ings, conclusions and orders submitted by parties, not theretofore ruled upon. (b) Issuance of order. The order, prepared as described in paragraph (a) of this section, shall be issued and served upon the parties as the final order in the proceeding without further procedure: Provided, That, if the terms of the order differ substantially from those proposed in the report of the referee, the Commission may, if it deems it advisable to do so, direct that a copy of the order be served upon the parties as a tentative order; and, in such event, opportunity shall be given the parties to file exceptions thereto and written arguments or briefs in support of such exceptions. In such case, if no exceptions are filed within 20 days following the service of the tentative order, it shall be issued and served as the final order in the proceeding.

§ 0.94 Applications for reopening hearings, for rehearings or rearguments of proceedings, or for reconsideration of orders.

The provisions of § 0.71 shall be applicable in 6a proceedings.

Filing; service; extensions of time; additional time for filing; and computation of time.

§ 0.95

1.20

The provisions of § 0.72 shall be appli

cable in 6a proceedings.

1.21

RULES APPLICABLE TO ALL PROCEEDINGS

$ 0.96

Hearings before the Commission. The Commission may act in the place and stead of a referee or presiding officer in any proceeding under this subpart. When it so acts, the hearing clerk shall transmit the record to the Commission at the expiration of the period provided for the filing of proposed findings of fact, conclusions and orders, and the Commission shall thereupon, after due consideration of the record, issue its final order in the proceeding: Provided, That it may issue a tentative order, in which event the parties shall be afforded an opportunity to file exceptions before the issuance of the final order.

PART 1-GENERAL

1.22

Changes requiring new registration. Registrations expire December 31 of each year.

CUSTOMERS' FUNDS

Customers' funds to be segregated and separately accounted for.

Care of money and equities accruing to customer.

Use of money, securities, or property of customers restricted.

1.23 Interest of futures commission merchant in segregated funds, additions and withdrawals.

1.24 Segregated funds; exclusions therefrom.

REGULATIONS

1.31

Words in singular and plural form. Liability of principal for act of agent. Definitions.

1.33 Monthly statement for customer and record of customer's position in each future.

1.33a Controlled accounts.

1.40 Crop, market information letters, reports; copies required.

1.41

Contract market rules, regulations; filing of copies.

1.42 Delivery notice; filing of copy.

1.43 Information required concerning warehouses.

1.44 Warehouse records, reports; visitation of premises.

1.45 Delivery of commodities conforming to United States standards.

1.46 Application and closing out of offsetting long and short positions. 1.48 Hedging anticipated requirements for processing or manufacturing under section 4a (3) (C) of the Commodity Exchange Act.

1.49 Denial of trading privileges; suspension or revocation of registration; employment in similar capacity. AUTHORITY: The provisions of this Part 1 issued under sec. 8a as added by sec. 10, 49 Stat. 1500; 7 U.S.C. 12a, 29 F.R. 16210, as amended, unless otherwise noted.

SOURCE: The provisions of this Part 1 appear at 13 F.R. 7834, Dec. 18, 1948, unless otherwise noted.

DEFINITIONS

§ 1.1 Words in singular and plural form. Words used in the singular form in the rules and regulations in this part shall be deemed to import the plural, and vice versa, as the case may require.

§ 1.2 Liability of principal for act of agent.

The act, omission, or failure of any official, agent, or other person acting for any individual, association, partnership, corporation, or trust, within the scope of his employment or office, shall be deemed the act, omission, or failure of such individual, association, partnership, corporation, or trust as well as of such official, agent, or other person. (Sec. 2, 42 Stat. 998; 7 U.S.C. 4)

and regulations in this chapter, shall have the meanings hereby assigned to them, unless the context otherwise requires:

(a) Board of Trade. This term means any exchange or association, whether incorporated or unincorporated, of persons who shall be engaged in the business of buying or selling any commodity or receiving the same for sale on consignment.

(b) Business day. This term means any day other than a Sunday or holiday. In all notices required by the act or by the rules and regulations in this chapter to be given in terms of business days the rule for computing time shall be to exclude the day on which notice is given and inclue the day on which shall take place the act of which notice is given.

(c) Clearing member. This term means any person who is a member of, or enjoys the privilege of clearing trades in his own name through, the clearing organization of a contract market.

(d) Clearing organization. This term means the person or organization which acts as a medium for clearing transactions in commodities for future delivery, or for effecting settlements of contracts for future delivery, for and between members of any board of trade.

means

(e) Commodity. This term and includes wheat, cotton, rice, corn, oats, barley, rye, flaxseed, grain sorghums, millfeeds, butter, eggs (including shell eggs, frozen whole eggs, frozen plain egg whites, and frozen plain egg yolks), onions, Irish potatoes, wool, wool tops, fats and oils (including lard, tallow, cottonseed oil, peanut oil, soybean oil, and all other fats and oils), cottonseed meal, cottonseed, peanuts, soybeans, and soybean meal.

(f) Commodity Exchange Act; the act. These terms mean the Commodity Exchange Act approved September 21, 1922 (42 Stat. 998), as amended June 15, 1936 (49 Stat. 1491; 7 U.S.C. 1–17a), and other legislation supplementary thereto and amendatory thereof.

