Page:United States Statutes at Large Volume 92 Part 1.djvu/930

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PUBLIC LAW 95-000—MMMM. DD, 1978

92 STAT. 876

PUBLIC LAW 95-405—SEPT. 30, 1978 (1) striking out in subsection (a) "registered" and inserting in lieu thereof "who is registered or required to be registered"; (2) striking out in subsection (b) "$2,500" and inserting in lieu thereof "$5,000"; and (3) striking out in subsection (c) "$2,500" wherever it appears and inserting in lieu thereof "$5,000". REGISTERED FUTURES ASSOCIATION

SEC. 22. Section 17 of the Commodity Exchange Act (7 U.S.C. 21) is amended by— (1) striking out in subsection (b)(3)(B) "(7 U.S.C. 9) "; (2) striking out in subsection (b) (10) "$5,000" and inserting in lieu thereof "$15,000"; (3) striking out in subsection (1) "title" each time that word appears and inserting in lieu thereof "Act"; and (4) redesignating subsection (m) as subsection (n), and inserting after subsection (1) a new subsection (m) as follows: " (m) Notwithstanding any other provision of law, the Commission may approve rules of futures associations that, directly or indirectly, require persons eligible for membership in such associations to become members of at least one such association, upon a determination by the Commission that such rules are necessary or appropriate to achieve the purposes and objectives of this Act.". L E V E R A G E TRANSACTIONS

7 USC 23. 7 USC 2, 4, 4a. 7 USC I note.

Regulations.

SEC. 23. The Commodity Exchange Act is amended by adding at the end thereof a new section 19 as follows: "SEC, 19. (a) No person shall offer to enter into, enter into, or confirm the execution of, any transaction for the delivery of any commodity specifically set forth in section 2(a) of this Act prior to the enactment of the Commodity Futures Trading Commission Act of 1974 under a standardized contract commonly known to the trade as a margin account, margin contract, leverage account, or leverage contract, or under any contract, account, arrangement, scheme, or device that the Commission determines 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. "(b) No person shall offer to enter into, enter into, or confirm the execution or any transaction for the delivery of silver bullion, gold bullion, or bulk silver coins or bulk gold coins, under a standardized contract described in subsection (a) of this section, contrary to any rule, regulation, or order of the Commission designed to ensure the financial solvency of the transaction or prevent manipulation or fraud: Provided, That such rule, regulation, or order may be made only after notice and opportunity for hearing. "(c) The Commission may prohibit or regulate any transactions, under a standardized contract described in subsection (a) of this section, involving any other commodities under such terms and conditions as the Commission shall initially prescribe by October 1, 1979: Provided, That any such order, rule, or regulation may be made only after notice and opportunity for hearing: Provided further, That the Commission may set different terms and conditions for such transactions involving different commodities.