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(B) by striking ‘‘five years’’ and inserting
‘‘10 years’’;
(2) by re-designating subsection (f) as subsection
(e); and
(3) in paragraph (1) of subsection (e) (as redes-
ignated by paragraph (2)), by striking the period at
the end and inserting ‘‘; or’’.
SEC. 13105. AUTHORIZATION OF APPROPRIATIONS.
Section 12(d) of the Commodity Exchange Act (7
U.S.C. 16(d)) is amended to read as follows:
‘‘(d) There are authorized to be appropriated such
sums as are necessary to carry out this Act for each of the
fiscal years 2008 through 2013.’’.
SEC. 13106. TECHNICAL AND CONFORMING AMENDMENTS.
(a) Section 4a(e) of the Commodity Exchange Act (7
U.S.C. 6a(e)) is amended in the last proviso by striking
‘‘section 9(c)’’ and inserting ‘‘section 9(a)(5)’’.
(b) Section 4f(c)(4)(B)(i) of such Act (7 U.S.C.
6f(c)(4)(B)(i)) is amended by striking ‘‘compiled’’ and in-
serting ‘‘complied’’.
(c) Section 4k of such Act (7 U.S.C. 6k) is amended
by redesignating the second paragraph (5) as paragraph
(6).
(d) The Commodity Exchange Act is amended—
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(1) by redesignating the first section 4p (7
U.S.C. 6o–1), as added by section 121 of the Com-
modity Futures Modernization Act of 2000, as section
4q; and
(2) by moving such section to after the second
section 4p, as added by section 206 of Public Law
93–446.
(e) Subsections (a)(1) and (d)(1) of section 5c of such
Act (7 U.S.C. 7a–2(a)(1), (d)(1)) are each amended by
striking ‘‘5b(d)(2)’’ and inserting ‘‘5b(c)(2)’’.
(f) Sections 5c(f) and 17(r) of such Act (7 U.S.C. 7a–
2(f), 21(r)) are each amended by striking ‘‘4d(3)’’ and in-
serting ‘‘4d(c)’’.
(g) Section 8(a)(1) of such Act (7 U.S.C. 12(a)(1)) is
amended in the matter following subparagraph (B)—
(1) by striking ‘‘commenced’’ in the 2nd place it
appears; and
(2) by inserting ‘‘commenced’’ after ‘‘in a judi-
cial proceeding’’.
(h) Section 22(a)(2) of such Act (7 U.S.C. 25(a)(2))
is amended by striking ‘‘5b(b)(1)(E)’’ and inserting
‘‘5b(c)(2)(H)’’.
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SEC. 13107. PORTFOLIO MARGINING AND SECURITY INDEX
ISSUES.
(a) The agencies represented on the President’s Work-
ing Group on Financial Markets shall work to ensure that
the Securities and Exchange Commission (SEC), the Com-
modity Futures Trading Commission (CFTC), or both, as
appropriate, have taken the actions required under sub-
section (b).
(b) The SEC, the CFTC, or both, as appropriate, shall
take action under their existing authorities to permit—
(1) by September 30, 2008, risk-based portfolio
margining for security options and security futures
products; and
(2) by June 30, 2008, the trading of futures on
certain security indexes by resolving issues related to
foreign security indexes.
Subtitle B—Significant Price Dis-
covery 
Contracts 
on 
Exempt
Commercial Markets
SEC. 13201. SIGNIFICANT PRICE DISCOVERY CONTRACTS.
(a) DEFINITIONS.—Section la of the Commodity Ex-
change Act (7 U.S.C. la) is amended—
(1) by redesignating paragraph (33) as para-
graph (34); and
(2) by inserting after paragraph (32) the fol-
lowing:
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‘‘(33) SIGNIFICANT
PRICE
DISCOVERY
CON-
TRACT.—The term ‘significant price discovery con-
tract’ means an agreement, contract, or transaction
subject to section 2(h)(7)(A).’’.
(b) STANDARDS APPLICABLE TO SIGNIFICANT PRICE
DISCOVERY CONTRACTS.—Section 2(h) of the Commodity
Exchange Act (7 U.S.C. 2(h)) is amended by adding at the
end the following:
‘‘(7) STANDARDS
APPLICABLE
TO
SIGNIFICANT
PRICE DISCOVER CONTRACTS.—
‘‘(A) IN GENERAL.—An agreement, contract,
or transaction conducted in reliance on the ex-
emption in paragraph (3) shall be subject to the
provisions of subparagraphs (B) through (E),
under such rules and regulations as the Commis-
sion may promulgate, provided that the Commis-
sion determines, in its discretion, that the agree-
ment, contract, or transaction performs a signifi-
cant price discovery function as described in sub-
paragraph (B).
‘‘(B) SIGNIFICANT
PRICE
DISCOVERY
DE-
TERMINATION.—In 
making 
a 
determination
whether an agreement, contract, or transaction
performs a significant price discovery function,
the Commission shall consider, as appropriate:
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‘‘(i) PRICE
LINKAGE.—The extent to
which the agreement, contract, or trans-
action uses or otherwise relies on a daily or
final settlement price, or other major price
parameter, of a contract or contracts listed,
for trading on or subject to the rules of a
designated contract market or a derivatives
transaction execution facility, or a signifi-
cant price discovery contract traded on an
electronic trading facility, to value a posi-
tion, transfer or convert a position, cash or
financially settle a position, or close out a
position.
