15 U.S.C. § 78c–2 — Securities-related derivatives
submitted 92 years ago by Pub. L. 111-203 to r/title-15-COMMERCE-AND-TRADE · 152 words · no verdicts yet
The CFTC can exempt certain contracts from its own rules but let the SEC share jurisdiction over them. When it does, this law treats those contracts as securities. Buying or selling one includes ending, transferring, or exchanging it.
(a) The Commodity Futures Trading Commission* can exempt certain agreements, contracts, or transactions — or whole classes of them — from its own rules under section 6(c)(1) of title 7. Sometimes it does this on the condition that the Commission (the SEC) also gets to regulate them at the same time. When that happens, this law treats those agreements, contracts, or transactions as "securities" for purposes of the securities laws.
(b) For those same CFTC-exempted, SEC-shared agreements, contracts, or transactions, whenever the securities laws refer to "purchasing" or "selling" a security*, that includes executing the deal, ending it early before its scheduled end date, assigning it, exchanging it, transferring or conveying it in a similar way, or wiping out rights or duties under it — whichever fits the situation.
Any agreement, contract, or transaction (or class thereof) that is exempted by the Commodity Futures Trading Commission* pursuant to section 6(c)(1) of title 7 with the condition that the Commission exercise concurrent jurisdiction over such agreement, contract, or transaction (or class thereof) shall be deemed a security* for purposes of the securities laws.
With respect to any agreement, contract, or transaction (or class thereof) that is exempted by the Commodity Futures Trading Commission pursuant to section 6(c)(1) of title 7 with the condition that the Commission exercise concurrent jurisdiction over such agreement, contract, or transaction (or class thereof), references in the securities laws to the “purchase” or “sale” of a security shall be deemed to include the execution, termination (prior to its scheduled maturity date), assignment, exchange*, or similar transfer or conveyance of, or extinguishing of rights or obligations under such agreement, contract, or transaction, as the context may require.
Source credit: (June 6, 1934, ch. 404, title I, § 3B, as added Pub. L. 111–203, title VII, § 717(b), July 21, 2010, 124 Stat. 1651.)
- 1934Enacted · Pub. L. 111-203 · 124 Stat. 1651
A history note hasn’t been published yet. The record shows enactment by Pub. L. 111-203 on 1934-06-06.
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