after either by the Senior Commissioner or at his direction, and shall be recorded by the Secretariat in the Minute Record of all official actions of the Commission. The Secretariat shall promptly notify any directly affected person of the action taken and that it was the Senior Commissioner available, rather than the Commission as a whole, who took the action.

(d) Review by the Commission. The Commission may, in the following cumstances, review any action taken under Senior Commissioner authority and may affirm, modify, alter or set aside the decision:

(1) Upon the request of any member of the Commission, any action taken by a Senior Commissioner shall be reviewed by the Commission.

(2) In the event action by a Senior Commissioner suspends, denies or revokes or otherwise directly and adversely affects any license, right or privilege of any person, that person may in writing request review by the Commission and shall be entitled to have the action of the Senior Com.issioner reviewed by the Commission.

(3) The Commission may, in its discretion, review any action taken by a Senior Commissioner upon petition by any other person.

(e) Final effect of action by Senior Commissioner. In any matter, the action taken under Senior Commissioner authority shall be deemed the action of the Commission unless and until the Commission shall otherwise direct.

(Sec. 2a(11) of the Commodity Exchange Act, as amended 7 U.S.C. 4(a)(j); 88 Stat. 1391)

[41 FR 28474, July 12, 1976]

§ 140.12 Disposition of business by seriatim Commission consideration.

(a) Whenever the Chairman of the Commission is of the opinion that joint deliberation among the members of the Commission upon any matter is unnecessary in light of the nature of the matter, impracticable, or would impede the orderly disposition of agency business, but is of the view that such matter should be the subject of a vote of the Commission, such matter may be disposed of by circulation of any relevant materials concern

(Sec. 2a(11) of the Act, 7 U.S.C. 4(a)(j) (1976))

[43 FR 43452, Sept. 26, 1978]

§ 140.13 Vacancy in position of Chairman.

At any time that a vacancy exists in the position of Chairman of the Commission the remaining members of the Commission shall elect a member to serve as acting Chairman who shall exercise the executive and administrative functions of the Commission that would otherwise be exercised by a Chairman in accordance with section 2(a)(6) of the Commodity Exchange Act, as amended, until a new Chairman has been appointed by the President and confirmed by the Senate: Provided, however, That if the President shall appoint a new Chairman from among the existing members of the Commission, that Commissioner shall serve as acting Chairman for these purposes until such time as his appointment as Chairman has been confirmed or rejected by the Senate.

(Sec. 2a(11) of the Commodity Exchange Act, 7 U.S.C. 4a(J)(1976))

[43 FR 50167, Oct. 27, 1978)

§ 140.14 Delegation of authority to the Secretary of the Commission.

After the Commission has formally reached a decision or taken other action on a matter, has agreed upon the language of the document which embodies the Commission decision or other action, including, but not limited to, a rule, regulation or order, and has directed that the document be issued, the Secretary of the Commission (or a person designated in writing by the Secretary) shall sign the document on behalf of the Commission. Signature by the Secretary shall be a ministerial function and shall not be discretion

ary. The delegation to the Secretary of the authority to sign documents on the Commission's behalf shall not affect any other delegation which the Commission has made, or may make, which authorizes any other officer or employee of the Commission to take action and to sign documents on the Commission's behalf. In addition, the Commission reserves the authority to provide for signature on its behalf by the Chairman or any other member of the Commission in particular circumstances.

(Sec. 2(a)(11) of the Commodity Exchange Act, 7 U.S.C. 4a(j) (1976))

= [44 FR 33677, June 12, 1979)

$140.20 Designation of senior official to oversee Commission use of national security information.

(a) The Executive Director is hereby designated to oversee the Commission's program to ensure the safeguarding of national security information received by the Commission from other agencies, to chair a Commission committee composed of members of the staff selected by him with authori

ty to act on all suggestions and com- plaints with respect to the Commis- sion administration of its information - security program, and, in conjunction with the Personnel Security Officer of the Commission, to ensure that practices for safeguarding national security information are systematically reviewed and that those practices which are duplicative or unnecessary are eliminated.

