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contract in the commodity for future delivery is 
traded, and each electronic trading facility that has 
a significant price discovery contract in the com-
modity. 
‘‘(B) Not later than 60 days after the date on which 
the advisory groups are convened under subparagraph (A), 
and annually thereafter, the advisory groups shall submit 
to the Commission advisory recommendations regarding 
the position limits to be established in paragraph (2) and 
a recommendation as to whether the position limits should 
be administered directly by the Commission, or by the reg-
istered entity on which the commodity is listed (with en-
forcement by both the registered entity and the Commis-
sion).’’; and 
(2) in subsection (c)— 
(A) by inserting ‘‘(1)’’ after ‘‘(c)’’; and 
(B) by adding after and below the end the 
following: 
‘‘(2) With respect to agricultural and energy com-
modities, for the purposes of contracts of sale for future 
delivery and options on such contracts or commodities, the 
Commission shall define what constitutes a bona fide 
hedging transaction or position as a transaction or posi-
tion that— 
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‘‘(A)(i) represents a substitute for transactions 
to be made or positions to be taken at a later time 
in a physical marketing channel; 
‘‘(ii) is economically appropriate to the reduc-
tion of risks in the conduct and management of a 
commercial enterprise; and 
‘‘(iii) arises from the potential change in the 
value of— 
‘‘(I) assets that a person owns, produces, 
manufactures, processes, or merchandises or 
anticipates owning, producing, manufacturing, 
processing, or merchandising; 
‘‘(II) liabilities that a person owns or an-
ticipates incurring; or 
‘‘(III) services that a person provides, pur-
chases, or anticipates providing or purchasing; 
or 
‘‘(B) reduces risks attendant to a position re-
sulting from a transaction that— 
‘‘(i) was executed pursuant to subsection 
(g), (h)(1), or (h)(2) of section 2, or an exemp-
tion issued by the Commission by rule, regula-
tion or order; and 
‘‘(ii) was executed opposite a counterparty 
for which the transaction would qualify as a 
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bona fide hedging transaction pursuant to para-
graph (2)(A) of this subsection.’’. 
SEC. 9. MODIFICATIONS TO CORE PRINCIPLES APPLICABLE 
TO POSITION LIMITS FOR CONTRACTS IN AG-
RICULTURAL AND ENERGY COMMODITIES. 
(a) CONTRACTS TRADED ON CONTRACT MARKETS.— 
Section 5(d)(5) of the Commodity Exchange Act (7 U.S.C. 
7(d)(5)) is amended by striking all that follows ‘‘adopt’’ 
and inserting ‘‘, for speculators, position limitations with 
respect to agricultural commodities enumerated in section 
1a(4) or energy commodities, and position limitations or 
position accountability with respect to other commodities, 
where necessary and appropriate.’’. 
(b) CONTRACTS TRADED ON DERIVATIVES TRANS-
ACTION EXECUTION FACILITIES.—Section 5a(d)(4) of 
such Act (7 U.S.C. 7a(d)(4)) is amended by striking all 
that follows ‘‘adopt’’ and inserting ‘‘, for speculators, posi-
tion limitations with respect to energy commodities, and 
position limitations or position accountability with respect 
to other commodities, where necessary and appropriate for 
a contract, agreement or transaction with an underlying 
commodity that has a physically deliverable supply.’’. 
(c) SIGNIFICANT PRICE DISCOVERY CONTRACTS.— 
Section 2(h)(7)(C)(ii)(IV) of such Act (7 U.S.C. 
2(h)(7)(C)(ii)(IV)) is amended by striking ‘‘where nec-
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essary’’ and all that follows through ‘‘in significant price 
discovery contracts’’ and inserting ‘‘for speculators, posi-
tion limitations with respect to significant price discovery 
contracts in energy commodities, and position limitations 
or position accountability with respect to significant price 
discovery contracts in other commodities’’. 
SEC. 10. CFTC ADMINISTRATION. 
Section 2(a)(7) of the Commodity Exchange Act (7 
U.S.C. 2(a)(7)) is amended by adding at the end the fol-
lowing: 
‘‘(D) ADDITIONAL EMPLOYEES.—As soon 
as practicable after the date of the enactment 
of this subparagraph, subject to appropriations, 
the Commission shall appoint at least 100 full- 
time employees (in addition to the employees 
employed by the Commission as of the date of 
the enactment of this subparagraph)— 
‘‘(i) to increase the public trans-
parency of operations in agriculture and 
energy markets; 
‘‘(ii) to improve the enforcement of 
this Act in those markets; and 
‘‘(iii) to carry out such other duties as 
are prescribed by the Commission.’’. 
