and to such members of the Commission's staff acting under his or her direction as the Director may designate from time to time, the authority to disclose any registration information contained in the registration applications filed by Commission registrants or any compilation of such information maintained by the Commission to any department or agency of any State or any political subdivision thereof. Disclosure under this section may be made upon reasonable request made to the Commission or without request whenever the Director of Trading and Markets or any Commission employee designated by the Director to make disclosures under this section determines that such information may be appropriate for use by any department or agency of a State or political subdivision thereof. Notwithstanding the provisions of this section, in any case in which the Director of Division of Trading and Markets deems it appropriate, or in any case in which the Commission so requests, the Director may submit matter to the Commission for its consideration.

(Secs. 2(a)(11), 8 and 8a of the Commodity Exchange Act, 7 U.S.C. 4a(j), 12 and 12a, as amended by Pub. L. 97-444) [48 FR 22136, May 17, 1983]

§ 140.76 Delegation of authority to disclose information in a receivership or bankruptcy proceeding.

(a) Pursuant to sections 2(a)(11) and 8(b) of the Act, the Commission hereby delegates, until such time as the Commission orders otherwise, to the Director of the Division of Enforcement, the Director of the Division of Trading and Markets, the General Counsel or any Commission employee under their direction as they may designate, the authority to disclose data and information that would separately disclose the business transactions or market positions of any person and trade secrets or names of customers, when such disclosure is made in any receivership proceeding involving a receiver appointed in a judicial proceeding brought under the Act, or in any bankruptcy proceeding in which the Commission has intervened or in which the Commission has

the right to appear and be heard under Title 11 of the United States Code.

(b) Notwithstanding the provisions of paragraph (a), in any case in which the Director of the Division of Enforcement, the Director of the Division of Trading and Markets, the General Counsel, or any employee designated by them to make disclosures pursuant to this section believes it appropriate, the matter may be submitted to the Commission for consideration. In addition, the Commission reserves to itself the authority to determine whether to grant a request for information in any particular case.

(Secs. 2(a)(11) and 8 of the Commodity Exchange Act, 7 U.S.C. 4a(j) and 12 (1983)) [49 FR 4464, Feb. 7, 1984]

§ 140.77 Delegation of authority to determine that applications for contract market designation are materially incomplete.

(a) The Commodity Futures Trading Commission hereby delegates, until such time as the Commission orders otherwise, to the Directors of the Division of Economics and Education and the Division of Trading and Markets or their designees, the authority to determine that an application for contract market designation is materially incomplete under section 6 of the Commodity Exchange Act and to so notify the applicant.

(b) The Directors of the Division of Economics and Education and the Division of Trading and Markets may submit any matter which has been delegated to them under paragraph (a) of this section to the Commission for its consideration.

(c) Nothing in this section may prohibit the Commission, at its election, from exercising the authority delegated to the Directors of the Division of Economics and Education and the Division of Trading and Markets under paragraph (a) of this section.

(Secs. 2(a)(11), and 6 of the Commodity Exchange Act, 7 U.S.C. 4a(j) and 8, as amended by the Futures Trading Act of 1982, Pub. L. 97-444, 96 Stat. 2294; 2308 (1983)) [48 FR 34946, Aug. 2, 1983]

§ 140.80 Disclosure of information pursuant to a subpoena or summons.

The Commission shall provide notice to any person who has submitted information to the Commission when a summons or subpoena seeking the submitted information is received by the Commission. Notice ordinarily will be provided by mailing a copy of the summons or subpoena to the last known home or business address of the person who submitted the information. However, under circumstances which would make notice by mail unduly burdensome or costly, notice of the existence of the summons or subpoena may be affected by alternative means such as publication in the FEDERAL REGISTER. The Commission will not disclose such information until the expiration of at least fourteen days from the date of mailing, or such other notice as is given. This section shall not apply to (a) Congressional subpoenas or Congressional requests for information, (b) information which is considered by the Commission to be public information, or (c) information as to which the submitter has waived the notice provision of this section.

