II 

110TH CONGRESS 

2D SESSION S. 3714 

To amend the Commodity Exchange Act to ensure that all agreements, 

contracts, and transactions with respect to commodities are carried out 

on a regulated exchange, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

NOVEMBER 20, 2008 

Mr. HARKIN 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 ensure that all 

agreements, contracts, and transactions with respect to 

commodities are carried out on a regulated exchange, 

and for other purposes. 

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

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Derivatives Trading 

5 Integrity Act of 2008’’. 


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1 SEC. 2. REGULATION OF CERTAIN AGREEMENTS, CON2 TRACTS, AND TRANSACTIONS. 

3 (a) DEFINITIONS.—Section 1a of the Commodity Ex4 change Act (7 U.S.C. 1a) is amended— 

5 (1) by striking paragraphs (10), (11), (13), 

6 (14), and (33); and 

7 (2) by redesignating— 

8 (A) paragraph (12) as paragraph (10); 

9 (B) paragraphs (15) through (32) as para10 graphs (11) through (28), respectively; and 

11 (C) paragraph (34) as paragraph (29). 

12 (b) EXCLUSIONS.—Section 2 of the Commodity Ex13 change Act (7 U.S.C. 2) is amended— 

14 (1) by striking subsections (d), (e), (g), (h), and 

15 (i); and 

16 (2) by redesignating subsection (f) as sub17 section (d). 

18 (c) RESTRICTION OF FUTURES TRADING TO CON19 TRACT MARKETS OR DERIVATIVES TRANSACTION EXECU20 TION FACILITIES.—Section 4 of the Commodity Exchange 

21 Act (7 U.S.C. 6) is amended— 

22 (1) in subsection (a), in the matter preceding 

23 paragraph (1), by striking ‘‘Unless exempted by the 

24 Commission pursuant to subsection (c), it shall’’ and 

25 inserting ‘‘It shall’’; 

26 (2) by striking subsection (c); and 


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1 (3) by redesignating subsection (d) as sub2 section (c). 

3 (d) EXEMPT BOARDS OF TRADE.—Section 5d of the 

4 Commodity Exchange Act (7 U.S.C. 7a–3) is repealed. 

5 SEC. 3. CONFORMING AMENDMENTS. 

6 (a) Section 1a of the Commodity Exchange Act (7 

7 U.S.C. 1a) (as amended by section 2(a)(2)) is amended— 

8 (1) in paragraph (10)(A)(x), by striking ‘‘(other 

9 than an electronic trading facility with respect to a 

10 significant price discovery contract)’’; 

11 (2) in paragraph (25)— 

12 (A) in subparagraph (C), by inserting 

13 ‘‘and’’ after the semicolon at the end; 

14 (B) in subparagraph (D), by striking ‘‘; 

15 and’’ and inserting a period; and 

16 (C) by striking subparagraph (E); and 

17 (3) in paragraph (27), by striking ‘‘section 2(c), 

18 2(d), 2(f), or 2(g) of this Act’’ and inserting ‘‘sub19 section (c) or (d) of section 2’’. 

20 (b) Section 2(c) of the Commodity Exchange Act (7 

21 U.S.C. 2(c)) is amended— 

22 (1) in paragraph (1)— 

23 (A) in the matter preceding subparagraph 

24 (A), by striking ‘‘5d,’’; and 


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1 (B) in subparagraph (F), by striking ‘‘in 

2 an excluded commodity’’; and 

3 (2) in paragraph (2)(B)(i)(II)— 

4 (A) in item (cc), by striking ‘‘section 

5 1a(20) of this Act’’ each place it appears and 

6 inserting ‘‘section 1a(16)’’; and 

7 (B) in item (dd), by striking ‘‘section 

8 1a(12)(A)(ii) of this Act’’ and inserting ‘‘sec9 tion 1a(10)(A)(ii)’’. 

