market sufficiently liquid, to render any contract traded on the commodity highly unlikely to be susceptible to the threat of manipulation; or "(C) no cash market; "(2) that are entered into only between persons that are eligible contract participants at the time at which the persons enter into the contract; and "(3) that are not contracts of sale (or options on such a contract or on a commodity) for future delivery of any security, including any group or index of securities or any interest in, or based on the value of, any security or any group or index of securities. "(c) ANTIMANIPULATION REQUIREMENTS. — A party to a contract of sale of a commodity for future delivery (or option on such a contract or on a commodity) that is traded on an exempt board of trade shall be subject to sections 4b, 4c(b), 4o, 6(c), and 9(a)(2), and the Commission shall enforce those provisions with respect to any such trading.
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