(Approved by the Office of Management and Budget under control number 30380022)

[46 FR 50945, Oct. 16, 1981, as amended at 46 FR 63035, Dec. 30, 1981]

§ 1.70 Notification of State enforcement actions brought under the Commodity Exchange Act.

(a) Immediately upon instituting any proceeding in any federal district court for violation of the Act or any rule, regulation or order thereunder against any person who is subject to suit pursuant to sections 6d(1)-(6) of the Act, the authorized state official of the state instituting the proceeding shall submit to the Commission a copy of the complaint filed in the proceeding, together with a written notice which:

(1) Indicates the names of parties to the proceeding;

(2) Indicates the provision of the Act or the rule, regulation or order thereunder which is alleged to have been violated.

The complaint and written notice must be sent by first-class United States mail or personally delivered to the Secretary, Commodity Futures Trading Commission, 2033 K Street NW., Washington, D.C. 20581.

(b) Prior to instituting any proceeding in a state court for the alleged violation of any antifraud provisions of the Act or any antifraud rule, regulation or order thereunder against any person registered with the Commission who is subject to suit pursuant to the provisions of section 6d(8) of the Act, the authorized state official of the state intending to institute the proceeding shall submit to the Commission written notice which:

(1) Indicates the names of parties to the proposed proceeding;

(2) Indicates the provision of the Act or the rule, regulation or order thereunder which will be alleged to have been violated;

(3) Contains a brief statement of the facts on which the proposed action will be based.

Except as provided in paragraph (c), this written notice must be sent by first-class United States mail or personally delivered to the Secretary, Commodity Futures Trading Commis

sion, 2033 K Street NW., Washington, D.C. 20581 not less than 5 business days prior to instituting the proceeding in state court.

(c) Where it is impracticable to provide the Commission with written notice within the time period specified in paragraph (b), the authorized state official must inform the Secretary of the Commission by telephone at (202) 254-6314 as soon as practicable of the state's intent to institute a proceeding in state court and must send the written notice required in paragraph (b)(1)-(b)(3) via Telex or other similarly expeditious means of written communication to the Secretary, Commodity Futures Trading Commission, 2033 K Street NW., Washington, D.C. 20581 (TWX-710-822-9327) prior to instituting the proceeding in state court.

(d) Immediately upon instituting any proceeding in a state court pursuant to the provisions of section 6d(8) of the Act for alleged violation of any antifraud provisions of the Act or any antifraud rule, regulation or order thereunder, the authorized state official instituting the proceeding shall submit to the Commission a copy of the complaint filed in the proceeding. The copy of the complaint must be sent by first class United States mail or personally delivered to the Secretary, Commodity Futures Trading Commission, 2033 K Street NW., Washington, D.C. 20581.

(Secs. 6d and 8a of the Commodity Exchange Act (7 U.S.C. 12a and 13a-2, as amended))

[48 FR 49503, Oct. 26, 1983]

ed an official seal (the "Seal"), the description of which is as follows:

(a) An American bald eagle in black and white holding the scales of balanced interests over a black and white wheel of commerce and a farmer's plow, also in black and white. These symbols are enclosed with an inner red octagon and a blue outer octagon representing traditional futures contract trading pits. Around the outside of the octagons are the words "Commodity Futures Trading Commission" separated by two stars from the year "1975," the first year of the Commission's existence.

(b) The Seal of the Commodity Futures Trading Commission is illustrated as follows:

(a) The following officials of the Commodity Futures Trading Commission are authorized to affix the Seal to appropriate documents and other materials of the Commission for all purposes including those authorized by 28 U.S.C. 1733(b) (relating to authenticated copies of agency documents used as evidence): The Chairman and all Commissioners, the General Counsel, the Executive Director, the Directors of Divisions, and the Secretariat.

(b) The officials, named in paragraph (a) of this section, except the Secretariat, may redelegate, and authorize redelegation of this authority.

§ 2.3 Prohibitions against misuse of seal.