10 (c) Section 4a of the Commodity Exchange Act (7 

11 U.S.C. 6a) is amended— 

12 (1) in subsection (a)— 

13 (A) in the first sentence, by striking ‘‘or on 

14 electronic trading facilities with respect to a 

15 significant price discovery contract’’; and 

16 (B) in the second sentence, by striking ‘‘or 

17 on an electronic trading facility with respect to 

18 a significant price discovery contract,’’; 

19 (2) in subsection (b)— 

20 (A) in paragraph (1), by striking ‘‘or elec21 tronic trading facility with respect to a signifi22 cant price discovery contract’’; and 

23 (B) in paragraph (2), in the matter pre24 ceding the proviso, by striking ‘‘or electronic 


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1 trading facility with respect to a significant 

2 price discovery contract’’; and 

3 (3) in subsection (e)— 

4 (A) in the first sentence— 

5 (i) in the matter preceding the pro6 viso— 

7 (I) by striking ‘‘or by any elec8 tronic trading facility’’; 

9 (II) by striking ‘‘or on an elec10 tronic trading facility’’; and 

11 (III) by striking ‘‘or electronic 

12 trading facility’’; and 

13 (ii) in the proviso, by striking ‘‘or 

14 electronic trading facility’’; and 

15 (B) in the second sentence, in the matter 

16 preceding the proviso, by striking ‘‘or electronic 

17 trading facility with respect to a significant 

18 price discovery contract’’. 

19 (d) Section 4g(a) of the Commodity Exchange Act 

20 (7 U.S.C. 6g(a)) is amended by striking ‘‘and in any sig21 nificant price discovery contract traded or executed on an 

22 electronic trading facility or’’. 

23 (e) Section 4i of the Commodity Exchange Act (7 

24 U.S.C. 6i) is amended— 


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1 (1) in the matter preceding paragraph (1), by 

2 striking ‘‘or any significant price discovery contract 

3 traded or executed on an electronic trading facility’’; 

4 and 

5 (2) in the matter following paragraph (2), by 

6 striking ‘‘or electronic trading facility’’. 

7 (f) Section 5a of the Commodity Exchange Act (7 

8 U.S.C. 7a) is amended— 

9 (1) in subsection (b)(2)— 

10 (A) in subparagraph (D)(ii), by inserting 

11 ‘‘or’’ after the semicolon at the end; 

12 (B) in subparagraph (E), by striking ‘‘; 

13 or’’ and inserting a period; and 

14 (C) by striking subparagraph (F); and 

15 (2) in subsection (g)— 

16 (A) in the heading, by striking ‘‘ELECTION

17 TO TRADE EXCLUDED AND EXEMPT COMMOD18 ITIES’’ and inserting ‘‘EXCLUDED SECURI19 TIES’’; and 

20 (B) in paragraph (1)— 

21 (i) by striking ‘‘excluded or exempt 

22 commodities other than’’ and inserting 

23 ‘‘commodities other than an agricultural 

24 commodity enumerated in section 1a(4) 

25 or’’; and 


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1 (ii) by striking ‘‘, 2(d), or 2(g) of this 

2 Act, or exempt under section 2(h) of this 

3 Act’’. 

4 (g) Section 5b of the Commodity Exchange Act (7 

5 U.S.C. 7a–1) is amended— 

6 (1) in subsection (a)(1), by striking ‘‘section 

7 2(a)(1)(C)(i), 2(c), 2(d), 2(f), or 2(g) of this Act or 

8 title IV of the Commodity Futures Modernization 

9 Act of 2000, or exempted under section 2(h) or 4(c) 

10 of this Act’’ and inserting ‘‘subsection (a)(1)(C)(i), 

11 (c), or (d) of section 2 or title IV of the Commodity 

12 Futures Modernization Act of 2000 (Public Law 

13 106–554; 114 Stat. 2763A457)’’; and 

14 (2) in subsection (b), by striking ‘‘section 2(c), 

15 2(d), 2(f), or 2(g) of this Act or title IV of the Com16 modity Futures Modernization Act of 2000, or ex17 empted under section 2(h) or 4(c) of this Act’’ and 

18 inserting ‘‘subsection (c) or (d) of section 2 or title 

19 IV of the Commodity Futures Modernization Act of 

20 2000 (Public Law 106–554; 114 Stat. 2763A457)’’. 

