I 
110TH CONGRESS 
1ST SESSION H. R. 4626 
To reauthorize and amend the Commodity Exchange Act to promote legal 
certainty, enhance competition, and reduce systemic risk in markets 
for futures and over-the-counter derivatives, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
DECEMBER 13, 2007 
Mr. ETHERIDGE (for himself, Mr. MORAN of Kansas, Mr. GOODLATTE, and 
Mr. PETERSON of Minnesota) introduced the following bill; which was re-
ferred to the Committee on Agriculture 
A BILL 
To reauthorize and amend the Commodity Exchange Act 
to promote legal certainty, enhance competition, and re-
duce systemic risk in markets for futures and over-the- 
counter derivatives, 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 ‘‘CFTC Reauthorization 
Act of 2007’’. 
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TITLE I—GENERAL PROVISIONS 
SEC. 101. COMMISSION AUTHORITY OVER AGREEMENTS, 
CONTRACTS OR TRANSACTIONS IN FOREIGN 
CURRENCY. 
(a) IN GENERAL.—Section 2(c)(2) of the Commodity 
Exchange Act (7 U.S.C. 2(c)(2)) is amended by striking 
subparagraphs (B) and (C) and inserting the following: 
‘‘(B) 
AGREEMENTS, 
CONTRACTS, 
AND 
TRANSACTIONS
IN
RETAIL
FOREIGN
CUR-
RENCY.— 
‘‘(i) This Act applies to, and the Com-
mission shall have jurisdiction over, an 
agreement, contract, or transaction in for-
eign currency that— 
‘‘(I) is a contract of sale of a 
commodity for future delivery (or an 
option on such a contract) or an op-
tion (other than an option executed or 
traded on a national securities ex-
change registered pursuant to section 
6(a) of the Securities Exchange Act of 
1934 (15 U.S.C. 78f(a))); and 
‘‘(II) is offered to, or entered 
into with, a person that is not an eli-
gible contract participant, unless the 
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counterparty, or the person offering to 
be the counterparty, of the person 
is— 
‘‘(aa) a financial institution; 
‘‘(bb)(AA) a broker or deal-
er registered under section 15(b) 
(except paragraph (11) thereof) 
or 15C of the Securities Ex-
change Act of 1934 (15 U.S.C. 
78o(b), 78o–5); or 
‘‘(BB) an associated person 
of a broker or dealer registered 
under section 15(b) (except para-
graph (11) thereof) or 15C of the 
Securities Exchange Act of 1934 
(15 U.S.C. 78o(b), 78o–5) con-
cerning the financial or securities 
activities of which the broker or 
dealer makes and keeps records 
under section 15C(b) or 17(h) of 
the Securities Exchange Act of 
1934 
(15 
U.S.C. 
78o–5(b), 
78q(h)); 
‘‘(cc)(AA) a futures commis-
sion merchant that is primarily 
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or substantially engaged in the 
business activities described in 
section 1a(20) of this Act, is reg-
istered under this Act, is not a 
person described in item (bb) of 
this subclause, and maintains ad-
justed net capital equal to or in 
excess of $20,000,000; or 
‘‘(BB) an affiliated person 
of a futures commission mer-
chant that is primarily or sub-
stantially engaged in the business 
activities described in section 
1a(20) of this Act, is registered 
under this Act, and is not a per-
son described in item (bb) of this 
subclause, if the affiliated person 
maintains adjusted net capital 
equal 
to 
or 
in 
excess 
of 
$20,000,000 and is not a person 
described in such item (bb), and 
the futures commission merchant 
makes and keeps records under 
section 4f(c)(2)(B) of this Act 
concerning the futures and other 
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financial activities of the affili-
ated person; 
‘‘(dd) an insurance company 
described in section 1a(12)(A)(ii) 
of this Act, or a regulated sub-
sidiary or affiliate of such an in-
surance company; 
‘‘(ee) a financial holding 
company (as defined in section 2 
of the Bank Holding Company 
Act of 1956); 
‘‘(ff) an investment bank 
holding company (as defined in 
section 17(i) of the Securities 
Exchange 
Act 
of 
1934 
(15 
U.S.C. 78q(i))); or 
‘‘(gg) a retail foreign ex-
change dealer that maintains ad-
justed net capital equal to or in 
excess of $20,000,000 and is reg-
istered in such capacity with the 
Commission, 
subject 
to 
such 
terms and conditions as the Com-
mission shall prescribe. 
