three fiscal years, obtain the actual average annual Commission costs of conducting rule enforcement and financial reviews of that board of trade during those years, (b) subtract $5,000 from each figure obtained in (a), (c) divide each difference computed in (b) by the sum computed in (6) above for the corresponding board of trade, and (d) use the smallest of the quotients computed in (c) as the "multiplier"; (8) adding $5,000 to the product computed in (7); and (9) rounding that sum down to the nearest multiple of $1,000. (c) Checks should be sent to the attention of the Office of the Secretariat, Commodity Futures Trading Commission, 2033 K Street, NW., Washington, D.C. 20581. [50 FR 930, Jan. 8, 1985] Sec. PART 2-OFFICIAL SEAL 2.1 Description. 2.2 Authority to affix seal. 2.3 Prohibitions against misuse of seal. AUTHORITY: Sec. 2(a)(10) of the Commodity Exchange Act, as amended, 7 U.S.C. 4(i). SOURCE: 41 FR 9552, Mar. 5, 1976, unless otherwise noted. § 2.1 Description. Pursuant to section 2(a)(10) of the Commodity Exchange Act, as amended, 7 U.S.C. 4(1), the Commodity Futures Trading Commission has adopted 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: § 2.2 RADIN ING COMMISSION # ☆ 1975 Authority to affix seal. (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, U.S. 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, U.S. Code. 3.20 Delegation of authority to deny registration. 3.83 3.21 Exemption from fingerprinting requirement in certain cases. 3.84 fecting registration. Petition for review. 3.85 Filing of the record. 3.86 Grant or denial of petition for review. 3.87 Decision of the Commission. 3.88 Default. 3.89 Applicability of the Rules of Practice. 3.90 Reservation of authority. 3.91 Participation of Commission staff. APPENDIX A-INTERPRETIVE STATEMENT WITH RESPECT TO SECTION 8a(2)(C) AND (E) 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. 8 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 this subpart, a Form 8-R or Form 94 is current if, subsequent to the filing of that form and continuously thereafter, the registrant or principal has been either registered or 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, as amended at 49 FR 39530, Oct. 9, 1984] § 3.2 Registration processing by the National Futures Association; notification and duration of registration. (a) Except as otherwise provided in any rule, regulation or order of the Commission, the registration functions of the Commission set forth in Subpart A and Subpart B of this part shall be performed by the National Futures Association. (b) Notwithstanding any other provision of this part, the original of any registration form, any schedule or supplement thereto, any fingerprint card or other document required by this part to be filed with both the Commis sion and the National Futures Association, may be filed with either the Commission or the National Futures Association if: (1) A legible, accurate, and complete photocopy of that form, schedule, supplement, fingerprint card, or other document is filed simultaneously with the National Futures Association or the Commission, respectively, and (2) Such 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) The Commission or the National Futures Association will notify the registrant, or the sponsor in the case of an applicant for registration as an associated person, if 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 may 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. (e) Any registration form, any schedule or supplement thereto, any fingerprint card or other document required by this part to be filed with the National Futures Association shall be deemed for all purposes to have been filed with, and to be the official record of, the Commission. (Secs. 2(a)(1), 4, 4b, 4c, 4d, 4e, 4f, 4g, 4h, 41, 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 39530, Oct. 9, 1984] § 3.3 Registration fees; form of remittance. (a) Amount of fees-(1) Floor brokers. Each application for registration, or for renewal thereof, as a floor broker must be accompanied by a fee of $25. (2) Leverage transaction merchants. Each application for registration, or for renewal thereof, as a leverage transaction merchant must be accompanied by a fee of $275. (3) Associated persons. Each Form 8-R submitted in connection with the registration of an associated person of a leverage transaction merchant must be accompanied by a fee of $35. (4) Branch offices. A fee of $6 must be provided for each branch office of a leverage transaction merchant 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)(4) 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; secs. 2(a)(1), 4c, 4d, 4e, 4f, 4k, 4m, 4n, 4p, 8, 8a and 19 of the Commodity Exchange Act (7 U.S.C. 2 and 4, 6c, 6d, 6e, 6f, 6k, 6m, 6n, 6p, 12, 12a and 23 (1982)); 5 U.S.C. 552 and 552b) [48 FR 34734, Aug. 1, 1983, as amended at 49 FR 39530, Oct. 9, 1984] § 3.4 Registration in one capacity not included in registration in any other capacity. (a) 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. (b) Except as may be provided in any rule, regulation or order of the Commission, registration as an associated person in one capacity shall not include registration as an associated person in any other capacity: Provided, however, That an associated person who is sponsored by a registrant, which itself is registered in more than one capacity, need register only once to act as an associated person of the registrant, and shall