(Secs. 2a(11) and 8 of the Commodity Exchange Act, 7 U.S.C. 4a(j) and 12 (1983)) [49 FR 4464, Feb. 7, 1984]

140.81 Delegation of authority to the Di

rector of the Complaints Section. Pursuant to the authority granted under sections 2(a)(4) and 2(a)(11) of the Commodity Exchange Act, as amended, 7 U.S.C. 4a(c) and 4a(j), the Commodity Futures Trading Commission hereby delegates, until such time as the Commission orders otherwise, the following functions to the Director of the Complaints Section, and to such person or persons under the Director's direction as the Director may designate from time to time:

(a) With respect to reparation proceedings filed pursuant to section 14 of the Commodity Exchange Act, as amended (the "Act"), 7 U.S.C. 18 on and after January 14, 1980 and subject to the Commission's Reparation rules as set forth in Part 12 of this chapter, to perform all functions reserved to the Commission in sections 14(a), (b) and (d) of the Act and in Subparts B

and C of the Reparation rules, prior to the docketing of formal adjudicatory proceedings pursuant to § 12.41 of the Reparation rules.

(b) Notwithstanding the provisions of paragraph (a) of this section, in any case in which the Director believes it appropriate, or in which the Commission so requests, such Director may submit the matter to the Commission for its consideration.

(Pub. L. 93-463, sec. 101(a)(4) and 101(a)(11), 88 Stat. 1391 (7 U.S.C. 4a(c) and 4a(j))

[45 FR 14021, Mar. 4, 1980]

§ 140.91 Delegation of authority to the Director of the Division of Trading and Markets.

(a) The Commission hereby delegates, until such time as the Commission orders otherwise, the following functions to the Director of the Division of Trading and Markets and to such members of the Commission's staff acting under his direction as he may designate from time to time:

(1) All functions reserved to the Commission in § 1.10 of this chapter, except for those relating to nonpublic treatment of reports set forth in § 1.10(g) of this chapter;

(2) All functions reserved to the Commission in § 1.12 of this chapter;

(3) All functions reserved to the Commission in § 1.16 of this chapter;

and

(4) All functions reserved to the Commission in § 1.17 of this chapter, except for those relating to non-enumerated cover cases set forth in § 1.17(j)(3) of this chapter.

(b) The Director of the Division of Trading and Markets may submit any matter which has been delegated to him under paragraph (a) of this section to the Commission for its consideration.

(Secs. 2a(11) and 8a(5) of the Commodity Exchange Act, as amended, 7 U.S.C. 4a(j) and 12a(5) (1976))

[44 FR 13460, Mar. 12, 1979]

140.92 Delegation of authority to grant registrations and renewals thereof.

(a) The Commission hereby delegates, until such time as the Commission orders otherwise, to the Director

of the Division of Trading and Markets and to such members of the Commission's staff acting under his direction as he may designate, the authority to grant registrations and renewals thereof.

(b) The Director of the Division of Trading and Markets may submit any matter which has been delegated to him under paragraph (a) of this section to the Commission for its consideration.

(c) Nothing in this section may prohibit the Commission, at its election, from exercising the authority delegated to the Director of the Division of Trading and Markets under paragraph (a) of this section.

(Secs. 2a(11), 8a(1), and 8a(5) of the Commodity Exchange Act, as amended, 7 U.S.C. 4a(j), 12a(1), and 12a(5), as amended; 92 Stat. 863 et seq.)

[45 FR 20785, Mar. 31, 1980]

§ 140.93 Delegation of authority to the Director of the Division of Trading and Markets.

(a) The Commission hereby delegates, until such time as the Commission orders otherwise, the following functions to the Director of the Division of Trading and Markets and to such members of the Commission's staff acting under his direction as he may designate from time to time:

(1) All functions reserved to the Commission in § 4.12 of this chapter;

(2) All functions reserved to the Commission in § 4.22(f)(3) of this chapter; and

(3) All functions reserved to the Commission in § 4.22(g)(3) of this chapter.

(4) All functions reserved to the Commission in § 4.20(a) of this chap

ter.

(b) The Director of the Division of Trading and Markets may submit any matter which has been delegated to him under paragraph (a) of this section to the Commission for its consideration.

(c) Nothing in this section may prohibit the Commission, at its election, from exercising the authority delegated to the Director of the Division of Trading and Markets under paragraph (a) of this section.