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‘‘(ii) Notwithstanding items (cc) and 
(gg) of clause (i)(II) of this subparagraph, 
agreements, contracts, or transactions de-
scribed in clause (i) of this subparagraph 
shall be subject to subsection (a)(1)(B) of 
this section and sections 4(b), 4b, 4c(b), 
4o, 6(c) and 6(d) (except to the extent that 
sections 6(c) and 6(d) prohibit manipula-
tion of the market price of any commodity 
in interstate commerce, or for future deliv-
ery on or subject to the rules of any mar-
ket), 6c, 6d, 8(a), 13(a), and 13(b) if the 
agreements, contracts, or transactions are 
offered, or entered into, by a person that 
is registered as a futures commission mer-
chant or retail foreign exchange dealer, or 
an affiliated person of a futures commis-
sion merchant registered under this Act 
that is not also a person described in any 
of item (aa), (bb), (dd), (ee), or (ff) of 
clause (i) of this subparagraph. 
‘‘(iii)(I) Notwithstanding items (cc) 
and (gg) of clause (i)(II), a person, unless 
registered in such capacity as the Commis-
sion by rule, regulation, or order shall de-
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‘‘(III) Notwithstanding items (cc) and 
(gg) of clause (i)(II), the Commission may 
make, promulgate, and enforce such rules 
and regulations as, in the judgment of the 
Commission, are reasonably necessary to 
effectuate any of the provisions of, or to 
accomplish any of the purposes of, this Act 
in connection with the activities of persons 
subject to subclause (I). 
‘‘(IV) Subclause (III) shall not apply 
to— 
‘‘(aa) any person described in 
any of item (aa) through (ff) of sub-
paragraph (B)(i)(II); 
‘‘(bb) any such person’s associ-
ated persons; or 
‘‘(cc) any person who would be 
exempt from registration if engaging 
in the same activities in connection 
with transactions conducted on or 
subject to the rules of a contract mar-
ket or a derivatives transaction execu-
tion facility. 
‘‘(iv) Notwithstanding items (cc) and 
(gg) of clause (i)(II), the Commission may 
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make, promulgate, and enforce such rules 
and regulations as, in the judgment of the 
Commission, are reasonably necessary to 
effectuate any of the provisions of, or to 
accomplish any of the purposes of, this Act 
in connection with agreements, contracts, 
or transactions described in clause (i) 
which are offered, or entered into, by a 
person described in item (cc) or (gg) of 
clause (i)(II). 
‘‘(C)(i)(I) This subparagraph shall apply to 
any agreement, contract, or transaction in for-
eign currency that is— 
‘‘(aa) offered to, or entered into 
with, a person that is not an eligible 
contract participant (except that this 
subparagraph shall not apply if the 
counterparty, or the person offering to 
be the counterparty, of the person 
that is not an eligible contract partici-
pant is a person described in any of 
item (aa), (bb), (dd), (ee), or (ff) of 
subparagraph (B)(i)(II)); and 
‘‘(bb) offered, or entered into, on 
a leveraged or margined basis, or fi-
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nanced 
by 
the 
offeror, 
the 
counterparty, or a person acting in 
concert 
with 
the 
offeror 
or 
counterparty on a similar basis. 
‘‘(II) Subclause (I) shall not apply to— 
‘‘(aa) a security that is not a security 
futures product; or 
‘‘(bb) a contract of sale that— 
‘‘(AA) results in actual delivery 
within 2 days; or 
‘‘(BB) creates an enforceable ob-
ligation to deliver between a seller and 
buyer that have the ability to deliver 
and accept delivery, respectively, in 
connection with their line of business. 
‘‘(ii)(I) Agreements, contracts, or trans-
actions described in clause (i) of this subpara-
graph shall be subject to subsection (a)(1)(B) 
of this section and sections 4(b), 4b, 4c(b), 4o, 
6(c) and 6(d) (except to the extent that sections 
6(c) and 6(d) prohibit manipulation of the mar-
ket price of any commodity in interstate com-
merce, or for future delivery on or subject to 
the rules of any market), 6c, 6d, 8(a), 13(a), 
and 13(b). 