‘‘(ii) ARBITRAGE.—The extent to which
the price for the agreement, contract, or
transaction is sufficiently related to the
price of a contract or contracts listed for
trading on or subject to the rules of a des-
ignated contract market or derivatives
transaction execution facility so as to per-
mit market participants to effectively arbi-
trage between the markets by simulta-
neously maintaining positions or executing
trades in the contracts on the electronic
trading facility and the designated contract
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market or derivatives transaction execution
facility on a frequent and recurring basis.
‘‘(iii) MATERIAL PRICE REFERENCE.—
The extent to which, on a frequent and re-
curring basis, bids, offers, or transactions in
a commodity are directly based on, or are
determined by referencing, the prices gen-
erated by agreements, contracts, or trans-
actions being traded or executed on the elec-
tronic trading facility.
‘‘(iv) MATERIAL
LIQUIDITY.—The ex-
tent to which the volume of agreements, con-
tracts, or transactions in the commodity
being traded on the electronic trading facil-
ity is sufficient to have a material impact
on other agreements, contracts, or trans-
actions listed for trading on or subject to
the rules of a designated contract market, a
derivatives trading execution facility, or an
electronic trading facility operating in reli-
ance on the exemption in paragraph (3).
‘‘(v) OTHER
MATERIAL
FACTORS.—
Such other material factors as the Commis-
sion specifies by rule as relevant to deter-
mine whether an agreement, contract, or
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transaction serves a significant price dis-
covery function.
‘‘(C) CORE PRINCIPLES APPLICABLE TO SIG-
NIFICANT PRICE DISCOVERY CONTRACTS.—
‘‘(i) IN GENERAL.—An electronic trad-
ing facility on which significant price dis-
covery contracts are traded or executed
shall, with respect to those contracts, comply
with the core principles specified in this
subparagraph.
‘‘(ii) CORE
PRINCIPLES.—The elec-
tronic trading facility shall have reasonable
discretion in establishing the manner in
which it complies with the following core
principles:
‘‘(I) CONTRACTS
NOT
READILY
SUSCEPTIBLE TO MANIPULATION.—The
electronic trading facility shall list
only significant price discovery con-
tracts that are not readily susceptible
to manipulation.
‘‘(II) MONITORING OF TRADING.—
The electronic trading facility shall
monitor trading in significant price
discovery contracts to prevent market
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manipulation, price distortion, and
disruptions of the delivery or cash-set-
tlement process through market surveil-
lance, compliance, and disciplinary
practices and procedures, including
methods for conducting real-time moni-
toring of trading and comprehensive
and accurate trade reconstructions.
‘‘(III) ABILITY TO OBTAIN INFOR-
MATION.—The electronic trading facil-
ity shall—
‘‘(aa) establish and enforce
rules that will allow the electronic
trading facility to obtain any nec-
essary information to perform
any of the functions described in
this subparagraph;
‘‘(bb) provide such informa-
tion to the Commission upon re-
quest; and
‘‘(cc) have the capacity to
carry out such international in-
formation-sharing agreements as
the Commission may require.
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‘‘(IV) POSITION LIMITATIONS OR
ACCOUNTABILITY.—The electronic trad-
ing facility shall adopt position limi-
tations or position accountability for
speculators in significant price dis-
covery contracts, where necessary and
appropriate, to reduce the potential
threat of market manipulation, price
distortion, and disruptions of the deliv-
ery or cash-settlement process or con-
gestion, especially during trading in
the delivery month.
‘‘(V) EMERGENCY
AUTHORITY.—
The electronic trading facility shall
adopt rules to provide for the exercise
of emergency authority, in consultation
or cooperation with the Commission,
where necessary and appropriate, in-
cluding the authority—
‘‘(aa) to liquidate open posi-
tions in a significant price dis-
covery contract; and
‘‘(bb) to suspend or curtail
trading in a significant price dis-
covery contract.
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‘‘(VI) DAILY
PUBLICATION
OF
TRADING
INFORMATION.—The 
elec-
tronic trading facility shall make pub-
lic daily information on price, trading
volume, and other trading data for sig-
nificant price discovery contracts, as
the Commission considers appropriate.
‘‘(VII) 
COMPLIANCE
WITH
RULES.—The electronic trading facility
shall monitor and enforce compliance
with any rules of the electronic trading
facility applicable to significant price
discovery 
contracts, 
including 
the
terms and conditions of such contracts
and any limitations on access to the
electronic trading facility with respect
to such contracts.
‘‘(VIII) 
CONFLICT
OF
INTER-
EST.—The electronic trading facility
shall—
‘‘(aa) establish and enforce
rules to minimize conflicts of in-
terest in its decision-making proc-
ess; and
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‘‘(bb) establish a process for
resolving the conflicts.
‘‘(IX) 
ANTITRUST
CONSIDER-
ATIONS.—Unless necessary or appro-
priate to achieve the purposes of this
Act, the electronic trading facility shall
endeavor to avoid—
‘‘(aa) adopting any rules or
taking any actions that result in
any unreasonable restraints of
trade; or
‘‘(bb) imposing any material
anticompetitive burden on trading
on the electronic trading facility.
‘‘(D) 
IMPLEMENTATION.—The 
electronic
trading facility shall have discretion to take into
account 
differences 
between 
cleared 
and
uncleared significant price discovery contracts in
applying core principles in subclauses (IV) and
(V) of subparagraph (C), and the Commission
shall take such differences into consideration
when reviewing the implementation of such core
principles by an electronic trading facility.
‘‘(E) NEW SIGNIFICANT PRICE DISCOVERY
CONTRACTS.—