69–008 

110TH CONGRESS REPORT " ! HOUSE OF REPRESENTATIVES 2d Session 110–859 

PROVIDING FOR CONSIDERATION OF THE BILL (H.R. 6604) TO AMEND THE 

COMMODITY EXCHANGE ACT TO BRING GREATER TRANSPARENCY AND 

ACCOUNTABILITY TO COMMODITY MARKETS, AND FOR OTHER PURPOSES 

SEPTEMBER 17, 2008.—Referred to the House Calendar and ordered to be printed 

Ms. SUTTON, from the Committee on Rules, 

submitted the following 

R E P O R T 

[To accompany H. Res. 1449] 

The Committee on Rules, having had under consideration House 

Resolution 1449, by a nonrecord vote, report the same to the House 

with the recommendation that the resolution be adopted. 

SUMMARY OF PROVISIONS OF THE RESOLUTION

The resolution provides for consideration of H.R. 6604, the ‘‘Commodity Markets Transparency and Accountability Act of 2008’’, 

under a closed rule. The resolution provides for one hour of debate 

equally divided and controlled by the chairman and ranking minority member of the Committee on Agriculture. 

The resolution waives all points of order against consideration of 

the bill except those arising under clause 9 or 10 of rule XXI. The 

resolution provides that the amendment in the nature of a substitute printed in this report shall be considered as adopted and 

that the bill, as amended, shall be considered as read. The resolution waives all points of order against the bill, as amended. This 

waiver does not affect the point of order available under clause 9 

of rule XXI (regarding earmark disclosure). The resolution provides 

one motion to recommit the bill. The resolution permits the Chair, 

during consideration of the bill, to postpone further consideration 

of it to a time designated by the Speaker. 

EXPLANATION OF WAIVERS

Although the rule waives all points of order against consideration 

of the bill (except for those arising under clause 9 or 10 of rule 

XXI), and all points of order against the bill, as amended, the Committee is not aware of any points of order against the bill or its 

consideration. The waivers are prophylactic in nature. 


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COMMITTEE VOTES

The results of each record vote on an amendment or motion to 

report, together with the names of those voting for and against, are 

printed below: 

Rules Committee record vote No. 598 

Date: September 17, 2008. 

Measure: H.R. 6604. 

Motion by: Mr. Hastings (WA). 

Summary of motion: To make in order and provide appropriate 

waivers for an amendment if offered by Rep. Boehner (OH), which 

would add, as a new title at the end of the bill, the text of H.R. 

6566, the American Energy Act. 

Results: Defeated 1–7. 

Vote by Members: Matsui—Nay; Cardoza—Nay; Welch—Nay; 

Castor—Nay; Arcuri—Nay; Sutton—Nay; Hastings (WA)—Yea; 

Slaughter—Nay. 

Rules Committee record vote No. 599 

Date: September 17, 2008. 

Measure: H.R. 6604. 

Motion by: Mr. Hastings (WA). 

Summary of motion: To make in order and provide appropriate 

waivers for an amendment if offered by Rep. Peterson (PA), which 

would add, as a new title at the end of the bill, the text of H.R. 

6709, the National Conservation, Environment, and Energy Independence Act. 

Results: Defeated 1–7. 

Vote by Members: Matsui—Nay; Cardoza—Nay; Welch—Nay; 

Castor—Nay; Arcuri—Nay; Sutton—Nay; Hastings (WA)—Yea; 

Slaughter—Nay. 

Rules Committee record vote No. 600 

Date: September 17, 2008. 

Measure: H.R. 6604. 

Motion by: Mr. Hastings (WA). 

Summary of motion: To make in order and provide appropriate 

waivers for an amendment in the nature of a substitute by Rep. 

Moran (KS), #2, which puts into statute recommendations the 

CFTC suggested would benefit from codification in its September 

11, 2007, report titled: ‘‘Staff Report on Commodity Swap Dealers 

& Index Traders with Commission Recommendations.’’ 

Results: Defeated 1–7. 

Vote by Members: Matsui—Nay; Cardoza—Nay; Welch—Nay; 

Castor—Nay; Arcuri—Nay; Sutton—Nay; Hastings (WA)—Yea; 

Slaughter—Nay. 