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‘‘(II) Subclause (I) of this clause shall not 
apply to— 
‘‘(aa) any person described in any of 
item (aa), (bb), (dd), (ee), or (ff) of sub-
paragraph (B)(i)(II); or 
‘‘(bb) any such person’s associated 
persons. 
‘‘(III) The Commission may make, promul-
gate, and enforce such rules and regulations as, 
in the judgment of the Commission, are reason-
ably necessary to effectuate any of the provi-
sions of or to accomplish any of the purposes 
of this Act in connection with agreements, con-
tracts, or transactions described in clause (i) of 
this subparagraph if the agreements, contracts, 
or transactions are offered, or entered into, by 
a person that is not described in item (aa) 
through (ff) of subparagraph (B)(i)(II). 
‘‘(iii)(I) A person, unless registered in such 
capacity as the Commission by rule, regulation, 
or order shall determine and a member of a fu-
tures association registered under section 17, 
shall not— 
‘‘(aa) solicit or accept orders from any 
person that is not an eligible contract par-
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ticipant in connection with agreements, 
contracts, or transactions described in 
clause (i) of this subparagraph entered 
into with or to be entered into with a per-
son who is not described in item (aa), (bb), 
(dd), (ee), or (ff) of subparagraph (B)(i); 
‘‘(bb) exercise discretionary trading 
authority or obtain written authorization 
to exercise written trading authority over 
any account for or on behalf of any person 
that is not an eligible contract participant 
in connection with agreements, contracts, 
or transactions described in clause (i) of 
this subparagraph entered into with or to 
be entered into with a person who is not 
described in item (aa), (bb), (dd), (ee), or 
(ff) of subparagraph (B)(i); or 
‘‘(cc) operate or solicit funds, securi-
ties, or property for any pooled investment 
vehicle that is not an eligible contract par-
ticipant in connection with agreements, 
contracts, or transactions described in 
clause (i) of this subparagraph entered 
into with or to be entered into with a per-
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son who is not described in item (aa), (bb), 
(dd), (ee), or (ff) of subparagraph (B)(i). 
‘‘(II) Subclause (I) shall not apply to— 
‘‘(aa) any person described in item 
(aa), (bb), (dd), (ee), or (ff) of subpara-
graph (B)(i)(II); 
‘‘(bb) any such person’s associated 
persons; or 
‘‘(cc) any person who would be ex-
empt from registration if engaging in the 
same activities in connection with trans-
actions conducted on or subject to the 
rules of a contract market or a derivatives 
transaction execution facility. 
‘‘(III) The Commission may make, promul-
gate, and enforce such rules and regulations as, 
in the judgment of the Commission, are reason-
ably necessary to effectuate any of the provi-
sions of, or to accomplish any of the purposes 
of, this Act in connection with the activities of 
persons subject to subclause (I). 
‘‘(IV) Subclause (III) shall not apply to— 
‘‘(aa) any person described in item 
(aa) 
through 
(ff) 
of 
subparagraph 
(B)(i)(II); 
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‘‘(bb) any such person’s associated 
persons; or 
‘‘(cc) any person who would be ex-
empt from registration if engaging in the 
same activities in connection with trans-
actions conducted on or subject to the 
rules of a contract market or a derivatives 
transaction execution facility. 
‘‘(iv) Sections 4(b) and 4b shall apply to 
any agreement, contract, or transaction de-
scribed in clause (i) of this subparagraph as if 
the agreement, contract, or transaction were a 
contract of sale of a commodity for future deliv-
ery. 
‘‘(v) This subparagraph shall not be con-
strued to limit any jurisdiction that the Com-
mission may otherwise have under any other 
provision of this Act over an agreement, con-
tract, or transaction that is a contract of sale 
of a commodity for future delivery. 
‘‘(vi) This subparagraph shall not be con-
strued to limit any jurisdiction that the Com-
mission or the Securities and Exchange Com-
mission may otherwise have under any other 
provision of this Act with respect to security fu-
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tures products and persons effecting trans-
actions in security futures products.’’. 
