I 
111TH CONGRESS 
1ST SESSION 
H. R. 977 
To amend the Commodity Exchange Act to bring greater transparency and 
accountability to commodity markets, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
FEBRUARY 11, 2009 
Mr. PETERSON introduced the following bill; which was referred to the Com-
mittee on Agriculture, and in addition to the Committee on Financial 
Services, for a period to be subsequently determined by the Speaker, in 
each case for consideration of such provisions as fall within the jurisdic-
tion of the committee concerned 
A BILL 
To amend the Commodity Exchange Act to bring greater 
transparency and accountability to commodity markets, 
and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Derivatives Markets 
Transparency and Accountability Act of 2009’’. 
SEC. 2. TABLE OF CONTENTS. 
The table of contents of this Act is as follows: 
Sec. 1. Short title. 
Sec. 2. Table of contents. 
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Sec. 3. Speculative limits and transparency of off-shore trading. 
Sec. 4. Detailed reporting and disaggregation of market data. 
Sec. 5. Transparency and recordkeeping authorities. 
Sec. 6. Trading limits to prevent excessive speculation. 
Sec. 7. CFTC Administration. 
Sec. 8. Review of prior actions. 
Sec. 9. Review of over-the-counter markets. 
Sec. 10. Study relating to international regulation of energy commodity mar-
kets. 
Sec. 11. Over-the-counter authority. 
Sec. 12. Expedited process. 
Sec. 13. Certain exclusions and exemptions available only for certain trans-
actions settled and cleared through registered derivatives clear-
ing organizations. 
Sec. 14. Treatment of emission allowances and offset credits. 
Sec. 15. Inspector General of the Commodity Futures Trading Commission. 
Sec. 16. Authority of Commodity Futures Trading Commission to suspend 
trading in credit default swaps. 
Sec. 17. Authority of Commodity Futures Trading Commission to prosecute 
criminal violations of the Commodity Exchange Act. 
SEC. 3. SPECULATIVE LIMITS AND TRANSPARENCY OF OFF- 
SHORE TRADING. 
(a) IN GENERAL.—Section 4 of the Commodity Ex-
change Act (7 U.S.C. 6) is amended by adding at the end 
the following: 
‘‘(e) FOREIGN BOARDS OF TRADE.— 
‘‘(1) IN GENERAL.—The Commission may not 
permit a foreign board of trade to provide to the 
members of the foreign board of trade or other par-
ticipants located in the United States direct access 
to the electronic trading and order matching system 
of the foreign board of trade with respect to an 
agreement, contract, or transaction that settles 
against any price (including the daily or final settle-
ment price) of 1 or more contracts listed for trading 
on a registered entity, unless— 
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‘‘(A) the foreign board of trade makes pub-
lic daily trading information regarding the 
agreement, contract, or transaction that is com-
parable to the daily trading information pub-
lished by the registered entity for the 1 or more 
contracts against which the agreement, con-
tract, or transaction traded on the foreign 
board of trade settles; and 
‘‘(B) the foreign board of trade (or the for-
eign futures authority that oversees the foreign 
board of trade)— 
‘‘(i) adopts position limits (including 
related hedge exemption provisions) for the 
agreement, contract, or transaction that 
are comparable, taking into consideration 
the relative sizes of the respective markets, 
to the position limits (including related 
hedge exemption provisions) adopted by 
the registered entity for the 1 or more con-
tracts against which the agreement, con-
tract, or transaction traded on the foreign 
board of trade settles; 
‘‘(ii) has the authority to require or 
direct market participants to limit, reduce, 
or liquidate any position the foreign board 
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of trade (or the foreign futures authority 
that oversees the foreign board of trade) 
determines to be necessary to prevent or 
reduce the threat of price manipulation, 
excessive speculation as described in sec-
tion 4a, price distortion, or disruption of 
delivery or the cash settlement process; 
‘‘(iii) agrees to promptly notify the 
Commission, with regard to the agreement, 
contract, or transaction,’’ of any change 
regarding— 
‘‘(I) the information that the for-
eign board of trade will make publicly 
available; 
‘‘(II) the position limits that the 
foreign board of trade or foreign fu-
tures authority will adopt and enforce; 
‘‘(III) the position reductions re-
quired to prevent manipulation, exces-
sive speculation as described in sec-
tion 4a, price distortion, or disruption 
of delivery or the cash settlement 
process; and 
‘‘(IV) any other area of interest 
expressed by the Commission to the 
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‘‘(2) has not been determined by the Commis-
sion to be operating in violation of subsection (a).’’. 
