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[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[S. 1399 Introduced in Senate (IS)]

111th CONGRESS
  1st Session
                                S. 1399

   To amend the Commodity Exchange Act to establish a market for the 
          trading of greenhouse gases, and for other purposes.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                              July 6, 2009

  Mrs. Feinstein (for herself and Ms. Snowe) introduced the following 
      bill; which was read twice and referred to the Committee on 
                  Agriculture, Nutrition, and Forestry

_______________________________________________________________________

                                 A BILL

 
   To amend the Commodity Exchange Act to establish a market for the 
          trading of greenhouse gases, and for other purposes.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Carbon Market Oversight Act of 
2009''.

SEC. 2. REGULATION OF CARBON MARKETS.

    (a) In General.--The Commodity Exchange Act (7 U.S.C. 1 et seq.) is 
amended by adding at the end the following:

                ``TITLE II--REGULATION OF CARBON MARKETS

``SEC. 201. PURPOSES.

    ``The purposes of this title are--
            ``(1) to ensure that the greenhouse gas market established 
        by this title--
                    ``(A) is formed in a manner consistent with the 
                public interest;
                    ``(B) is formed in a manner consistent with the 
                goal of reducing greenhouse gas emissions in the United 
                States;
                    ``(C) is designed to prevent fraud and 
                manipulation, which could potentially arise from many 
                sources, including--
                            ``(i) the concentration of market power 
                        within the control of a limited number of 
                        individuals or entities;
                            ``(ii) the abuse of material, nonpublic 
                        information; and
                            ``(iii) the unique nature of the allowance 
                        markets in which supply is known and declining 
                        over time, but demand is unknown, which can 
                        create an inherent potential for scarcity;
                    ``(D)(i) is appropriately transparent, with real-
                time reporting of quotes and trades;
                    ``(ii) makes information on price, volume, and 
                supply, and other important statistical information, 
                available to the public on fair, reasonable, and 
                nondiscriminatory terms;
                    ``(iii) is subject to appropriate recordkeeping and 
                reporting requirements regarding transactions; and
                    ``(iv) has the confidence of investors;
                    ``(E) functions smoothly and efficiently, 
                generating prices that accurately reflect supply and 
                demand for emission allowances;
                    ``(F) promotes just and equitable principles of 
                trade; and
                    ``(G) establishes an equitable system for the best 
                execution of customer orders;
            ``(2) to minimize transaction costs for regulated entities 
        so that the cost of abatement is reduced for those entities and 
        customers of those entities;
            ``(3) to establish a cost-effective capability for real-
        time monitoring of the market in order to avoid manipulation 
        and market failure;
            ``(4) to minimize the volatility induced by the structure 
        of the marketplace itself in the interest of providing an 
        accurate price signal for regulated entities; and
            ``(5) to ensure that the markets will function in a stable 
        and efficient manner to promote the environmental and economic 
        objectives of the United States.

``SEC. 202. DEFINITIONS.

    ``In this title:
            ``(1) Carbon clearing organization.--The term `Carbon 
        Clearing Organization' means the entity established under 
        section 206(a).
            ``(2) Carbon dioxide equivalent.--The term `carbon dioxide 
        equivalent' means for each greenhouse gas, the quantity of the 
        greenhouse gas that the Administrator of the Environmental 
        Protection Agency determines makes the same contribution to 
        global warming as 1 metric ton of carbon dioxide.
            ``(3) Dealer.--The term `dealer' means an individual, 
        association, partnership, corporation, or trust that--
                    ``(A) is engaged in soliciting or in accepting 
                orders for the purchase or sale of a regulated 
                instrument on or subject to the rules of a registered 
                carbon trading facility; and
                    ``(B) in or in connection with the solicitation or 
                acceptance of such an order, accepts money, securities, 
                or property (or extends credit in lieu of such an 
                acceptance) to margin, guarantee, or secure any trade 
                or contract that results or may result from such an 
                acceptance.
            ``(4) Director.--The term `Director' means the Director of 
        the Office.
            ``(5) Electronic market trader.--The term `electronic 
        market trader' means a person who executes a trade on an 
        electronic trading facility.
            ``(6) Electronic trading facility.--The term `electronic 
        trading facility' means a trading facility that--
                    ``(A) operates by means of an electronic or 
                telecommunications network; and
                    ``(B) maintains an automated audit trail of bids, 
                offers, and the matching of orders or the execution of 
                transactions on the facility.
            ``(7) Emission allowance.--The term `emission allowance' 
        means a Government-issued or Government-accredited 
        authorization to emit 1 carbon dioxide equivalent of greenhouse 
        gas.
            ``(8) Greenhouse gas.--The term `greenhouse gas' means any 
        of--
                    ``(A) carbon dioxide;
                    ``(B) methane;
                    ``(C) nitrous oxide;
                    ``(D) sulfur hexafluoride;
                    ``(E) a perfluorocarbon; or
                    ``(F) a hydrofluorocarbon.
            ``(9) Introducing broker.--
                    ``(A) In general.--The term `introducing broker' 
                means any person engaged in soliciting or in accepting 
                orders for the purchase or sale of a regulated 
                instrument on or subject to the rules of a registered 
                carbon trading facility, who does not accept money, 
                securities, or property (or extend credit in lieu of 
                such an acceptance) to margin, guarantee, or secure any 
                trade or contract that results or may result from such 
                a solicitation or acceptance.
                    ``(B) Exclusion.--The term `introducing broker' 
                does not include an individual who elects to be and is 
                registered as an associated person of a dealer.
            ``(10) Member.--The term `member' means, with respect to a 
        trading facility, an individual, association, partnership, 
        corporation, or trust owning or holding membership in, admitted 
        to membership representation on, or having trading privileges 
        on the trading facility.
            ``(11) Office.--The term `Office' means the Office of 
        Carbon Market Oversight established by section 203(a)(1).
            ``(12) Private bilateral contract.--The term `private 
        bilateral contract' means a nonstandard contract that lacks 
        each of the following characteristics:
                    ``(A) The applicable transaction or class of 
                transactions settles against any price (including the 
                daily or final settlement price) of 1 or more contracts 
                listed for trading on a registered trading facility.
                    ``(B) The price of the applicable transaction or 
                class of transactions is reported to a third party, 
                published, or otherwise disseminated.
                    ``(C) The price of the applicable transaction or 
                class of transactions is referenced in another 
                transaction.
                    ``(D) There is a significant volume of the 
                applicable transaction or class of transactions.
                    ``(E) The value of the applicable transaction is 
                significant in comparison to the value of the 
                underlying carbon derivative market.
                    ``(F) The contract or applicable transactions meets 
                other criteria that the Commission determines to be 
                appropriate.
            ``(13) Registered carbon trader.--The term `registered 
        carbon trader' means a member, in good standing, of a 
        registered carbon trading facility who has registered with the 
        Commission under section 205(b).
            ``(14) Registered carbon trading facility.--The term 
        `registered carbon trading facility' means a facility that 
        meets standards established by the Commission under section 
        203(d)(1).
            ``(15) Regulated allowance.--The term `regulated allowance' 
        means--
                    ``(A) an emission allowance; or
                    ``(B) a Government-issued unit of reduction in the 
                quantity of emissions, or an increase in sequestration, 
                equal to 1 carbon dioxide equivalent.
            ``(16) Regulated allowance derivative.--The term `regulated 
        allowance derivative' means an instrument that is or includes--
                    ``(A) any instrument, contract, or other obligation 
                (or guaranty or indemnity of such an obligation), the 
                value of which, in whole or in part, is linked to the 
                price of a regulated allowance or another regulated 
                allowance derivative;
                    ``(B) any contract for future delivery (including 
                an option, a swap agreement, or a futures contract) 
                of--
                            ``(i) a regulated allowance; or
                            ``(ii) any obligation described in 
                        subparagraph (A); or
                    ``(C) any other contract--
                            ``(i) the value of which is derived from 
                        the existence of a market for regulated 
                        allowances; and
                            ``(ii) that the Commission has not 
                        determined to be a private bilateral contract.
            ``(17) Regulated instrument.--The term `regulated 
        instrument' means--
                    ``(A) a regulated allowance; or
                    ``(B) a regulated allowance derivative.
            ``(18) Short sale.--The term `short sale' means--
                    ``(A) any sale of a regulated allowance that the 
                seller does not own; and
                    ``(B) any sale that is consummated by the delivery 
                of a regulated allowance borrowed by, or for the 
                account of, the seller.
            ``(19) Trading facility.--
                    ``(A) In general.--The term `trading facility' 
                means 1 or more individuals or entities that 
                constitute, maintain, or provide a physical or 
                electronic facility or system in which multiple 
                participants have the ability to execute or trade 
                agreements, contracts, or transactions involving a 
                regulated instrument by accepting bids and offers made 
                by other participants that are open to multiple 
                participants in the facility or system.
                    ``(B) Inclusion.--The term `trading facility' 
                includes a telephone voice brokerage that executes 
                multiple, largely offsetting, bilateral transactions.
            ``(20) United states.--The term `United States' includes 
        the territories and possessions of the United States.

