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tered into with or to be entered into with 
a person described in such item, unless the 
particular person— 
‘‘(aa) is registered in such capac-
ity as the Commission by rule, regula-
tion, or order shall determine; and 
‘‘(bb) is a member of a futures 
association registered under section 
17. 
‘‘(II) Subclause (I) shall not apply 
to— 
‘‘(aa) any person described in 
any of item (aa), (bb), (dd), (ee), or 
(ff) of subparagraph (B)(i)(II); or 
‘‘(bb) any such person’s associ-
ated persons. 
‘‘(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
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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-
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,
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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). 
‘‘(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)(I) A person shall not participate in 
the solicitation or recommendation of any 
agreement, contract, or transaction described in 
clause (i) of this subparagraph unless the per-
son is registered in such capacity as the Com-
mission by rule, regulation or order shall deter-
mine, and is a member of a futures association 
registered under section 17. 
‘‘(II) Subclause (I) shall not apply to any 
person—
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‘‘(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. 
‘‘(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-
tures products and persons effecting trans-
actions in security futures products.’’.
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(b) EFFECTIVE
DATE.—Clause (iii) of section 
2(c)(2)(B) and clause (iii) of section 2(c)(2)(C) 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 such other time as the 
Commodity Futures Trading Commission shall determine. 
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: 
‘‘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