of the order. No right to a hearing shall accrue by virtue of the filing of such a request: Provided, That notice shall be given of the denial in whole or in part of any such request and, except in affirming a prior denial or where the denial is selfexplanatory, such notice shall be accompanied by a simple statement of procedural or other grounds for denial. hearing may be called either as a result of such a request or upon the Commission's own motion.

§ 0.74

A

Status of persons requesting promulgation, amendment, or rescission of regulations.

No person who requests the promulgation, amendment, or rescission of any regulation, as provided in § 0.73, shall have a legal status in any proceeding growing out of such request except that he may appear and testify and may file statements in any such proceeding in accordance with the provisions of this subpart.

§ 0.75 Notice of hearing.

At least 10 days prior to any public hearing held in a rule-making proceeding, unless the Commission shall determine that an emergency exists which requires a shorter period of notice, notice of such hearing shall be published in the FEDERAL REGISTER and shall be sent to all persons known to be interested in the proposed regulation. The notice shall state the time and place of hearing and shall contain one or more of the following:

(a) The exact text or a summary thereof of proposed findings, conclusions, and order;

(b) A summary of the results of any investigation made, or conference held in anticipation of the hearing;

(c) A statement of the issues to be considered at the hearing, insofar as such issues may be known at the time of issuance of the notice.

a clear and orderly record. The presiding officer shall have authority to administer oaths or affirmations and to take all other actions necessary to the orderly conduct of the hearing.

(b) Continuance of hearing. Each such hearing shall be held at the time and place set forth in the notice of hearing, but may at such time and place be continued by the presiding officer from day to day or adjourned to a later date or to a different place without notice other than the announcement thereof at the hearing.

(c) Order of proceeding. At the commencement of the hearing, the presiding officer shall read the notice of hearing and shall then outline briefly the procedure to be followed. Evidence shall then be received with respect to the matters specified in the notice of hearing in such order as the presiding officer shall prescribe.

All in

(d) Submission of evidence. terested persons shall be given reasonable opportunity to offer evidence with respect to the matters specified in the notice of hearing. Every witness shall, before proceeding to testify, be sworn, after which he shall state his name, address, and whom he represents at the hearing and shall give such other information respecting his appearance as the presiding officer may request. The presiding officer shall confine the evidence to the questions before the hearing but shall not aplly the technical rules of evidence. Affidavits as to relevant facts may be admitted in evidence at the hearing. Every witness shall be subject to questioning by the presiding officer or by any other representative of the Commission, but cross-examination by private persons shall not be permitted, except when the presiding officer expressly permits it.

(e) Transcript of the evidence. Testimony given at the hearing shall be reported verbatim. All suporting written statements, charts, tabulations, or similar data offered in evidence at the hearing, and which are deemed by the presiding officer to be authentic and relevant, shall be numbered as exhibits and received in evidence and made a part of the record. Unless the presiding officer finds that the furnishing of copies is impracticable, four copies of the exhibits shall be submitted and in typewritten, printed, or mimeographed form. If sufficient copies are not available, the

presiding officer may have any exhibit read in evidence or may require additional copies to be furnished within a specified time.

(f) Written arguments. The presiding officer shall announce at the hearing a reasonable period within which interested persons may file with him written arguments based on the evidence received at the hearing. Written arguments will not be accepted unless an original and four copies are filed. The period for filing written arguments may be extended by the presiding officer for good cause.

(g) Copies of the record. Any person desiring a copy of the transcript of testimony or of any written exhibit or written argument shall be entitled thereto upon written application filed with the reporter, and upon payment of fees at the rate provided in the contract with the reporter.

§ 0.77 Preparation and issuance of order.

(a) Preparation of proposed final order. Within a reasonable period of time after the hearing, the presiding officer, assisted by such employees of the Commodity Exchange Authority and of the Office of the Solicitor as the Act Administrator and the Solicitor, respectively, may direct, shall prepare such proposed final order as is appropriate and practicable. Such order shall include findings of fact and conclusions based thereon, but the findings of fact need not be based solely upon the testimony or exhibits received in evidence at the hearing.