``SEC. 203. OFFICE OF CARBON MARKET OVERSIGHT; JURISDICTION.

    ``(a) Establishment of Office of Carbon Market Oversight.--
            ``(1) In general.--There is established within the 
        Commission an Office of Carbon Market Oversight.
            ``(2) Director.--
                    ``(A) In general.--The Office shall be headed by a 
                Director for Carbon Market Oversight.
                    ``(B) Additional nature of position.--The position 
                of Director for Carbon Market Oversight shall be in 
                addition to the directors of other offices of the 
                Commission.
                    ``(C) Appointment; qualifications.--The Director 
                shall be--
                            ``(i) appointed by the Commission; and
                            ``(ii) an individual who is, by reason of 
                        background and experience in the regulation of 
                        commodities, securities, or other financial 
                        markets, especially qualified to direct a 
                        program of oversight of the market in regulated 
                        instruments.
    ``(b) Administration of This Title.--The Commission, acting through 
the Director, shall administer this title.
    ``(c) Duty of Commission.--The Commission shall regulate all 
contracts of sale involving regulated instruments under the 
jurisdiction of the Commission.
    ``(d) Regulations.--The Commission shall, not later than 1 year 
after the date of enactment of this title, promulgate regulations 
governing the implementation of this title, and periodically 
thereafter, revise the regulations as necessary, including regulations 
that relate to--
            ``(1) specific initial and ongoing standards for 
        qualification as a registered carbon trading facility;
            ``(2) position limits for individual market participants, 
        adjusted as necessary based on market conditions;
            ``(3) margin requirements for the instruments traded by 
        registered carbon trading facilities;
            ``(4) suitability standards for the solicitation by members 
        of carbon instruments to retail investors;
            ``(5) a best execution standard for regulated allowance 
        trading, such as the standard used in the national securities 
        markets;
            ``(6) approval of--
                    ``(A) specific protocols of the central limit order 
                books of carbon trading facilities; and
                    ``(B) the connection of those facilities to--
                            ``(i) Carbon Clearing Organizations 
                        established under section 206; and
                            ``(ii) the automated quotation system 
                        established under section 207;
            ``(7) the establishment of baseline initial and ongoing 
        membership standards for registered carbon trading facilities;
            ``(8) subject to section 204(a)(4), specific standards for 
        short sale transactions involving regulated instruments;
            ``(9) such other matters as are necessary for the carbon 
        market to operate with the highest standards of fairness and 
        efficiency; and
            ``(10) the establishment and operation of a carbon clearing 
        organization.
    ``(e) Memorandum of Understanding.--
            ``(1) In general.--Not later than 180 days after the date 
        of enactment of this title, the Commission shall enter into a 
        memorandum of understanding with the Federal Energy Regulatory 
        Commission, the Environmental Protection Agency, and any State 
        or regional organization operating a market-based greenhouse 
        gas emissions control program relating to information-sharing 
        and coordination of oversight roles regarding--
                    ``(A) trading facilities;
                    ``(B) registered carbon traders;
                    ``(C) carbon clearing organizations; and
                    ``(D) derivative clearing organizations.
            ``(2) Inclusions.--The memorandum of understanding shall 
        include, at a minimum, provisions--
                    ``(A) ensuring that information requests to markets 
                within the respective jurisdictions of each agency are 
                properly coordinated to minimize duplicative 
                information requests; and
                    ``(B) regarding the treatment of proprietary 
                trading information.
    ``(f) Coordination for Foreign Regulators.--Not later than 180 days 
after the date of enactment of this title, the Commission shall, to the 
maximum extent practicable, enter into agreements with foreign 
regulatory bodies to ensure that foreign boards of trade do not offer 
for sale allowance derivatives beyond the jurisdiction of the 
Commission that would undermine the authority of the carbon market 
regulators in the United States or reduce the effectiveness of 
Commission oversight.
    ``(g) Regulations.--The regulations issued to carry out this 
section shall take into account impacts on liquidity, flexibility, and 
robust participation in carbon markets, in order to maximize cost-
effective and efficient reductions in carbon emissions.