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SEC. 11. REVIEW OF PRIOR ACTIONS. 
Notwithstanding any other provision of the Com-
modity Exchange Act, the Commodity Futures Trading 
Commission shall review, as appropriate, all regulations, 
rules, exemptions, exclusions, guidance, no action letters, 
orders, other actions taken by or on behalf of the Commis-
sion, and any action taken pursuant to the Commodity 
Exchange Act by an exchange, self-regulatory organiza-
tion, or any other registered entity, that are currently in 
effect, to ensure that such prior actions are in compliance 
with the provisions of this Act. 
SEC. 12. REVIEW OF OVER-THE-COUNTER MARKETS. 
(a) STUDY.—The Commodity Futures Trading Com-
mission shall conduct a study— 
(1) to determine the efficacy, practicality, and 
consequences of establishing limits on the amount of 
positions, other than bona fide hedge positions, that 
may be held by any person with respect to agree-
ments, contracts, or transactions involving an agri-
cultural or energy commodity, conducted in reliance 
on sections 2(g) and 2(h) of the Commodity Ex-
change Act and of any exemption issued by the 
Commission by rule, regulation or order, that are 
fungible (as defined by the Commission) with agree-
ments, contracts, or transactions traded on or sub-
ject to the rules of any board of trade or of any elec-
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tronic trading facility with respect to a significant 
price discovery contract, as a means to deter and 
prevent price manipulation or any other disruption 
to market integrity or to diminish, eliminate, or pre-
vent excessive speculation as described in section 4a 
of such Act for physical-based agricultural or energy 
commodities; and 
(2) to determine the efficacy, practicality, and 
consequences of establishing aggregate position lim-
its for similar agreements, contracts, or transactions 
for physical-based agricultural or energy commod-
ities traded— 
(A) on designated contract markets; 
(B) on derivatives transaction execution fa-
cilities; and 
(C) in reliance on such sections 2(g) and 
2(h) and of any exemption issued by the Com-
mission by rule, regulation or order. 
(b) PUBLIC HEARINGS.—The Commission shall pro-
vide for not less than 2 public hearings to take testimony, 
on the record, as part of the fact- gathering process in 
preparation of the report. 
(c) REPORT
AND RECOMMENDATIONS.—Not less 
than 12 months after the date of the enactment of this 
section, the Commission shall provide to the Committee 
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on Agriculture of the House of Representatives and the 
Committee on Agriculture, Nutrition, and Forestry of the 
Senate a report that— 
(1) describes the results of the study; and 
(2) provides recommendations on any actions 
necessary to deter and prevent price manipulation or 
any other disruption to market integrity or to dimin-
ish, eliminate, or prevent excessive speculation as de-
scribed in section 4a of the Commodity Exchange 
Act for physical-based commodities, including— 
(A) any additional statutory authority that 
the Commission determines to be necessary to 
implement the recommendations; and 
(B) a description of the resources that the 
Commission considers to be necessary to imple-
ment the recommendations. 
SEC. 13. STUDIES; REPORTS. 
(a) STUDY RELATING TO INTERNATIONAL REGULA-
TION OF ENERGY COMMODITY MARKETS.— 
(1) IN GENERAL.—The Comptroller General of 
the United States shall conduct a study of the inter-
national regime for regulating the trading of energy 
commodity futures and derivatives. 
(2) ANALYSIS.—The study shall include an 
analysis of, at a minimum— 
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(A) key common features and differences 
among countries in the regulation of energy 
commodity trading, including with respect to 
market oversight and enforcement standards 
and activities; 
(B) variations among countries with re-
spect to the use of position limits, position ac-
countability levels, or other thresholds to detect 
and prevent price manipulation, excessive spec-
ulation as described in section 4a of the Com-
modity Exchange Act, or other unfair trading 
practices; 
(C) variations in practices regarding the 
differentiation of commercial and noncommer-
cial trading; 
(D) agreements and practices for sharing 
market and trading data among futures au-
thorities and between futures authorities and 
the entities that the futures authorities oversee; 
and 
(E) agreements and practices for facili-
tating international cooperation on market over-
sight, compliance, and enforcement. 