SUMMARY OF THE AMENDMENT IN THE NATURE OF A SUBSTITUTE

CONSIDERED AS ADOPTED

The substitute: brings greater transparency to commodity and futures markets; brings improved price discovery and risk mitigation 

functions that will work to benefit producers, processors and consumers; toughens position limits on oil and other futures markets 

as a way to prevent potential price distortions caused by excessive 


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speculative trading; extends Commodity Futures Trading Commission (CFTC) oversight to previously exempt over-the-counter markets; and it calls for new full-time CFTC staff to improve enforcement, to prevent manipulation, and to prosecute fraud. 

TEXT OF THE AMENDMENT IN THE NATURE OF A SUBSTITUTE

CONSIDERED AS ADOPTED

Strike all after the enacting clause and insert the following: 

SECTION 1. SHORT TITLE. 

This Act may be cited as the ‘‘Commodity Markets Transparency 

and Accountability Act of 2008’’. 

SEC. 2. TABLE OF CONTENTS. 

The table of contents of this Act is as follows: 

Sec. 1. Short title. 

Sec. 2. Table of contents. 

Sec. 3. Definition of energy commodity. 

Sec. 4. Speculative limits and transparency of off-shore trading. 

Sec. 5. Disaggregation of index funds and other data in energy and agriculture 

markets. 

Sec. 6. Detailed reporting from index traders and swap dealers. 

Sec. 7. Transparency and recordkeeping authorities. 

Sec. 8. Trading limits to prevent excessive speculation. 

Sec. 9. Modifications to core principles applicable to position limits for contracts in 

agricultural and energy commodities. 

Sec. 10. CFTC Administration. 

Sec. 11. Review of prior actions. 

Sec. 12. Review of over-the-counter markets. 

Sec. 13. Studies; reports. 

Sec. 14. Over-the-counter authority. 

Sec. 15. Expedited process. 

SEC. 3. DEFINITION OF ENERGY COMMODITY. 

(a) DEFINITION OF ENERGY COMMODITY.—Section 1a of the Commodity Exchange Act (7 U.S.C. 1a) is amended— 

(1) by redesignating paragraphs (13) through (34) as paragraphs (14) through (35), respectively; and 

(2) by inserting after paragraph (12) the following: 

‘‘(13) ENERGY COMMODITY.—The term ‘energy commodity’ 

means— 

‘‘(A) coal; 

‘‘(B) crude oil, gasoline, diesel fuel, jet fuel, heating oil, 

and propane; 

‘‘(C) electricity; 

‘‘(D) natural gas; and 

‘‘(E) any other substance that is used as a source of energy, as the Commission, in its discretion, deems appropriate.’’. 

(b) CONFORMING AMENDMENTS.— 

(1) Section 2(c)(2)(B)(i)(II)(cc) of the Commodity Exchange 

Act (7 U.S.C. 2(c)(2)(B)(i)(II)(cc)) is amended— 

(A) in subitem (AA), by striking ‘‘section 1a(20)’’ and inserting ‘‘section 1a(21)’’; and 

(B) in subitem (BB), by striking ‘‘section 1a(20)’’ and inserting ‘‘section 1a(21)’’. 

(2) Section 13106(b)(1) of the Food, Conservation, and Energy Act of 2008 is amended by striking ‘‘section 1a(32)’’ and 

inserting ‘‘section 1a’’. 


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(3) Section 402 of the Legal Certainty for Bank Products Act 

of 2000 (7 U.S.C. 27) is amended— 

(A) in subsection (a)(7), by striking ‘‘section 1a(20)’’ and 

inserting ‘‘section 1a’’; and 

(B) in subsection (d)— 

(i) in paragraph (1)(B), by striking ‘‘section 1a(33)’’ 

and inserting ‘‘section 1a’’; and 

(ii) in paragraph (2)(D), by striking ‘‘section 1a(13)’’ 

and inserting ‘‘section 1a’’. 

SEC. 4. SPECULATIVE LIMITS AND TRANSPARENCY OF OFF-SHORE 

TRADING. 