(b) Submission of proposed final order to the Commission. Immediately upon completion of its preparation, the proposed final order shall be submitted by the presiding officer to the Commission for approval and issuance. The proposed final order shall be accompanied by a copy of the transcript and of any exhibits that may have been introduced, and by a memorandum containing a summary of the evidence contained in the record and of such other factual data upon which the findings of fact in the proposed final order were based.

(c) Tentative issuance of proposed final order. The Commission may, if it deems it advisable to do so, issue the proposed final order as a tentative order. In such event, the tentative order shall be published in the FEDERAL REGISTER, and interested persons who appeared at

(a) Filing, number of copies; service. Whenever, for any reason contemplated by subsection (1) of section 6a of the act, any board of trade which has been designated as a "contract market" seeks to exclude from membership in, and privileges on, such board of trade any cooperative association or corporation as defined in said subsection (1) of section 6a, the board of trade shall file a complaint. The complaint shall be filed, in quintuplicate, with the hearing clerk, who promptly shall serve a copy thereof upon the respondent, in the manner provided in § 0.95.

(a) Assignment. No referee shall be assigned to serve in any proceeding who (1) has any pecuniary interests in any matter or business involved in the proceeding, or (2) is related within the third degree by blood or marriage to any of the directors or officers of any of the parties to the proceeding.

(b) Disqualification of referee. The provisions of § 0.57(b) shall be applicable in 6a proceedings.

(c) Conduct. The provisions of § 0.57 (c) shall be applicable in 6a proceedings. (d) Powers of referee. The provisions of $ 0.57 (d) shall be applicable in 6a proceedings.

(e) Who may act in the absence of the referee. The provisions of § 0.57(e) shall be applicable in 6a proceedings.

The provi

(a) Filing and service. sions of 0.59 (a) shall be applicable in 6a proceedings.

(b) Contents; failure to file. The provisions of § 0.59 (b) shall be applicable in 6a proceedings.

(c) Procedure upon admission of facts. The admission, in the answer or by failure to file an answer, of all the material allegations of fact contained in the complaint shall constitute a waiver of hearing. If, in such case, the respondent, prior to the expiration of the period for filing the answer, has requested in writing an opportunity to argue the question of whether the facts alleged constitute grounds for exclusion from membership and privileges; the respondent shall be afforded a period of 15 days in which to file a brief, setting forth such argument. If no request for argument is filed by the respondent prior to the expiration of the period for the filing of the answer, the referee shall prepare, for issuance by the Commission, an order, in which the findings of fact shall consist of the material facts alleged in the complaint.

§ 0.83 Motions and requests.

The referee is authorized to rule upon all motions and requests filed in the proceeding prior to his submission of the record to the Commission. All motions and requests shall be filed with the hearing clerk, except that those made during the course of an oral hearing may be filed with the referee or may be stated orally and made a part of the transcript. Submission or certification of any question to the Commission prior to the close of the hearing shall be in the discretion of the referee, except that, in case the referee shall grant a motion to dismiss on the pleadings, an immediate appeal from the referee's ruling may be taken to the Commission.

decided upon a record formed under the shortened procedure provided for in § 0.90.

(b) Time and place. The provisions of § 0.61(b) shall be applicable in 6a proceedings.

(c) Appearances- -(1) Representation. The provisions of § 0.61 (c) (1) shall be applicable in 6a proceedings.

(2) Failure to appear. If any party to the proceeding, after being duly notified, fails to appear at the hearing, he or it shall be deemed to have waived the right to an oral hearing in the proceeding. In the event that a party appears at the hearing and no party appears for the other side, the party who is present shall have an election to present his or its evidence, in whole or in part, in the form of affidavits or by oral testimony before the referee. Failure to appear at the hearing shall not be deemed to be a waiver of the right to file suggested findings of fact, conclusions, and orders, and briefs in support thereof.

(d) Order of proceeding. Except as may be determined otherwise by the referee, the complainant shall proceed first at the hearing.

(e) Evidence. The provisions of § 0.61 (e) shall be applicable in 6a proceedings.