(b) The Executive Director may submit any matter for which he has been designated under paragraph (a) of this section to the Commission for its consideration.

(Secs. (2)(a) and 8(a), 42 Stat. 1001, as amended, 49 Stat. 1498, 1499; 88 Stat. 1391; 7 U.S.C. 4a and 12(a))

[44 FR 65736, Nov. 15, 1979]

140.71 Delegation of authority to Chief of the Opinions Section.

Pursuant to the authority granted under sections 2(a)(4) and 2(a)(11) of the Commodity Exchange Act, as amended, 7 U.S.C. 4a(c) and 4a(j), the Commodity Futures Trading Commission hereby delegates, until such time as the Commission orders otherwise, the following functions to the Chief of the Opinions Section, to be performed by him or by such person or persons under his direction as he may designate from time to time:

(a) (1) With respect to proceedings conducted pursuant to the Commodity Exchange Act, as amended, 7 U.S.C. 1 et seq., and subject to the Commission's Rules of Practice as set forth in Part 10 of this chapter, to consider and grant or deny such motions submitted under § 10.26(c) of the Rules of Practice as may be directed to the Commission pursuant to § 10.26(a) of the Rules of Practice after the initial decision has been filed in the proceeding.

(2) With respect to reparation proceedings conducted pursuant to Section 14 of the Commodity Exchange Act, as amended, 7 U.S.C. 18, and subject to the Commission's reparation rules as set forth in Part 12 of this chapter, to consider and grant or deny such motions submitted under § 12.46(c) of the reparation rules as may be directed to the Commission pursuant to § 12.46(a) of the reparation rules after the initial decision has been filed in the proceeding.

(b) Notwithstanding the provisions of paragraph (a) of this section, in any case in which the Chief of the Opinions Section believes it appropriate, he may submit the matter to the Commission for its consideration.

(Pub. L. 93-463 Sec. 101(a)(4) and 101(a)(11), 88 Stat. 1391 (7 U.S.C. 4a(c) and 4a(j) (Supp. V, 1975)))

[42 FR 39033, Aug. 1, 1977; 43 FR 9143, Mar. 6, 1978)

§ 140.73 Delegation of authority to the Director of the Division of Enforcement to disclose information to other government agencies.

(a) Pursuant to sections 2(a)(11) and 8(e) of the Act, the Commission

hereby delegates, until such time as the Commission orders otherwise, to the Director of the Division of Enforcement, and in his absence, to each Deputy Director of the Division, the authority, upon the request of any department or agency of the Executive Branch of the Government, including for this purpose an independent regulatory agency, acting within the scope of its jurisdiction in the investigation or prosecution of any violation of federal law, to furnish to the department or agency, information in the possession of the Commission obtained in connection with the administration of the Act.

(b) In furnishing information under this delegation the Director of the Division of Enforcement shall remind the department or agency involved that section 8(e) of the Act prohibits the disclosure of information that would separately disclose the business transactions or market positions of any person and trade secrets or names of customers except in an action or proceeding under the laws of the United States to which the department or agency, or the Commission or the United States is a party.

(c) This delegation shall not affect any other delegation which the Commission has made or may make, which authorizes any other officer or employee of the Commission to furnish information to other government bodies on the Commission's behalf.

Commodity Futures Trading Commission hereby delegates, until such time as the Commisssion orders otherwise, the following functions to the Director of the Complaints Section, and to such person or persons under the Director's direction as the Director may designate from time to time:

(a) With respect to reparation proceedings filed pursuant to section 14 of the Commodity Exchange Act, as amended (the "Act"), 7 U.S.C. 18 on and after January 14, 1980 and subject to the Commission's Reparation rules as set forth in Part 12 of this chapter, to perform all functions reserved to the Commission in sections 14(a), (b) | and (d) of the Act and in Subparts B and C of the Reparation rules, prior to the docketing of formal adjudicatory | proceedings pursuant to § 12.41 of the Reparation rules.