(a) Fraudulently or wrongfully affixing or impressing the Seal to or upon any certificate, instrument, document or paper or with knowledge of its fraudulent character, or with wrongful or fraudulent intent, using, buying, procuring, selling or transferring to another any such paper is punishable under section 1017 of Title 18, United States Code.

(b) Falsely making, forging, counterfeiting, mutilating, or altering the Seal, or knowingly using a fraudulent or altered Seal or possessing any such Seal knowingly is punishable under section 506 of Title 18, United States Code.

Sec.

PART 3-REGISTRATION

Subpart A-Registration

3.1 Definitions.

3.2 Registration processing by the National Futures Association; notification and duration of registration.

3.3 Registration fees; form of remittance. 3.4 Registration in one capacity not included in registration in any other capacity. 3.5-3.9 [Reserved]

3.10 Registration of futures commission merchants.

3.11 Registration of floor brokers.

3.12 Registration of associated persons of futures commission merchants and introducing brokers.

3.12a-(T) "Transfer" of associated persons; temporary exemption.

3.13 Registration of commodity trading ad

visors.

3.14 Registration of commodity pool opera

tors.

Subpart E-Delegation and Reservation of Authority

3.75 Delegation and reservation of authority.

APPENDIX A-INTERPRETIVE STATEMENT WITH RESPECT TO SECTION 8a(2)(C) AND (E) AND SECTION 8a(3)(J) AND (M) OF THE COMMODITY EXCHANGE ACT

AUTHORITY: 7 U.S.C. 2, 4, 4a, 6c, 6d, 6e, 6f, 6k, 6m, 6n, 6p, 12a, 13c, 16a, unless otherwise noted.

SOURCE: 45 FR 80491, Dec. 5, 1980, unless otherwise noted.

Subpart A-Registration

SOURCE: 45 FR 80491, Dec. 5, 1980, unless otherwise noted.

§3.1 Definitions.

(a) Principal. Principal means, with respect to an applicant for registration, a registrant or a person required to be registered under the Act or these regulations: (1) Any person including, but not limited to, a sole proprietor, general partner, officer, director, branch office manager or designated supervisor, or person occupying a similar status or performing similar functions, having the power, directly or indirectly, through agreement or otherwise, to exercise a controlling influence over its activities which are subject to regulation by the Commission; (2) any holder or beneficial owner of ten percent or more of the outstanding shares of any class of stock; or (3) any person who has contributed ten percent or more of the capital.

(b) Current. As used in §§ 3.10-3.17, a current Form 8-R or Form 94 is any such Form which was filed by or on behalf of a registrant or principal on or before July 1, 1982, if, subsequent to the filing of that Form, the registrant or principal has been continuously registered or continuously affiliated with a registrant as a principal.

(c) Sponsor. Sponsor means the futures commission merchant, introducing broker, commodity trading advisor, commodity pool operator, or leverage transaction merchant which makes the certification required by §3.12, §3.16, or 3.18 for the registration of an associated person of such sponsor. (Secs. 2(a)(1), 4, 4b, 4c, 4d, 4e, 4f, 4g, 4h, 4i, 4k, 4m, 4n, 40, 4p, 6, 8, 8a, 14, 15, 17 and 19 of the Commodity Exchange Act, 7 U.S.C. 2 and 4, 6, 6b, 6c, 6d, 6e, 6f, 6g, 6h, 61, 6k, 6m, 6n, 60, 6p, 8, 9, 9a and 13b, 12, 12a, 18, 19, 21 and 23 (1982); 5 U.S.C. 552 and 552b) [49 FR 5521, Feb. 13, 1984, and 49 FR 8217, Mar. 5, 1984]

EFFECTIVE DATE NOTE: In § 3.1, paragraph (a) was revised at 49 FR 8217, Mar. 5, 1984, effective April 4, 1984. Paragraphs (b) and (c) were revised at 49 FR 5521, Feb. 13, 1984, effective April 13, 1984. For the convenience of the user, the superseded text is set forth below.