(7 U.S.C. 2, 6, 12, and 23)

[46 FR 26023, May 8, 1981, as amended at 46 FR 34311, July 1, 1981]

§ 140.95 Delegation of authority with respect to withdrawals from registration. (a) The Commission hereby delegates, until such time as the Commission orders otherwise, to the Director of the Division of Trading and Markets and to such members of the Commission's staff acting under his direction as he may designate, the authority to review, postpone, condition, deny, or otherwise act upon a request for withdrawal from registration.

(b) The Director of the Division of Trading and Markets may submit any matter which has been delegated to him under paragraph (a) of this section to the Commission for its consideration.

(c) Nothing in this section shall prohibit the Commission, at its election, from exercising the authority delegated to the Director of the Division of Trading and Markets under paragraph (a) of this section.

(7 U.S.C. 4 and 12)

[46 FR 48918, Oct. 5, 1981]

Subpart C-Regulation Concerning Conduct of Members and Employees and Former Members and Employees of the Commission

AUTHORITY: Sec. 8a(5), 49 Stat. 1501, as amended (7 U.S.C. 12a(5)); E.O. 11222, 3 CFR, 1964-1965 Comp.; 5 CFR 735.104, unless otherwise noted.

SOURCE: 41 FR 27511, July 2, 1976, unless otherwise noted.

§ 140.735-1 Authority and purpose.

This subpart, adopted by the Commodity Futures Trading Commission on June 25, 1976, establishes standards of ethical conduct required of members, employees and special Government employees, and regulations concerning former members, employees and special Government employees of the Commodity Futures Trading Commission. It implements Executive Order No. 11222 (May 8, 1965, 30 FR 6469) and Office of Government Ethics, Office of Personnel Management Regulations (5 CFR Part 735) adopted pursuant to that Order. In ad

dition, the subpart contains references to various statutes governing employee conduct in order to aid members and employees in their understanding of statutory restrictions and requirements.1

(Secs. 2(a)(11) and 8a(5) of the Commodity Exchange Act, 7 U.S.C. 4a(j) and 12a(5), E.O. 11222, 3 CFR, 1964-1965 Comp., as amended, 5 CFR 735.104 and 18 U.S.C. 207(j))

[41 FR 27511, July 2, 1976, as amended at 47 FR 26815, June 22, 1982]

§ 140.735-2 Policy and enforcement.

The maintenance of high standards of honesty, integrity, impartiality, and conduct by Government's employees is .essential to assure the proper performance of the Government's business and the maintenance of confidence by citizens in their Government. In a regulatory agency such as the Commission, whose actions affect the business and financial interests of a large number and variety of persons, it is particularly important that every employee be completely impartial, honest and above suspicion of improper conduct. Accordingly, the Commission requires that its employees strictly adhere to the highest standard of ethical conduct in all their business and off-the-job activities, relationships and interests, as well as in their official actions. All Commission employees shall exercise their informed judgment to avoid situations that might result in actual or apparent misconduct or conflict of interests.

'These references, however, do not purport to cover all restrictions and requirements, and the paraphrased restatements of statutory provisions, such as that of the conflict-of-interest provisions of 18 U.S.C. 201, et seq., appearing in this subpart C, are not intended to be, and should not be construed as, verbatim quotations of the law. The statutory text should be consulted in any situation in which it might apply. Section 140.735-12 lists applicable statutes and regulations copies of which, as well as of all pertinent regulations and orders, are available for review by Commission employees in the Office of the General Counsel in Washington, D.C., and in each Commission Regional Office.

§ 140.735-3 General provisions.

(a) Applicability. For the purposes of this section, members and employees of the Commission should be aware that the financial interests and business matters or transactions of their spouses, minor children or other relatives who are residents of their immediate households will be regarded, absent compelling countervailing reasons, as those of the member or employee.

(b) Prohibitions. A member or employee of the Commission shall not:

(1) Have a direct or indirect financial interest that conflicts substantially, or appears to conflict substantially, with his official duties and responsibilities;

(2) Engage in, directly or indirectly, a personal business matter or transaction, or private arrangement for gain or profit, which accrues as a result of or is based upon his official position or authority, or upon confidential or nonpublic information that he has gained by reason of such position or authority;

(3) Act in or on any matter, whether or not specifically prohibited by this section, which might result in, or create the appearance of: (i) Using public office for private gain; (ii) giving preferential treatment to any person; (iii) impeding Government efficiency or economy; (iv) losing complete independence or impartiality; (v) making a Government decision outside official channels; or (vi) affecting adversely the confidence of the public in the integrity of the Government; or

(4) Act in or on any official matter with respect to which there exists a personal interest that would interfere with an unbiased exercise of official judgment.