(g) Commodity Exchange Authority. This term means the Commodity Exchange Authority, United States Department of Agriculture.

(i) Contract of sale. This term includes sales, purchases, agreements of sale or purchase, and agreements to sell or purchase.

(j) Controlled account. An account shall be deemed to be controlled by a person if such person by power of attorney or otherwise actually directs trading for such account.

(k) Customer; commodity customer. These terms have the same meaning and refer to a customer trading in any commodity named in the definition of commodity in paragraph (e) of this section.

(1) Delivery month. This term means the month of delivery specified in a contract of sale of any commodity for future delivery.

(m) Executing for others. This term as used in the definition of floor broker means executing by any person of orders, including his own, for the purchase or sale of any commodity for future delivery in the name of, or for the account of, more than one principal (clearing member).

(n) Floor broker. This term means any person who, in or surrounding any pit, ring, post, or other place provided by a contract market for the meeting of persons similarly engaged, shall engage in executing for others any order for the purchase or sale of any commodity for future delivery on or subject to the rules of any contract market, and who for such services receives or accepts any commission or other compensation.

(0) Future delivery. This term does not include any sale of a cash commodity for deferred shipment or delivery.

(p) Futures commission merchant. This term means individuals, associations, partnerships, corporations, and trusts engaged in soliciting or in accepting orders for the purchase or sale of any commodity for future delivery on or subject to the rules of any contract market and that, in or in connection with such solicitation or acceptance of orders, accepts any money, securities, or property (or extends credit in lieu thereof) to margin, guarantee, or secure any trades or contracts that result or may result therefrom.

(q) Member of a contract market. This term means and includes individuals, associations, partnerships, corporations, and trusts owning or holding membership in, or admitted to membership representation on, a contract mar

ket or given members' trading privileges thereon.

(r) Net equity. This term means the credit balance which would be obtained by combining the commodity margin balance of any person with the net profit or loss, if any, accruing on the open trades or contracts of such person.

(s) Net deficit. This term means the debit balance which would be obtained by combining the commodity margin balance of any person with the net profit or loss, if any, accruing on the open trades or contracts of such person.

(t) Open contracts. This term means contracts of purchase or sale of any commodity made by or for any person on or subject to the rules of a board of trade for future delivery during a specified month or delivery period which have not been fulfilled by delivery nor offset by other contracts of sale or purchase in the same commodity and delivery month.

(u) Person. This term includes individuals, associations, partnerships, corporations, and trusts.

(v) Act Administrator. This term means the Administrator of the Commodity Exchange Authority, United States Department of Agriculture, in his capacity as Administrator of the Commodity Exchange Act, or any officer or employee of the Commodity Exchange Authority to whom he has heretofore lawfully delegated or may hereafter lawfully delegate the authority to act in his stead.

(w) Secretary of Agriculture. This term means the Secretary of Agriculture or any person to whom authority has heretofore lawfully been delegated, or to whom authority may hereafter lawfully be delegated, to act in his stead.

(x) Floor trader. A member of a contract market who, on the exchange floor, executes a futures trade for his own account or an account controlled by him, or has such a trade made for him. (Sec. 2, 42 Stat. 998, as amended; 7 U.S.C. 2). [13 F.R. 7834, Dec. 18, 1948, as amended at 19 F.R. 6880, Oct. 27, 1954; 20 F.R. 6385, Aug. 31, 1955; 26 F.R. 1662, Feb. 25, 1961; 32 F.R. 7593, May 24, 1967]

ADMINISTRATION

§ 1.4 Duties to be performed by Act Administrator.

The Act Administrator shall perform for and under the supervision of the

Secretary of Agriculture such duties as the Secretary may require in enforcing the provisions of the act and of the rules and regulations promulgated thereunder. § 1.5 Information confidential; disclosures to contract-market committees and officials.

No officer or employee of the Department of Agriculture shall publish, divulge, or make known in any manner, except insofar as may be required in the performance of his official duties or by a court of competent jurisdiction, any facts or information regarding the business of any person which may come to the knowledge of such officer or employee through any inspection or examination of the reports or records of, or through any information given by, any person pursuant to the Commodity Exchange Act or rules and regulations in this chapter: Provided, however, That this prohibition shall not apply to disclosures made in good faith to the Business Conduct Committee or other proper committee or official of a contract market of matters in respect to which such contract market has responsibility or duty under the Commodity Exchange Act, or which, in the judgment of the Act Administrator, adversely affect such market or are prejudicial to the interests of producers or consumers.

(Sec. 8, 42 Stat. 1003, as amended; 7 U.S.C. 12)

§ 1.6 Speculation in commodities by officers and employees prohibited.

No officer or employee of the Department of Agriculture engaged in the administration or enforcement of the Commodity Exchange Act, or having access to any confidential information obtained under authority of the act, shall have any interest directly or indirectly in any speculative transaction in any commodity for future delivery. REGISTRATION OF FUTURES COMMISSION MERCHANTS AND FLOOR BROKERS

§ 1.7 Registration required of futures commission merchants.