§3.1 Definitions.

For purposes of this part:

(a) Principal. Principal means, with respect to an applicant for registration, a registrant or a person required to be registered under the Act or these regulations: (1) Any

person including, but not limited to, a sole proprietor, general partner, officer, director, branch office manager or designated supervisor, or person occupying a similar status or performing similar functions, having the power, directly or indirectly, through agreement or otherwise, to exercise a controlling influence over activities of that person which are subject to regulation by the Commission; (2) any holder of more than ten percent of the outstanding shares of any class of stock; or (3) any person who has contributed more than ten percent of the capital.

(b) Current. As used in §§ 3.10-3.16, a current Form 8-R or Form 94 is any such Form which was filed by or on behalf of a registrant or principal on or before July 1, 1982, if, subsequent to the filing of that Form, the registrant or principal has been continuously registered or continuously affiliated with a registrant as a principal.

(c) Sponsor. Sponsor means the futures commission merchant or introducing broker, or the commodity trading advisor or commodity pool operator, which makes the certifications required by § 3.12 or § 3.16, respectively, for the registration of an associated person of such sponsor.

[45 FR 80491, Dec. 5, 1980, as amended at 48 FR 35291, Aug. 3, 1983]

§3.2 Registration processing by the National Futures Association; notification and duration of registration.

(a) With respect to the registration of introducing brokers and the associated persons of introducing brokers, the registration functions of the Commission set forth in this section and in §§ 3.12, 3.15, 3.21, 3.31, 3.32, and 3.40 shall be performed by the National Futures Association.

(b) Notwithstanding any other provision of this part, a registrant, applicant for registration, or principal may, to the extent these regulations would otherwise require the filing of any Form 3-R, 7-R, 8-R, 8-S, or 8-T, or any Schedule or supplement thereto, fingerprint card, or any other document required by these regulations to be filed with both the Commission and with the National Futures Association, file the original Form, Schedule, supplement, fingerprint card, or other document with either the Commission or the National Futures Association, respectively, if (1) a legible, accurate, and complete photocopy of that Form, Schedule, supplement, fingerprint card, or other document is filed simul

taneously with the National Futures Association or the Commission, respectively, and (2) each photocopy contains an original signature and date in each place where such signature and date is required on the original Form, Schedule, supplement, fingerprint card, or other document.

(c) Upon receipt of an application for registration or renewal thereof, the Commission or the National Futures Association will, if registration is granted, notify the registrant, or the sponsor in the case of an application for registration as an associated person, that registration has been granted under the Act. If an applicant for registration as an associated person receives a temporary license in accordance with § 3.40 of this part, the Commission or the National Futures Association will notify the sponsor only that a temporary license has been granted.

(d) The registration of each futures commission merchant, leverage transaction merchant and floor broker shall expire on the thirty-first day of March following the date on which registration was granted.

(Secs. 2(a)(1), 4, 4b, 4c, 4d, 4e, 4f, 4g, 4h, 4i, 4k, 4m, 4n, 40, 4p, 6, 8, 8a, 14, 15, 17 and 19 of the Commodity Exchange Act, 7 U.S.C. 2 and 4, 6, 6b, 6c, 6d, 6e, 6f, 6g, 6h, 61, 6k, 6m, 6n, 60, 6p, 8, 9, 9a and 13b, 12, 12a, 18, 19, 21 and 23 (1982); 5 U.S.C. 552 and 552b)

[48 FR 35291, Aug. 3, 1983, as amended at 49 FR 5522, Feb. 13, 1984; 49 FR 8218, Mar. 5, 1984]

EFFECTIVE DATE NOTE: In § 3.2, paragraphs (a) and (c) were revised at 49 FR 8218, Mar. 5, 1984, effective April 4, 1984. Paragraph (d) was revised at 49 FR 5522, Feb. 13, 1984, effective April 13, 1984. For the convenience of the user, the superseded text is set forth below.

§3.2 Registration processing by the National Futures Association; notification and duration of registration.