``SEC. 204. REGULATION OF CARBON TRADING.

    ``(a) Limitation of Certain Activities to Registered Entities.--
            ``(1) Carbon allowance trading facility activities.--It 
        shall be unlawful for a person to offer to enter into, execute, 
        confirm the execution of, or conduct an office or a business 
        for the purpose of soliciting, accepting an order for, or 
        otherwise dealing in, an agreement, contract, or transaction 
        involving a contract for the purchase or sale of a regulated 
        allowance, unless--
                    ``(A) the transaction is conducted through the 
                carbon allowance trading facility established under 
                section 205(a);
                    ``(B) the contract for the purchase or sale is 
                evidenced by a record in writing (or other form 
                acceptable to the Commission) that includes--
                            ``(i) the date;
                            ``(ii) the names of the parties to the 
                        contract (including the addresses of those 
                        parties);
                            ``(iii) a description of the property 
                        covered by the contract (including the price of 
                        the property);
                            ``(iv) the terms of delivery; and
                            ``(v) all other nonstandardized terms and 
                        conditions; and
                    ``(C) the contract is cleared through the Carbon 
                Clearing Organization.
            ``(2) Carbon derivative trading facility activities.--It 
        shall be unlawful for a person to offer to enter into, execute, 
        confirm the execution of, or conduct an office or a business 
        for the purpose of soliciting, accepting an order for, or 
        otherwise dealing in, an agreement, contract, or transaction 
        involving a contract for the purchase or sale of a regulated 
        allowance derivative, unless--
                    ``(A) the Commission has determined that the 
                contract is a private bilateral contract that has been 
                reported to the Commission and included as part of the 
                total market risk exposure of a participant; or
                    ``(B)(i) the transaction is conducted through a 
                trading facility designated as a registered carbon 
                derivative trading facility under section 205(a);
                    ``(ii) the contract for the purchase or sale is 
                evidenced by a record in writing (or other form 
                acceptable to the Commission) that includes--
                            ``(I) the date;
                            ``(II) the names of the parties to the 
                        contract (including the addresses of those 
                        parties);
                            ``(III) a description of the property 
                        covered by the contract (including the price of 
                        the property);
                            ``(IV) the terms of delivery; and
                            ``(V) all other nonstandardized terms and 
                        conditions; and
                    ``(iii) the contract is cleared through a 
                derivatives clearing organization registered with the 
                Commission pursuant to section 5b.
            ``(3) Broker or dealer activities.--It shall be unlawful 
        for a person to act in the capacity of an introducing broker, 
        dealer, floor broker, electronic market trader, or floor trader 
        in connection with the purchase or sale of a regulated 
        instrument, unless--
                    ``(A) the person is a registered carbon trader; and
                    ``(B) the registration of the person is not 
                suspended, revoked, or expired.
            ``(4) Short sale transactions.--A short sale transaction 
        involving a regulated instrument that occurs without the 
        borrowing of a regulated allowance shall be unlawful unless the 
        Commission determines that the transaction is in the best 
        interest of regulated entities and the public.
    ``(b) Prohibition on Price or Market Manipulation, Fraud, and False 
or Misleading Statements or Reports.--It shall be unlawful for a 
person, directly or indirectly--
            ``(1) to use or employ, or attempt to use or employ, in 
        connection with a transaction involving the purchase or sale of 
        a regulated instrument or private bilateral contract, in 
        violation of such rules and regulations as the Commission may 
        promulgate to protect the public interest or consumers, 
        including--
                    ``(A) any manipulative or deceptive device or 
                contrivance (within the meaning of section 10(b) of the 
                Securities Exchange Act of 1934 (15 U.S.C. 78j(b)));
                    ``(B) any corner; or
                    ``(C) any device or contrivance that cheats or 
                defrauds any other person;
            ``(2) for the purpose of creating a false or misleading 
        appearance of active trading in a regulated instrument or 
        private bilateral contract, or a false or misleading appearance 
        with respect to the market for such an instrument--
                    ``(A) to effect any transaction in the instrument 
                that involves no change in the beneficial ownership of 
                the instrument;
                    ``(B) to enter an order for the purchase of the 
                instrument, with the knowledge that 1 or more orders of 
                substantially the same size, at substantially the same 
                time, and at substantially the same price, for the sale 
                of any such instrument, has been or will be entered by 
                or for the same or different parties; or
                    ``(C) to enter an order for the sale of the 
                instrument with the knowledge that 1 or more orders of 
                substantially the same size, at substantially the same 
                time, and at substantially the same price, for the 
                purchase of the instrument, has been or will be entered 
                by or for the same or different parties;
            ``(3) to deliver or cause to be delivered a knowingly 
        false, misleading, or inaccurate report concerning information 
        or conditions that affect or tend to affect the price of a 
        regulated instrument;
            ``(4)(A) to make, or cause to be made, in an application, 
        report, or document required to be filed under this title or 
        any regulation promulgated under this title, a statement that 
        is false or misleading with respect to a material fact; or
            ``(B) to omit any material fact that is required to be 
        stated in such an application, report, or document, or that is 
        necessary to make the statements in such an application, 
        report, or document not misleading; or
            ``(5) to falsify, conceal, or cover up by any trick, 
        scheme, or artifice a material fact, make any false, 
        fictitious, or fraudulent statements or representations, or 
        make or use any false writing or document that contains a 
        false, fictitious, or fraudulent statement or entry, to an 
        entity registered under this title acting in furtherance of the 
        official duties of the entity under this title.
    ``(c) Prevention of Excessive Speculation.--
            ``(1) In general.--To prevent, decrease, or eliminate 
        burdens associated with excessive speculation relating to 
        regulated instruments (which may be more severe in markets in 
        which supply is known and declining and demand is unknown), the 
        Commission shall promulgate regulations establishing such 
        position or transaction limitations, in the aggregate, as the 
        Commission determines to be necessary to prevent potential 
        upward bias in price with respect to any regulated instrument.
            ``(2) Aggregate positions.--In carrying out paragraph (1), 
        the Commission shall, to the maximum extent practicable, 
        aggregate carbon dioxide equivalent positions in natural gas, 
        electricity, and regulated instruments.
            ``(3) Inapplicability to bona fide hedging transactions and 
        positions.--The limitations and requirements established under 
        paragraph (1) shall not apply to a position or transaction that 
        is a bona fide hedging position or transaction, as defined by 
        the Commission in accordance with the purposes of this title.
    ``(d) Recordkeeping; Reporting; Access to Books and Records.--
            ``(1) Members of registered entities.--Each member of an 
        entity registered under this title shall--
                    ``(A) keep books and records, and make such reports 
                as are required by the Commission, regarding the 
                transactions and positions of the member, and the 
                transactions and positions of the customer involved, in 
                regulated instruments and private bilateral contracts, 
                in such form and manner, and for such period, as may be 
                required by the Commission; and
                    ``(B) make the books and records available for 
                inspection by any representative of the Commission or 
                the Department of Justice.
            ``(2) Registered entities.--Each entity registered under 
        this title shall--
                    ``(A) maintain daily trading records (including a 
                time-stamped audit trail), that include such 
                information, in such form, and for such period as the 
                Commission may require by regulation;
                    ``(B) before the beginning of trading each day, 
                insofar as is practicable and under terms and 
                conditions specified by the Commission, make public the 
                volume of trading on each type of contract for the 
                previous day and such other information as the 
                Commission considers necessary in the public interest 
                and prescribes by rule, order, or regulation; and
                    ``(C) make such reports from the records, at such 
                times and places, and in such form, as the Commission 
                may require by regulation to protect the public 
                interest and the interest of persons trading in 
                regulated instruments.
    ``(e) Foreign Transactions.--
            ``(1) In general.--Any United States person or corporation 
        shall be subject to this section for all contracts executed by 
        the United States person or corporation, including contracts 
        executed outside of the United States.
            ``(2) Foreign persons and corporations.--A foreign person 
        or corporation shall be subject to this section for all 
        contracts executed by the foreign person or corporation within 
        the United States.

