paragraphs (13) through (33) as paragraphs (15) through 
(35), respectively, and by inserting after paragraph (12) 
the following: 
‘‘(13) ENERGY COMMODITY.—The term ‘energy 
commodity’ means a commodity (other than an ex-
cluded commodity, a metal, or an agricultural com-
modity) that— 
‘‘(A) is used as a source of energy, includ-
ing but not limited to— 
‘‘(i) crude oil; 
‘‘(ii) gasoline, diesel fuel, heating oil, 
and any other product derived or refined 
from crude oil; 
‘‘(iii) natural gas, including methane, 
propane, and any other gas or liquid de-
rived from natural gas; and 
‘‘(iv) electricity; or 
‘‘(B) results from the burning of fossil 
fuels to produce energy, including but not lim-
ited to carbon dioxide and sulfur dioxide. 
‘‘(14) ENERGY TRADING FACILITY.—The term 
‘energy trading facility’ means a trading facility 
that— 
‘‘(A) is not a designated contract market; 
and 
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‘‘(B) facilitates the execution or trading of 
agreements, contracts, or transactions in an en-
ergy commodity that are not spot sales of a 
cash commodity or sales of a cash commodity 
for deferred shipment or delivery, and that are 
entered into on a principal-to-principal basis 
solely between persons that are eligible commer-
cial entities at the time the persons enter into 
the agreement, contract, or transaction; and 
‘‘(i) facilitates the clearance and set-
tlement of such agreements, contracts, or 
transactions; or 
‘‘(ii) the Commission determines per-
forms a significant price discovery function 
in relation to an energy commodity listed 
for trading on a trading facility or in the 
cash market for the energy commodity. In 
making a determination whether a trading 
facility performs a significant price dis-
covery function the Commission may con-
sider, as appropriate— 
‘‘(I) the extent to which the price 
of an agreement, contract, or trans-
action traded or executed on the trad-
ing facility is derived from or linked 
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to the price of a contract in an energy 
commodity listed for trading on a des-
ignated contract market; 
‘‘(II) the extent to which cash 
market bids, offers, or transactions in 
an energy commodity are directly 
based on, or quoted at a differential 
to, the prices generated by agree-
ments, contracts, or transactions in 
the same energy commodity being 
traded or executed on the trading fa-
cility; 
‘‘(III) the volume of agreements, 
contracts, or transactions in the en-
ergy commodity being traded on the 
trading facility; 
‘‘(IV) the extent to which data 
regarding completed transactions are 
posted, disseminated, or made avail-
able immediately after completion of 
such transactions, with or without a 
fee, to other market participants and 
other persons; 
‘‘(V) the extent to which an arbi-
trage market exists between the 
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agreements, contracts, or transactions 
traded or executed on the trading fa-
cility and a contract in an energy 
commodity listed for trading on a des-
ignated contract market; and 
‘‘(VI) such other factors as the 
Commission determines appropriate.’’. 
(b) COMMISSION OVERSIGHT OF ENERGY TRADING 
FACILITIES.—Section 2(h) of such Act (7 U.S.C. 2(h)) is 
amended— 
(1) in paragraph (3)(B) after ‘‘an electronic 
trading facility’’ by inserting ‘‘that is not an energy 
trading facility’’; and 
(2) by adding at the end the following: 
‘‘(7) ENERGY TRADING FACILITIES.—Notwith-
standing any other provision of this Act, an energy 
trading facility shall be subject to section 2(j).’’. 
(c) STANDARDS APPLICABLE TO ENERGY TRADING 
FACILITIES.—Section 2 of such Act (7 U.S.C. 2) is 
amended by adding at the end the following: 
‘‘(j) REGISTRATION OF ENERGY TRADING FACILI-
TIES.— 
‘‘(1) IN GENERAL.—It shall be unlawful for any 
person to enter into an agreement, contract, or 
transaction for future delivery of an energy com-
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modity that is not a spot sale of a cash commodity 
or a sale of a cash commodity for deferred shipment 
or delivery, on or through an energy trading facility 
unless such facility is registered with the Commis-
sion as an energy trading facility. 