(a) With respect to the registration of introducing brokers and the associated persons of introducing brokers, the registration functions of the Commission set forth in this section and in §§ 3.12, 3.15, 3.21, 3.31, and 3.32 shall be performed by the National Futures Association.

(c) Upon receipt of an application for registration or renewal thereof, the Commission or the National Futures Association will, if registration is granted, notify the registrant that he has been registered under the Act, except that with respect to an application for registration of an associated person, the Commission or the National Futures Association will notify the sponsor.

(d) The registration of each futures commission merchant and floor broker shall expire on the thirty-first day of March following the date on which registration was granted.

§ 3.3 Registration fees; form of remittance.

(a) Amount of fees-(1) Futures commission merchants. Each application for registration, or for renewal thereof, as a futures commission merchant must be accompanied by a fee of $275.

(2) Commodity trading advisors and commodity pool operators. Each application for registration, or for renewal thereof, as a commodity trading advisor or commodity pool operator must be accompanied by a fee of $50.

(3) Associated persons. Each Form 8-R submitted in connection with the registration of an associated person of a futures commission merchant, commodity trading advisor, commodity pool operator or leverage transaction merchant must be accompanied by a fee of $35.

(4) Floor brokers. Each application for registration, or for renewal thereof, as a floor broker must be accompanied by a fee of $25.

(5) Leverage transaction merchants. Each application for registration, or for renewal thereof, as a leverage transaction merchant must be accompanied by a fee of $275.

(6) Branch offices. A fee of $6 must be provided for each branch office of a registrant operating within the United States, as specified in any Form 7-R or any Schedule thereto or in any Form 3-R filed with the Commission to report the addition of a branch office. The fee specified by this paragraph (a)(6) must accompany each Form 7-R filed as an application for initial registration or for renewal of registration and each Form 3-R filed to report the addition of a branch office.

(b) Form of remittance; fees not refundable. Registration fees must be remitted by check, bank draft, or money

order, payable to the Commodity Futures Trading Commission. All registration fees are nonrefundable.

(Sec. 8a of the Commodity Exchange Act, 7 U.S.C. 12a; sec. 26 of the Futures Trading Act of 1978, 92 Stat. 877, 7 U.S.C. 16a (Supp. V 1981), as amended by sec. 237 of the Futures Trading Act of 1982, Pub. L. 97-444, 96 Stat 2326 (Jan. 11, 1983); secs. 8a(5) and 19 of the Commodity Exchange Act, as amended, 7 U.S.C. 12a(5) and 23 (1982); 5 U.S.C. 552 and 552b)

[48 FR 34734, Aug. 1, 1983, as amended at 49 FR 5522, Feb. 13, 1984]

EFFECTIVE DATE NOTE: In § 3.3, (a)(3) was revised, (a)(5) was redesignated as (a)(6) and revised, and a new (a)(5) was added at 49 FR 5522, Feb. 13, 1984, effective April 13, 1984. For the convenience of the user, the superseded text is set forth below.

§ 3.3 Registration fees; form of remittance. (a) •

(3) Associated persons. Each Form 8-R submitted in connection with the registration of an associated person of a futures commission merchant, commodity trading advisor, or commodity pool operator must be accompanied by a fee of $35.

(5) Branch offices. A fee of $6 must be provided for each branch office of a registrant operating within the United States, as specified in any Form 7-R or any Schedule thereto or in any Form 3-R filed with the Commission to report the addition of a branch office. The fee specified by this paragraph (a)(5) must accompany each Form 7-R filed as an application for initial registration or for renewal of registration and each Form 3-R filed to report the addition of a branch office.

§ 3.4 Registration in one capacity not included in registration in any other capacity.

Except as may be otherwise provided in the Act or in any rule, regulation, or order of the Commission, each futures commission merchant, floor broker, associated person, commodity trading advisor, commodity pool operator, introducing broker, and leverage transaction merchant must register as such under the Act. Registration in one capacity under the Act shall not include registration in any other capacity: Provided further, That except