No person shall engage as futures commission merchant in the solicitation or acceptance of orders for the purchase or sale of any commodity for future delivery, or involving any contracts of sale of any commodity for future delivery, on or subject to the rules of any contract market, unless such person shall have

secured a certificate of registration as futures commission merchant under the Commodity Exchange Act issued by the Secretary of Agriculture and countersigned by the Act Administrator and such registration shall not have expired, been suspended, or been revoked. Such registration shall be required of every person engaged as described in this subpart irrespective of whether accounting records relating to such orders and trades and contracts resulting therefrom are maintained by other futures commission merchants to whom such orders are transmitted for execution or clearance.

(Sec. 4d, 49 Stat. 1494; 7 U.S.C. 6d)
§ 1.8 Registration required of

brokers.

floor

No person shall act as floor broker in executing any orders for the purchase of any commodity for future delivery, or involving any contracts of sale of any commodity for future delivery, on or subject to the rules of any contract market unless such person shall have secured a certificate of registration as floor broker under the Commodity Exchange Act issued by the Secretary of Agriculture and countersigned by the Act Administrator and such registration shall not have expired, been suspended, or been revoked.

(Sec. 4e, 49 Stat. 1495; 7 U.S.C. 6e)

§ 1.9 Registration as floor broker not included in registration as futures commission merchant and vice versa. Registration as futures commission merchant shall not include registration as floor broker nor shall registration as floor broker include registration as futures commission merchant.

§ 1.10 Applications for registration required on prescribed forms; financial statements of futures commission merchants; registration suspended or revoked for willful misrepresentation.

(a) Application for registration as futures commission merchant shall be made on Form 1-R. Application for registration as floor broker shall be made on Form 2-R. Each application shall be executed and filed in accordance with the instructions appearing on the prescribed form.

(b) Every application for registration as futures commission merchant other

than an application necessitated solely by reason of a change in the name of the registrant shall be accompanied by the applicant's latest statement of financial condition. If such statement is as of date more than 6 months prior to the date application is filed, the applicant shall file within 3 months following registration a statement of financial condition as of a date not more than 6 months prior to the date of filing such statement: Provided, That, for good cause shown, the Act Administrator may extend for a reasonable period the time for filing any statement of financial condition required under the provisions of this section.

(c) Every financial statement shall bear the certification of the applicant in the following form, to wit:

Applicant represents that all information contained or incorporated in this financial statement is true to the best of applicant's knowledge and belief.

Each application for registration, or renewal thereof, as futures commission merchant shall be accompanied by a fee of $30. Each application for registration, or renewal therof, as floor broker shall be accompanied by a fee of $15. Duplicates of registration certificates may be procured on request upon payment of $5 for each duplicate. Fees shall be remitted by money order, bank draft, or check, payable to the Commodity Exchange Authority, U.S.D.A. Applications and fees shall be forwarded to the Commodity Exchange Authority, United States Department of Agriculture, Washington, D.C. 20250.

[20 F.R. 7774, Oct. 15, 1955, as amended at 23 F.R. 6879, Sept. 6, 1958]

§ 1.12 Posting of registration certificate.

Every person registered as futures commission merchant under the act shall:

(a) Post in a conspicuous place in each office in the United States (except an officer of another registered futures

commission merchant) maintained by such person in which orders for the purchase or sale of any commodity for future delivery are solicited or accepted, the original or a duplicate (issued by the Secretary of Agriculture) of such registrant's registration certificate as futures commission merchant; and

(b) Post in a conspicuous place in each office in the United States in which orders for the purchase or sale of any commodity for future delivery are solicited or accepted for, and in the name of, such registrant, a duplicate (issued by the Secretary of Agriculture) of such registrant's registration certificate as futures commission merchant.

(Sec. 4f, 49 Stat. 1495; 7 U.S.C. 6f) [13 F.R. 7834, Dec. 18, 1948, as amended at 14 F.R. 2851, June 1, 1949; 20 F.R. 7774, Oct. 15, 1955]

§ 1.13

Deposit of registration fee; fee not subject to refund after registration; form of certificate.

Upon receipt of an application for registration (or renewal thereof) the Secretary or Agriculture will, if the application be approved, issue a certificate of registration certifying that the registrant has registered under the act as futures commission merchant or as floor broker. The registration fee (including the fee for duplicate copies of the certificate of registration, if any) so tendered, shall be deposited in a special deposit account until the registration is finally issued or denied. If registration be denied, the fee shall be returned to the applicant, but if issued the fee shall be deposited in the Treasury of the United States as a miscellaneous receipt and will not thereafter be subject to refund. Each registration certificate shall bear a serial number, the signature of the Secretary of Agriculture, be issued under the seal of the United States Department of Agriculture, and be countersigned by the Act Administrator.

§ 1.14 Deficiencies, in a c curacies, changes, to be reported by futures commission merchants and floor brokers.

(a) Each registrant shall file promptly with the Commodity Exchange Authority a statement on Form 3-R to correct any deficiency or inaccuracy in the registrant's application for registration, or any supplemental statement thereto, and to report any change which renders no longer accurate and current the information contained in any of the following