``SEC. 205. ESTABLISHMENT AND REGISTRATION OF A CARBON TRADING 
              FACILITIES; REGISTRATION OF TRADERS, BROKERS, AND 
              DEALERS.

    ``(a) Carbon Trading Facilities.--
            ``(1) Establishment of a carbon allowance trading 
        facility.--The Commission may establish a carbon allowance 
        trading facility in accordance with this section to process 
        trades of regulated allowances.
            ``(2) Registration of carbon trading facilities.--
                    ``(A) In general.--A trading facility may apply to 
                the Commission for designation as a registered carbon 
                allowance trading facility or a registered carbon 
                allowance derivative trading facility by submitting to 
                the Commission an application that contains such 
                information and commitments as the Commission may 
                require.
                    ``(B) Review.--A designation under this paragraph 
                shall be reviewed by the Commission from time to time, 
                but not less frequently than once every 3 years.
            ``(3) Operation of the carbon trading facilities.--
                    ``(A) In general.--To obtain or maintain 
                designation and continue operating as a registered 
                carbon allowance trading facility or a registered 
                carbon allowance derivative trading facility under this 
                title, a carbon allowance trading facility established 
                by the Commission or registered with the Commission 
                under this section shall comply with the requirements 
                and principles described in this paragraph.
                    ``(B) Prevention of market manipulation.--The 
                trading facility shall demonstrate capability to 
                prevent market manipulation through market 
                surveillance, compliance, and enforcement practices and 
                procedures, including methods for conducting real-time 
                monitoring of trading and comprehensive and accurate 
                trade reconstructions.
                    ``(C) Electronic monitoring of trading.--The 
                trading facility shall demonstrate--
                            ``(i) that the trading facility monitors 
                        trading on or through the facility to prevent 
                        manipulation, price distortion, and disruptions 
                        of the delivery or cash-settlement process; and
                            ``(ii) in addition to traditional methods, 
                        a capability to monitor market activities 
                        electronically on a real-time basis and, if 
                        appropriate, by algorithm and other such means 
                        as are determined to be appropriate by the 
                        Commission.
                    ``(D) Fair and equitable trading.--The trading 
                facility shall establish and enforce rules to ensure--
                            ``(i) fair and equitable trading through 
                        the trading facility;
                            ``(ii) the capacity to detect, investigate, 
                        and discipline any person that violates the 
                        rules;
                            ``(iii) the operation of any electronic 
                        matching platform;
                            ``(iv) the terms and conditions of any 
                        contracts to be traded on or through the 
                        trading facility;
                            ``(v) any limitations on access to the 
                        trading facility;
                            ``(vi) the financial integrity of 
                        transactions and contracts entered into by or 
                        through the trading facility, including the 
                        clearance and settlement of the transactions;
                            ``(vii) the financial integrity of brokers, 
                        dealers, and traders doing business on or 
                        through the trading facility;
                            ``(viii) the protection of customer funds;
                            ``(ix) that the trading facility is able to 
                        discipline, suspend, or expel members or market 
                        participants that violate the rules of the 
                        trading facility, or similar methods for 
                        performing the same functions, including 
                        delegation of the functions to third parties; 
                        and
                            ``(x) that market participants are 
                        protected from abusive practices committed by 
                        any party acting as an agent for the 
                        participants.
                    ``(E) Aggregate position limitations or 
                accountability.--The trading facility shall--
                            ``(i) adopt and enforce aggregate position 
                        limitations or position accountability for 
                        speculators, as necessary and appropriate, to 
                        reduce the potential threat of market 
                        manipulation and excessive speculation in a 
                        marketplace in which supply is fixed by 
                        government policy and demand is set by market 
                        prices;
                            ``(ii) facilitate netting of members' 
                        positions across all of the instruments through 
                        the trading facility, in order to minimize the 
                        cost of trading while ensuring adequate risk 
                        management; and
                            ``(iii) monitor and enforce any limitations 
                        on leverage or position size that might be 
                        imposed by the Commission.
                    ``(F) Emergency authority.--The trading facility 
                shall adopt and enforce rules to provide for the 
                exercise of emergency authority, in consultation or 
                cooperation with the Commission, as necessary and 
                appropriate, including the authority--
                            ``(i) to liquidate or transfer open 
                        positions in any contract;
                            ``(ii) to suspend or curtail trading in any 
                        regulated instrument; and
                            ``(iii) in the case of a regulated 
                        derivative, to require market participants to 
                        meet special margin requirements.
                    ``(G) Availability of general information.--The 
                trading facility shall make available to market 
                authorities, market participants, and the public 
                information concerning--
                            ``(i) the terms, conditions, and 
                        specifications of the contracts traded on or 
                        through the trading facility;
                            ``(ii) the mechanisms for executing 
                        transactions on or through the trading 
                        facility; and
                            ``(iii) the rules and regulations of the 
                        trading facility.
                    ``(H) Publication of trading information.--
                            ``(i) In general.--The trading facility 
                        shall, in real time, to the maximum extent 
                        practicable, provide the public with 
                        information on bids, offers, settlement prices, 
                        volume, open interest, and opening and closing 
                        ranges for all regulated instruments traded on 
                        the trading facility.
                            ``(ii) Centralized entity.--The Commission 
                        may by regulation permit compliance with this 
                        subparagraph through the provision of pricing 
                        information described in clause (i) to a 
                        centralized entity that will simultaneously 
                        post that information to the public.
                    ``(I) Execution of transactions.--The trading 
                facility shall provide a competitive, open, and 
                efficient market and mechanism for executing 
                transactions on or through the trading facility.
                    ``(J) Security of trade information.--The trading 
                facility shall maintain rules and procedures to provide 
                for the recording and safe storage of all identifying 
                trade information in a manner that enables the trading 
                facility to use the information--
                            ``(i) to assist the prevention of customer 
                        and market abuses; and
                            ``(ii) provide evidence of violations of 
                        the rules of the trading facility.
                    ``(K) Dispute resolution.--The trading facility 
                shall establish and enforce rules regarding and provide 
                facilities for alternative dispute resolution as 
                appropriate for market participants and any market 
                intermediaries.
                    ``(L) Governance fitness standards.--The trading 
                facility shall establish and enforce appropriate 
                fitness standards for directors, members of any 
                disciplinary committee, members of the trading 
                facility, and any other person with direct access to 
                the trading facility (including any parties affiliated 
                with any of the persons described in this 
                subparagraph).
                    ``(M) Conflicts of interest.--The trading facility 
                shall--
                            ``(i) establish and enforce rules to 
                        minimize conflicts of interest in the 
                        decisionmaking process of the trading facility; 
                        and
                            ``(ii) establish a process for resolving 
                        any such conflict of interest.