(a) IN GENERAL.—Section 4 of the Commodity Exchange Act (7 

U.S.C. 6) is amended by adding at the end the following: 

‘‘(e) FOREIGN BOARDS OF TRADE.— ‘‘(1) IN GENERAL.—The Commission may not permit a foreign 

board of trade to provide to the members of the foreign board 

of trade or other participants located in the United States direct access to the electronic trading and order matching system 

of the foreign board of trade with respect to an agreement, contract, or transaction in an energy or agricultural commodity 

that settles against any price (including the daily or final settlement price) of 1 or more contracts listed for trading on a 

registered entity, unless— 

‘‘(A) the foreign board of trade makes public daily trading information regarding the agreement, contract, or 

transaction that is comparable to the daily trading information published by the registered entity for the 1 or more 

contracts against which the agreement, contract, or transaction traded on the foreign board of trade settles; and 

‘‘(B) the foreign board of trade (or the foreign futures authority that oversees the foreign board of trade)— 

‘‘(i) adopts position limits (including related hedge 

exemption provisions) for the agreement, contract, or 

transaction that are comparable, taking into consideration the relative sizes of the respective markets, to 

the position limits (including related hedge exemption 

provisions) adopted by the registered entity for the 1 

or more contracts against which the agreement, contract, or transaction traded on the foreign board of 

trade settles; 

‘‘(ii) has the authority to require or direct market 

participants to limit, reduce, or liquidate any position 

the foreign board of trade (or the foreign futures authority that oversees the foreign board of trade) determines to be necessary to prevent or reduce the threat 

of price manipulation, excessive speculation as described in section 4a, price distortion, or disruption of 

delivery or the cash settlement process; 

‘‘(iii) agrees to promptly notify the Commission of 

any change regarding— 

‘‘(I) the information that the foreign board of 

trade will make publicly available; 

‘‘(II) the position limits that the foreign board of 

trade or foreign futures authority will adopt and 

enforce; 


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‘‘(III) the position reductions required to prevent 

manipulation, excessive speculation as described 

in section 4a, price distortion, or disruption of delivery or the cash settlement process; and 

‘‘(IV) any other area of interest expressed by the 

Commission to the foreign board of trade or foreign futures authority; 

‘‘(iv) provides information to the Commission regarding large trader positions in the agreement, contract, 

or transaction that is comparable to the large trader 

position information collected by the Commission for 

the 1 or more contracts against which the agreement, 

contract, or transaction traded on the foreign board of 

trade settles; and 

‘‘(v) provides the Commission with information necessary to publish reports on aggregate trader positions 

for the agreement, contract, or transaction traded on 

the foreign board of trade that are comparable to such 

reports for 1 or more contracts against which the 

agreement, contract, or transaction traded on the foreign board of trade settles. 

‘‘(2) EXISTING FOREIGN BOARDS OF TRADE.—Paragraph (1) 

shall not be effective with respect to any agreement, contract, 

or transaction in an energy commodity executed on a foreign 

board of trade to which the Commission had granted direct access permission before the date of the enactment of this subsection until the date that is 180 days after such date of enactment.’’. 

(b) LIABILITY OF REGISTERED PERSONS TRADING ON A FOREIGN

BOARD OF TRADE.— 

(1) Section 4(a) of such Act (7 U.S.C. 6(a)) is amended by inserting ‘‘or by subsection (f)’’ after ‘‘Unless exempted by the 

Commission pursuant to subsection (c)’’. 

(2) Section 4 of such Act (7 U.S.C. 6) is further amended by 

adding at the end the following: 

‘‘(f) A person registered with the Commission, or exempt from 

registration by the Commission, under this Act may not be found 

to have violated subsection (a) with respect to a transaction in, or 

in connection with, a contract of sale of a commodity for future delivery if the person has reason to believe the transaction and the 

contract is made on or subject to the rules of a board of trade that 

is legally organized under the laws of a foreign country, authorized 

to act as a board of trade by a foreign futures authority, subject 

to regulation by the foreign futures authority, and has not been determined by the Commission to be operating in violation of subsection (a).’’. 