(c) CONTRACT ENFORCEMENT FOR FOREIGN FU-
TURES CONTRACTS.—Section 22(a) of such Act (7 U.S.C. 
25(a)) is amended by adding at the end the following: 
‘‘(5) A contract of sale of a commodity for fu-
ture delivery traded or executed on or through the 
facilities of a board of trade, exchange, or market lo-
cated outside the United States for purposes of sec-
tion 4(a) shall not be void, voidable, or unenforce-
able, and a party to such a contract shall not be en-
titled to rescind or recover any payment made with 
respect to the contract, based on the failure of the 
foreign board of trade to comply with any provision 
of this Act.’’. 
SEC. 4. DETAILED REPORTING AND DISAGGREGATION OF 
MARKET DATA. 
Section 4 of the Commodity Exchange Act (7 U.S.C. 
6), as amended by section 3 of this Act, is amended by 
adding at the end the following: 
‘‘(g) DETAILED REPORTING AND DISAGGREGATION 
OF MARKET DATA.— 
‘‘(1) INDEX TRADERS AND SWAP DEALERS RE-
PORTING.—The Commission shall issue a proposed 
rule defining and classifying index traders and swap 
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dealers (as those terms are defined by the Commis-
sion) for purposes of data reporting requirements 
and setting routine detailed reporting requirements 
for any positions of such entities in contracts traded 
on designated contract markets, derivatives trans-
action execution facilities, foreign boards of trade 
subject to section 4(e), and electronic trading facili-
ties with respect to significant price discovery con-
tracts not later than 120 days after the date of the 
enactment of this subsection, and issue a final rule 
within 180 days after such date of enactment. 
‘‘(2) DISAGGREGATION OF INDEX FUNDS AND 
OTHER
DATA
IN
MARKETS.—Subject to section 8 
and beginning within 60 days of the issuance of the 
final rule required by paragraph (1), the Commis-
sion shall disaggregate and make public monthly— 
‘‘(A) the number of positions and total no-
tional value of index funds and other passive, 
long-only and short-only positions (as defined 
by the Commission) in all markets to the extent 
such information is available; and 
‘‘(B) data on speculative positions relative 
to bona fide physical hedgers in those markets 
to the extent such information is available.’’. 
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SEC. 5. TRANSPARENCY AND RECORDKEEPING AUTHORI-
TIES. 
(a) IN GENERAL.—Section 4g(a) of the Commodity 
Exchange Act (7 U.S.C. 6g(a)) is amended— 
(1) by inserting ‘‘a’’ before ‘‘futures commission 
merchant’’; and 
(2) by inserting ‘‘and transactions and positions 
traded pursuant to subsection (d), (g), (h)(1), or 
(h)(3) of section 2, or any exemption issued by the 
Commission by rule, regulation or order,’’ after 
‘‘United States or elsewhere,’’. 
(b) REPORTS OF DEALS EQUAL TO OR IN EXCESS 
OF TRADING LIMITS.— 
(1) IN GENERAL.—Section 4i of such Act (7 
U.S.C. 6i) is amended— 
(A) in the first sentence— 
(i) by inserting ‘‘(a)’’ before ‘‘It 
shall’’; and 
(ii) by inserting ‘‘in the United States 
or elsewhere, and of transactions and posi-
tions in any such commodity entered into 
pursuant to subsection (d), (g), (h)(1), or 
(h)(3) of section 2, or any exemption 
issued by the Commission by rule, regula-
tion or order’’ before ‘‘, and of cash or 
spot’’; and 
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(B) by striking all that follows the 1st sen-
tence and inserting the following: 
‘‘(b) Upon special call by the Commission, any person 
shall provide to the Commission, in a form and manner 
and within the period specified in the special call, books 
and records of all transactions and positions traded on or 
subject to the rules of any board of trade or electronic 
trading facility in the United States or elsewhere, or pur-
suant to subsection (d), (g), (h)(1), or (h)(3) of section 
2, or any exemption issued by the Commission by rule, 
regulation, or order, as the Commission may determine 
appropriate to deter and prevent price manipulation or 
any other disruption to market integrity or to diminish, 
eliminate, or prevent excessive speculation as described in 
section 4a(a). 
