Page:United States Statutes at Large Volume 114 Part 5.djvu/429

 PUBLIC LAW 106-554—APPENDIX E 114 STAT. 2763A-389 "(ii) futures for cash commodities; or "(iii) futures for swaps; or "(C) a futures commission merchant, acting as principal or agent, to enter into or confirm the execution of a contract for the purchase or sale of a commodity for future delivery if the contract is reported, recorded, or cleared in accordance with the rules of the registered derivatives transaction execution facility or a derivatives clearing organization. "(4) FINANCIAL INTEGRITY OF TRANSACTIONS. — The board of trade shall establish and enforce rules or terms and conditions providing for the financial integrity of transactions entered on or through the facilities of the board of trade, and rules or terms and conditions to ensure the financial integrity of any futures commission merchants and introducing brokers and the protection of customer funds. "(d) CORE PRINCIPLES FOR REGistERED DERIVATIVES TRANS- ACTION EXECUTION FACILITIES.— "(1) IN GENERAL. —To maintain the registration of a board of trade as a derivatives transaction execution facility, a board of trade shall comply with the core principles specified in this subsection. The board of trade shall have reasonable discretion in establishing the manner in which the board of trade complies with the core principles. "(2) COMPLIANCE WITH RULES. — The board of trade shall monitor and enforce the rules of the facility, including any terms and conditions of any contracts traded on or through the facility and any limitations on access to the facility. "(3) MONITORING OF TRADING.—The board of trade shall monitor trading in the contracts of the facility to ensure orderly trading in the contract and to maintain an orderly market while providing any necessary trading information to the Commission to allow the Commission to discharge the responsibilities of the Commission under the Act. "(4) DISCLOSURE OF GENERAL INFORMATION. —The board of trade shall disclose publicly and to the Commission information concerning— "(A) contract terms and conditions; "(B) trading conventions, mechanisms, and practices; "(C) financial integrity protections; and "(D) other information relevant to participation in trading on the facility. " (5) DAILY PUBLICATION OF TRADING INFORMATION.— The board of trade shall make public daily information on settlement prices, volume, open interest, and opening and closing ranges for contracts traded on the facility if the Commission determines that the contracts perform a significant price discovery function for transactions in the cash market for the commodity underlying the contracts. "(6) FITNESS STANDARDS.— The board of trade shall establish and enforce appropriate fitness standards for directors, members of any disciplinary committee, members, and any other persons with direct access to the facility, including any parties affiliated with any of the persons described in this paragraph. "(7) CONFLICTS OF INTEREST.— The board of trade shall establish and enforce rules to minimize conflicts of interest in the decision making process of the derivatives transaction

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