(c) CONTRACT ENFORCEMENT FOR FOREIGN FUTURES CON- TRACTS.—Section 22(a) of such Act (7 U.S.C. 25(a)) is amended by 

adding at the end the following: 

‘‘(5) A contract of sale of a commodity for future delivery 

traded or executed on or through the facilities of a board of 

trade, exchange, or market located outside the United States 

for purposes of section 4(a) shall not be void, voidable, or unenforceable, and a party to such a contract shall not be entitled 

to rescind or recover any payment made with respect to the 


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contract, based on the failure of the foreign board of trade to 

comply with any provision of this Act.’’. 

SEC. 5. DISAGGREGATION OF INDEX FUNDS AND OTHER DATA IN ENERGY AND AGRICULTURE MARKETS. 

Section 4 of the Commodity Exchange Act (7 U.S.C. 6), as 

amended by section 4 of this Act, is amended by adding at the end 

the following: 

‘‘(g) DISAGGREGATION OF INDEX FUNDS AND OTHER DATA IN ENERGY AND AGRICULTURE MARKETS.—Subject to section 8 and beginning within 30 days of the issuance of the final rule required by 

section 4(h), the Commission shall disaggregate and make public 

weekly— 

‘‘(1) the number of positions and total value of index funds 

and other passive, long-only and short-only positions (as defined by the Commission) in all energy and agricultural markets to the extent such information is available; and 

‘‘(2) data on speculative positions relative to bona fide physical hedgers in those markets to the extent such information 

is available.’’. 

SEC. 6. DETAILED REPORTING FROM INDEX TRADERS AND SWAP 

DEALERS. 

Section 4 of the Commodity Exchange Act (7 U.S.C. 6), as 

amended by sections 4 and 5 of this Act, is amended by adding at 

the end the following: 

‘‘(h) INDEX TRADERS AND SWAP DEALERS REPORTING.—The Commission shall issue a proposed rule defining and classifying index 

traders and swap dealers (as those terms are defined by the Commission) for purposes of data reporting requirements and setting 

routine detailed reporting requirements for such entities in designated contract markets, derivatives transaction execution facilities, foreign boards of trade subject to section 4(e), and electronic 

trading facilities with respect to significant price discovery contracts with respect to exempt and agricultural commodities not 

later than 60 days after the date of the enactment of this subsection, and issue a final rule within 120 days after such date of 

enactment.’’. 

SEC. 7. TRANSPARENCY AND RECORDKEEPING AUTHORITIES. 

(a) IN GENERAL.—Section 4g(a) of the Commodity Exchange Act 

(7 U.S.C. 6g(a)) is amended— 

(1) by inserting ‘‘a’’ before ‘‘futures commission merchant’’; 

and 

(2) by inserting ‘‘and transactions and positions traded pursuant to subsection (g), (h)(1), or (h)(2) of section 2, or any exemption issued by the Commission by rule, regulation or 

order,’’ after ‘‘United States or elsewhere,’’. 

(b) REPORTS OF DEALS EQUAL TO OR IN EXCESS OF TRADING LIMITS.—Section 4i of such Act (7 U.S.C. 6i) is amended— 

(1) in the first sentence— 

(A) by inserting ‘‘(a)’’ before ‘‘It shall’’; and 

(B) by inserting ‘‘in the United States or elsewhere, and 

of transactions and positions in any such commodity entered into pursuant to subsection (g), (h)(1), or (h)(2) of section 2, or any exemption issued by the Commission by 


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rule, regulation or order’’ before ‘‘, and of cash or spot’’; 

and 

(2) by striking all that follows the 1st sentence and inserting 

the following: 

‘‘(b) With respect to agricultural and energy commodities, upon 

special call by the Commission, any person shall provide to the 

Commission, in a form and manner and within the period specified 

in the special call, books and records of all transactions and positions traded on or subject to the rules of any board of trade or electronic trading facility in the United States or elsewhere, or pursuant to subsection (g), (h)(1), or (h)(2) of section 2, or any exemption 

issued by the Commission by rule, regulation, or order, as the Commission may determine appropriate to deter and prevent price manipulation or any other disruption to market integrity or to diminish, eliminate, or prevent excessive speculation as described in section 4a(a). 