‘‘(2) APPLICATIONS.—Any trading facility ap-
plying to the Commission for registration as an en-
ergy trading facility shall submit an application to 
the Commission that includes any relevant materials 
and records, consistent with the Act, that the Com-
mission may require. 
‘‘(3) COMMISSION
ACTION.—The Commission 
shall make a determination whether to approve an 
application for registration as an energy trading fa-
cility within 120 days after such application is sub-
mitted. 
‘‘(4) CRITERIA FOR REGISTRATION.—To be reg-
istered as an energy trading facility, the applicant 
shall demonstrate to the Commission that the trad-
ing facility meets the criteria specified in this para-
graph. 
‘‘(A) PREVENTION
OF
PRICE
MANIPULA-
TION
AND
EXCESSIVE
SPECULATION.—The 
trading facility shall have the capacity to pre-
vent price manipulation, excessive speculation, 
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price distortion, and disruption of the delivery 
or cash-settlement process through market sur-
veillance, compliance, and enforcement practices 
and procedures, including methods for con-
ducting real-time monitoring of trading and 
comprehensive and accurate trade reconstruc-
tions. 
‘‘(B) MONITORING
OF
TRADING.—The 
trading facility shall monitor trading to prevent 
price manipulation, excessive speculation, price 
distortion, and disruption of the delivery or 
cash-settlement process. 
‘‘(C) CONTRACTS
NOT
READILY
SUSCEP-
TIBLE TO MANIPULATION.—The trading facility 
shall list for trading only contracts that are not 
readily susceptible to manipulation. 
‘‘(D) FINANCIAL
INTEGRITY
OF
TRANS-
ACTIONS.—A trading facility that facilitates the 
clearance and settlement of agreements, con-
tracts, or transactions by a derivatives clearing 
organization shall establish and enforce rules 
and procedures for ensuring the financial integ-
rity of such agreements, contracts, and trans-
actions. 
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‘‘(E) ABILITY TO OBTAIN INFORMATION.— 
The trading facility shall establish and enforce 
rules that will allow the trading facility to ob-
tain any necessary information to perform any 
of the functions described in this subsection, in-
cluding the capacity to carry out such inter-
national information-sharing agreements as the 
Commission may require. 
‘‘(F) POSITION
LIMITS
OR
ACCOUNT-
ABILITY
LEVELS.—To reduce the threat of 
price manipulation, excessive speculation, price 
distortion, or disruption of the delivery or cash- 
settlement process, the trading facility shall 
adopt position limits or position accountability 
levels for speculators, where necessary and ap-
propriate. 
‘‘(G) EMERGENCY AUTHORITY.—The trad-
ing facility shall adopt rules to provide for the 
exercise of emergency authority, in consultation 
and cooperation with the Commission, where 
necessary and appropriate, including the au-
thority to— 
‘‘(i) liquidate open positions in any 
contract; 
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licly and to the Commission information con-
cerning— 
‘‘(i) contract terms and conditions; 
‘‘(ii) trading conventions, mechanisms, 
and practices; 
‘‘(iii) financial integrity protections; 
and 
‘‘(iv) other information relevant to 
participation in trading on the facility. 
‘‘(N) FITNESS STANDARDS.—The trading 
facility shall establish and enforce appropriate 
fitness standards for directors, members of any 
disciplinary committee, and any other persons 
with direct access to the facility, including any 
parties affiliated with any of the persons de-
scribed in this paragraph. 
‘‘(O) 
CONFLICTS
OF
INTEREST.—The 
trading facility shall establish and enforce rules 
to minimize conflicts of interest in the decision 
making process of the facility and establish a 
process for resolving such conflicts of interest. 
‘‘(P) RECORDKEEPING.—The trading facil-
ity shall maintain records of all activities re-
lated to the business of the facility in a form 
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and manner acceptable to the Commission for a 
period of 5 years. 
