7 U.S.C. § 23 — Standardized contracts for certain commodities

(a) Except as authorized under (b), no person may offer to enter into, enter into, or confirm the execution of any transaction for the delivery of a commodity under a standardized contract commonly known to the trade as a margin account, margin contract, leverage account, or leverage contract, or under any contract, account, arrangement, scheme, or device the Commission determines serves the same function, or is marketed or managed in substantially the same manner, as such a contract. (b) There's an exception for silver bullion, gold bullion, bulk silver coins, bulk gold coins, and platinum. (1) Subject to (2), people may offer, enter into, or confirm such transactions, but only following whatever rule, regulation, or order the Commission prescribes — issued only after notice and opportunity for hearing — which may include terms designed to ensure the transaction's financial solvency or to prevent manipulation or fraud; the Commission may set different terms for different commodities. (2) No person may engage in this activity unless they were already permitted to under the Commission's rules, regulations, and orders in effect on November 10, 1986, until the Commission permits them to under the regulations described in (c)(2). (c) (1)(A) Not later than two years after November 10, 1986, the Commission had to, with the assistance of a registered futures association, conduct a survey of persons interested in engaging in the business described in (b)(1), and transmit a report of the results to the House Committee on Agriculture and the Senate Committee on Agriculture, Nutrition, and Forestry. (B) The Commission could direct a registered futures association, by rule, regulation, or order, to render assistance in completing that report. (C) The report had to include findings and recommendations on: (i) whether such transactions serve an economic purpose; (ii) the most efficient way, consistent with the public interest, to permit additional persons to engage in this business; and (iii) the appropriate regulatory scheme to ensure the transactions' financial solvency and prevent manipulation or fraud. (2) The report also had to include Commission regulations governing such transactions, which had to provide for permitting additional persons to engage in them. The regulations became effective 90 calendar days, counting only days either House of Congress is in session, after the report was transmitted to Congress. The regulations could authorize or require a registered futures association to perform specified responsibilities in connection with these transactions, and could require that permission for additional persons be given gradually, so as not to place an undue burden on the Commission's resources. (d) This section does not affect any rights or obligations arising out of a transaction subject to this section, as in effect before November 10, 1986, that was entered into, or the execution of which was confirmed, before November 10, 1986.