‘‘(c) Such books and records described in subsections (a) and (b) 

shall show complete details concerning all such transactions, positions, inventories, and commitments, including the names and addresses of all persons having any interest therein, shall be kept for 

a period of 5 years, and shall be open at all times to inspection by 

any representative of the Commission or the Department of Justice. For the purposes of this section, the futures and cash or spot 

transactions and positions of any person shall include such transactions and positions of any persons directly or indirectly controlled 

by the person.’’. 

(c) CONFORMING AMENDMENTS.— 

(1) Section 2(g) of such Act (7 U.S.C. 2(g)) is amended— 

(A) by inserting ‘‘4g(a), 4i,’’ before ‘‘5a (to’’; and 

(B) by inserting ‘‘, and the regulations of the Commission 

pursuant to section 4i(b) requiring reporting in connection 

with commodity option transactions,’’ before ‘‘shall apply’’. 

(2) Section 2(h)(2)(A) of such Act (7 U.S.C. 2(h)(2)(A)) is 

amended to read as follows: 

‘‘(A) sections 4g(a), 4i, 5b and 12(e)(2)(B), and the regulations of the Commission pursuant to section 4i(b) requiring 

reporting in connection with commodity option transactions;’’. 

SEC. 8. TRADING LIMITS TO PREVENT EXCESSIVE SPECULATION. 

Section 4a of the Commodity Exchange Act (7 U.S.C. 6a) is 

amended— 

(1) in subsection (a)— 

(A) by inserting ‘‘(1)’’ after ‘‘(a)’’; and 

(B) by adding after and below the end the following: 

‘‘(2) In accordance with the standards set forth in paragraph (1) 

of this subsection and consistent with the good faith exception cited 

in subsection (b)(2), with respect to agricultural commodities enumerated in section 1a(4) and energy commodities, the Commission, 

within 60 days after the date of the enactment of this paragraph, 

shall by rule, regulation, or order establish limits on the amount 

of positions, other than bona fide hedge positions, that may be held 

by any person with respect to contracts of sale for future delivery 

or with respect to options on such contracts or commodities traded 

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action execution facility, or on an electronic trading facility as a 

significant price discovery contract. 

‘‘(3) In establishing the limits required in paragraph (2), the 

Commission shall set limits— 

‘‘(A) on the number of positions that may be held by any person for the spot month, each other month, and the aggregate 

number of positions that may be held by any person for all 

months; 

‘‘(B) to the maximum extent practicable, in its discretion— 

‘‘(i) to diminish, eliminate, or prevent excessive speculation as described under this section; 

‘‘(ii) to deter and prevent market manipulation, squeezes, and corners; 

‘‘(iii) to ensure sufficient market liquidity for bona fide 

hedgers; and 

‘‘(iv) to ensure that the price discovery function of the 

underlying market is not disrupted; and 

‘‘(C) to the maximum extent practicable, in its discretion, 

take into account the total number of positions in fungible 

agreements, contracts, or transactions that a person can hold 

in agricultural and energy commodities in other markets. 

‘‘(4)(A) Not later than 150 days after the date of the enactment 

of this paragraph, the Commission shall convene a Position Limit 

Agricultural Advisory Group and a Position Limit Energy Group, 

each group consisting of representatives from— 

‘‘(i) 7 predominantly commercial short hedgers of the actual 

physical commodity for future delivery; 

‘‘(ii) 7 predominantly commercial long hedgers of the actual 

physical commodity for future delivery; 

‘‘(iii) 4 non-commercial participants in markets for commodities for future delivery; and 

‘‘(iv) each designated contract market or derivatives transaction execution facility upon which a contract in the commodity for future delivery is traded, and each electronic trading facility that has a significant price discovery contract in the 

commodity. 

