I
103D CONGRESS
1ST SESSION
H. R. 2550
To establish a Markets and Trading Commission in order to combine the
functions of the Commodity Futures Trading Commission and the Securi-
ties and Exchange Commission in a single independent regulatory com-
mission, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
JUNE 29, 1993
Mr. GLICKMAN (for himself and Mr. WYDEN) introduced the following bill;
which was referred jointly to the Committees on Agriculture, Energy and
Commerce, and Banking, Finance and Urban Affairs
A BILL
To establish a Markets and Trading Commission in order
to combine the functions of the Commodity Futures
Trading Commission and the Securities and Exchange
Commission in a single independent regulatory commis-
sion, 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; TABLE OF CONTENTS.
(a) SHORT TITLE.—This Act may be cited as the
‘‘Markets and Trading Reorganization and Reform Act’’.
(b) TABLE OF CONTENTS.—
Sec. 1. Short title; table of contents.
SEC. 4. EFFECT ON CONGRESSIONAL JURISDICTION.
It is the sense of Congress that this Act shall not
be construed to affect the jurisdiction of any committee
or subcommittee of the Congress with respect to any func-
tion transferred to the Commission by this Act.
TITLE I—ESTABLISHMENT OF
COMMISSION
SEC. 101. ESTABLISHMENT.
There is established an independent regulatory com-
mission to be known as the Markets and Trading Commis-
sion.
SEC. 102. MEMBERS: APPOINTMENT; TERMS.
(a) COMPOSITION OF COMMISSION.—The Commis-
sion shall be composed of five commissioners appointed by
the President, by and with the advice and consent of the
Senate. One of the commissioners shall be designated by
the President as chairman. Not more than three of such
members shall be members of the same political party.
Each Commissioner shall be selected solely on the basis
of integrity and demonstrated knowledge of the operations
of the markets subject to the jurisdiction of the Commis-
sion.
(b) TERMS.—Each commissioner shall be appointed
for a term of 5 years, except that—
(1) a commissioner may continue to serve after
the expiration of such term until a successor is ap-
pointed and has qualified, but may not continue to
so serve beyond the expiration of the next session of
Congress beginning after the expiration of such
term;
(2) the terms of office of the commissioners
first taking office after the enactment of this Act
shall expire, as designated by the President at the
time of their appointment—
(A) 1 at the end of 1 year;
(B) 2 at the end of 3 years; and
(C) 2 at the end of 5 years; and
(3) any member appointed to fill a vacancy oc-
curring prior to the expiration of the term for which
the predecessor was appointed shall be appointed for
the remainder of such term.
(c) CONFLICTS OF INTEREST.—
(1) IN GENERAL.—No commissioner shall en-
gage in any other business, vocation, or employment
than that of serving as commissioner, nor shall any
commissioner participate, directly or indirectly, in
any market operations or transactions of a character
subject to regulation by the Commission pursuant to
this title.
(2) REIMBURSEMENT FOR TRAVEL.—Notwith-
standing any other provision of law, in accordance
with regulations which the Commission shall pre-
scribe to prevent conflicts of interest, the Commis-
sion may accept payment and reimbursement, in
cash or in kind, from non-Federal agencies, organi-
zations, and individuals for travel, subsistence, and
other necessary expenses incurred by Commission
members and employees in attending meetings and
conferences concerning the functions or activities of
the Commission. Any payment or reimbursement ac-
cepted shall be credited to the appropriated funds of
the Commission. The amount of travel, subsistence,
and other necessary expenses for members and em-
ployees paid or reimbursed under this subsection
may exceed per diem amounts established in official
travel regulations, but the Commission may include
in its regulations under this subsection a limitation
on such amounts.
(3) PROFESSIONAL
FELLOWS.—Notwithstand-
ing any other provision of law, former employers of
participants in the Commission’s professional fellows
programs may pay such participants their actual ex-
penses for relocation to Washington, District of Co-
lumbia, to facilitate their participation in such pro-
grams, and program participants may accept such
payments.
(d) FEES.—Notwithstanding any other provision of
law, whenever any fee is required to be paid to the Com-
mission pursuant to any provision of the securities laws
or any other law, the Commission may provide by rule that
such fee shall be paid in a manner other than in cash.
SEC. 103. ORGANIZATION OF COMMISSION.
The Commission shall establish the principal divi-
sions and subdivisions of the Commission, except that the
Commission shall establish a separate division with re-
sponsibility for functions relating to markets in physical
commodities.
SEC. 104. GENERAL COUNSEL.
There shall be in the Commission an Office of Gen-
eral Counsel, headed by a General Counsel appointed by
the President, by and with the advice and consent of the
Senate.
TITLE II—TRANSFERS OF
FUNCTIONS
SEC. 201. COMMODITY FUTURES TRADING COMMISSION
FUNCTIONS.
There are transferred to the Commission all functions
of the Commodity Futures Trading Commission and of
any officer or component of the Commodity Futures
Trading Commission.
SEC. 202. SECURITIES AND EXCHANGE COMMISSION.
There are transferred to the Commission all functions
of the Security and Exchange Commission and of any offi-
cer or component of the Securities and Exchange
Commission.
SEC. 203. JURISDICTION OF MARGIN AUTHORITY.
(a) MARGIN AUTHORITY WITH RESPECT TO SECURI-
TIES.—There is transferred to the Commission the func-
tions of the Board of Governors of the Federal Reserve
System under section 7 of the Securities Exchange Act
of 1934.
(b) MARGIN AUTHORITY WITH RESPECT TO FU-
TURES.—Notwithstanding section 5a(12) of the Commod-
ity Exchange Act, the Commission may—
(1) by order, direct contract markets to adjust
the level of margin required on any contract; or
(2) by regulation, prescribe limits on the level
of margin that a contract market may require on
any class or category of contract;
as necessary to ensure the financial integrity of such mar-
ket.
TITLE III—FEDERAL FINANCIAL
MARKETS 
COORDINATING
COUNCIL
SEC. 301. ESTABLISHMENT; MEMBERSHIP.
(a) ESTABLISHMENT.—There is established in the ex-
ecutive branch a council to be known as the Federal
Financial Markets Coordinating Council.
(b) MEMBERSHIP.—The Council shall be composed of
the heads of the following agencies or their designees for
this purpose:
(1) The Board of Governors of the Federal Re-
serve System.
(2) The Comptroller of the Currency.
(3) The Department of the Treasury.
(4) The Markets and Trading Commission.
(5) The National Credit Union Administration.
(6) The Office of Thrift Supervision.
(7) The Federal Deposit Insurance Corporation.
(c) CHAIRMAN.—The Council shall elect one of its
members to serve as chairman.
SEC. 302. FUNCTIONS OF THE COUNCIL.
The Federal Financial Markets Coordinating Council
shall—