(b) EFFECTIVE DATE.—The following provisions of 
the Commodity Exchange Act, as amended by subsection 
(a) of this section, shall be effective 120 days after the 
date of the enactment of this Act or at such other time 
as the Commodity Futures Trading Commission shall de-
termine: 
(1) Subparagraphs (B)(i)(II)(gg), (B)(iii), and 
(C)(iii) of section 2(c)(2). 
(2) 
The 
provisions 
of 
section 
2(c)(2)(B)(i)(II)(cc) that set forth adjusted net cap-
ital requirements, and the provisions of such section 
that require a futures commission merchant to be 
primarily or substantially engaged in certain busi-
ness activities. 
SEC. 102. ANTIFRAUD AUTHORITY. 
Section 4b of the Commodity Exchange Act (7 U.S.C. 
6b) is amended— 
(1) by redesignating subsections (b) and (c) as 
subsections (c) and (d), respectively; and 
(2) by striking ‘‘SEC. 4b.’’ and all that follows 
through the end of subsection (a) and inserting the 
following: 
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‘‘SEC. 4b. CONTRACTS DESIGNED TO DEFRAUD OR MIS-
LEAD. 
‘‘(a) UNLAWFUL ACTIONS.—It shall be unlawful— 
‘‘(1) for any person, in or in connection with 
any order to make, or the making of, any contract 
of sale of any commodity in interstate commerce or 
for future delivery that is made, or to be made, on 
or subject to the rules of a designated contract mar-
ket, for or on behalf of any other person; or 
‘‘(2) for any person, in or in connection with 
any order to make, or the making of, any contract 
of sale of any commodity for future delivery, or 
other agreement, contract, or transaction subject to 
paragraphs (1) and (2) of section 5a(g), that is 
made, or to be made, for or on behalf of, or with, 
any other person, other than on or subject to the 
rules of a designated contract market— 
‘‘(A) to cheat or defraud or attempt to 
cheat or defraud the other person; 
‘‘(B) willfully to make or cause to be made 
to the other person any false report or state-
ment or willfully to enter or cause to be entered 
for the other person any false record; 
‘‘(C) willfully to deceive or attempt to de-
ceive the other person by any means whatsoever 
in regard to any order or contract or the dis-
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position or execution of any order or contract, 
or in regard to any act of agency performed, 
with respect to any order or contract for or, in 
the case of paragraph (2), with the other per-
son; or 
‘‘(D)(i) to bucket an order if the order is 
represented by the person as an order to be ex-
ecuted, or is required to be executed, on or sub-
ject to the rules of a designated contract mar-
ket; or 
‘‘(ii) to fill an order by offset against the 
order or orders of any other person, or willfully 
and knowingly and without the prior consent of 
the other person to become the buyer in respect 
to any selling order of the other person, or be-
come the seller in respect to any buying order 
of the other person, if the order is represented 
by the person as an order to be executed, or is 
required to be executed, on or subject to the 
rules of a designated contract market unless the 
order is executed in accordance with the rules 
of the designated contract market. 
‘‘(b) CLARIFICATION.—Subsection (a)(2) of this sec-
tion shall not obligate any person, in or in connection with 
a transaction in a contract of sale of a commodity for fu-
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ture delivery, or other agreement, contract or transaction 
subject to paragraphs (1) and (2) of section 5a(g), with 
another person, to disclose to the other person nonpublic 
information that may be material to the market price, 
rate, or level of the commodity or transaction, except as 
necessary to make any statement made to the other person 
in or in connection with the transaction, not misleading 
in any material respect.’’. 
SEC. 103. 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. 104. 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 sec-
tion 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 
inserting ‘‘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’’ the 2nd place it 
appears; and 
(2) by inserting ‘‘commenced’’ after ‘‘in a judi-
cial proceeding’’. 
(h) Section 9 of such Act (7 U.S.C. 13) is amended— 
(1) in subsection (f)(1), by striking the period 
and inserting ‘‘; or’’; and 
(2) by redesignating subsection (f) as sub-
section (e). 
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(i) 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)’’. 
SEC. 105. CRIMINAL AND CIVIL PENALTIES. 
