7 U.S.C. § 7b-1 : US Code - Section 7B-1: Designation of securities exchanges and associations as contract markets

Search 7 U.S.C. § 7b-1 : US Code - Section 7B-1: Designation of securities exchanges and associations as contract markets

(a) Any board of trade that is registered with the Securities and
Exchange Commission as a national securities exchange, is a
national securities association registered pursuant to section 78o-
3(a) of title 15, or is an alternative trading system shall be a
designated contract market in security futures products if - 
(1) such national securities exchange, national securities
association, or alternative trading system lists or trades no
other contracts of sale for future delivery, except for security
futures products;
(2) such national securities exchange, national securities
association, or alternative trading system files written notice
with the Commission in such form as the Commission, by rule, may
prescribe containing such information as the Commission, by rule,
may prescribe as necessary or appropriate in the public interest
or for the protection of customers; and
(3) the registration of such national securities exchange,
national securities association, or alternative trading system is
not suspended pursuant to an order by the Securities and Exchange
Commission.
Such designation shall be effective contemporaneously with the
submission of notice, in written or electronic form, to the
Commission.
(b)(1) A national securities exchange, national securities
association, or alternative trading system that is designated as a
contract market pursuant to this section shall be exempt from the
following provisions of this chapter and the rules thereunder:
(A) Subsections (c), (e), and (g) of section 6c of this title.
(B) Section 6j of this title.
(C) Section 7 of this title.
(D) Section 7a-2 of this title.
(E) Section 10a of this title.
(F) Section 12(d) of this title.
(G) Section 13(f) of this title.
(H) Section 20 of this title.
(2) An alternative trading system that is a designated contract
market under this section shall be required to be a member of a
futures association registered under section 21 of this title and
shall be exempt from any provision of this chapter that would
require such alternative trading system to - 
(A) set rules governing the conduct of subscribers other than
the conduct of such subscribers' trading on such alternative
trading system; or
(B) discipline subscribers other than by exclusion from
trading.
(3) To the extent that an alternative trading system is exempt
from any provision of this chapter pursuant to paragraph (2) of
this subsection, the futures association registered under section
21 of this title of which the alternative trading system is a
member shall set rules governing the conduct of subscribers to the
alternative trading system and discipline the subscribers.
(4)(A) Except as provided in subparagraph (B), but
notwithstanding any other provision of this chapter, the
Commission, by rule, regulation, or order, may conditionally or
unconditionally exempt any designated contract market in security
futures subject to the designation requirement of this section from
any provision of this chapter or of any rule or regulation
thereunder, to the extent such exemption is necessary or
appropriate in the public interest and is consistent with the
protection of investors.
(B) The Commission shall, by rule or regulation, determine the
procedures under which an exemptive order under this section is
granted and may, in its sole discretion, decline to entertain any
application for an order of exemption under this section.
(C) An alternative trading system shall not be deemed to be an
exchange for any purpose as a result of the designation of such
alternative trading system as a contract market under this section.