[Code of Federal Regulations]
[Title 17, Volume 1]
[Revised as of April 1, 2006]
From the U.S. Government Printing Office via GPO Access
[CITE: 17CFR12.22]

[Page 278]
 
              TITLE 17--COMMODITY AND SECURITIES EXCHANGES
 
             CHAPTER I--COMMODITY FUTURES TRADING COMMISSION
 
PART 12_RULES RELATING TO REPARATIONS--Table of Contents
 
Subpart A_General Information and Preliminary Consideration of Pleadings
 
Sec.  12.22  Default proceedings.

    (a) Institution of a default proceeding. Failure timely to respond 
to a complaint or a counterclaim, as required by Sec. Sec.  12.16 and 
12.20 of these rules, or, if applicable, to pay a filing fee required by 
Sec.  12.25(b) or (c), shall be treated as an admission of the 
allegations of the complaint or counterclaim by the non-responding 
party, shall constitute a waiver by such party of any decisional 
procedure afforded by these Rules on the facts set forth in the 
complaint or counterclaim, and shall result in the institution of a 
default proceeding.
    (b) Default procedure. Upon a party's failure to respond timely to a 
complaint or counterclaim as prescribed in Sec. Sec.  12.16 and 12.20 of 
these rules, or timely to comply with Sec.  12.25 (b) or (c), the 
Director of the Office of Proceedings shall forward the pleadings, and 
other materials then of record, to a Judgment Officer or Administrative 
Law Judge who may thereafter enter findings and conclusions concerning 
the questions of violations and damages and, if warranted, enter a 
reparation award against the non-responding party. If the facts which 
are treated as admitted are considered insufficient to support a 
violation or the amount of reparations sought, the Judgment Officer or 
Administrative Law Judge may order production of supplementary evidence 
from the party not in default and may enter a default order and an award 
based thereon.
    (c) Finality. A default order issued pursuant to this rule, or 
pursuant to any other provisions of these part 12 Reparation Rules, 
shall become the final decision and order of the Commission thirty (30) 
days after service thereof, unless the order is set aside pursuant to 
Sec.  12.23(a) of these rules, or unless the Commission takes review of 
such order on its own motion on or before the thirtieth day.

[49 FR 6621, Feb. 22, 1984, as amended at 57 FR 20638, May 14, 1992]