‘‘(Q) ANTITRUST
CONSIDERATIONS.—Un-
less necessary or appropriate to achieve the 
purposes of this Act, the trading facility shall 
endeavor to avoid— 
‘‘(i) adopting any rules or taking any 
actions that result in any unreasonable re-
straint of trade; or 
‘‘(ii) imposing any material anti-
competitive burden on trading on the facil-
ity. 
‘‘(5) CRITERIA FOR ENERGY TRADING FACILI-
TIES.—To maintain the registration as an energy 
trading facility, the trading facility shall comply with 
all of the criteria in paragraph (4). Failure to com-
ply with any of these criteria shall constitute a viola-
tion of this Act. The trading facility shall have rea-
sonable discretion in establishing the manner in 
which it complies with the criteria in paragraph (4). 
‘‘(6) POSITION
LIMITS
AND
ACCOUNTABILITY 
LEVELS.— 
‘‘(A) DUTY
OF
COMMISSION.—The Com-
mission shall ensure that the position limits and 
accountability levels applicable to contracts in 
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an energy commodity listed for trading on a 
designated contract market and the position 
limits and accountability levels applicable to 
similar contracts in the same energy commodity 
listed for trading on an energy trading facil-
ity— 
‘‘(i) appropriately prevent price ma-
nipulation, excessive speculation, price dis-
tortion, and disruption of the delivery or 
cash-settlement process; and 
‘‘(ii) are on a parity with each other 
and applied in a functionally equivalent 
manner. 
‘‘(B) COMMISSION REVIEW.—Upon learn-
ing that a person has exceeded an applicable 
position limit or accountability level in an en-
ergy commodity, the Commission shall obtain 
such information as it determines to be nec-
essary and appropriate regarding all of the po-
sitions held by such person in such energy com-
modity and take such action as may be nec-
essary and appropriate, in addition to any ac-
tion taken by an energy trading facility or a 
designated contract market, to require, or direct 
an energy trading facility or a designated con-
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tract market to require, such person to limit, 
reduce, or liquidate any position to prevent or 
reduce the threat of price manipulation, exces-
sive speculation, price distortion, or disruption 
of the delivery or cash-settlement process. 
‘‘(C) INFORMATION
TO
COMMISSION.—In 
order to make any determination required 
under this section, the Commission may request 
all relevant information regarding all of the po-
sitions held by any person in the energy com-
modity for which the person has exceeded a po-
sition limit or accountability level, including po-
sitions held or controlled or transactions exe-
cuted— 
‘‘(i) on or through— 
‘‘(I) a designated contract mar-
ket; 
‘‘(II) an energy trading facility; 
‘‘(III) an electronic trading facil-
ity operating pursuant to paragraphs 
(3) through (5) of section 2(h); 
‘‘(IV) an exempt board of trade 
operating pursuant to section 5d; 
‘‘(V) a derivative transaction exe-
cution facility; or 
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‘‘(VI) a foreign board of trade; 
‘‘(ii) within the scope of section 2(g), 
or paragraphs (1) and (2) of section 2(h); 
or 
‘‘(iii) in the cash market for the com-
modity. 
‘‘(D) REQUIREMENT TO RETAIN AND PRO-
VIDE POSITION INFORMATION.— 
‘‘(i) IN GENERAL.—Any person enter-
ing into or executing an agreement, con-
tract, or transaction with respect to an en-
ergy commodity on a designated contract 
market or on an energy trading facility 
shall retain such books and records as the 
Commission may require in order to pro-
vide such information upon request, and 
upon request shall promptly provide such 
information to the Commission or the De-
partment of Justice. 
‘‘(ii) ALTERNATE MEANS OF OBTAIN-
ING
POSITION
INFORMATION.—Notwith-
standing this requirement to retain and 
provide position information, the Commis-
sion may alternatively choose to obtain any 
of the position information specified in this 
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paragraph from the trading facility at 
which such positions are maintained. 
