Page:United States Statutes at Large Volume 106 Part 4.djvu/881

 PUBLIC LAW 102-546—OCT. 28, 1992 106 STAT. 3617 "(3) In any action arising from a violation in the execution of an order on the floor of a contract market, the person referred to in paragraph (1) shall be liable for— "(A) actual damages proximately caused by such violation. If an award of actual damages is made against a floor broker in connection with the execution of a customer order, and the futures commission merchant which selected the floor broker for the execution of the customer order is held to be responsible under section 2(a)(1) for the floor broker's violation, such futures commission merchant may be required to satisfy such award; and "(B) where the violation is willful and intentional, punitive or exemplary damages equal to no more than two times the amount of such actual damages. If an award of punitive or exemplary damages is made against a floor broker in connection with the execution of a customer order, and the futures commission merchant which selected the floor broker for the execution of the customer order is held to be responsible under section 2(a)(l) for the floor broker's violation, such futures commission merchant may be required to satisfy such award if the floor broker fails to do so, except that such requirement shall apply to the futures commission merchant only if it willfully and intentionally selected the floor broker with the intent to assist or facilitate the floor broker's violation.". SEC. 223. CUSTOMER RESTITUTION. The tenth sentence of section 6(c) (7 U.S.C. 9) (as redesignated by section 209(a)(l) of this Act) is amended— (1) by inserting "(1)" after "may the first place it appears; (2) by striking "and, if and inserting "(2) if; (3) by striking "may suspend" and inserting "suspend"; (4) by striking "and may" and inserting "(3)"; and (5) by inserting before the period the following: "and (4) require restitution to customers of damages proximately caused by violations of such persons". SEC. 224. COMPLAINTS AGAINST REGISTERED PERSONS; CLASS ACTION SUITS. Section 14(a) (7 U.S.C. 18(a)) (as amended by section 222(b) of this Act) is further amended— (1) by redesignating paragraphs (1) and (2) as subparagraphs (A) and (B), respectively; (2) by inserting "(1)" after the subsection designation; and (3) by adding at the end the following new paragraph: "(2)(A) An action may be brought under this subsection by any one or more persons described in this subsection for and in behalf of such person or persons and other persons similarly situated, if the Commission permits such actions pursuant to a final rule issued by the Commission. "(B) Not later than two hundred and seventy days aft«r the date of enactment of this paragraph, the Commission shall propose and publish for public comment such rules as are necessary to carry out subparagraph (A). In developing such rules, the Commission shall consider the potential impact of such actions on resources available to the reparations system established under this Act and the relative merits of bringing such actions in Federal court.".

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