7 U.S.C. § 6k

Registration of associates of futures commission merchants, commodity pool operators, and commodity trading advisors; required disclosure of disqualifications; exemptions for associated persons

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(1) It shall be unlawful for any person to be associated with a futures commission merchant as a partner, officer, or employee, or to be associated with an introducing broker as a partner, officer, employee, or agent (or any person occupying a similar status or performing similar functions), in any capacity that involves (i) the solicitation or acceptance of customers’ orders (other than in a clerical capacity) or (ii) the supervision of any person or persons so engaged, unless such person is registered with the Commission under this chapter as an associated person of such futures commission merchant or of such introducing broker and such registration shall not have expired, been suspended (and the period of suspension has not expired), or been revoked. It shall be unlawful for a futures commission merchant or introducing broker to permit such a person to become or remain associated with the futures commission merchant or introducing broker in any such capacity if such futures commission merchant or introducing broker knew or should have known that such person was not so registered or that such registration had expired, been suspended (and the period of suspension has not expired), or been revoked. Any individual who is registered as a floor broker, futures commission merchant, or introducing broker (and such registration is not suspended or revoked) need not also register under this paragraph.(2) It shall be unlawful for any person to be associated with a commodity pool operator as a partner, officer, employee, consultant, or agent (or any person occupying a similar status or performing similar functions), in any capacity that involves (i) the solicitation of funds, securities, or property for a participation in a commodity pool or (ii) the supervision of any person or persons so engaged, unless such person is registered with the Commission under this chapter as an associated person of such commodity pool operator and such registration shall not have expired, been suspended (and the period of suspension has not expired), or been revoked. It shall be unlawful for a commodity pool operator to permit such a person to become or remain associated with the commodity pool operator in any such capacity if the commodity pool operator knew or should have known that such person was not so registered or that such registration had expired, been suspended (and the period of suspension has not expired), or been revoked. Any individual who is registered as a floor broker, futures commission merchant, introducing broker, commodity pool operator, or as an associated person of another category of registrant under this section (and such registration is not suspended or revoked) need not also register under this paragraph. The Commission may exempt any person or class of persons from having to register under this paragraph by rule, regulation, or order.(3) It shall be unlawful for any person to be associated with a commodity trading advisor as a partner, officer, employee, consultant, or agent (or any person occupying a similar status or performing similar functions), in any capacity which involves (i) the solicitation of a client’s or prospective client’s discretionary account or (ii) the supervision of any person or persons so engaged, unless such person is registered with the Commission under this chapter as an associated person of such commodity trading advisor and such registration shall not have expired, been suspended (and the period of suspension has not expired), or been revoked. It shall be unlawful for a commodity trading advisor to permit such a person to become or remain associated with the commodity trading advisor in any such capacity if the commodity trading advisor knew or should have known that such person was not so registered or that such registration had expired, been suspended (and the period of suspension has not expired), or been revoked. Any individual who is registered as a floor broker, futures commission merchant, introducing broker, commodity trading advisor, or as an associated person of another category of registrant under this section (and such registration is not suspended or revoked) need not also register under this paragraph. The Commission may exempt any person or class of persons from having to register under this paragraph by rule, regulation, or order.(4) Any person desiring to be registered as an associated person of a futures commission merchant, of an introducing broker, of a commodity pool operator, or of a commodity trading advisor shall make application to the Commission in the form and manner prescribed by the Commission, giving such information and facts as the Commission may deem necessary concerning the applicant. Such person, when registered hereunder, shall likewise continue to report and furnish to the Commission such information as the Commission may require. Such registration shall expire at such time as the Commission may by rule, regulation, or order prescribe.(5) It shall be unlawful for any registrant to permit a person to become or remain an associated person of such registrant, if the registrant knew or should have known of facts regarding such associated person that are set forth as statutory disqualifications in section 12a(2) of this title, unless such registrant has notified the Commission of such facts and the Commission has determined that such person should be registered or temporarily licensed.(6) Any associated person of a broker or dealer that is registered with the Securities and Exchange Commission, and who limits its solicitation of orders, acceptance of orders, or execution of orders, or placing of orders on behalf of others involving any contracts of sale of any commodity for future delivery or any option on such a contract, on or subject to the rules of any contract market or registered derivatives transaction execution facility to security futures products, shall be exempt from the following provisions of this chapter and the rules thereunder:(A) Subsections (b), (d), (e), and (g) of section 6c of this title.(B) Sections 6d, 6e, and 6h of this title.(C) Subsections (b) and (c) of section 6f of this title.(D)Section 6j of this title.(E) Paragraph (1) of this section.(F)Section 6p of this title.(G)Section 13a–2 of this title.(H) Subsections (d) and (g) of section 12 of this title.(I)Section 20 of this title.(Sept. 21, 1922, ch. 369, § 4k, as added Pub. L. 93–463, title II, § 204(a), Oct. 23, 1974, 88 Stat. 1396; amended Pub. L. 95–405, § 7, Sept. 30, 1978, 92 Stat. 869; Pub. L. 97–444, title II, § 212, Jan. 11, 1983, 96 Stat. 2303; Pub. L. 106–554, § 1(a)(5) [title II, § 252(d)], Dec. 21, 2000, 114 Stat. 2763, 2763A–448; Pub. L. 110–234, title XIII, § 13105(c), May 22, 2008, 122 Stat. 1434; Pub. L. 110–246, § 4(a), title XIII, § 13105(c), June 18, 2008, 122 Stat. 1664, 2196.)Editorial NotesCodification

Pub. L. 110–234 and Pub. L. 110–246 made identical amendments to this section. The amendments by Pub. L. 110–234 were repealed by section 4(a) of Pub. L. 110–246.