‘‘(E) CRITERIA FOR COMMISSION DETER-
MINATION.—In making any determination to 
require a limitation, reduction, or liquidation of 
any position with respect to an energy com-
modity, the Commission may consider, as ap-
propriate— 
‘‘(i) the person’s open interest in a 
contract, agreement, or transaction involv-
ing an energy commodity relative to the 
total open interest in such contracts, 
agreements, or transactions; 
‘‘(ii) the daily volume of trading in 
such contracts, agreements or transactions; 
‘‘(iii) the person’s overall position in 
related contracts, including options, and 
the overall open interest or liquidity in 
such related contracts and options; 
‘‘(iv) the potential for such positions 
to cause or allow price manipulation, exces-
sive speculation, price distortion, or disrup-
tion of the delivery or cash-settlement 
process; 
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‘‘(v) the person’s record of compliance 
with rules, regulations, and orders of the 
Commission, a designated contract market, 
or an energy trading facility, as appro-
priate; 
‘‘(vi) the person’s financial ability to 
support such positions on an ongoing 
basis; 
‘‘(vii) any justification provided by the 
person for such positions; and 
‘‘(viii) other such factors determined 
to be appropriate by the Commission.’’. 
(d) INFORMATION FOR PRICE DISCOVERY DETER-
MINATION.— 
(1) Section 2(h)(5)(B) of such Act (7 U.S.C. 
2(h)(5)(B)) is amended— 
(A) by striking ‘‘and’’ at the end of clause 
(ii)(II); 
(B) by adding ‘‘and’’ at the end of clause 
(iii)(III); and 
(C) by adding at the end the following: 
‘‘(iv) to the extent that the electronic 
trading facility provides for the trading of 
agreements, contracts, or transactions in 
an energy commodity, provide the Commis-
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sion with such information as the Commis-
sion determines necessary to evaluate 
whether the energy trading facility per-
forms a significant price discovery function 
in relation to a contract in an energy com-
modity listed for trading on a trading facil-
ity or in the cash market for the energy 
commodity, including the provision of such 
requested information on a continuous 
basis;’’. 
(2) Section 5a(b) of the Commodity Exchange 
Act (7 U.S.C. 7a(b)) is amended by adding the fol-
lowing: 
‘‘(5) PRICE
DISCOVERY
FOR
ENERGY
COM-
MODITY.—A registered derivatives transaction execu-
tion facility shall, to the extent that it provides for 
the trading of any contract of sale of a commodity 
for future delivery (or option on such contract) 
based on an energy commodity, provide the Commis-
sion with such information as the Commission deter-
mines necessary to evaluate whether the registered 
derivatives transaction execution facility performs a 
significant price discovery function in relation to a 
contract in an energy commodity listed for trading 
on a trading facility or in the cash market for the 
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energy commodity, including the provision of such 
requested information on a continuous basis.’’. 
