[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: 17CFR31.3]

[Page 348]
 
              TITLE 17--COMMODITY AND SECURITIES EXCHANGES
 
             CHAPTER I--COMMODITY FUTURES TRADING COMMISSION
 
PART 31_LEVERAGE TRANSACTIONS--Table of Contents
 
Sec.  31.3  Fraud in connection with certain transactions in silver or 
gold bullion or bulk coins, or other commodities.

    It shall be unlawful for any person, by use of the mails or any 
means or instrumentality of interstate commerce, directly or indirectly:
    (a) To employ any device, scheme, or artifice to defraud,
    (b) To make any untrue statement of a material fact or to omit to 
state a material fact necessary in order to make the statements made in 
the light of the circumstances under which they were made, not 
misleading, or
    (c) To engage in any act, practice, or course of business which 
operates or would operate as a fraud or deceit upon any person, in, or 
in connection with (1) an offer to make or the making of, any 
transaction for the purchase, sale or delivery of silver bullion, gold 
bullion, bulk silver coins, bulk gold coins, or any other commodity 
pursuant to a standardized contract commonly known to the trade as a 
margin account, margin contract, leverage account, or leverage contract, 
or pursuant to any contract, account, arrangement, scheme, or device 
that serves the same function or functions as such a standardized 
contract, or is marketed or managed in substantially the same manner as 
such a standardized contract, or (2) the maintenance or carrying of any 
such contract.

The provisions of this section shall not apply to any transaction 
expressly prohibited by section 19(a) of the Act.

(Secs. 2(a), 8a, and 19 of the Commodity Exchange Act and secs. 2 and 23 
of Pub. L. 95-405 (92 Stat. 865, 870-871); 7 U.S.C. 2 and 12a)

[43 FR 58554, Dec. 15, 1978. Redesignated at 49 FR 5526, Feb. 13, 1984]