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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-
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
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‘‘(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-
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.’’.
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SEC. 103. PORTFOLIO MARGINING AND SECURITY INDEX 
ISSUES. 
(a) The agencies represented on the President’s 
Working Group on Financial Markets shall work to ensure 
that the Securities and Exchange Commission (SEC), the 
Commodity Futures Trading Commission (CFTC), or 
both, as appropriate, have taken the actions required 
under subsection (b). 
(b) The SEC, the CFTC, or both, as appropriate, 
shall take action under their existing authorities to per-
mit— 
(1) by September 30, 2006, risk-based portfolio 
margining for security options and security futures 
products; and 
(2) by June 30, 2006, the trading of futures on 
certain security indexes by resolving issues related to 
debt security indexes and foreign security indexes. 
SEC. 104. 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 2006 through 2010.’’
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SEC. 105. 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— 
(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)—
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(1) by striking ‘‘commenced’’ the 2nd place it 
appears; and 
(2) by inserting ‘‘commenced’’ after ‘‘in a judi-
cial proceeding’’. 
(h) 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)’’. 
TITLE II—NATURAL GAS PRICE 
TRANSPARENCY 
SEC. 201. MARKET SURVEILLANCE. 
(a) IN GENERAL.—The Commodity Futures Trading 
Commission (in this section referred to as the ‘‘Commis-
sion’’) shall detect and deter manipulation and attempted 
manipulation and increase the transparency of the pricing 
of natural gas by conducting surveillance of trading in 
contracts for natural gas. 
(b) CERTAIN
EVENTS
REQUIRED
TO
BE
RE-
VIEWED.— 
(1) REQUIREMENT.—In the event of a signifi-
cant and highly unusual change in the settlement 
price of any physically delivered natural gas futures 
contract traded on a contract market (within the 
meaning of section 5 of the Commodity Exchange 
Act) or derivatives transaction execution facility 
(within the meaning of section 5a of such Act), the
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Commission shall conduct a review of the factors 
that caused the price movement in order to deter-
mine if manipulation or attempted manipulation in 
violation of such Act has occurred. 
(2) CERTAIN FACTORS REQUIRED TO BE CON-
SIDERED.—The Commission shall consider in its re-
view, among other things and as appropriate to the 
circumstances, the following: 
(A) Prices and price relationships in the 
futures and cash markets. 
(B) Market information, and cash market 
supply and demand factors which may be rel-
evant to the price event. 
(C) Large futures and options market po-
sitions and large futures and options market 
transactions on the contract market or deriva-
tives transaction execution facility. 
(D) Any related contract, agreement or 
transaction in natural gas. 
SEC. 202. REPORTING OF LARGE POSITIONS INVOLVING 
NATURAL GAS. 
(a) IN GENERAL.—Section 4a of the Commodity Ex-
change Act (7 U.S.C. 6a) is amended— 
(1) in subsection (e), by striking the last sen-
tence; and
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(2) by adding at the end the following: 
‘‘(f) REPORTING OF LARGE POSITIONS INVOLVING 
NATURAL GAS.— 
‘‘(1) IN GENERAL.—The Commission, by rule, 
shall require any person holding, maintaining, or 
controlling any position in a contract of sale of nat-
ural gas for future delivery, or option thereon, on or 
subject to the rules of any contract market or de-
rivatives transaction execution facility, at or in ex-
cess of such limits as the Commission may specify 
as reportable, to maintain for a period of 5 years 
and provide on request to the Commission, records 
of the person regarding the position and any related 
contract, agreement, or transaction in natural gas to 
which the person is a party. 
‘‘(2) NO DUPLICATE REPORTS.—Except as oth-
erwise provided in this paragraph, the rules pre-
scribed under paragraph (1) shall not apply to any 
position that otherwise is required to be reported to 
any agency of the United States if the report would 
otherwise satisfy the requirements under this sub-
section and the report of the position is available to 
the Commission at the request of the Commission. 
Notwithstanding the preceding sentence, any report 
of any such position to any agency of the United
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States shall constitute a statement, report, or docu-
ment required for the purposes of section 9. 
‘‘(3) CRITERIA FOR RULES.— 
‘‘(A) IN
GENERAL.—In prescribing rules 
required by paragraph (1), the Commission 
shall consider— 
‘‘(i) the purposes for monitoring large 
positions in any contract for future deliv-
ery of natural gas; 
‘‘(ii) the effect of the reporting re-
quirements on the efficiency and liquidity 
of the market for any agreement, contract, 
or transaction made in connection with any 
contract for the future delivery of natural 
gas; and 
‘‘(iii) the costs and burden on the per-
sons that would be required to file the re-
ports. 
‘‘(B) FREQUENCY.—The Commission shall 
require the provision of records under para-
graph (1) only in circumstances where manipu-
lation is suspected, except that the Commission 
may prescribe rules requiring regular or contin-
uous reporting if the Commission finds that 
such reporting would help to deter or to detect
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manipulation in any market for any agreement, 
contract, or transaction made in connection 
with any contract for the future delivery of nat-
ural gas. 
‘‘(C) FILING REQUIREMENTS.—Records re-
quired to be provided under paragraph (1) shall 
be required to be filed with the Commission in 
accordance with such requirements regarding 
the form, timing, and manner of filing such re-
ports, as the Commission may prescribe by rule. 
‘‘(5) OTHER RULES NOT AFFECTED.—This sub-
section shall not be interpreted to prohibit or impair 
the adoption by any board of trade licensed, des-
ignated, or registered by the Commission of any 
bylaw, rule, regulation, or resolution requiring re-
ports of positions in any agreement, contract, or 
transaction made in connection with a contract of 
sale for future delivery of natural gas (including 
such a contract of sale), including any bylaw, rule, 
regulation, or resolution pertaining to filing or rec-
ordkeeping, which may be held by any person sub-
ject to the rules of the board of trade, except that 
any bylaw, rule, regulation, or resolution established 
by the board of trade shall not be inconsistent with
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any requirement prescribed by the Commission 
under this subsection.’’. 
SEC. 203. 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 of, or 
attempt to manipulate under section 9(a)(2), a civil 
penalty of not more than the greater of $1,000,000 
or triple the monetary gain to such person 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 of, or an attempt to ma-
nipulate, the price of any commodity, a civil penalty 
of not more than $1,000,000 for each such viola-
tion’’ before the period; and 
(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),
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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(f)’’ be-
fore 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 of, or an 
attempt to manipulate, the price of any com-
modity, a civil penalty in the amount of not 
more than the greater of $1,000,000 or triple 
the monetary gain to the person for each viola-
tion.’’. 
(d) VIOLATIONS GENERALLY.—Section 9(a) of such 
Act (7 U.S.C. 13(a)) is amended—
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(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’’. 
Passed the House of Representatives December 14, 
2005. 
Attest: 
KAREN L. HAAS, 
Clerk.
Calendar No. 358 
109TH CONGRESS 
2D SESSION 
H. R. 4473 
AN ACT 
To reauthorize and amend the Commodity Ex-
change Act to promote legal certainty, enhance 
competition, and reduce systemic risk in markets 
for futures and over-the-counter derivatives, and 
for other purposes. 
JANUARY 27, 2006 
Read twice and placed on the calendar