(e) CONFORMING AMENDMENTS.—The Commodity 
Exchange Act is amended— 
(1) in section 1a(29) (7 U.S.C. 1a(29))— 
(A) in subparagraph (C), by striking 
‘‘and’’; 
(B) in subparagraph (D), by striking the 
period and inserting ‘‘; and’’; and 
(C) by adding at the end the following: 
‘‘(E) an energy trading facility registered 
under section 2(j).’’; 
(2) in section 4(a) (7 U.S.C. 6(a))— 
(A) in paragraph (1), by inserting ‘‘reg-
istered energy trading facility or a’’ after ‘‘sub-
ject to the rules of a’’; and 
(B) in paragraph (3), by striking ‘‘or de-
rivatives transaction execution facility’’ and in-
serting ‘‘, derivatives transaction execution fa-
cility, or energy trading facility’’; 
(3) in section 4(c) (7 U.S.C. 6(c)), by inserting 
‘‘registered energy trading facility or’’ in the par-
enthetical after ‘‘including any’’; 
(4) in section 4a(a) (7 U.S.C. 6a(a))— 
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(A) in the 1st sentence, by striking ‘‘or de-
rivatives transaction execution facilities’’ and 
inserting ‘‘, derivatives transaction execution fa-
cilities, or energy trading facilities’’; and 
(B) in the 2nd sentence, by striking ‘‘or 
derivatives transaction execution facility’’ and 
inserting ‘‘, derivatives transaction execution fa-
cility, or energy trading facility’’; 
(5) in section 4a(b) (7 U.S.C. 6a(b))— 
(A) in paragraph (1), by striking ‘‘or de-
rivatives transaction execution facility or facili-
ties’’ and inserting ‘‘derivatives transaction exe-
cution facility or facilities, or energy trading fa-
cility or facilities’’; 
(B) in paragraph (2), by striking ‘‘or de-
rivatives transaction execution facility’’ and in-
serting ‘‘, derivatives transaction execution fa-
cility, or energy trading facility’’; 
(6) in section 4a(e) (7 U.S.C. 6a(e))— 
(A) in the 1st sentence— 
(i) by inserting ‘‘or by any energy 
trading facility’’ after ‘‘registered by the 
Commission’’; 
(ii) by striking ‘‘or derivatives trans-
action execution facility’’ and inserting ‘‘, 
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derivatives transaction execution facility, 
or energy trading facility’’; and 
(iii) by inserting ‘‘energy trading facil-
ity,’’ before ‘‘or such board of trade’’ each 
time it appears; and 
(B) in the 2nd sentence, by inserting ‘‘or 
energy trading facility’’ after ‘‘registered by the 
Commission’’; 
(7) in each of sections 4e, 4i, paragraphs (1), 
(2), and (3) of section 5c(b), and 6(b) (7 U.S.C. 6e, 
6i, 7a–2(b)(1), (2), and (3), and 8(b)), by striking 
‘‘or derivatives transaction execution facility’’ and 
inserting ‘‘, derivatives transaction execution facility, 
or energy trading facility’’ each place it appears; 
(8) in each of paragraphs (2) and (3) of section 
4l (7 U.S.C. 6l(2) and (3)), by striking ‘‘or deriva-
tives transaction execution facilities’’ and inserting 
‘‘derivatives transaction execution facilities, or en-
ergy trading facilities’’; 
(9) in section 6(b) (7 U.S.C. 8(b)), by striking 
‘‘sections 5 through 5b’’ and inserting ‘‘section 2(j), 
sections 5 through 5b,’’; and 
(10) in section 6d(1) (7 U.S.C. 13a–2(1)), by 
inserting ‘‘energy trading facility,’’ after ‘‘derivatives 
transaction execution facility,’’. 
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SEC. 3. REPORTING OF UNITED STATES ENERGY TRADES. 
Section 2 of the Commodity Exchange Act (7 U.S.C. 
1a), as amended by section 2(c) of this Act, is amended 
by adding at the end the following: 
‘‘(k) DOMESTIC ENERGY TRADES ON A FOREIGN 
BOARD OF TRADE.— 
‘‘(1) DEFINITIONS.—In this subsection: 
‘‘(A) DOMESTIC
TERMINAL.—The term 
‘domestic terminal’ means a technology, soft-
ware, or other means of providing electronic ac-
cess within the United States to a contract, 
agreement, or transaction traded on a foreign 
board of trade. 
‘‘(B) REPORTABLE CONTRACT.—The term 
‘reportable contract’ means a contract, agree-
ment, or transaction for future delivery of an 
energy commodity (or option thereon), or an 
option on an energy commodity, for which the 
underlying commodity has a physical delivery 
point within the United States and that is exe-
cuted through a domestic terminal. 
‘‘(2) RECORD KEEPING.—The Commission, by 
rule, shall require any person holding, maintaining, 
or controlling any position in any reportable contract 
under this section— 
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