1. (a) A person may not engage in the commodities trade or business or otherwise act as a commodity merchant unless the person:

   1. (1) is registered or temporarily licensed with the Commodity Futures Trading Commission for each activity causing the person to be considered a commodity merchant and the registration or temporary license has not expired or been revoked or suspended; or

   2. (2) is exempt from registration with the Commodity Futures Trading Commission under:

      1. (A) the Commodity Exchange Act; or
      2. (B) a CFTC rule.

2. (b) A board of trade may not trade or provide a place for the trading of any commodity contract or commodity option if the commodity contract or commodity option must be traded on a contract market or commodity market designated by the Commodity Futures Trading Commission or is subject to the rules of a contract market or commodity market designated by the Commodity Futures Trading Commission, unless:

   1. (1) the board of trade has been designated for the commodity contract or commodity option by the Commodity Futures Trading Commission; and
   2. (2) the designation has not been vacated, suspended, or revoked.

As added by P.L.177-1991, SEC.10.