                    ``(N) Composition of boards of mutually owned 
                trading facilities.--In the case of a mutually owned 
                trading facility, the trading facility shall ensure 
                that the composition of the governing board reflects 
                market participants.
                    ``(O) Recordkeeping.--The trading facility shall 
                maintain records of all activities relating to the 
                business of the trading facility in a form and manner 
                acceptable to the Commission for a period of at least 5 
                years.
                    ``(P) Antitrust considerations.--Unless necessary 
                or appropriate to achieve the purposes of this title, 
                the trading facility shall endeavor to avoid--
                            ``(i) adopting any rules or taking any 
                        actions that result in any unreasonable 
                        restraint of trade; or
                            ``(ii) imposing any material 
                        anticompetitive burden on trading on or through 
                        the trading facility.
                    ``(Q) Trading fees.--The trading facility shall 
                establish and enforce rules requiring the payment of 
                fees for the purpose of funding Commission oversight, 
                as established under section 208(h).
                    ``(R) Central limit order book.--The trading 
                facility shall operate an electronic central limit 
                order book as the trading mechanism for regulated 
                derivatives and regulated allocations and share 
                sufficient information, in a timely manner, with the 
                automated quotation system to allow implementation of 
                section 207.
                    ``(S) National market system.--The trading facility 
                shall participate, along with the Commission, in the 
                formation and operation of a national market system 
                that allows for best execution in the trading of 
                regulated instruments among registered carbon trading 
                facilities.
                    ``(T) Screening.--The trading facility shall 
                establish and enforce rules to screen members based on 
                capital, systems, and standards of compliance, and 
                other such membership standards as the Commission 
                determines to be appropriate.
                    ``(U) Use of clearing.--The trading facility shall 
                facilitate the clearing of all trades of regulated 
                allowances through the Carbon Clearing Organization and 
                the clearing of all trades of regulated allowance 
                derivatives through a Derivatives Clearing Organization 
                registered with the Commission.
                    ``(V) Enforcement.--The trading facility shall 
                establish and enforce rules that allow the trading 
                facility to obtain any necessary information to perform 
                any of the functions described in this paragraph, 
                including the capacity to carry out such international 
                information-sharing agreements as the Commission may 
                require.
    ``(b) Brokers, Dealers, Traders, and Their Associates.--The 
Commission shall promulgate regulations governing--
            ``(1) the eligibility of a person to act in the capacity of 
        an introducing broker, a dealer, a floor broker, an electronic 
        market trader, or a floor trader of regulated instruments in 
        the United States;
            ``(2) the registration of introducing brokers, dealers, 
        floor brokers, electronic market traders, and floor traders as 
        registered carbon traders with the Commission;
            ``(3) the conduct of a person registered pursuant to 
        regulations promulgated under paragraph (2), and of a partner, 
        officer, employee, or agent of the registered person, in 
        connection with transactions involving a regulated instrument; 
        and
            ``(4) minimum standards for eligibility of a person to 
        register as a registered carbon trader, including the 
        requirements that an applicant for such a position--
                    ``(A) has never had an applicable license or 
                registration revoked in any governmental jurisdiction;
                    ``(B) has never been convicted of, or pled guilty 
                or nolo contendere to, a felony in a domestic, foreign, 
                or military court;
                    ``(C) has demonstrated such financial 
                responsibility, character, and general fitness as to 
                command the confidence of the community and to warrant 
                a determination that the applicant will operate 
                honestly, fairly, and efficiently within the purposes 
                of this title;
                    ``(D) has completed the preregistration education 
                requirement described in paragraph (5); and
                    ``(E) has passed a written test that meets the test 
                requirement described in paragraph (6).
            ``(5) Preregistration education of a carbon trader.--
                    ``(A) Minimum educational requirements.--In order 
                to meet the preregistration education requirement 
                referred to in paragraph (4)(D), a person shall 
                complete at least 20 hours of education approved in 
                accordance with subparagraph (B), which shall include 
                at least--
                            ``(i) 6 hours of instruction on applicable 
                        Federal law (including regulations);
                            ``(ii) 10 hours of instruction in ethics, 
                        which shall include instruction on fraud, 
                        manipulation, excessive speculation, and 
                        consumer protection; and
                            ``(iii) 2 hours of training relating to 
                        reporting requirements under this title.
                    ``(B) Approved educational courses.--
                            ``(i) In general.--For the purpose of 
                        subparagraph (A), preregistration educational 
                        courses shall be reviewed and approved by the 
                        Commission.
                            ``(ii) Prohibition.--To maintain the 
                        independence of the approval process, the 
                        Commission shall not directly or indirectly 
                        offer preregistration educational courses for 
                        loan originators.
                    ``(C) Standards.--In approving courses under this 
                paragraph, the Commission shall apply reasonable 
                standards in the review and approval of courses.
            ``(6) Testing of a carbon trader.--
                    ``(A) In general.--In order to meet the written 
                test requirement referred to in paragraph (4)(E), an 
                individual shall pass, in accordance with the standards 
                established under this paragraph, a qualified written 
                test developed by the Commission and administered by an 
                approved test provider.
                    ``(B) Qualified test.--A written test shall not be 
                treated as a qualified written test for purposes of 
                subparagraph (A) unless--
                            ``(i) the test consists of a minimum of 100 
                        questions; and
                            ``(ii) the test adequately measures the 
                        knowledge and comprehension of the individual 
                        taking the test in appropriate subject areas, 
                        including--
                                    ``(I) ethics;
                                    ``(II) Federal law (including 
                                regulations) pertaining to trading 
                                regulated instruments; and
                                    ``(III) Federal law (including 
                                regulations) on fraud, manipulation, 
                                excessive speculation, and reporting.
                    ``(C) Minimum competence.--
                            ``(i) Passing score.--An individual shall 
                        not be considered to have passed a qualified 
                        written test under this paragraph unless the 
                        individual achieves a test score of not less 
                        than 75 percent correct answers to questions on 
                        the test.
                            ``(ii) Initial retests.--An individual may 
                        retake a test 3 consecutive times, with each 
                        consecutive taking occurring not later than 14 
                        days after the preceding test.
                            ``(iii) Subsequent retests.--After 3 
                        consecutive tests, an individual shall be 
                        required to wait at least 14 days before 
                        retaking the test.
                            ``(iv) Retest after lapse of 
                        registration.--A registered carbon trader who 
                        fails to maintain a valid registration for a 
                        period of 5 years or longer shall retake the 
                        test.
            ``(7) Background checks.--An applicant for registration 
        shall, at a minimum, provide to the Commission--
                    ``(A) fingerprints for submission to the Federal 
                Bureau of Investigation for a State and national 
                criminal history background check;
                    ``(B) a description of personal history and 
                experience, including an independent credit report 
                obtained from a consumer reporting agency described in 
                section 603(p) of the Fair Credit Reporting Act (15 
                U.S.C. 1681a(p)); and
                    ``(C) information relating to any administrative, 
                civil, or criminal findings by any governmental 
                jurisdiction.