(a) ENFORCEMENT POWERS OF THE COMMISSION.— 
Section 6(c) of the Commodity Exchange Act (7 U.S.C. 
9, 15) is amended in clause (3) of the 10th sentence— 
(1) by inserting ‘‘(A)’’ after ‘‘assess such per-
son’’; and 
(2) by inserting after ‘‘each such violation’’ the 
following: ‘‘or (B) in any case of manipulation or at-
tempted manipulation in violation of this subsection, 
subsection (d) of this section, or section 9(a)(2), a 
civil penalty of not more than the greater of 
$1,000,000 or triple the monetary gain to such per-
son for each such violation,’’. 
(b) NONENFORCEMENT OF RULES OF GOVERNMENT 
OR OTHER VIOLATIONS.—Section 6b of such Act (7 
U.S.C. 13a) is amended— 
(1) in the 1st sentence, by inserting ‘‘, or, in 
any case of manipulation or attempted manipulation 
in violation of section 6(c), 6(d), or 9(a)(2), a civil 
penalty of not more than $1,000,000 for each such 
violation’’ before the period; and 
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(2) in the 2nd sentence, by inserting ‘‘, except 
that if the failure or refusal to obey or comply with 
the order involved any offense under section 9(a)(2), 
the registered entity, director, officer, agent, or em-
ployee shall be guilty of a felony and, on conviction, 
shall be subject to penalties under section 9(a)(2)’’ 
before the period. 
(c) ACTION TO ENJOIN OR RESTRAIN VIOLATIONS.— 
Section 6c(d) of such Act (7 U.S.C. 13a–1(d)) is amended 
by striking ‘‘(d)’’ and all that follows through the end of 
the paragraph (1) and inserting the following: 
‘‘(d) CIVIL PENALTIES.—(1) In any action brought 
under this section, the Commission may seek and the 
court shall have jurisdiction to impose, on a proper show-
ing, on any person found in the action to have committed 
any violation— 
‘‘(A) a civil penalty in the amount of not more 
than the greater of $100,000 or triple the monetary 
gain to the person for each violation; or 
‘‘(B) in any case of manipulation or attempted 
manipulation in violation of section 6(c), 6(d), or 
9(a)(2), a civil penalty in the amount of not more 
than the greater of $1,000,000 or triple the mone-
tary gain to the person for each violation.’’. 
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(d) VIOLATIONS GENERALLY.—Section 9(a) of such 
Act (7 U.S.C. 13(a)) is amended— 
(1) by striking ‘‘(or $500,000 in the case of a 
person who is an individual)’’; and 
(2) by striking ‘‘five years’’ and inserting ‘‘10 
years’’. 
TITLE II—EXEMPT COMMERCIAL 
MARKETS 
SEC. 201. SIGNIFICANT PRICE DISCOVERY CONTRACTS. 
(a) DEFINITION.—Section 1a of the Commodity Ex-
change Act (7 U.S.C. 1a) is amended by redesignating 
paragraph (33) as paragraph (34) and by inserting after 
paragraph (32) the following: 
‘‘(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).’’. 
(b) STANDARDS APPLICABLE TO SIGNIFICANT PRICE 
DISCOVERY CONTRACTS.—Section 2(h) of such Act (7 
U.S.C. 2(h)) is amended by adding at the end the fol-
lowing: 
‘‘(7) SIGNIFICANT
PRICE
DISCOVERY
CON-
TRACTS.— 
‘‘(A) IN
GENERAL.—An agreement, con-
tract, or transaction conducted in reliance on 
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the exemption provided in paragraph (3) shall 
be subject to subparagraphs (B) through (D) of 
this paragraph, under such rules and regula-
tions as the Commission shall promulgate if the 
Commission determines that the agreement, 
contract, or transaction performs a significant 
price discovery function as described in sub-
paragraph (B) of this paragraph. 
‘‘(B) SIGNIFICANT PRICE DISCOVERY DE-
TERMINATION.—In determining whether an 
agreement, contract, or transaction performs a 
significant price discovery function, the Com-
mission shall consider, as appropriate, the fol-
lowing: 
‘‘(i) PRICE LINKAGE.— 
‘‘(I) Whether the agreement, con-
tract, or transaction uses or otherwise 
relies on a daily or final settlement 
price, or other major price parameter, 
of a contract listed for trading on or 
subject to the rules of a designated 
contract market or a derivatives 
transaction execution facility, or a sig-
nificant price discovery contract trad-
ed on an electronic trading facility, to 
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value a position, transfer or convert a 
position, cash or financially settle a 
position, or close out a position. 