be deemed to be an associated person of such registrant, in each such capacity. (Secs. 2(a)(1), 4c, 4d, 4e, 4f, 4k, 4m, 4n, 4p, 8, 8a and 19 of the Commodity Exchange Act (7 U.S.C. 2 and 4, 6c, 6d, 6e, 6f, 6k, 6m, 6n, 6p, 12, 12a and 23 (1982)); 5 U.S.C. 552 and 552b) [49 FR 39530, Oct. 9, 1984] §8 3.5-3.9 [Reserved] § 3.10 Registration of futures commission merchants. (a) Initial registration. (1) Application for initial registration as a futures commission merchant must be on Form 7-R, completed and filed with the National Futures Association in accordance with the instructions thereto and the provisions of § 1.10 of this chapter. (2) Each Form 7-R filed in accordance with the requirements of paragraph (a)(1) of this section must be accompanied by a Form 8-R, completed in accordance with the instructions thereto and executed by each natural person who is a principal of the applicant, and must be accompanied by the fingerprints of that principal on a fingerprint card provided by the National Futures Association for that purpose. The provisions of this paragraph (a)(2) do not apply to any principal who has a current Form 8-R or Form 94 on file with the Commission or the National Futures Association. (b) Renewal of registration. Application for renewal of registration as a futures commission merchant must be on Form 7-R, completed and filed with the National Futures Association in accordance with the instructions thereto. (c) Exemption from registration for certain persons. A person trading solely for proprietary accounts, as defined in § 1.3(y) of this chapter, is not required to register as a futures commission merchant: Provided, that such a person remains subject to all other provisions of the Act and of the rules, regulations and orders thereunder. (Approved by the Office of Management and Budget under control number 30380023) (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; secs. 2(a)(1), 4c, 4d, 4e, 4f, 4k, 4m, 4n, 4p, 8, 8a and 19 of the Commodity Exchange Act (7 U.S.C. 2 and 4, 6c, 6d, 6e, 6f, 6k, 6m, 6n, 6p, 12, 12a and 23 (1982)); 5 U.S.C. 552 and 552b) [45 FR 80491, Dec. 5, 1980, as amended at 47 FR 27551, June 25, 1982; 49 FR 5522, Feb. 13, 1984; 49 FR 39530, Oct. 9, 1984] §3.11 Registration of floor brokers. (a) Trading privileges required. No person who applies for registration, or for renewal of registration, as a floor broker will be registered as such unless he has been granted trading privileges by a board of trade which has been designated as a contract market by the Commission. (b) Initial registration. Application for initial registration as a floor broker must be on Form 8-R, completed and filed with the Commission in accordance with the instructions thereto. Each applicant for initial registration as a floor broker must file his fingerprints with the Form 8-R or a fingerprint card provided by the Commission for that purpose except, that a fingerprint card need not be filed by any applicant who has a current Form 8-R on Form 94 on file with the Commission or the National Futures Association. (c) Renewal of registration. Application for renewal of registration as a floor broker must be on Form 8-R, completed and filed with the Commission in accordance with the instructions thereto. (Approved by the Office of Management and Budget under control number 30380023) (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; secs. 2(a)(1), 4c, 4d, 4e, 4f, 4k, 4m, 4n, 4p, 8, 8a and 19 of the Commodity Exchange Act (7 U.S.C. 2 and 4, 6c, 6d, 6e, 6f, 6k, 6m, 6n, 6p, 12, 12a and 23 (1982)); 5 U.S.C. 552 and 552b) [45 FR 80491, Dec. 5, 1980, as amended at 46 FR 24942, May 4, 1981; 47 FR 27551, June 25, 1982; 49 FR 5522, Feb. 13, 1984; 49 FR 39531, Oct. 9, 1984] §3.12 Registration of associated persons of futures commission merchants and introducing brokers. (a) Registration required. It shall be unlawful for any person to be associated with a futures commission merchant or with an introducing broker as an associated person unless that person shall have registered under the Act as an associated person of that sponsoring futures commission merchant or introducing broker in accordance with the procedures in paragraphs (c) or (d) of this section. A (b) Duration of registration. person registered in accordance with paragraphs (c) or (d) of this section and whose registration has neither been suspended nor revoked will continue to be so registered until the cessation of the association of the registrant with, or the revocation, suspension, lapse, or withdrawal of the registration of, the associated person's sponsor. (c) Application for registration. Except as otherwise provided in paragraphs (d) and (f) of this section, application for registration as an associated person of a futures commission merchant or introducing broker must be on Form 8-R, completed and filed in accordance with the instructions thereto. (1) No person will be registered as an associated person in accordance with this paragraph (c) unless an officer, if the sponsor is a corporation, a general partner, if a partnership, or the sole proprietor, if a sole proprietorship, of such sponsor has signed and dated a certification in writing, stating that: (i) It is the intention of the sponsor to hire or otherwise employ the applicant as an associated person and that it will do so within thirty days after the receipt of the notification provided in accordance with paragraph (c)(4) of this section and that the applicant |