(c) Matters not prohibited. This section does not preclude a member or employee from having a financial interest or engaging in financial transactions to the same extent as a private citizen not employed by the Government so long as it is not prohibited by law, Executive Order, this section or the regulations under the Commodity Exchange Act.

[41 FR 27511, July 2, 1976, as amended at 42 FR 15902, Mar. 24, 1977]

§ 140.735-4 Business and financial transactions and interests.

(a) Application. This section applies to all transactions effected by or on behalf of a Commission member or employee, including transactions for the account of other persons effected by the member or employee, directly or indirectly, under a power of attorney or otherwise. A member or employee is considered to have sufficient interest in the transactions of the spouse or minor child of the member or employee, or other relatives who are residents of the immediate household of the member or employee, so that such transactions must be reported and, absent compelling countervailing reasons, are subject to all the terms of this section.

(b) Prohibitions. No Commission member or employee shall:

(1) Participate, directly or indirectly, in any transaction (i) involving a contract of sale of any commodity for future delivery; (ii) involving any commodity that is of the character of, or is commonly known to the trade as, an option, privilege, indemnity, bid, offer, put, call, advance guaranty or decline guaranty; or (iii) for the delivery of any commodity that is or is to be executed pursuant to a standardized contract commonly known to the trade as a margin account, margin contract, leverage account or leverage contract 2 or similar contracts when subject to regulation by the Commission;

2 Attention is directed to section 9(d) of the Commodity Exchange Act, which makes it a felony, punishable by a fine of not more than $100,000 or imprisonment of not more than five years, or both, together with the costs of prosecution, for any member or employee of the Commission, or agent thereof, to participate, directly or indirectly, in, inter alia, any transaction in a commodity future or any transaction of the character of, or which is commonly known to the trade as, an option, privilege, indemnity, bid, offer, put, call, advance guaranty, or decline guaranty. Attention is also directed to section 2(a)(7) of the Commodity Exchange Act, which, among other things, prohibits Commission members and employees from participating, directly or indirectly, in any transaction of a character subject to regulation by the Commission. Section 19 of the Commodity Exchange Act, authorizes the Commission to regulate the types of trans

actions enumerated before footnote 2 in clause (iii) accompanying this note.

3 Attention is directed to the provision in section 9(d) of the Commodity Exchange Act which makes it a felony for any Commission member or employee or agent thereof to participate, directly or indirectly, in any investment transaction in an actual commodity. That section further provides that the prohibition against investment transactions in actual commodities does not apply to a transaction in which the Commission member or employee (a) buys an agricultural commodity or livestock for use in his own farming or ranching operations, (b) sells an agricultural commodity which he has produced in connection with his own farming or ranching operations, (c) sells livestock he has owned at least three months, (d) establishes a trust (over which he exercises no control) in which the trustee engages in hedging transactions in connection with permitted farming or ranching operations or in which the trustee leases oil, gas, or other mineral rights owned by a member or employee, or (e) buys or sells (except by means of an instrument regulated by the Commission) U.S. Government securities, certificates of deposit, or other similar financial instruments if no nonpublic information is used in the transaction. A member or employee or agent planning to participate in any transaction within the scope of (a), (b), (c), (d), or (e), shall submit to the General Counsel for transmission to the Commission a written notification setting forth all pertinent facts. The submission shall be publicly available. Attention is further directed to section 2(a)(7) of the Commodity Exchange Act.

4 As defined in section 2(a)(1) of the Act and 17 CFR 1.3(u) thereunder, a "person" includes an individual, association, partnership, corporation and a trust.

5 Attention is directed to sections 2(a)(7) and 9(d) of the Commodity Exchange Act. See nn. 2, 3 and 7 of this subpart.

"This provision does not, however, preclude a member or employee from carrying securities on margin, pursuant to customary margin requirements, with a broker who is Continued