Amendments

2008—Pars. (5), (6). Pub. L. 110–246, § 13105(c), redesignated par. (5) relating to exempting associated persons or dealers from provisions of this chapter as (6).

2000—Par. (5). Pub. L. 106–554, § 1(a)(5) [title II, § 252(d)], which directed amendment of this section by “inserting after paragraph (4), as added by subsection (c) of this section” a new par. (5) relating to exempting associated persons or dealers from provisions of this chapter, was executed by adding that par. (5) at the end. Section 1(a)(5)[title II, § 252(c)] did not add a par. (4) to this section.

1983—Par. (1). Pub. L. 97–444 amended par. (1) generally to apply to introducing brokers and persons associated with introducing brokers.

Par. (2). Pub. L. 97–444 added par. (2). Former par. (2) redesignated (4).

Par. (3). Pub. L. 97–444 added par. (3). Former par. (3), which empowered Commission to authorize a registered futures association to perform any portion of the registration functions under this section, in accordance with rules approved by the Commission, and subject to the provisions of this chapter applicable to registrations granted by the Commission, was struck out.

Par. (4). Pub. L. 97–444 redesignated former par. (2) as (4) and substituted “Any person desiring to be registered as an associated person of a futures commission merchant, of an introducing broker, of a commodity pool operator, or of a commodity trading advisor shall make application to the Commission in the form and manner prescribed by the Commission, giving such information and facts as the Commission may deem necessary concerning the applicant. Such person, when registered hereunder, shall likewise continue to report and furnish to the Commission such information as the Commission may require. Such registration shall expire at such time as the Commission may by rule, regulation, or order prescribe” for “Any such person desiring to be registered shall make application to the Commission in the form and manner prescribed by the Commission, giving such information and facts as the Commission may deem necessary concerning the applicant. Such person, when registered hereunder, shall likewise continue to report and furnish to the Commission such information as the Commission may require. Such registration shall expire two years after the effective date thereof or at such other time, not less than one year from the date of issuance thereof, as the Commission may by rule, regulation, or order prescribe and shall be renewed upon application therefor, unless the registration has been suspended (and the period of such suspension has not expired) or revoked after notice and hearing as prescribed in section 9 of this title: Provided, That upon initial registration, unless the Commission otherwise prescribes by rule, regulation, or order, the effective period of such registration shall be not more than two years nor less than one year from the effective date thereof”.

Par. (5). Pub. L. 97–444 added par. (5).

1978—Par. (2). Pub. L. 95–405, § 7(1), inserted provisions authorizing the Commission to prescribe the period of registration of not less than one year for associated persons.

Par. (3). Pub. L. 95–405, § 7(2), added par. (3).

Statutory Notes and Related SubsidiariesEffective Date of 2008 Amendment

Amendment of this section and repeal of Pub. L. 110–234 by Pub. L. 110–246 effective May 22, 2008, the date of enactment of Pub. L. 110–234, see section 4 of Pub. L. 110–246, set out as an Effective Date note under section 8701 of this title.

Effective Date of 1983 Amendment

Amendment by Pub. L. 97–444 effective 120 days after Jan. 11, 1983, or such earlier date as the Commission shall prescribe by regulation, see section 239 of Pub. L. 97–444, set out as a note under section 2 of this title.

Effective Date of 1978 Amendment

Amendment by Pub. L. 95–405 effective Oct. 1, 1978, see section 28 of Pub. L. 95–405, set out as a note under section 2 of this title.

Effective Date

For effective date of section, see section 418 of Pub. L. 93–463, set out as an Effective Date of 1974 Amendment note under section 2 of this title.

Notes of Decisions

Cited in 46 cases (6 in the last 5 years), 1977–2024 · leading case: Commodity Futures Trading Comm'n v. Jack W. Savage, 611 F.2d 270 (9th Cir. 1980).

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Commodity Futures Trading Comm'n v. Jack W. Savage, 611 F.2d 270 (9th Cir. 1980). · cites it 3× “He was registered with the CFTC as a person associated with a futures commission merchant under 7 U.S.C. § 6k. The CFTC affidavits establish that Savage communicated trading advice to Melvin Berman and thereby to AITC itself.”

Commodity Futures Trading Comm'n v. Equity Fin. Grp. LLC, 572 F.3d 150 (3rd Cir. 2009). · cites it 4× “§ la(5), and Firth and Shimer were statutorily defined associated persons of Equity Financial under 7 U.S.C. § 6k. It -found Equity Financial liable under 7 U.”