(b) Notwithstanding the provisions of paragraph (a) of this section, in any case in which the Director believes it appropriate, or in which the Commission so requests, such Director may submit the matter to the Commission for its consideration.

(Pub. L. 93-463, sec. 101(a)(4) and 101(a)(11), 88 Stat. 1391 (7 U.S.C. 4a(c) and 4a(j))

[45 FR 14021, Mar. 4, 1980]

§ 140.91 Delegation of authority to the Director of the Division of Trading and Markets.

sion of Enforcement believes it appropriate he may submit the matter to the Commission for its consideration. In addition, the Commission reserves to itself the authority to determine whether to grant a request for information in any particular case.

(Secs. 2(a)(11) and 8(e) of the Commodity Exchange Act, as amended, 7 U.S.C. 4a(j) (1976); 92 Stat. 873-74 (September 30, 1978)) [44 FR 72107, Dec. 13, 1979]

§ 140.81 Delegation of authority to the Director of the Complaints Section.

Pursuant to the authority granted under sections 2(a)(4) and 2(a)(11) of the Commodity Exchange Act, as amended, 7 U.S.C. 4a(c) and 4a(j), the

(a) The Commission hereby delegates, until such time as the Commis

functions to the Director of the Division of Trading and Markets and to such members of the Commission's staff acting under his direction as he may designate from time to time:

(1) All functions reserved to the Commission in § 1.10 of this chapter, except for those relating to nonpublic treatment of reports set forth in § 1.10(g) of this chapter;

(2) All functions reserved to the Commission in § 1.12 of this chapter;

(3) All functions reserved to the Commission in § 1.16 of this chapter; and

(4) All functions reserved to the Commission in § 1.17 of this chapter, except for those relating to non-enu

merated cover cases set forth in §1.17(J)(3) of this chapter.

(b) The Director of the Division of Trading and Markets may submit any matter which has been delegated to him under paragraph (a) of this section to the Commission for its consideration.

(Secs. 2a(11) and 8a(5) of the Commodity Exchange Act, as amended, 7 U.S.C. 4a(j) and 12a(5) (1976))

[44 FR 13460, Mar. 12, 1979]

140.92 Delegation of authority to grant registrations and renewals thereof.

(a) The Commission hereby delegates, until such time as the Commission orders otherwise, to the Director of the Division of Trading and Markets and to such members of the Commission's staff acting under his direction as he may designate, the authority to grant registrations and renewals thereof.

(b) The Director of the Division of Trading and Markets may submit any

- matter which has been delegated to him under paragraph (a) of this section to the Commission for its consideration.

1

!

(c) Nothing in this section may prohibit the Commission, at its election, from exercising the authority delegated to the Director of the Division of Trading and Markets under paragraph (a) of this section.

(Secs. 2a(11), 8a(1), and 8a(5) of the Commodity Exchange Act, as amended, 7 U.S.C. 4a(j), 128(1), and 12a(5), as amended; 92 Stat. 863 et seq.)

[45 FR 20785, Mar. 31, 1980]

Subpart C-Regulation Concerning Conduct of Members and Employees and Former Members and Employees of the Commission

AUTHORITY: Sec. 8a(5), 49 Stat. 1501, as amended (7 U.S.C. 12a(5)); Ε.Ο. 11222, 3 CFR, 1964-1965 Comp.; 5 CFR 735.104.

SOURCE: 41 FR 27511, July 2, 1976, unless otherwise noted.

$140.735-1 Authority and purpose.

This subpart, adopted by the Commodity Futures Trading Commission on June 25, 1976, establishes standards of ethical conduct required of mem

bers, employees and special Government employees, and regulations concerning former members, employees and special Government employees of the Commodity Futures Trading Commission. It implements Executive Order No. 11222 (May 8, 1965, 30 FR 6469) and Civil Service Commission Regulations (5 CFR Part 735) adopted pursuant to that Order. In addition, the subpart contains references to various statutes governing employee conduct in order to aid members and employees in their understanding of statutory restrictions and requirements.1

§ 140.735-2 Policy and enforcement.

