I 
110TH CONGRESS 
2D SESSION 
H. R. 6284 
To amend the Commodity Exchange Act to prevent price manipulation and 
excessive speculation and to increase transparency with respect to energy 
trading on foreign exchanges conducted within the United States. 
IN THE HOUSE OF REPRESENTATIVES 
JUNE 17, 2008 
Mr. MATHESON (for himself and Mr. MELANCON) introduced the following 
bill; which was referred to the Committee on Agriculture 
A BILL 
To amend the Commodity Exchange Act to prevent price 
manipulation and excessive speculation and to increase 
transparency with respect to energy trading on foreign 
exchanges conducted within the United States. 
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 ‘‘Close the London 
Loophole Act of 2008’’. 
SEC. 2. COMMISSION AUTHORITY OVER TRADERS. 
Section 4 of the Commodity Exchange Act (7 U.S.C. 
6) is amended by adding at the end the following: 
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‘‘(e) COMMISSION AUTHORITY OVER TRADERS.— 
‘‘(1) IN GENERAL.—Notwithstanding any other 
provision of this section or any determination made 
by the Commission to grant relief from the require-
ments of subsection (a) to become a designated con-
tract market, derivatives transaction execution facil-
ity, or other registered entity, in the case of a person 
located within the United States, or otherwise sub-
ject to the jurisdiction of the Commission, trading 
on a foreign board of trade, exchange, or market lo-
cated outside the United States (including the terri-
tories and/or possessions of the United States), the 
Commission shall have authority under this Act— 
‘‘(A) to apply and enforce section 9, in-
cluding provisions relating to manipulation or 
attempted manipulation, the making of false 
statements, and willful violations of this Act; 
‘‘(B) to require or direct the person to 
limit, reduce, or liquidate any position to pre-
vent or reduce the threat of price manipulation, 
excessive speculation, price distortion, or dis-
ruption of delivery or the cash settlement proc-
ess; and 
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‘‘(C) to apply such recordkeeping require-
ments as the Commission determines are nec-
essary. 
‘‘(2) CONSULTATION.—Prior to the issuance of 
any order under paragraph (1) to reduce a position 
on a foreign board of trade, exchange, or market lo-
cated outside the United States (including the terri-
tories and possessions of the United States), the 
Commission shall consult with the foreign board of 
trade, exchange, or market and the appropriate reg-
ulatory authority. 
‘‘(3) ADMINISTRATION.—Nothing in this sub-
section limits any of the otherwise applicable au-
thorities of the Commission.’’. 
SEC. 3. SPECULATIVE LIMITS AND TRANSPARENCY FOR 
OFF-SHORE OIL TRADING. 
Section 4 of the Commodity Exchange Act (7 U.S.C. 
6) (as amended by section 2) is amended by adding at 
the end the following: 
‘‘(f) FOREIGN BOARDS OF TRADE.— 
‘‘(1) IN GENERAL.—In the case of any foreign 
board of trade for which the Commission has grant-
ed or is considering an application to grant a board 
of trade located outside of the United States relief 
from the requirement of subsection (a) to become a 
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designated contract market, derivatives transaction 
execution facility, or other registered entity, with re-
spect to an energy commodity that is physically de-
livered in the United States, prior to continuing to 
or initially granting the relief, the Commission shall 
determine that the foreign board of trade— 
‘‘(A) applies comparable principles or re-
quirements regarding the daily publication of 
trading information and position limits or ac-
countability levels for speculators as apply to a 
designated contract market, derivatives trans-
action execution facility, or other registered en-
tity trading energy commodities physically deliv-
ered in the United States; and 
‘‘(B) provides such information to the 
Commission regarding the extent of speculative 
and nonspeculative trading in the energy com-
modity that is comparable to the information 
the Commission determines necessary to publish 
a Commitment of Traders report for a des-
ignated contract market, derivatives transaction 
execution facility, or other registered entity 
trading energy commodities physically delivered 
in the United States. 
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‘‘(2) EXISTING FOREIGN BOARDS OF TRADE.— 
During the period beginning 1 year after the date of 
enactment of this subsection and ending 18 months 
after the date of enactment of this subsection, the 
Commission shall determine whether to continue to 
grant relief in accordance with paragraph (1) to any 
foreign board of trade for which the Commission 
granted relief prior to the date of enactment of this 
subsection.’’. 
Æ 
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