``SEC. 206. CARBON CLEARING ORGANIZATION.

    ``(a) Establishment.--
            ``(1) In general.--The Commission shall establish an entity 
        to be known as the `Carbon Clearing Organization' for the 
        purpose of creating a common clearing platform for regulated 
        allowances.
            ``(2) Application by derivatives clearing organization.--A 
        derivatives clearing organization registered with the 
        Commission pursuant to section 5b may apply to the Commission 
        for designation as the Carbon Clearing Organization by 
        submitting to the Commission an application that contains such 
        information and commitments as the Commission may require.
    ``(b) Operation.--
            ``(1) Requirements.--
                    ``(A) In general.--The Carbon Clearing Organization 
                shall comply with the requirements described in this 
                paragraph.
                    ``(B) Financial resources.--The Carbon Clearing 
                Organization shall demonstrate adequate financial, 
                operational, and managerial resources to discharge the 
                responsibilities of a clearing organization.
                    ``(C) Participant and product eligibility.--The 
                Carbon Clearing Organization shall establish--
                            ``(i) appropriate admission and continuing 
                        eligibility standards (including appropriate 
                        minimum financial requirements) for members of 
                        and participants in the Carbon Clearing 
                        Organization; and
                            ``(ii) appropriate standards for 
                        determining eligibility of agreements, 
                        contracts, or transactions submitted to the 
                        Carbon Clearing Organization.
                    ``(D) Risk management.--The Carbon Clearing 
                Organization shall manage the risks associated with 
                discharging the responsibilities of a clearing 
                organization through the use of appropriate tools and 
                procedures.
                    ``(E) Settlement procedures.--The Carbon Clearing 
                Organization shall--
                            ``(i) complete settlements on a timely 
                        basis under varying circumstances; and
                            ``(ii) maintain an adequate record of the 
                        flow of funds associated with each transaction 
                        that the Carbon Clearing Organization clears.
                    ``(F) Treatment of funds.--The Carbon Clearing 
                Organization shall have standards and procedures 
                designed to protect and ensure the safety of member and 
                participant funds.
                    ``(G) Default rules and procedures.--The Carbon 
                Clearing Organization shall have rules and procedures 
                designed to allow for efficient, fair, and safe 
                management of events if members or participants become 
                insolvent or otherwise default on obligations to the 
                Carbon Clearing Organization.
                    ``(H) Rule enforcement.--The Carbon Clearing 
                Organization shall--
                            ``(i) maintain adequate arrangements and 
                        resources for the effective monitoring and 
                        enforcement of compliance with rules of Carbon 
                        Clearing Organization and for resolution of 
                        disputes; and
                            ``(ii) have the authority and ability to 
                        discipline, limit, suspend, or terminate the 
                        activities of a member or participant for 
                        violations of rules of the Carbon Clearing 
                        Organization.
                    ``(I) System safeguards.--The Carbon Clearing 
                Organization shall--
                            ``(i) establish and maintain a program of 
                        oversight and risk analysis to ensure that the 
                        automated systems of the Carbon Clearing 
                        Organization function properly and have 
                        adequate capacity and security; and
                            ``(ii) establish and maintain emergency 
                        procedures and a plan for disaster recovery, 
                        and will periodically test backup facilities 
                        sufficient to ensure daily processing, 
                        clearing, and settlement of transactions.
                    ``(J) Public information.--The Carbon Clearing 
                Organization shall make information concerning the 
                rules and operating procedures governing the clearing 
                and settlement systems (including default procedures) 
                available to market participants.
                    ``(K) Information-sharing.--The Carbon Clearing 
                Organization shall--
                            ``(i) enter into and abide by the terms of 
                        all appropriate and applicable domestic and 
                        international information-sharing agreements; 
                        and
                            ``(ii) use relevant information obtained 
                        from the agreements in carrying out the risk 
                        management program of the Carbon Clearing 
                        Organization.

``SEC. 207. AUTOMATED QUOTATION SYSTEMS.