‘‘(c) Such books and records described in subsections 
(a) and (b) shall show complete details concerning all such 
transactions, positions, inventories, and commitments, in-
cluding the names and addresses of all persons having any 
interest therein, shall be kept for a period of 5 years, and 
shall be open at all times to inspection by any representa-
tive of the Commission or the Department of Justice. For 
the purposes of this section, the futures and cash or spot 
transactions and positions of any person shall include such 
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transactions and positions of any persons directly or indi-
rectly controlled by the person.’’. 
(2) NOTICE AND COMMENT.—Within 60 days 
after the date of the enactment of this subsection, 
the Commodity Futures Trading Commission shall 
provide an opportunity for notice and comment on 
implementing the amendments made by paragraph 
(1). 
(c) CONFORMING AMENDMENTS.— 
(1) Section 2(d)(2) of such Act (7 U.S.C. 
2(d)(2)) is amended— 
(A) by inserting ‘‘4g(a), 4i,’’ before ‘‘5a 
(to’’; and 
(B) by inserting ‘‘, and the regulations of 
the Commission pursuant to section 4i(b) re-
quiring reporting in connection with commodity 
option transactions,’’ before ‘‘governs’’. 
(2) Section 2(g) of such Act (7 U.S.C. 2(g)) is 
amended— 
(A) by inserting ‘‘4g(a), 4i,’’ before ‘‘5a 
(to’’; and 
(B) by inserting ‘‘, and the regulations of 
the Commission pursuant to section 4i(b) re-
quiring reporting in connection with commodity 
option transactions,’’ before ‘‘shall apply’’. 
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(3) Section 2(h)(2)(A) of such Act (7 U.S.C. 
2(h)(2)(A)) is amended to read as follows: 
‘‘(A) 
sections 
4g(a), 
4i, 
5b 
and 
12(e)(2)(B), and the regulations of the Com-
mission pursuant to section 4i(b) requiring re-
porting in connection with commodity option 
transactions;’’. 
(4) Section 2(h)(4)(A) of such Act (7 U.S.C. 
2(h)(4)(A)) is amended to read as follows: 
‘‘(A) sections 4g(a), 4i, 5a (to the extent 
provided in section 5a(g)), 5b, 5d, and 
12(e)(2)(B), and the regulations of the Com-
mission pursuant to section 4i(b) requiring re-
porting in connection with commodity option 
transactions;’’. 
SEC. 6. TRADING LIMITS TO PREVENT EXCESSIVE SPECU-
LATION. 
Section 4a of the Commodity Exchange Act (7 U.S.C. 
6a) is amended— 
(1) in subsection (a)— 
(A) by inserting ‘‘(1)’’ after ‘‘(a)’’; and 
(B) by adding after and below the end the 
following: 
‘‘(2)(A) In accordance with the standards set forth 
in paragraph (1) of this subsection and consistent with 
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SEC. 12. EXPEDITED PROCESS. 
The Commodity Futures Trading Commission may 
use emergency and expedited procedures (including any 
administrative or other procedure as appropriate) to carry 
out this Act if, in its discretion, it deems it necessary to 
do so. 
SEC. 13. CERTAIN EXCLUSIONS AND EXEMPTIONS AVAIL-
ABLE ONLY FOR CERTAIN TRANSACTIONS 
SETTLED 
AND 
CLEARED 
THROUGH 
REG-
ISTERED DERIVATIVES CLEARING ORGANIZA-
TIONS. 
(a) IN GENERAL.— 
(1) 
EXCLUSION
OF
CERTAIN
DERIVATIVE 
TRANSACTIONS.— 
(A) Section 2(d)(1) of the Commodity Ex-
change Act (7 U.S.C. 2(d)(1)) is amended— 
(i) by striking ‘‘and’’ at the end of 
subparagraph (A); 
(ii) by striking the period at the end 
of subparagraph (B) and inserting ‘‘and’’; 
and 
(iii) by adding at the end the fol-
lowing: 
‘‘(C) except as provided in section 4(h), the 
agreement, contract, or transaction is settled 
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