A bill to amend the Commodity Exchange Act to ensure that all agreements, contracts, and transactions with respect to commodities are carried out on a regulated exchange, and for other purposes.

Summary: Derivatives Trading Integrity Act of 2008 - Amends the Commodity Exchange Act to: (1) repeal the exemption or exclusion from regulation by the Commodity Futures Trading Commission (CFTC) of specified derivative transactions, swap transactions, and related electronic trading facilities; (2) restrict futures trading to contract markets or derivatives transaction execution facilities; and (3) abolish exempt boards of trade.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Derivatives Trading Integrity Act of 
2008''.

SEC. 2. REGULATION OF CERTAIN AGREEMENTS, CONTRACTS, AND TRANSACTIONS.

    (a) Definitions.--Section 1a of the Commodity Exchange Act (7 
U.S.C. 1a) is amended--
            (1) by striking paragraphs (10), (11), (13), (14), and 
        (33); and
            (2) by redesignating--
                    (A) paragraph (12) as paragraph (10);
                    (B) paragraphs (15) through (32) as paragraphs (11) 
                through (28), respectively; and
                    (C) paragraph (34) as paragraph (29).
    (b) Exclusions.--Section 2 of the Commodity Exchange Act (7 U.S.C. 
2) is amended--
            (1) by striking subsections (d), (e), (g), (h), and (i); 
        and
            (2) by redesignating subsection (f) as subsection (d).
    (c) Restriction of Futures Trading to Contract Markets or 
Derivatives Transaction Execution Facilities.--Section 4 of the 
Commodity Exchange Act (7 U.S.C. 6) is amended--
            (1) in subsection (a), in the matter preceding paragraph 
        (1), by striking ``Unless exempted by the Commission pursuant 
        to subsection (c), it shall'' and inserting ``It shall'';
            (2) by striking subsection (c); and
            (3) by redesignating subsection (d) as subsection (c).
    (d) Exempt Boards of Trade.--Section 5d of the Commodity Exchange 
Act (7 U.S.C. 7a-3) is repealed.

SEC. 3. CONFORMING AMENDMENTS.