(f) Oral argument before referee. The provisions of § 0.61 (f) shall be applicable in 6a proceedings.

(g) Transcript. The provisions of § 0.61(g) shall be applicable in 6a proceedings.

The provisions of § 0.63 shall be applicable in 6a proceedings.

§ 0.87 Fees of witnesses.

The provisions of § 0.64 shall be applicable in 6a proceedings.

(a) Preparation of order. As soon as practicable after the receipt of the record from the hearing clerk, the Commission, upon the basis, and after due consideration, of the record, shall prepare its order in the proceeding which shall include findings, conclusions, order, and rulings on motions, exceptions, proposed findings, conclusions and orders submitted by parties, not theretofore ruled upon.

(b) Issuance of order. The order, prepared as described in paragraph (a) of this section, shall be issued and served upon the parties as the final order in the proceeding without further procedure:

Provided, That, if the terms of the order differ substantially from those proposed in the report of the referee, the Commission may, if it deems it advisable to do so, direct that a copy of the order be served upon the parties as a tentative order; and, in such event, opportunity shall be given the parties to file exceptions thereto and written arguments or briefs in support of such exceptions. In such case, if no exceptions are filed within 20 days following the service of the tentative order, it shall be issued and served as the final order in the proceeding.

§ 0.94 Applications for reopening hearings, for rehearings or rearguments of proceedings, or for reconsideration of orders.

The provisions of § 0.71 shall be applicable in 6a proceedings.

§ 0.95 Filing; service; extensions of time; additional time for filing; and computation of time.

The provisions of § 0.72 shall be applicable in 6a proceedings.

RULES APPLICABLE TO ALL PROCEEDINGS § 0.96 Hearings before the Commission.

The Commission may act in the place and stead of a referee or presiding officer in any proceeding under this subpart. When it so acts, the hearing clerk shall transmit the record to the Commission at the expiration of the period provided for the filing of proposed findings of fact, conclusions and orders, and the Commission shall thereupon, after due consideration of the record, issue its final order in the proceeding: Provided, That it may issue a tentative order, in which event the parties shall be afforded an opportunity to file exceptions before the issuance of the final order.

1.7

1.8 1.9

Registration required of futures commission merchants. Registration required of floor brokers. Registration as floor broker not included in registration as futures commission merchant and vice versa. 1.10 Applications for registration required on prescribed forms; financial statements of futures commission merchants; registration suspended or revoked for willful misrepresentation. 1.11 Registration fee; form of remittance. 1.12 Posting of registration certificate. 1.13 Deposit of registration fee; fee not subject to refund after registration; form of certificate.

1.14 Deficiencies, inaccuracies, changes, to be reported by futures commission merchants and floor brokers. 1.15 Changes requiring new registration. 1.16 Registrations expire December 31 of each year.

1.38 1.39

Record of securities and property received from customers.

Customer's name, address, and occupation recorded; record of guarantor or controller of account.

Execution of transactions.

Simultaneous buying and selling orders

of different principals; execution of, for and between principals.

1.44 Warehouse records, reports; visitation of premises.

1.45 Delivery of commodities conforming to United States standards.

1.46 Application and closing out of offsetting long and short positions. 1.48 Hedging anticipated requirements for processing or manufacturing under section 4a (3) (C) of the Commodity Exchange Act.

1.49 Denial of trading privileges; suspension or revocation of registration; employment in similar capacity.

AUTHORITY: §§ 1.1 to 1.49 issued under sec. 8a as added by sec. 10, 49 Stat. 1500; 7 U.S.C. 12a. Additional authority is cited in parentheses following the sections affected.

SOURCE: §§ 1.1 to 1.49 appear at 13 F.R. 7834, Dec. 18, 1948; 28 F.R. 314, Jan. 11, 1963, except as otherwise noted.

§ 1.1

DEFINITIONS

Words in singular and plural form. Words used in the singular form in the rules and regulations in this part shall be deemed to import the plural, and vice versa, as the case may require. § 1.2 Liability of principal for act of

agent.

The act, omission, or failure of any official, agent, or other person acting