21 (h) Section 5c of the Commodity Exchange Act (7 

22 U.S.C. 7a–2) is amended— 

23 (1) in subsection (a)(1), by striking ‘‘and sec24 tion 2(h)(7) with respect to significant price dis25 covery contracts,’’; 


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1 (2) in subsection (b)— 

2 (A) in paragraph (1), by striking ‘‘, deriva3 tives transaction execution facility, or electronic 

4 trading facility with respect to a significant 

5 price discovery contract’’ and inserting ‘‘or de6 rivatives transaction execution facility’’; and 

7 (B) in paragraphs (2) and (3), by striking 

8 ‘‘, derivatives transaction execution facility, or 

9 electronic trading facility’’ each place it appears 

10 and inserting ‘‘or derivatives transaction execu11 tion facility’’; and 

12 (3) in subsection (d)(1), in the matter pre13 ceding subparagraph (A), by striking ‘‘or 2(h)(7)(C) 

14 with respect to a significant price discovery contract 

15 traded or executed on an electronic trading facil16 ity,’’. 

17 (i) Section 5e of the Commodity Exchange Act (7 

18 U.S.C. 7b) is amended by striking ‘‘or revocation of the 

19 right of an electronic trading facility to rely on the exemp20 tion set forth in section 2(h)(3) with respect to a signifi21 cant price discovery contract,’’. 

22 (j) Section 5f(b)(1) of the Commodity Exchange Act 

23 (7 U.S.C. 7b–1(b)(1)) is amended in the matter preceding 

24 subparagraph (A), by striking ‘‘section 5f’’ and inserting 

25 ‘‘this section’’. 


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1 (k) Section 6(b) of the Commodity Exchange Act (7 

2 U.S.C. 8(b)) is amended— 

3 (1) in the first sentence— 

4 (A) by striking ‘‘or to revoke the right of 

5 an electronic trading facility to rely on the ex6 emption set forth in section 2(h)(3) with re7 spect to a significant price discovery contract,’’; 

8 and 

9 (B) by striking ‘‘or electronic trading facil10 ity’’; and 

11 (2) in the second sentence, in the matter pre12 ceding the proviso, by striking ‘‘or electronic trading 

13 facility’’. 

14 (l) Section 12(e) of the Commodity Exchange Act (7 

15 U.S.C. 16(e)) is amended by striking paragraph (2) and 

16 inserting the following: 

17 ‘‘(2) EFFECT.—This Act supersedes and pre18 empts the application of any State or local law that 

19 prohibits or regulates gaming or the operation of 

20 bucket shops (other than antifraud provisions of 

21 general applicability) in the case of an agreement, 

22 contract, or transaction that is excluded from this 

23 Act under— 

24 ‘‘(A) subsection (c) or (d) of section 2; or 


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1 ‘‘(B) title IV of the Commodity Futures 

2 Modernization Act of 2000 (Public Law 106– 

3 554; 114 Stat. 2763A457).’’. 

4 (m) Section 15(b) of the Commodity Exchange Act 

5 (7 U.S.C. 19(b)) is amended by striking ‘‘4(c) or’’. 

6 (n) Section 22(b)(1)(A) of the Commodity Exchange 

7 Act (7 U.S.C. 25(b)(1)(A)) is amended by striking ‘‘by 

8 section 2(h)(7) or sections 5 through 5c’’ and inserting 

9 ‘‘under sections 5 through 5c’’. 

10 (o) Section 13106(b)(1) of the Food, Conservation, 

11 and Energy Act of 2008 (7 U.S.C. 2 note; Public Law 

12 110–246) is amended by striking ‘‘section 1a(32)’’ and in13 serting ‘‘section 1a’’. 

Æ 


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