    (a) Section 1a of the Commodity Exchange Act (7 U.S.C. 1a) (as 
amended by section 2(a)(2)) is amended--
            (1) in paragraph (10)(A)(x), by striking ``(other than an 
        electronic trading facility with respect to a significant price 
        discovery contract)'';
            (2) in paragraph (25)--
                    (A) in subparagraph (C), by inserting ``and'' after 
                the semicolon at the end;
                    (B) in subparagraph (D), by striking ``; and'' and 
                inserting a period; and
                    (C) by striking subparagraph (E); and
            (3) in paragraph (27), by striking ``section 2(c), 2(d), 
        2(f), or 2(g) of this Act'' and inserting ``subsection (c) or 
        (d) of section 2''.
    (b) Section 2(c) of the Commodity Exchange Act (7 U.S.C. 2(c)) is 
amended--
            (1) in paragraph (1)--
                    (A) in the matter preceding subparagraph (A), by 
                striking ``5d,''; and
                    (B) in subparagraph (F), by striking ``in an 
                excluded commodity''; and
            (2) in paragraph (2)(B)(i)(II)--
                    (A) in item (cc), by striking ``section 1a(20) of 
                this Act'' each place it appears and inserting 
                ``section 1a(16)''; and
                    (B) in item (dd), by striking ``section 
                1a(12)(A)(ii) of this Act'' and inserting ``section 
                1a(10)(A)(ii)''.
    (c) Section 4a of the Commodity Exchange Act (7 U.S.C. 6a) is 
amended--
            (1) in subsection (a)--
                    (A) in the first sentence, by striking ``or on 
                electronic trading facilities with respect to a 
                significant price discovery contract''; and
                    (B) in the second sentence, by striking ``or on an 
                electronic trading facility with respect to a 
                significant price discovery contract,'';
            (2) in subsection (b)--
                    (A) in paragraph (1), by striking ``or electronic 
                trading facility with respect to a significant price 
                discovery contract''; and
                    (B) in paragraph (2), in the matter preceding the 
                proviso, by striking ``or electronic trading facility 
                with respect to a significant price discovery 
                contract''; and
            (3) in subsection (e)--
                    (A) in the first sentence--
                            (i) in the matter preceding the proviso--
                                    (I) by striking ``or by any 
                                electronic trading facility'';
                                    (II) by striking ``or on an 
                                electronic trading facility''; and
                                    (III) by striking ``or electronic 
                                trading facility''; and
                            (ii) in the proviso, by striking ``or 
                        electronic trading facility''; and
                    (B) in the second sentence, in the matter preceding 
                the proviso, by striking ``or electronic trading 
                facility with respect to a significant price discovery 
                contract''.
    (d) Section 4g(a) of the Commodity Exchange Act (7 U.S.C. 6g(a)) is 
amended by striking ``and in any significant price discovery contract 
traded or executed on an electronic trading facility or''.
    (e) Section 4i of the Commodity Exchange Act (7 U.S.C. 6i) is 
amended--
            (1) in the matter preceding paragraph (1), by striking ``or 
        any significant price discovery contract traded or executed on 
        an electronic trading facility''; and
            (2) in the matter following paragraph (2), by striking ``or 
        electronic trading facility''.
    (f) Section 5a of the Commodity Exchange Act (7 U.S.C. 7a) is 
amended--
            (1) in subsection (b)(2)--
                    (A) in subparagraph (D)(ii), by inserting ``or'' 
                after the semicolon at the end;
                    (B) in subparagraph (E), by striking ``; or'' and 
                inserting a period; and
                    (C) by striking subparagraph (F); and
            (2) in subsection (g)--
                    (A) in the heading, by striking ``Election To Trade 
                Excluded and Exempt Commodities'' and inserting 
                ``Excluded Securities''; and
                    (B) in paragraph (1)--
                            (i) by striking ``excluded or exempt 
                        commodities other than'' and inserting 
                        ``commodities other than an agricultural 
                        commodity enumerated in section 1a(4) or''; and
                            (ii) by striking ``, 2(d), or 2(g) of this 
                        Act, or exempt under section 2(h) of this 
                        Act''.
    (g) Section 5b of the Commodity Exchange Act (7 U.S.C. 7a-1) is 
amended--
            (1) in subsection (a)(1), by striking ``section 
        2(a)(1)(C)(i), 2(c), 2(d), 2(f), or 2(g) of this Act or title 
        IV of the Commodity Futures Modernization Act of 2000, or 
        exempted under section 2(h) or 4(c) of this Act'' and inserting 
        ``subsection (a)(1)(C)(i), (c), or (d) of section 2 or title IV 
        of the Commodity Futures Modernization Act of 2000 (Public Law 
        106-554; 114 Stat. 2763A457)''; and
            (2) in subsection (b), by striking ``section 2(c), 2(d), 
        2(f), or 2(g) of this Act or title IV of the Commodity Futures 
        Modernization Act of 2000, or exempted under section 2(h) or 
        4(c) of this Act'' and inserting ``subsection (c) or (d) of 
        section 2 or title IV of the Commodity Futures Modernization 
        Act of 2000 (Public Law 106-554; 114 Stat. 2763A457)''.
    (h) Section 5c of the Commodity Exchange Act (7 U.S.C. 7a-2) is 
amended--
            (1) in subsection (a)(1), by striking ``and section 2(h)(7) 
        with respect to significant price discovery contracts,'';
            (2) in subsection (b)--
                    (A) in paragraph (1), by striking ``, derivatives 
                transaction execution facility, or electronic trading 
                facility with respect to a significant price discovery 
                contract'' and inserting ``or derivatives transaction 
                execution facility''; and
                    (B) in paragraphs (2) and (3), by striking ``, 
                derivatives transaction execution facility, or 
                electronic trading facility'' each place it appears and 
                inserting ``or derivatives transaction execution 
                facility''; and
            (3) in subsection (d)(1), in the matter preceding 
        subparagraph (A), by striking ``or 2(h)(7)(C) with respect to a 
        significant price discovery contract traded or executed on an 
        electronic trading facility,''.
    (i) Section 5e of the Commodity Exchange Act (7 U.S.C. 7b) is 
amended by striking ``or revocation of the right of an electronic 
trading facility to rely on the exemption set forth in section 2(h)(3) 
with respect to a significant price discovery contract,''.
    (j) Section 5f(b)(1) of the Commodity Exchange Act (7 U.S.C. 7b-
1(b)(1)) is amended in the matter preceding subparagraph (A), by 
striking ``section 5f'' and inserting ``this section''.
    (k) Section 6(b) of the Commodity Exchange Act (7 U.S.C. 8(b)) is 
amended--
            (1) in the first sentence--
                    (A) by striking ``or to revoke the right of an 
                electronic trading facility to rely on the exemption 
                set forth in section 2(h)(3) with respect to a 
                significant price discovery contract,''; and
                    (B) by striking ``or electronic trading facility''; 
                and
            (2) in the second sentence, in the matter preceding the 
        proviso, by striking ``or electronic trading facility''.
    (l) Section 12(e) of the Commodity Exchange Act (7 U.S.C. 16(e)) is 
amended by striking paragraph (2) and inserting the following:
            ``(2) Effect.--This Act supersedes and preempts the 
        application of any State or local law that prohibits or 
        regulates gaming or the operation of bucket shops (other than 
        antifraud provisions of general applicability) in the case of 
        an agreement, contract, or transaction that is excluded from 
        this Act under--
                    ``(A) subsection (c) or (d) of section 2; or
                    ``(B) title IV of the Commodity Futures 
                Modernization Act of 2000 (Public Law 106-554; 114 
                Stat. 2763A457).''.
    (m) Section 15(b) of the Commodity Exchange Act (7 U.S.C. 19(b)) is 
amended by striking ``4(c) or''.
    (n) Section 22(b)(1)(A) of the Commodity Exchange Act (7 U.S.C. 
25(b)(1)(A)) is amended by striking ``by section 2(h)(7) or sections 5 
through 5c'' and inserting ``under sections 5 through 5c''.
    (o) Section 13106(b)(1) of the Food, Conservation, and Energy Act 
of 2008 (7 U.S.C. 2 note; Public Law 110-246) is amended by striking 
``section 1a(32)'' and inserting ``section 1a''.