Page:United States Statutes at Large Volume 96 Part 2.djvu/939

 PUBLIC LAW 97-444—JAN. 11, 1983

96 STAT. 2301

AGRICULTURAL OPTIONS

SEC. 206. Section 4c of the Commodity Exchange Act (7 U.S.C. 6c) is amended by— (1) amending subsection (a) by— (A) inserting "or" at the end of clause (A); (B) striking out clause (B); and (C) redesignating clause (C) as clause (B); (2) amending subsection (b) to read as follows: "(b) No person shall offer to enter into, enter into or confirm the execution of, any transaction involving any commodity regulated under this Act which is of the character of, or is commonly known to the trade as, an 'option', 'privilege', 'indemnity', 'bid', 'offer', 'put', 'call', 'advance guaranty', or 'decline guaranty', contrary to any rule, regulation, or order of the Commission prohibiting any such transaction or allowing any such transaction under such terms and conditions as the Commission shall prescribe. Any such order, rule, or regulation may be made only after notice and opportunity for hearing, and the Commission may set different terms and conditions for different markets."; (3) in subsection (c), inserting immediately after the first sentence the following: "With respect to any commodity regulated under this Act and specifically set forth in section (2)(a) of this Act prior to the date of enactment of the Commodity Ante, p. 2294. Futures Trading Commission Act of 1974, the Commission may, '^ use i note. pursuant to the procedures set forth in this subsection, establish a pilot program for a period not to exceed three years to permit such commodity option transactions. The Commission may authorize commodity option transactions during the pilot prograia in as many commodities as will provide an adequate test of the trading of such option transactions. After completion of the pilot program, the Commission may authorize commodity option transactions without regard to the restrictions in the pilot program after the Commission transmits to the House Committee on Agriculture and the Senate Committee on Agriculture, Nutrition, and Forestry the documentation required under clause (1) of the first sentence of this subsection and the expiration of thirty calendar days of continuous session of Congress after the date of such transmittal."; and (4) amending subsection (d) by— (A) in clause (1), inserting ", other than a commodity specifically set forth in section 2(a) of this Act prior to enactment of the Commodity Futures Trading Commission Act of 1974," immediately after "physical commodity"; (B) in clause (2), inserting ", other than a commodity specifically set forth in section 2(a) of this Act prior to enactment of the Commodity Futures Trading Commission Act of 1974," immediately after "subsection (b) of this section"; and (C) inserting ", other than options on a commodity specifically set forth in section (2)(a) of this Act prior to enactment of the Commodity Futures Trading Commission Act of 1974," immediately after "The Commission may permit persons not domiciled in the United States to grant options under this subsection".

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