    ``(a) In General.--The Commission shall facilitate the widespread 
dissemination of reliable and accurate last-sale and quotation 
information with respect to regulated instruments, short sales, and 
private bilateral contracts the value of which, in whole or in part, is 
linked to the price of a regulated instrument by establishing an 
automated quotation system that will collect and disseminate 
information regarding all regulated instruments.
    ``(b) Characteristics of System.--The automated quotation system 
shall--
            ``(1) collect and disseminate quotation and transaction 
        information;
            ``(2) provide bid and ask quotations of participating 
        brokers or dealers; and
            ``(3) provide for the reporting of information on bids, 
        offers, settlement prices, volume, open interest, and opening 
        and closing ranges for all regulated instrument transactions, 
        including last-sale reporting.
    ``(c) Electronic Linkage.--The carbon allowance trading facility 
and all registered carbon derivative trading facilities shall be linked 
electronically with the automated quotation system.
    ``(d) Missing.--All registered carbon trading facilities shall 
share sufficient information with the automated quotation system to 
allow the implementation of this section.

``SEC. 208. ADMINISTRATIVE ENFORCEMENT.

    ``(a) Investigations.--The Commission may conduct such 
investigations as the Commission determines to be necessary to carry 
out this title, in accordance with this Act.
    ``(b) Review of Adverse Action by Registered Carbon Trading 
Facility.--
            ``(1) In general.--
                    ``(A) Disciplinary actions.--The Commission may, in 
                accordance with such standards and procedures as the 
                Commission determines to be appropriate, review a 
                decision by a registered carbon trading facility--
                            ``(i) to suspend, expel, or otherwise 
                        discipline a member of the trading facility; or
                            ``(ii) to deny access to the trading 
                        facility.
                    ``(B) Other actions.--On application of any person 
                who is adversely affected by any decision by a 
                registered carbon trading facility described in 
                subparagraph (A), the Commission may--
                            ``(i) review the decision; and
                            ``(ii) issue such order with respect to the 
                        decision as the Commission determines to be 
                        appropriate to protect the public interest.
            ``(2) Scope of authority.--The Commission may affirm, 
        modify, set aside, or remand a trading facility decision 
        reviewed under paragraph (1), after a determination on the 
        record as to whether the decision was made in accordance with 
        the rules of the trading facility.
    ``(c) Complaints.--The Commission shall enforce this title in 
accordance with this Act.
    ``(d) Authority To Suspend or Revoke Registered Carbon Trading 
Facility Designation.--The Commission may suspend for a period of not 
more than 180 days, or revoke, the designation of a trading facility as 
a registered carbon trading facility if, after notice and opportunity 
for a hearing on the record, the Commission finds that--
            ``(1) the trading facility or the entity, as the case may 
        be, has not complied with a requirement of subsection (a)(3) or 
        (c) of section 205, as the case may be; or
            ``(2) a director, officer, employee, or agent of the 
        trading facility or entity, as the case may be, has violated 
        this title or a regulation or order promulgated or issued under 
        this title.
    ``(e) Injunctive Relief.--If the Commission finds that a person has 
violated this title or a regulation or order promulgated or issued 
under this title, the Commission may seek injunctive relief in 
accordance with this Act.
    ``(f) Trading Suspensions; Emergency Authority.--
            ``(1) Definition of emergency.--In this subsection, the 
        term `emergency' means--
                    ``(A) a major market disturbance characterized by 
                or constituting--
                            ``(i) sudden and excessive fluctuations of 
                        prices of regulated instruments generally (or a 
                        substantial threat of such sudden and excessive 
                        fluctuations) that threaten fair and orderly 
                        markets; or
                            ``(ii) a substantial disruption of the safe 
                        or efficient operation of the national system 
                        for clearance and settlement of transactions in 
                        regulated instruments (or a substantial threat 
                        of such a disruption); or
                    ``(B) a major disturbance that substantially 
                disrupts, or threatens to substantially disrupt--
                            ``(i) the functioning of markets in 
                        regulated instruments, or any significant 
                        portion or segment of the markets; or
                            ``(ii) the transmission or processing of 
                        transactions in regulated instruments.
            ``(2) Trading suspensions.--
                    ``(A) In general.--Subject to subparagraph (B), if 
                the Commission determines that the public interest so 
                requires, the Commission may, by order, summarily 
                suspend all trading of regulated instruments on any 
                trading facility or otherwise, for a period not 
                exceeding 90 calendar days.
                    ``(B) Notification of decision.--An order issued by 
                the Commission under subparagraph (A) shall not take 
                effect unless--
                            ``(i) the Commission notifies the President 
                        of the decision of the Commission; and
                            ``(ii) the President notifies the 
                        Commission that the President does not 
                        disapprove of the decision.
            ``(3) Emergency orders.--
                    ``(A) In general.--The Commission, in an emergency, 
                may by order summarily take such action to alter, 
                supplement, suspend, or impose requirements or 
                restrictions with respect to any matter or action 
                subject to regulation by the Commission or an entity 
                registered under this title, as the Commission 
                determines is necessary in the public interest--
                            ``(i) to maintain or restore fair and 
                        orderly markets in regulated instruments; or
                            ``(ii) to ensure prompt, accurate, and safe 
                        clearance and settlement of transactions in 
                        regulated instruments.
                    ``(B) Effective period.--An order of the Commission 
                under this paragraph--
                            ``(i) shall continue in effect for the 
                        period specified by the Commission;
                            ``(ii) may be extended in accordance with 
                        subparagraph (C); and
                            ``(iii) except as provided in subparagraph 
                        (C), may not continue in effect for more than 
                        10 business days, including extensions.
                    ``(C) Extension.--An order of the Commission under 
                this paragraph may be extended to continue in effect 
                for more than 10 business days, but in no event may 
                continue in effect for more than 30 calendar days, if, 
                at the time of the extension, the Commission determines 
                that--
                            ``(i) the emergency situation still exists; 
                        and
                            ``(ii) the continuation of the order beyond 
                        10 business days is necessary in the public 
                        interest and for the protection of investors to 
                        attain an objective described in clause (i) or 
                        (ii) of subparagraph (A).
                    ``(D) Exemption.--In exercising the authority 
                provided by this paragraph, the Commission shall not be 
                required to comply with section 553 of title 5, United 
                States Code.
            ``(4) Termination of emergency actions by president.--The 
        President may direct that action taken by the Commission under 
        paragraph (3) shall not continue in effect.
            ``(5) Compliance with orders.--A member of a trading 
        facility, introducing broker, dealer, floor broker, or floor 
        trader shall not effect any transaction in, or induce the 
        purchase or sale of, any regulated instrument in contravention 
        of an order of the Commission under this subsection, unless the 
        order--
                    ``(A) has been stayed, modified, or set aside as 
                provided in paragraph (6); or
                    ``(B) has ceased to be effective on direction of 
                the President as provided in paragraph (4).
            ``(6) Limitations on review of orders.--
                    ``(A) In general.--An order of the Commission 
                pursuant to this subsection shall be subject to review 
                by the United States Court of Appeals for the District 
                of Columbia Circuit.
                    ``(B) Basis.--A review of an order under 
                subparagraph (A) shall be based on an examination of 
                all the information before the Commission at the time 
                the order was issued.
                    ``(C) Standard for findings.--The reviewing court 
                shall not enter a stay, writ of mandamus, or similar 
                relief unless the court finds, after notice and hearing 
                before a panel of the court, that the action of the 
                Commission is arbitrary, capricious, an abuse of 
                discretion, or otherwise not in accordance with law.
    ``(g) Other Authority To Issue Orders.--The Commission may issue 
such other orders as are necessary to ensure compliance with this title 
(including regulations promulgated under this title).
    ``(h) Trading Fees To Support Commission Activities.--
            ``(1) In general.--To support oversight by the Commission 
        of markets under this title, each registered trading facility 
        shall charge a trading fee, per transaction, to be established 
        by the Commission at a level not to exceed \1/2\ of 1 percent 
        of the value of the contract being executed.
            ``(2) Remittance of fees.--Each registered trading facility 
        shall submit fees charged under this subsection to the 
        Commission on such schedule as the Commission shall designate.