Stotler & Co. & Richard C. Allen v. Commodity Futures Trading Comm'n, 855 F.2d 1288 (7th Cir. 1988). · cites it 3× “Also at issue on appeal is a third count (Count III) which alleged that Stotler violated § 4k, 7 U.S.C. § 6k (1976), by allowing Allen to remain associated with it when Allen had not registered with the Commission as an associated person and Stotler knew or should have known…”

U.S. Commodity Futures Trading Comm'n v. Allied Markets LLC, 371 F. Supp. 3d 1035 (M.D. Fla. 2019). · cites it 3× “Section 4k(2) of the CEA, 7 U.S.C. § 6k(2), and accompanying regulations, make it unlawful for a person to act as an AP of a CPO, that is, to solicit funds for a commodity pool or supervise persons engaged in such solicitation, without registering with CFTC.”

Inv. Co. Inst. v. United States Commodity Futures Trading Comm'n, 891 F. Supp. 2d 162 (D.D.C. 2012). · cites it 3× “7 U.S.C. § 6k. Since the CEA “sets no *169 minimum trading threshold for qualification as a CPO, .”

Effex Capital, LLC v. Nat'l Futures Ass'n, 933 F.3d 882 (7th Cir. 2019). “See 7 U.S.C. §§ 6k, 21(b)(2). Any application for CFTC review "shall be filed within 30 days after the date such notice is filed with the Commission and received by the aggrieved person, or within such longer period as the Commission may determine.”

Bennett v. EF Hutton Co., Inc., 597 F. Supp. 1547 (N.D. Ohio 1984). · cites it 2× “Count Five repeats the same charge with respect to Troyer’s actions as a commodity pool operator, alleging a violation of 7 U.S.C. § 6k. Count Six repeats Count Five and alleges a violation of 7 U.”

United States Commodity Futures Trading Comm'n v. Kratville, 796 F.3d 873 (8th Cir. 2015). “§ 6m(l)(2006); and failed to register as an associated person of a commodity pool operator, in violation of 7 U.S.C. § 6k(2) (2006). The CFTC also alleged that the individual defendants were liable as controlling persons for the violations of EMHC and MJM under 7 U.”

John Psimenos v. E.F. Hutton & Co., Inc., 722 F.2d 1041 (2d Cir. 1983). “7 U.S.C. § 6k requires registration of those associated with an fcm or introducing broker.”

Rosenthal & Co. v. Commodity Futures Trading Comm'n, 802 F.2d 963 (7th Cir. 1986). “One way of accomplishing this was for Rosenthal to register Pinckney with the Commodity Futures Trading Commission as an “associated person” of Rosenthal, 7 U.S.C. § 6k, and then designate him a registered representative of Rosenthal with the exchanges.”

Inv. Co. Inst. v. Commodity Futures Trading Comm'n, 720 F.3d 370 (D.C. Cir. 2013). “7 U.S.C. §§ 6k, 6n; 17 C.F.R. §§ 4.20-4.27 .”

Precious Metals Assocs., Inc. v. Commodity Futures Trading Comm'n, 620 F.2d 900 (1st Cir. 1980). “PMA engaged in the sale of London commodity options prior to June 1, 1978, the effective date of Commission Rule 32.”

Show all 46 citing cases →

— 7 U.S.C. § 6k(1) — 1 case

Commodity Futures Trading Comm'n v. Long Leaf Trading Grp., Inc. (N.D. Ill. 2022).

— 7 U.S.C. § 6k(2) — 9 cases

U.S. Commodity Futures Trading Comm'n v. Allied Markets LLC, 371 F. Supp. 3d 1035 (M.D. Fla. 2019). “Section 4k(2) of the CEA, 7 U.S.C. § 6k(2), and accompanying regulations, make it unlawful for a person to act as an AP of a CPO, that is, to solicit funds for a commodity pool or supervise persons engaged in such solicitation, without registering with CFTC.”

Jerry W. Slusser, First Repub. Fin. Corp., & First Repub. Trading Corp. v. Commodity Futures Trading Comm'n, 210 F.3d 783 (1st Cir. 2000).

U.S. Commodity Futures Trading Comm'n v. Arrington, 998 F. Supp. 2d 847 (D. Neb. 2014).

Nicholas v. Saul Stone & Co., 224 F.3d 179 (3rd Cir. 2000).

— 7 U.S.C. § 6k(3) — 2 cases

U.S. Commodity Futures Exch. Comm'n v. Vision Fin. Partners, LLC, 190 F. Supp. 3d 1126 (S.D. Fla. 2016).

Commodity Futures Trading Comm'n v. Bryant (W.D.N.C. 2024).

— 7 U.S.C. § 6k(l) — 4 cases

Fort Worth & Denver Ry. Co. v. Goldschmidt, 518 F. Supp. 121 (N.D. Tex. 1981).

Stewart v. GNP Commodities, Inc., 851 F. Supp. 283 (N.D. Ill. 1994).

Auster v. Commodity Futures Trading Comm'n, 687 F.2d 294 (9th Cir. 1982).

Commodity Futures Trading Comm'n v. Mass Media Mktg., Inc., 156 F. Supp. 2d 1323 (S.D. Fla. 2001).

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