I 

116TH CONGRESS 

1ST SESSION H. R. 4772 

To provide for the protection of proprietary information provided to the 

Commodity Futures Trading Commission, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

OCTOBER 21, 2019 

Mr. RODNEY DAVIS of Illinois introduced the following bill; which was referred 

to the Committee on Agriculture 

A BILL 

To provide for the protection of proprietary information provided to the Commodity Futures Trading Commission, 

and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘CFTC Cybersecurity 

5 and Data Protection Enhancement Act’’. 

6 SEC. 2. PROTECTION OF PROPRIETARY INFORMATION BY 

7 THE COMMODITY FUTURES TRADING COM8 MISSION. 

9 Section 8(a) of the Commodity Exchange Act (7 

10 U.S.C. 12(a)) is amended— 


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1 (1) in the first proviso of paragraph (1), by 

2 striking ‘‘customers:’’ and inserting ‘‘customers, or 

3 disclose the proprietary information of any person:’’; 

4 and 

5 (2) by adding at the end the following: 

6 ‘‘(4) TREATMENT OF PROPRIETARY INFORMATION.— 

7 ‘‘(A) WRITTEN REQUEST; AGREEMENT.—Ex8 cept as provided in subparagraph (B), the Commis9 sion shall not examine, receive, obtain, or otherwise 

10 access the proprietary information of any person 

11 subject to this Act, unless— 

12 ‘‘(i) the Commission has transmitted to the 

13 person a written request for the information, 

14 which details— 

15 ‘‘(I) the records sought by the Com16 mission; 

17 ‘‘(II) a reasonable schedule to fulfill 

18 the request; 

19 ‘‘(III) the method proposed for the 

20 Commission to be provided with access to 

21 the records; 

22 ‘‘(IV) any reasonable requirements for 

23 data structures or file formats of the 

24 records; and 


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1 ‘‘(V) an explanation of the purpose of 

2 the request; and 

3 ‘‘(ii) the person has agreed to the request. 

4 ‘‘(B) EXCEPTIONS.—Subparagraph (A) shall 

5 not apply with respect to proprietary information of 

6 a person if— 

7 ‘‘(i) the person has been served with a sub8 poena compelling the person to provide the 

9 Commission with access to the information; 

10 ‘‘(ii) the information is otherwise required 

11 by or under this Act to be disclosed to the Com12 mission; 

13 ‘‘(iii) the information was received from a 

14 whistleblower pursuant to section 23; 

15 ‘‘(iv) the information was lawfully obtained 

16 from a foreign or domestic authority in connec17 tion with a confidential investigation by the 

18 Commission; or 

19 ‘‘(v) the person has agreed to provide the 

20 Commission with access to the information. 

21 ‘‘(C) OBLIGATIONS OF THE RECIPIENT.— 

22 ‘‘(i) ACKNOWLEDGEMENT OF RECEIPT OF

23 REQUEST.—Within 3 business days after a per24 son receives a request made in accordance with 

25 subparagraph (A) or a subsequent communicaVerDate Sep 11 2014 22:37 Oct 27, 2019 Jkt 099200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H4772.IH H4772

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1 tion from the Commission in relation to the re2 quest, the person shall acknowledge to the Com3 mission that the recipient has received the re4 quest or communication. 

5 ‘‘(ii) RESPONSE TO REQUEST.—Within 10 

6 business days after a person receives such a re7 quest or communication, the person shall re8 spond to the request or communication in ac9 cordance with subparagraph (D). 

10 ‘‘(iii) RETENTION OF REQUESTED

11 RECORDS.—A person who receives such a re12 quest shall retain all records identified in the 

13 request until the request or any subpoena for 

14 the records has been resolved. 

15 ‘‘(D) RESPONSE OPTIONS OF THE RECIPI16 ENT.—A person who receives such a request shall— 

17 ‘‘(i) agree to, and comply with, the request; 

18 ‘‘(ii) request the Commission to provide 

19 additional information regarding the request; 

20 ‘‘(iii) request the Commission modify any 

21 aspect of the request; 

22 ‘‘(iv) seek a review of any aspect of the re23 quest by the Commission or a division director 

24 to whom the authority to conduct such a review 

25 has been delegated; or 


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1 ‘‘(v) refuse the request. 

2 ‘‘(5) ESTABLISHMENT OF RULES FOR SAFE3 GUARDING INFORMATION PROVIDED TO THE COMMIS4 SION.— 

5 ‘‘(A) IN GENERAL.—The Commission shall pre6 scribe rules regarding— 

7 ‘‘(i) the retention of information provided 

8 to the Commission under this Act, including— 

9 ‘‘(I) the manner of retention; 

10 ‘‘(II) the duration of retention, which 

11 shall ensure that information is retained 

12 for only so long as is necessary to carry 

13 out this Act or other Federal law; and 

14 ‘‘(III) the process for the return or 

15 destruction of the information, as appro16 priate; and 

17 ‘‘(ii) access to information provided to the 

18 Commission under this Act, including— 

19 ‘‘(I) limitations on access to relevant, 

20 essential individuals; and 

21 ‘‘(II) additional limitations on disclo22 sure by the individuals, including after 

23 leaving a position at the Commission. 


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1 ‘‘(B) INCORPORATION OF BEST PRACTICES.— 

2 The rules shall incorporate best practices regard3 ing— 

4 ‘‘(i) data collection; 

5 ‘‘(ii) data access; 

6 ‘‘(iii) data retention; 

7 ‘‘(iv) physical security; and 

8 ‘‘(v) information security and data protec9 tion, including cybersecurity. 

10 ‘‘(6) PROPRIETARY INFORMATION DEFINED.—In 

11 this subsection, the term ‘proprietary information’ means 

12 sensitive, non-public information of a person, including— 

13 ‘‘(A) trading strategies; 

14 ‘‘(B) analytical or research methodologies; 

15 ‘‘(C) trading activity in asset classes and not 

16 subject to this Act; 

17 ‘‘(D) physical and cyber vulnerabilities; and 

18 ‘‘(E) computer hardware or software containing 

19 intellectual property.’’. 

Æ 


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