(3) REPORT.—Not later than 1 year after the 
date of the enactment of this Act, the Comptroller 
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General shall submit to the Committee on Agri-
culture of the House of Representatives and the 
Committee on Agriculture, Nutrition, and Forestry 
of the Senate a report that— 
(A) describes the results of the study; 
(B) addresses whether there is excessive 
speculation, and if so, the effects of any such 
speculation and energy price volatility on energy 
futures; and 
(C) provides recommendations to improve 
openness, transparency, and other necessary 
elements of a properly functioning market in a 
manner that protects consumers in the United 
States. 
(b) STUDY RELATING TO EFFECTS OF SPECULATORS 
ON AGRICULTURE AND ENERGY FUTURES MARKETS AND 
AGRICULTURE AND ENERGY PRICES.— 
(1) STUDY.—The Commodity Futures Trading 
Commission shall conduct a study of the effects of 
speculators on agriculture and energy futures mar-
kets and agriculture and energy prices. 
(2) ANALYSIS.—The study shall include an 
analysis of, at a minimum— 
(A) the effect of increased amounts of cap-
ital in agriculture and energy futures markets; 
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(B) the impact of the roll-over of positions 
by index fund traders and swap dealers on agri-
culture and energy futures markets and agri-
culture and energy prices; and 
(C) the extent to which each factor de-
scribed in subparagraphs (A) and (B) and spec-
ulators— 
(i) affect— 
(I) the pricing of agriculture and 
energy commodities; and 
(II) risk management functions; 
and 
(ii) contribute to economically efficient 
price discovery. 
(3) REPORT.—Not later than 2 years after the 
date of the enactment of this Act, the Commodity 
Futures Trading Commission shall submit to the 
Committee on Agriculture of the House of Rep-
resentatives and the Committee on Agriculture, Nu-
trition, and Forestry of the Senate a report that de-
scribes the results of the study. 
SEC. 14. OVER-THE-COUNTER AUTHORITY. 
(a) IN GENERAL.—Section 2 of the Commodity Ex-
change Act (7 U.S.C. 2) is amended by adding at the end 
the following: 
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‘‘(j) OVER-THE-COUNTER AUTHORITY.— 
‘‘(1) Within 60 days after the date of the enact-
ment of this subsection, the Commission shall, by 
rule, regulation, or order, require routine reporting 
as it deems in its discretion appropriate, on not less 
than a monthly basis, of agreements, contracts, or 
transactions, with regard to an agricultural or en-
ergy commodity, entered into in reliance on sub-
section (g), (h)(1), or (h)(2) of section 2, or any ex-
emption issued by the Commission by rule, regula-
tion, or order that are fungible (as defined by the 
Commission) with agreements, contracts, or trans-
actions traded on or subject to the rules of any 
board of trade or of any electronic trading facility 
with respect to a significant price discovery contract. 
‘‘(2) Notwithstanding subsections (g), (h)(1), 
and (h)(2) of section 2, and any exemption issued by 
the Commission by rule, regulation, or order, the 
Commission shall assess and issue a finding on 
whether the agreements, contracts, or transactions 
reported pursuant to paragraph (1), alone or in con-
junction with other similar agreements, contracts, or 
transactions, have the potential to— 
‘‘(A) disrupt the liquidity or price dis-
covery function on a registered entity; 
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‘‘(B) cause a severe market disturbance in 
the underlying cash or futures market for an 
agricultural or energy commodity; or 
‘‘(C) prevent or otherwise impair the price 
of a contract listed for trading on a registered 
entity from reflecting the forces of supply and 
demand in any market for an agricultural com-
modity enumerated in section 1a(4) or an en-
ergy commodity. 
‘‘(3) If the Commission makes a finding pursu-
ant to paragraph (2) of this subsection, the Commis-
sion may, in its discretion, utilize its authority under 
section 8a(9) to impose position limits (including, as 
appropriate and in its discretion, related hedge ex-
emption provisions for bona fide hedging comparable 
to bona fide hedge provisions of section 4a(c)(2)) on 
agreements, contracts, or transactions involved, and 
take corrective actions to enforce the limits.’’. 
(b) CONFORMING AMENDMENTS.— 
(1) Section 2(g) of such Act (7 U.S.C. 2(g)) is 
amended by inserting ‘‘subsection (j) of this section, 
and’’ after ‘‘(other than’’. 
(2) Section 2(h)(2)(A) of such Act (7 U.S.C. 
2(h)(2)(A)) is amended by inserting ‘‘subsection (j) 
of this section and’’ before ‘‘sections’’. 
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