Futures Trading Act of 1982

Summary

Futures Trading Act of 1982 - Amends the Commodity Exchange Act to limit the definition of "commodity trading advisor" to persons offering advice on trading in contracts executed on a contract market and on certain option and leverage transactions. Includes persons using electronic media in such definition. Authorizes the Commodity Futures Trading Commission (CFTC) to include by regulation other persons within such definition. Limits the jurisdiction of the CFTC with respect to securities (and grants it exclusive jurisdiction in this respect) to accounts, agreements, and transactions involving sales contracts for future delivery of a group or index of securities which meet specified criteria. Eliminates the one year post-government employment bar against appearances before the CFTC by former Commissioners and senior employees. (Such appearances are also barred by the Ethics in Government Act of 1978.) Authorizes the CFTC to regulate the offer and sale, by persons in the United States, of commodity futures contracts executed on markets outside the United States. States that the CFTC may set speculative limits by rule, regulation, or order. Authorizes the CFTC to enforce speculative limits set by contract markets if such limits have been approved by the CFTC. Makes it unlawful to violate such limits. States that such Act does not apply to foreign currency option transactions traded on a national securities exchange. Requires agents of a futures commission merchant to register as associated agents. Broadens the prohibition on false representation to include false representation of registration with the CFTC in any capacity, not only as a futures commission merchant. Makes the duty of large traders to keep and make books and records available for inspection independent of CFTC report-filing requirements. Requires such traders to make information regarding certain other trading activities available for inspection. Requires any person associated with a commodity pool operator (CPO) or a commodity trading advisor (CTA) who solicits funds or property to register as an associated person of such CPO or CTA. Exempts from registration: (1) persons registered with the Commission in some other capacity; and (2) persons or classes exempted by the Commission. Provides that the registration of an associated person shall expire when the Commission so orders. Makes it unlawful for a registrant to hire an associated person if the registrant knew or should have known of facts about such person that are set forth as statutory disqualifications. States that the Securities and Exchange Commission (SEC) may regulate the commercial activities of a commodity pool. States that private rights under the Securities Act of 1933 or the Securities Exchange Act of 1934 are not affected by the provisions of the Commodity Exchange Act. Extends coverage of antifraud provisions to associated persons of CTAs and CPOs. Extends the Commission's authority regarding proficiency qualifications to all registered persons. Requires a contract market to enforce all rules made by it or the governing board (or committees) which have been approved by the Commission, or which must be enforced pursuant to a Commission rule. Revises arbitration procedures to remove: (1) the $15,000 claim ceiling; and (2) the compulsory awards agreement requirement. Requires contract markets to submit only rules of major economic significance for prior Commission approval. Requires other rules (except those relating to the setting of margin levels) to be submitted for Commission approval, although such rules shall become effective within ten days without specific approval if the Commission waives review. Permits a contract market to request that the Commission review a rule. Directs the Commission to approve contract market rules within 30 days, or if the Commission determines them to be of major economic significance, within 60 days. Requires review of registration denials in the circuit in which the petitioner's principal place of business is located. Authorizes the Commission to seek ex parte court orders prohibiting persons from: (1) destroying records or books; (2) refusing to permit inspections; or (3) withdrawing or disposing of assets, funds, or property. Prohibits the Commission from publicly disclosing data or information concerning an investigation of any person unless the disclosure is made in connection with a congressional proceeding, certain judicial or administrative proceedings, or certain receivership or bankruptcy proceedings. Authorizes the Commission to disclose information to any Federal agency or department (currently limited to the executive branch), including State, local, and foreign enforcement agencies. Prohibits State and local entities from disclosing any confidential information except in a legal proceeding. Authorizes the Commission to register associated persons of CTAs and CPOs. Authorizes the Commission to grant temporary (six-month maximum) licenses. Establishes a system of statutory disqualifications for registration. List circumstances in which the Commission may refuse or condition a registration without a hearing (usually where a previous registration has been suspended or revoked, or the applicant has been denied trading privileges as the result of legal proceedings). Specifies circumstances in which the Commission may refuse or condition a registration only after granting an opportunity for a hearing (usually where the applicant has been found to have been involved in violations of the Commodity Exchange Act, or has been convicted of felonies or misdemeanors relating to commodities or securities transactions). Permits the Commission to disclose necessary information to a registered futures association or self-regulatory organization (as defined in the Securities Exchange Act of 1934). Permits the Commission to authorize any person to perform any portion of the registration functions subject to rules approved by the Commission. Extends the provisions pertaining to embezzlement, theft, or criminal conversion to all persons and their agents covered by the registration requirements of such Act. Prohibits Commission members and employees from engaging in leverage transactions. Exempts from such prohibition hedging and certain oil and mineral transactions entered into by trustees of trusts established by Commissioners and specified Commission employees. Authorizes Commission members and employees to invest in specified government securities and financial instruments if: (1) such instruments are not regulated by the Commission; and (2) no nonpublic information was used in the transaction. Prohibits Commission members and employees from imparting nonpublic information regarding leverage transactions. Extends authorization of appropriations under such Act. Provides for shared jurisdiction with other Federal agencies and States over transactions involving commodities, services, products, rights, or interests not subject to contract market rules or regulated by the Commission. Authorizes the Commission to refer any matter subject to other Federal or State statutes to the agency or department enforcing such statutes. Extends the aiding and abetting prohibition to all legal proceedings (currently limited to administrative proceedings) arising under such Act. Provides that any person who directly or indirectly controls any person who violates such Act shall be liable as a principal, unless he or she did not know or did not have reason to know of the facts constituting the violation. Restricts the applicability of reparations procedures to registered persons. Eliminates the reparations investigation requirement. Restricts awards to actual damages. Authorizes the Commission to promulgate necessary administrative regulations. Provides for automatic trading prohibition and suspension of registration (within 15 days) for failure to pay a reparations award. Eliminates the $15,000 ceiling on futures association arbitration claims. Amends the provision concerning Commission approval of registered futures association rules changes. Authorizes the Commission to require a registered futures association to perform Commission registration functions. Restricts, until September 30, 1984, those leverage firms that are permitted to do business to those engaged in the bullion or coin leverage business on June 1, 1978, or the non-bullion leverage business on February 2, 1979. Directs the Commission to conduct a study of leverage transactions and report to the congressional agriculture committees within two years. Provides for a system of annual user fees. Directs the Commission to create an advisory committee to report to the appropriate congressional committees regarding such fees. Terminates this advisory committee as of June 30, 1985.

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Documents

3 official files

• Indefinitely postponed in Senate

  summary · EN · 1 October 1982

  Open at official source

• Reported to Senate with amendment(s)

  summary · EN · 6 May 1982

  Open at official source

• Introduced in Senate

  summary · EN · 11 February 1982

  Open at official source

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