7 U.S.C. § 18 — Complaints against registered persons

(a) Petition for actual damages (1) Anyone harmed by a violation of this chapter, or of a rule, regulation, or order issued under it, by a person registered under this chapter can ask the Commission for an order. They have up to two years after the claim arose to apply. The order can award: (A) actual damages caused by the violation. If a floor broker's violation causes actual damages while executing a customer's order, and the futures commission merchant (FCM) that picked the broker is responsible for that violation under section 2(a)(1) of this title, the FCM can be required to pay the award. (B) punitive or exemplary damages — but only for a willful and intentional violation committed while executing an order on the floor of a registered entity, and capped at twice the actual damages. If punitive damages are awarded against a floor broker, and the FCM that selected the broker is responsible under section 2(a)(1), the FCM must pay if the broker doesn't — but only if the FCM willfully and intentionally picked that broker meaning to help or assist the violation. (2)(A) One or more harmed people can bring an action under this subsection on behalf of themselves and other similarly situated people, if the Commission allows such actions under a final rule. (B) Within 270 days after October 28, 1992, the Commission had to propose and publish for public comment the rules needed to carry out (A). In writing those rules, the Commission had to consider the effect on the reparations system's resources, and whether these actions are better suited to federal court. (b) Rules and regulations; control over right of appeal The Commission can make rules, regulations, and orders needed to run this section efficiently and quickly. These can set the form, filing, and service of pleadings and orders; the scope of discovery; counterclaims; motion practice, including grounds for dismissing a claim or counterclaim; hearings, including waiving them based on the amount at stake; appeal rights, if any; and any other matter governing Commission proceedings under this section. (c) Bond requirement when complainant is nonresident; waiver If a complaint comes from someone who does not live in the United States, that person must post a bond worth double the claim before the Commission takes formal action on the complaint. This bond covers costs, including a reasonable attorney's fee for the other side if they win, and any award the Commission later grants the other side on a counterclaim. The Commission can waive this bond requirement if the complainant lives in a country that lets U.S. residents file complaints there without posting a bond. (d) Enforcement of reparation award (1) If the person an award was made against does not pay within the time the Commission's order sets, the person who won — or anyone the order benefits — can, within three years of the order's date, file a certified copy of the order in the U.S. district court where they live or where the other side's main place of business is. That court's orders, writs, and processes can be served and returned anywhere in the United States. The person enforcing the order does not pay district court costs, including on appeal, unless they lose the appeal. If they finally win, they get a reasonable attorney's fee as part of the costs. Subject to the right of appeal under subsection (e), the Commission's reparations order is final and conclusive. (2) A reparation award is directly enforceable in district court, the same as a judgment under section 1963 of title 28. This rule applies retroactively from its enactment date, to any award where enforcement in district court begins within three years of the Commission's order. (e) Review Anyone aggrieved by a Commission order under this section can petition for review by the U.S. Court of Appeals for the circuit where a hearing was held — or, if no hearing was held, where the other party is located — following the procedure in section 9 of this title. The appeal only takes effect if, within 30 days of the reparation order, the person appealing also files with the court clerk a bond worth double the reparation award. This bond covers the court's judgment, plus interest and costs, including a reasonable attorney's fee for the other side if they win. The bond can be cash, negotiable securities worth at least the bond amount, or the backing of an approved surety company. The side that is not appealing does not pay court costs, and gets a reasonable attorney's fee if it wins. (f) Automatic bar from trading and suspension for noncompliance; effect of appeal If the party a reparation order was issued against does not show the Commission, within 15 days after the compliance deadline, that they either appealed or paid the order in full (or reached an agreed settlement), that party is automatically barred from trading on all registered entities. If that party is registered with the Commission, its registration is automatically suspended starting at the end of the 15-day period, until it shows the Commission that it has paid the amount plus interest. If the other side wins the appeal, or the appeal is dismissed, the trading ban and suspension instead start 30 days after the appeal judgment. If a court stays that judgment, the ban starts 10 days after the stay ends, unless the judgment is satisfied first. (g) Predispute resolution agreements for institutional customers This section does not stop a registered futures commission merchant from requiring a customer who is an "eligible contract participant" to sign an agreement waiving the right to file a claim under this section, as a condition of the FCM handling a transaction for that customer.