``SEC. 209. CIVIL JUDICIAL ENFORCEMENT.

    ``(a) In General.--If it appears to the Commission that a person 
has engaged, is engaging, or is about to engage in any act or practice 
constituting a violation of this title (including a regulation 
promulgated or order issued under this title), the Commission may bring 
a civil action in the appropriate United States district court or 
United States court of any territory or other place subject to the 
jurisdiction of the United States--
            ``(1) to enjoin the act or practice; or
            ``(2) to enforce compliance with this title (or a 
        regulation or order promulgated or issued under this title).
    ``(b) Forms of Relief.--
            ``(1) Injunctive relief; restraining order.--On a proper 
        showing, a court described in subsection (a) shall grant a 
        permanent or temporary injunction or issue a restraining order, 
        without bond.
            ``(2) Civil money penalty.--
                    ``(A) In general.--The Commission may seek and the 
                court, on a proper showing, shall have jurisdiction to 
                impose on any person found in the civil action brought 
                under this section to have committed a violation, a 
                civil penalty in an amount that is not more than the 
                greater of--
                            ``(i) $100,000; or
                            ``(ii) triple the monetary gain to the 
                        person for the violation.
                    ``(B) Enforcement of penalty by the attorney 
                general.--If a person on whom such a penalty is imposed 
                fails to pay the penalty within the time prescribed in 
                the order of the court, the Commission may refer the 
                matter to the Attorney General, who shall recover the 
                penalty by action in the appropriate United States 
                district court.

``SEC. 210. CRIMINAL ENFORCEMENT.

    ``(a) Violations Generally.--A person that knowingly violates 
section 204 (or any regulation promulgated under section 204), or 
willfully violates any other provision of this title (or a regulation 
promulgated under this title) the violation of which is made unlawful 
or the observance of which is required by or under this title, shall--
            ``(1) be fined not more than $1,000,000 (or not more than 
        $500,000, if the violator is an individual), imprisoned not 
        more than 5 years, or both; and
            ``(2) shall pay the costs of prosecution.
    ``(b) Failure To Comply With Cease and Desist Order.--
            ``(1) In general.--If, after the period allowed for appeal 
        of an order issued under section 206(e) or after the affirmance 
        of such an order, a person subject to the order fails or 
        refuses to comply with the order, the person shall be--
                    ``(A) fined not more than the greater of $100,000 
                or triple the monetary gain to the person, imprisoned 
                not less than 180 days nor more than 1 year, or both; 
                or
                    ``(B) if the failure or refusal to comply involves 
                a violation referred to in subsection (a), subject to 
                the penalties provided in that subsection for the 
                violation.
            ``(2) Special rule.--Each day during which a failure or 
        refusal to comply with such an order continues shall be 
        considered to be a separate offense for purposes of paragraph 
        (1).

``SEC. 211. MARKET REPORTS.

    ``(a) Collection and Analysis of Information.--The Commission 
shall, on a continuous basis, collect and analyze the following 
information on the functioning of the markets for regulated instruments 
established under this title:
            ``(1) The status of, and trends in, the markets, including 
        prices, trading volumes, transaction types, and trading 
        channels and mechanisms.
            ``(2) Spikes, collapses, and volatility in prices of 
        regulated instruments, and the causes of the spikes, collapses, 
        and volatility.
            ``(3) The relationship between the market for emission 
        allowances, offset credits, and allowance derivatives, and the 
        spot and futures markets for energy commodities, including 
        electricity.
            ``(4) Evidence of fraud or manipulation in any such market, 
        the effects on any such market of any such fraud or 
        manipulation (or threat of fraud or manipulation) that the 
        Commission has identified, and the effectiveness of corrective 
        measures undertaken by the Commission to address the fraud or 
        manipulation, or threat.
            ``(5) The economic effects of the markets, including to the 
        macro- and micro-economic effects of unexpected significant 
        increases and decreases in the price of regulated instruments.
            ``(6) Any changes in the roles, activities, or strategies 
        of various market participants.
            ``(7) Regional, industrial, and consumer responses to the 
        market, and energy investment responses to the markets.
            ``(8) Any other issue relating to the markets that the 
        Commission determines to be appropriate.
    ``(b) Quarterly Reports to Congress.--Not later than 30 days after 
the end of each calendar quarter, the Commission shall submit to the 
President, the Committee on Energy and Commerce of the House of 
Representatives, the Committee on Energy and Natural Resources of the 
Senate, and the Committee on Environment and Public Works of the 
Senate, and make available to the public, a report on the matters 
described in subsection (a) with respect to the quarter, including 
recommendations for any administrative or statutory measures the 
Commission considers necessary to address any threats to the 
transparency, fairness, or integrity of the markets in regulated 
instruments.

``SEC. 212. AUTHORIZATION OF APPROPRIATIONS.

    ``In addition to any fees collected by the Commission under this 
Act, there are authorized to be appropriated such sums as are necessary 
to carry out this title.''.
    (b) Conforming Amendment.--The Commodity Exchange Act (7 U.S.C. 1 
et seq.) is amended by inserting after section 1a (7 U.S.C. 1a) the 
following:

            ``TITLE I--REGULATION OF COMMODITY EXCHANGES''.

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