[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: 17CFR12.24]

[Page 279-280]
 
              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.  12.24  Parallel proceedings.

    (a) Definition. For purposes of this section, a parallel proceeding 
shall include:
    (1) An arbitration proceeding or civil court proceeding, involving 
one or more of the respondents as a party, which is pending at the time 
the reparation complaint is filed and involves claims or counterclaims 
that are based on the same set of facts which serve as a basis for all 
of the claims in the reparations complaint, and which either:
    (i) Was commenced at the instance of the complainant in reparations; 
or
    (ii) Involves counterclaims by the complainant in reparations 
alleging violations of the Commodity Exchange Act, or any regulation or 
order issued thereunder; or
    (iii) Is governed by a compulsory counterclaim rule of federal court 
procedure which required the complainant in reparations to assert all of 
his claims (including those based on alleged violations of the Commodity 
Exchange Act, and any regulation or order issued thereunder) as 
counterclaims in that proceeding;
    (2) The appointment by a court of a receivership over the assets, 
property or proceeds of a respondent named in a reparation complaint 
where the responsibility of the receivership includes the resolution of 
claims made by customers; or
    (3) A petition filed under any chapter of the Bankruptcy Code, 11 
U.S.C. 101 et seq., as amended, commenced pursuant to 11 U.S.C. 301 or 
302 by a respondent in a reparation proceeding, or the issuance by a 
bankruptcy court of an order for relief after the filing against a 
respondent in a reparation proceeding of an involuntary petition in 
bankruptcy pursuant to 11 U.S.C. 303.
    (b) Notice. At the time a complaint in reparations is filed pursuant 
to these rules, or at any time thereafter, any party, receiver or 
trustee, or counsel to any of the foregoing with knowledge of a parallel 
proceeding shall promptly

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notify the Commission, by first-class mail addressed to the Office of 
Proceedings, attention of the Proceedings Clerk, and serve notice on all 
other parties, including the receiver or trustee. The notice shall 
include the following information:
    (1) The caption of the parallel proceeding;
    (2) The name of the court or the arbitration tribunal (including 
address and phone number, if known);
    (3) The docket number or numbers;
    (4) The date the parallel proceeding was filed (and the current 
status if known); and
    (5) If a proceeding in bankruptcy or receivership is pending, the 
date of the appointment and name and address of the receiver or trustee.

A copy of any relevant complaint, petition or order shall be attached to 
the notice.
    (c) Effect of pending arbitration or civil court litigation. (1) The 
Director of the Office of Proceedings shall refuse to institute an 
elected decisional procedure concerning a reparation complaint filed 
under this part in which there is a parallel proceeding described in 
paragraph (a)(1) of this section and shall return the complaint to the 
complaining person. The effective date of the Director's termination of 
the complaint without prejudice shall be fifteen (15) days from the date 
of service of notice of the action taken pursuant to this paragraph.
    (2) If notice of a parallel proceeding described in paragraph (a)(1) 
of this section is received before the initial decision is filed (or 
before a final decision under Sec.  12.106 of the rules is entered), a 
proceeding in which a decisional procedure has been commenced shall be 
dismissed, without prejudice. The effective date of the order of 
dismissal shall be fifteen (15) days from the date of service of the 
order by the Proceedings Clerk.
    (d) Effect of receivership or bankruptcy proceedings. (1) The 
Director of the Office of Proceedings shall refuse to institute an 
elected decisional procedure as to a respondent in any reparation 
complaint filed pursuant to this part who is the subject of a parallel 
proceeding described in paragraph (a)(2) or (a)(3) of this section, and 
shall notify all parties, including the receiver or trustee, that as to 
that respondent a reparation proceeding shall not be instituted. The 
effective date of the Director's action shall be fifteen (15) days from 
the date of service of the notice thereof.
    (2) A proceeding in which an elected decisional procedure has been 
commenced shall be ordered dismissed, without prejudice, as to any 
respondent who becomes the subject of a parallel proceeding described in 
paragraph (a)(2) or (a)(3) of this section if notice pursuant to 
paragraph (b) of this section is received before the filing of an 
initial decision (or before a final decision is issued pursuant to Sec.  
12.106) as to that respondent. The Proceedings Clerk shall notify all 
parties, including the receiver or trustee, of the order. The effective 
date of the order shall be fifteen (15) days from the date of the 
service of the order by the Proceedings Clerk.
    (e) Exceptions. At the time notice of a parallel proceeding is filed 
pursuant to paragraph (b) of this section, or any time thereafter, any 
party, or the receiver or trustee, may file and serve upon other parties 
a statement in support of or in opposition to any action taken or to be 
taken pursuant to paragraph (c) or (d) of this section. This statement 
shall be addressed to the Office of Proceedings, attention of the 
Proceedings Clerk. Upon receipt of any such statement, the Proceedings 
Clerk shall immediately forward the statement to the official with 
responsibility over the case. The notice and the statements filed by the 
parties shall be reviewed by that official who, on or before the 
effective date of action taken pursuant to paragraphs (c)(1), (c)(2), 
(d)(1), and (d)(2), of this section, may take such actions as, in his 
opinion, are necessary to ensure that the parties to the matter or 
proceedings are not unduly prejudiced.
    (f) No right of appeal to the Commission. Any action taken, or order 
issued, pursuant to paragraphs (c)(1), (c)(2), (d)(1), or (d)(2), of 
this section that has become effective shall be deemed a final order 
which is not subject to appeal pursuant to subpart F of these rules.

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