7 U.S.C. § 7b–1 — Designation of securities exchanges and associations as contract markets

(a) A board of trade that's registered with the SEC as a national securities exchange, a national securities association, or that operates as an alternative trading system, automatically becomes a designated contract market for security futures products if: (1) it lists or trades no futures contracts other than security futures products; (2) it files a written notice with the Commission, in the form the Commission requires, giving whatever information the Commission decides is needed for the public interest or to protect customers; and (3) the SEC hasn't suspended its registration. This designation takes effect as soon as the notice is filed, in writing or electronically. (b)(1) A national securities exchange, association, or alternative trading system designated this way is exempt from several listed provisions of this chapter and their rules: subsections (c), (e), and (g) of section 6c; section 6j; section 7; section 7a–2; section 10a; section 12(d); section 13(f); and section 20. (2) An alternative trading system designated this way must be a member of a futures association registered under section 21, and is exempt from any provision of this chapter that would otherwise require it to set rules governing subscribers' conduct beyond their trading on the system, or to discipline subscribers other than by excluding them from trading. (3) Wherever an alternative trading system is exempt this way, the futures association it belongs to under section 21 must instead set the rules governing subscriber conduct and discipline subscribers. (4)(A) The Commission may, by rule, regulation, or order, exempt a designated contract market in security futures — with or without conditions — from any provision of this chapter or its rules, if the exemption serves the public interest and is consistent with protecting investors. (B) The Commission must set, by rule or regulation, the procedures for granting such an exemption, and may, at its own discretion, decline to even consider an application for one. (C) An alternative trading system designated as a contract market under this section is not treated as an "exchange" for any other purpose just because of that designation.