‘‘(B) Not later than 60 days after the date on which the advisory 

groups are convened under subparagraph (A), and annually thereafter, the advisory groups shall submit to the Commission advisory 

recommendations regarding the position limits to be established in 

paragraph (2) and a recommendation as to whether the position 

limits should be administered directly by the Commission, or by 

the registered entity on which the commodity is listed (with enforcement by both the registered entity and the Commission).’’; and 

(2) in subsection (c)— 

(A) by inserting ‘‘(1)’’ after ‘‘(c)’’; and 

(B) by adding after and below the end the following: 

‘‘(2) With respect to agricultural and energy commodities, for the 

purposes of contracts of sale for future delivery and options on such 

contracts or commodities, the Commission shall define what constitutes a bona fide hedging transaction or position as a transaction 

or position that— 

‘‘(A)(i) represents a substitute for transactions to be made or 

positions to be taken at a later time in a physical marketing 

channel; 


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‘‘(ii) is economically appropriate to the reduction of risks in 

the conduct and management of a commercial enterprise; and 

‘‘(iii) arises from the potential change in the value of— 

‘‘(I) assets that a person owns, produces, manufactures, 

processes, or merchandises or anticipates owning, producing, manufacturing, processing, or merchandising; 

‘‘(II) liabilities that a person owns or anticipates incurring; or 

‘‘(III) services that a person provides, purchases, or anticipates providing or purchasing; or 

‘‘(B) reduces risks attendant to a position resulting from a 

transaction that— 

‘‘(i) was executed pursuant to subsection (g), (h)(1), or 

(h)(2) of section 2, or an exemption issued by the Commission by rule, regulation or order; and 

‘‘(ii) was executed opposite a counterparty for which the 

transaction would qualify as a bona fide hedging transaction pursuant to paragraph (2)(A) of this subsection.’’. 

SEC. 9. MODIFICATIONS TO CORE PRINCIPLES APPLICABLE TO POSITION LIMITS FOR CONTRACTS IN AGRICULTURAL AND 

ENERGY COMMODITIES. 

(a) CONTRACTS TRADED ON CONTRACT MARKETS.—Section 5(d)(5) 

of the Commodity Exchange Act (7 U.S.C. 7(d)(5)) is amended by 

striking all that follows ‘‘adopt’’ and inserting ‘‘, for speculators, position limitations with respect to agricultural commodities enumerated in section 1a(4) or energy commodities, and position limitations or position accountability with respect to other commodities, 

where necessary and appropriate.’’. 

(b) CONTRACTS TRADED ON DERIVATIVES TRANSACTION EXECU- TION FACILITIES.—Section 5a(d)(4) of such Act (7 U.S.C. 7a(d)(4)) is 

amended by striking all that follows ‘‘adopt’’ and inserting ‘‘, for 

speculators, position limitations with respect to energy commodities, and position limitations or position accountability with respect to other commodities, where necessary and appropriate for a 

contract, agreement or transaction with an underlying commodity 

that has a physically deliverable supply.’’. 

(c) SIGNIFICANT PRICE DISCOVERY CONTRACTS.—Section 

2(h)(7)(C)(ii)(IV) of such Act (7 U.S.C. 2(h)(7)(C)(ii)(IV)) is amended 

by striking ‘‘where necessary’’ and all that follows through ‘‘in significant price discovery contracts’’ and inserting ‘‘for speculators, 

position limitations with respect to significant price discovery contracts in energy commodities, and position limitations or position 

accountability with respect to significant price discovery contracts 

in other commodities’’. 

SEC. 10. CFTC ADMINISTRATION. 

Section 2(a)(7) of the Commodity Exchange Act (7 U.S.C. 2(a)(7)) 

is amended by adding at the end the following: 

‘‘(D) ADDITIONAL EMPLOYEES.—As soon as practicable 

after the date of the enactment of this subparagraph, subject to appropriations, the Commission shall appoint at 

least 100 full-time employees (in addition to the employees 

employed by the Commission as of the date of the enactment of this subparagraph)— 

‘‘(i) to increase the public transparency of operations 

in agriculture and energy markets; 


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‘‘(ii) to improve the enforcement of this Act in those 

markets; and 

‘‘(iii) to carry out such other duties as are prescribed 

by the Commission.’’. 

SEC. 11. REVIEW OF PRIOR ACTIONS. 