‘‘(II) Whether the price for the 
agreement, contract, or transaction is 
sufficiently related to the price of a 
contract listed for trading on or sub-
ject to the rules of a designated con-
tract market or derivatives trans-
action execution facility so as to per-
mit market participants to effectively 
arbitrage between the markets by si-
multaneously maintaining positions or 
executing trades in the contracts on 
the electronic trading facility and the 
designated contract market or deriva-
tives transaction execution facility on 
a frequent and recurring basis. 
‘‘(ii) MATERIAL PRICE REFERENCE.— 
Whether, on a frequent and recurring 
basis, bids, offers, or transactions in a 
commodity are directly based on, or are de-
termined by referencing, the prices gen-
erated by agreements, contracts, or trans-
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actions being traded or executed on the 
electronic trading facility. 
‘‘(iii) MATERIAL LIQUIDITY.—Wheth-
er the volume of agreements, contracts, or 
transactions in the commodity being traded 
on the electronic trading facility is suffi-
cient to have a material effect on other 
agreements, contracts, or transactions list-
ed for trading on or subject to the rules of 
a designated contract market, a derivatives 
transaction execution facility, or an elec-
tronic trading facility operating in reliance 
on the exemption provided in paragraph 
(3). 
‘‘(iv) OTHER
MATERIAL
FACTORS.— 
Such other material factors as the Com-
mission specifies in its rules and regula-
tions as relevant to the determination. 
‘‘(C) CORE
PRINCIPLES
APPLICABLE
TO 
SIGNIFICANT PRICE DISCOVERY CONTRACTS.— 
An electronic trading facility on which signifi-
cant price discovery contracts are traded or exe-
cuted shall, with respect to the contracts, com-
ply with the core principles specified in this 
subparagraph. The electronic trading facility 
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shall have reasonable discretion in establishing 
the manner in which it complies with the fol-
lowing core principles: 
‘‘(i) CONTRACTS
NOT
READILY
SUS-
CEPTIBLE
TO
MANIPULATION.—The elec-
tronic trading facility shall list only signifi-
cant price discovery contracts that are not 
readily susceptible to manipulation. 
‘‘(ii) MONITORING OF TRADING.—The 
electronic trading facility shall monitor 
trading in significant price discovery con-
tracts to prevent market manipulation, 
price distortion, and disruptions of the de-
livery or cash-settlement process through 
market surveillance, compliance, and dis-
ciplinary practices and procedures, includ-
ing methods for conducting real-time moni-
toring of trading and comprehensive and 
accurate trade reconstructions. 
‘‘(iii) ABILITY TO OBTAIN INFORMA-
TION.—The electronic trading facility shall 
establish and enforce rules that will allow 
the electronic trading facility to obtain any 
necessary information to perform any of 
the functions described in this subpara-
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graph, shall provide such information to 
the Commission on request, and shall have 
the capacity to carry out such international 
information-sharing agreements as the 
Commission may require. 
‘‘(iv) POSITION LIMITATIONS OR AC-
COUNTABILITY.—The electronic trading fa-
cility shall adopt position limitations or po-
sition accountability for speculators in sig-
nificant price discovery contracts, where 
necessary and appropriate to reduce the 
potential threat of market manipulation or 
congestion, 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, including the authority to— 
‘‘(I) liquidate open positions in a 
significant price discovery contract; 
and 
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(B) by inserting after ‘‘registered entity’’ 
each other place it appears the following: ‘‘or 
electronic trading facility’’; and 
(C) by inserting after ‘‘5b(c)(2),’’ the fol-
lowing: ‘‘or section 2(h)(7)(C) with respect to a 
significant price discovery contract traded or 
executed on an electronic trading facility,’’; and 
(2) in paragraph (2), by inserting after ‘‘reg-
istered entity’’ the following: ‘‘or electronic trading 
facility’’. 
Æ 
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