The maintenance of high standards of honesty, integrity, impartiality, and conduct by Government's employees is essential to assure the proper performance of the Government's business and the maintenance of confidence by citizens in their Government. In a regulatory agency such as the Commission, whose actions affect the business and financial interests of a large number and variety of persons, it is particularly important that every employee be completely impartial, honest and above suspicion of improper conduct. Accordingly, the Commission requires that its employees strictly adhere to the highest standard of ethical conduct in all their business and off-the-job activities, relationships and interests, as well as in their official actions. All Commission employees shall exercise their informed judgment to avoid situations that might result in actual or apparent misconduct or conflict of interests.

These references, however, do not purport to cover all restrictions and requirements, and the paraphrased restatements of statutory provisions, such as that of the conflict-of-interest provisions of 18 U.S.C. 201, et seq., appearing in this Subpart C, are not intended to be, and should not be construed as, verbatim quotations of the law. The statutory text should be consulted in any situation in which it might apply. Section 140.735-12 lists applicable statutes and regulations copies of which, as well as of all pertinent regulations and orders, are available for review by Commission employees in the Office of the General Counsel in Washington, D.C., and in each Commission Regional Office.

§ 140.735-3 General provisions.

(a) Applicability. For the purposes of this section, members and employees of the Commission should be aware that the financial interests and business matters or transactions of their spouses, minor children or other relatives who are residents of their immediate households will be regarded, absent compelling countervailing reasons, as those of the member or employee.

(b) Prohibitions. A member or employee of the Commission shall not:

(1) Have a direct or indirect financial interest that conflicts substantially, or appears to conflict substantially, with his official duties and responsibilities;

(2) Engage in, directly or indirectly, a personal business matter or transaction, or private arrangement for gain or profit, which accrues as a result of or is based upon his official position or authority, or upon confidential or nonpublic information that he has gained by reason of such position or authority;

(3) Act in or on any matter, whether or not specifically prohibited by this section, which might result in, or create the appearance of: (i) Using public office for private gain; (ii) giving preferential treatment to any person; (iii) impeding Government efficiency or economy; (iv) losing complete independence or impartiality; (v) making a Government decision outside official channels; or (vi) affecting adversely the confidence of the public in the integrity of the Government; or

(4) Act in or on any official matter with respect to which there exists a personal interest that would interfere with an unbiased exercise of official judgment.

(c) Matters not prohibited. This section does not preclude a member or employee from having a financial interest or engaging in financial transactions to the same extent as a private citizen not employed by the Government so long as it is not prohibited by law, Executive Order, this section or the regulations under the Commodity Exchange Act.

[41 FR 27511, July 2, 1976, as amended at 42 FR 15902, Mar. 24, 1977)

§ 140.735-4 Business and financial trai

actions and interests.

(a) Application. This section appl to all transactions effected by or behalf of a Commission member employee, including transactions 1 the account of other persons effect by the member or employee, direc or indirectly, under a power of atte ney or otherwise. A member or e ployee is considered to have sufficie interest in the transactions of t spouse or minor child of the memb or employee, or other relatives wł are residents of the immediate hous hold of the member or employee, that such transactions must be repor ed and, absent compelling counterval ing reasons, are subject to all th terms of this section.

(b) Prohibitions. No Commissio member or employee shall:

(1) Participate, directly or indirectly in any transaction (i) involving a con future delivery; (ii) involving any com tract of sale of any commodity for modity that is of the character of, of is commonly known to the trade as, an option, privilege, indemnity, bid, offer, put, call, advance guaranty or decline guaranty; or (iii) for the delivery of silver bullion, gold bullion, bulk silver coins or bulk gold coins that is or is to be executed pursuant to a standardized contract commonly known to the trade as a margin account, margin contract, leverage account or leverage contract or similar contracts when