Notwithstanding any other provision of the Commodity Exchange 

Act, the Commodity Futures Trading Commission shall review, as 

appropriate, all regulations, rules, exemptions, exclusions, guidance, no action letters, orders, other actions taken by or on behalf 

of the Commission, and any action taken pursuant to the Commodity Exchange Act by an exchange, self-regulatory organization, 

or any other registered entity, that are currently in effect, to ensure that such prior actions are in compliance with the provisions 

of this Act. 

SEC. 12. REVIEW OF OVER-THE-COUNTER MARKETS. 

(a) STUDY.—The Commodity Futures Trading Commission shall 

conduct a study— 

(1) to determine the efficacy, practicality, and consequences 

of establishing limits on the amount of positions, other than 

bona fide hedge positions, that may be held by any person with 

respect to agreements, contracts, or transactions involving an 

agricultural or energy commodity, conducted in reliance on sections 2(g) and 2(h) of the Commodity Exchange Act and of any 

exemption issued by the Commission by rule, regulation or 

order, that are fungible (as defined by the Commission) with 

agreements, contracts, or transactions traded on or subject to 

the rules of any board of trade or of any electronic trading facility with respect to a signifcant price discovery contract, as 

a means to deter and prevent price manipulation or any other 

disruption to market integrity or to diminish, eliminate, or prevent excessive speculation as described in section 4a of such 

Act for physical-based agricultural or energy commodities; and 

(2) to determine the efficacy, practicality, and consequences 

of establishing aggregate position limits for similar agreements, contracts, or transactions for physical-based agricultural or energy commodities traded— 

(A) on designated contract markets; 

(B) on derivatives transaction execution facilities; and 

(C) in reliance on such sections 2(g) and 2(h) and of any 

exemption issued by the Commission by rule, regulation or 

order. 

(b) PUBLIC HEARINGS.—The Commission shall provide for not 

less than 2 public hearings to take testimony, on the record, as 

part of the fact- gathering process in preparation of the report. 

(c) REPORT AND RECOMMENDATIONS.—Not less than 12 months 

after the date of the enactment of this section, the Commission 

shall provide to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate a report that— 

(1) describes the results of the study; and 

(2) provides recommendations on any actions necessary to 

deter and prevent price manipulation or any other disruption 

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sive speculation as described in section 4a of the Commodity 

Exchange Act for physical-based commodities, including— 

(A) any additional statutory authority that the Commission determines to be necessary to implement the recommendations; and 

(B) a description of the resources that the Commission 

considers to be necessary to implement the recommendations. 

SEC. 13. STUDIES; REPORTS. 

(a) STUDY RELATING TO INTERNATIONAL REGULATION OF ENERGY

COMMODITY MARKETS.— (1) IN GENERAL.—The Comptroller General of the United 

States shall conduct a study of the international regime for 

regulating the trading of energy commodity futures and derivatives. 

(2) ANALYSIS.—The study shall include an analysis of, at a 

minimum— 

(A) key common features and differences among countries in the regulation of energy commodity trading, including with respect to market oversight and enforcement 

standards and activities; 

(B) variations among countries with respect to the use of 

position limits, position accountability levels, or other 

thresholds to detect and prevent price manipulation, excessive speculation as described in section 4a of the Commodity Exchange Act, or other unfair trading practices; 

(C) variations in practices regarding the differentiation 

of commercial and noncommercial trading; 

(D) agreements and practices for sharing market and 

trading data among futures authorities and between futures authorities and the entities that the futures authorities oversee; and 

(E) agreements and practices for facilitating international cooperation on market oversight, compliance, and 

enforcement. 

(3) REPORT.—Not later than 1 year after the date of the enactment of this Act, the Comptroller General shall submit to 

the Committee on Agriculture of the House of Representatives 

and the Committee on Agriculture, Nutrition, and Forestry of 

the Senate a report that— 

(A) describes the results of the study; 

(B) addresses whether there is excessive speculation, 

and if so, the effects of any such speculation and energy 

price volatility on energy futures; and 

(C) provides recommendations to improve openness, 

transparency, and other necessary elements of a properly 

functioning market in a manner that protects consumers 

in the United States. 

(b) STUDY RELATING TO EFFECTS OF SPECULATORS ON AGRICULTURE AND ENERGY FUTURES MARKETS AND AGRICULTURE AND

ENERGY PRICES.— 

(1) STUDY.—The Commodity Futures Trading Commission 

shall conduct a study of the effects of speculators on agriculture and energy futures markets and agriculture and energy 

prices. 


