Page:United States Statutes at Large Volume 114 Part 5.djvu/483

 PUBLIC LAW 106-554-APPENDIX E 114 STAT. 2763A-443 "(B) allowance for a customer to designate in writing not less than once annually a named floor broker to execute orders for such customer, notwithstanding the regulations to prohibit the privilege of dual trading required under this section; and "(C) other measures reasonably designed to accommodate unique or special characteristics of individual boards of trade or contract markets, to address emergency or unusual market conditions, or otherwise to further the public interest consistent with the promotion of market efficiency, innovation, and expansion of investment opportunities, the protection of investors, and with the purposes of this section. "(b) As used in this section, the term 'dual trading* means the execution of customer orders by a floor broker during the same trading session in which the floor broker executes any trade in the same contract market or registered derivatives transaction execution facility for— "(1) the account of such floor broker; "(2) an accoiuit for which such floor broker has trading discretion; or "(3) an account controlled by a person with whom such floor broker has a relationship through membership in a broker association. "(c) As used in this section, the term 'broker association' shall include two or more contract market members or registered derivatives transaction execution facility members with floor trading privileges of whom at least one is acting as a floor broker, who— "(1) engage in floor brokerage activity on behalf of the same employer, "(2) have an employer and employee relationship which relates to floor brokerage activity, "(3) share profits and losses associated with their brokerage or trading activity, or "(4) regularly share a deck of orders.". (d) EXEMPTION FROM REGISTRATION FOR INVESTMENT ADVIS- ERS. —Section 4m of the Commodity Exchange Act (7 U.S.C. 6m) is amended by adding at the end the following: "(3) Subsection (1) of this section shall not apply to any commodity trading advisor that is registered with the Securities and Exchange Commission as an investment adviser whose business does not consist primarily of acting as a commodity trading advisor, as defined in section la(6), and that does not act as a commodity trading advisor to any investment trust, syndicate, or similar form of enterprise that is engaged primarily in trading in any commodity for future delivery on or subject to the rules of any contract market or registered derivatives transaction execution facility.". (e) EXEMPTION FROM INVESTIGATIONS OF MARKETS IN UNDERLY- ING SECURITIES.— Section 16 of the Commodity Exchange Act (7 U.S.C. 20) is amended by adding at the end the following: "(e) This section shall not apply to investigations involving any security underlying a security futures product.". (f) RULEMAKING AUTHORITY TO ADDRESS DUPLICATIVE REGULA- TION OF DUAL REGISTRANTS.—Section 4d of the Commodity Exchange Act (7 U.S.C. 6d) is amended— (1) by inserting "(a)" before the first undesignated paragraph;