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(2) ANALYSIS.—The study shall include an analysis of, at a 

minimum— 

(A) the effect of increased amounts of capital in agriculture and energy futures markets; 

(B) the impact of the roll-over of positions by index fund 

traders and swap dealers on agriculture and energy futures markets and agriculture and energy prices; and 

(C) the extent to which each factor described in subparagraphs (A) and (B) and speculators— 

(i) affect— 

(I) the pricing of agriculture and energy commodities; and 

(II) risk management functions; and 

(ii) contribute to economically efficient price discovery. 

(3) REPORT.—Not later than 2 years after the date of the enactment of this Act, the Commodity Futures Trading Commission shall submit to the Committee on Agriculture of the 

House of Representatives and the Committee on Agriculture, 

Nutrition, and Forestry of the Senate a report that describes 

the results of the study. 

SEC. 14. OVER-THE-COUNTER AUTHORITY. 

(a) IN GENERAL.—Section 2 of the Commodity Exchange Act (7 

U.S.C. 2) is amended by adding at the end the following: 

‘‘(j) OVER-THE-COUNTER AUTHORITY.— 

‘‘(1) Within 60 days after the date of the enactment of this 

subsection, the Commission shall, by rule, regulation, or order, 

require routine reporting as it deems in its discretion appropriate, on not less than a monthly basis, of agreements, contracts, or transactions, with regard to an agricultural or energy 

commodity, entered into in reliance on subsection (g), (h)(1), or 

(h)(2) of section 2, or any exemption issued by the Commission 

by rule, regulation, or order that are fungible (as defined by 

the Commission) with agreements, contracts, or transactions 

traded on or subject to the rules of any board of trade or of any 

electronic trading facility with respect to a significant price discovery contract. 

‘‘(2) Notwithstanding subsections (g), (h)(1), and (h)(2) of section 2, and any exemption issued by the Commission by rule, 

regulation, or order, the Commission shall assess and issue a 

finding on whether the agreements, contracts, or transactions 

reported pursuant to paragraph (1), alone or in conjunction 

with other similar agreements, contracts, or transactions, have 

the potential to— 

‘‘(A) disrupt the liquidity or price discovery function on 

a registered entity; 

‘‘(B) cause a severe market disturbance in the underlying cash or futures market for an agricultural or energy 

commodity; or 

‘‘(C) prevent or otherwise impair the price of a contract 

listed for trading on a registered entity from reflecting the 

forces of supply and demand in any market for an agricultural commodity enumerated in section 1a(4) or an energy 

commodity. 


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‘‘(3) If the Commission makes a finding pursuant to paragraph (2) of this subsection, the Commission may, in its discretion, utilize its authority under section 8a(9) to impose position 

limits (including, as appropriate and in its discretion, related 

hedge exemption provisions for bona fide hedging comparable 

to bona fide hedge provisions of section 4a(c)(2)) on agreements, contracts, or transactions involved, and take corrective 

actions to enforce the limits.’’. 

(b) CONFORMING AMENDMENTS.— (1) Section 2(g) of such Act (7 U.S.C. 2(g)) is amended by inserting ‘‘subsection (j) of this section, and’’ after ‘‘(other than’’. 

(2) Section 2(h)(2)(A) of such Act (7 U.S.C. 2(h)(2)(A)) is 

amended by inserting ‘‘subsection (j) of this section and’’ before 

‘‘sections’’. 

(3) Section 8a(9) of such Act (7 U.S.C. 12a(a)(9)) is amended 

by inserting after ‘‘of the Commission’s action’’ the following: ‘‘, 

and to fix and enforce limits to agreements, contracts, or transaction subject to section 2(j)(1) pursuant to a finding made 

under section 2(j)(2)’’. 

SEC. 15. EXPEDITED PROCESS. 

The Commodity Futures Trading Commission may use emergency and expedited procedures (including any administrative or 

other procedure as appropriate) to carry out this Act if, in its discretion, it deems it necessary to do so. 

Æ 


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