covery for oil and gasoline is based on the fun-
damentals of supply and demand, rather than exces-
sive speculation; 
(11) title VII of the Dodd-Frank Wall Street 
Reform and Consumer Protection Act (15 U.S.C. 
8301 et seq.) (and amendments made by that Act) 
requires the Commission to establish position limits 
‘‘to diminish, eliminate, or prevent excessive specula-
tion’’ for trading in crude oil, gasoline, heating oil 
and other physical commodity derivatives; 
(12) as of the date of introduction of this Act, 
the Commission has failed to impose position limits 
to diminish, eliminate, or prevent excessive oil and 
gasoline speculation as required by law; and 
(13) the proposed position limits for derivatives 
that the Commission included in the notice of pro-
posed rulemaking entitled ‘‘Position Limits for De-
rivatives’’ (76 Fed. Reg. 4752 (January 26, 2011)) 
are not scheduled to go into effect until the first 
quarter of 2012, which would— 
(A) occur on a date that is later than the 
statutory deadline for the regulations; and 
(B) fail to diminish, eliminate, or prevent 
excessive speculation as required by the Dodd- 
Frank Wall Street Reform and Consumer Pro-
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tection Act (Public Law 111–203; 124 Stat. 
1376). 
(b) ELIMINATION
OF EXCESSIVE OIL SPECULA-
TION.— 
(1) DEFINITIONS.—In this Act: 
(A) BONA-FIDE
HEDGE
TRADING; BONA- 
FIDE HEDGE TRANSACTION.—The terms ‘‘bona- 
fide hedge trading’’ and ‘‘bona-fide hedge trans-
action’’ means a transaction or position that— 
(i)(I) represents a substitute for a 
transaction made or to be made, or a posi-
tion taken or to be taken, at a later time 
in a physical marketing channel; 
(II) is economically appropriate for 
the reduction of risks in the conduct and 
management of a commercial enterprise; 
and 
(III) arises from the potential change 
in the value of— 
(aa) assets that a person owns, 
produces, manufactures, processes, or 
merchandises or anticipates owning, 
producing, manufacturing, processing, 
or merchandising; 
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(bb) liabilities that a person has 
incurred or anticipates incurring; or 
(cc) services that a person pro-
vides, purchases, or anticipates pro-
viding or purchasing; or 
(ii) reduces risks attendant to a posi-
tion resulting from a swap that— 
(I) was executed opposite a 
counterparty for which the transaction 
would qualify as a bona-fide hedging 
transaction; or 
(II) meets the requirements of 
clause (i). 
(B) COMMISSION.—The term ‘‘Commis-
sion’’ means the Commodity Futures Trading 
Commission. 
(2) DUTY
OF
CHAIRMAN
OF
THE
COMMIS-
SION.—Notwithstanding section 2 of the Commodity 
Exchange Act (7 U.S.C. 2) or any other provision of 
law (including regulations), not later than 14 days 
after the date of enactment of this Act, the Chair-
man of the Commission shall unilaterally— 
(A) establish 1 or more speculative position 
limits in any registered entity on or through 
which crude oil, gasoline, diesel fuel, jet fuel, or 
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heating oil futures or swaps are traded that are 
equal to the position accountability levels or po-
sition limits, as appropriate, established by the 
New York Mercantile Exchange; 
(B) establish 1 or more speculative posi-
tion limits that are equal to the position ac-
countability levels or position limits, as appro-
priate, established by the New York Mercantile 
Exchange on the aggregate number or amount 
of positions in contracts based upon the same 
underlying commodity that may be held by any 
person, including any group or class of traders, 
for each month across— 
(i) contracts listed by designated con-
tract markets; 
(ii) with respect to an agreement, con-
tract, or transaction that settles against 
any price (including the daily or final set-
tlement price) of 1 or more contracts listed 
for trading on a registered entity, con-
tracts traded on a foreign board of trade 
that provides members or other partici-
pants located in the United States with di-
rect access to the electronic trading and 
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order matching system of the foreign board 
of trade; and 
(iii) swap contracts that perform or 
affect a significant price discovery function 
with respect to regulated entities; 
(C) establish margin requirements of 12 
percent for speculative swaps and futures trad-
ing in crude oil, gasoline, diesel fuel, jet fuel, 
and heating oil; 
(D) require that each bank holding com-
pany, investment bank, hedge fund, or swaps 
dealer engaged in the trading of energy futures 
or swaps for the benefit of the bank holding 
company, investment bank, hedge fund, or 
swaps dealer or on the behalf of, or as 
counterparty to, an index fund, exchange traded 
fund, or other noncommercial participant— 
(i) register with the Commission as a 
noncommercial participant; and 
(ii) be subject to each position limit 
and margin requirement under this sub-
section for each position in a manner by 
which the position is considered to be a 
speculative, proprietary position of the 
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bank holding company, investment bank, 
hedge fund, or swaps dealer; 
(E) take any other action that the Chair-
man of the Commission determines to be nec-
essary to eliminate excessive speculation in the 
aggregate to ensure that the price of crude oil, 
gasoline, diesel fuel, jet fuel, and heating oil ac-
curately reflects the fundamentals of supply and 
demand; and 
(F) ensure that each bank holding com-
pany, hedge fund, investment bank, and swaps 
dealer that is engaged in the trading of energy 
futures or swaps for the benefit of the bank 
holding company, hedge fund, investment bank, 
and swaps dealer, or on the behalf of, or as 
counterparty to, 1 or more noncommercial par-
ticipants, abides by each position limit and mar-
gin requirement under this subsection. 
(3) APPLICABILITY.—Each position limit and 
margin requirement under this subsection shall not 
apply to bona-fide hedge trading. 
(4) ADJUSTMENTS.—Notwithstanding section 2 
of the Commodity Exchange Act (7 U.S.C. 2) or any 
other provision of law (including regulations), the 
Chairman of the Commission may adjust any posi-
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tion limit under this subsection to the extent that 
the position of all noncommercial participants or 
speculators (in the aggregate and measured on an 
annual basis) shall not equal an amount greater 
than 35 percent of the annual, aggregate position of 
all traders in such futures and swaps market or 
markets for crude oil, gasoline, diesel fuel, jet fuel, 
and heating oil trading. 
(5) SUNSET.— 
(A) IN GENERAL.—This Act, and the au-
thority provided under this Act, shall terminate 
on the date on which the Commission imposes 
position limits to diminish, eliminate, or prevent 
excessive speculation as required by, and in-
creased margin requirements as authorized in, 
title VII of the Dodd-Frank Wall Street Reform 
and Consumer Protection Act (15 U.S.C. 8301 
et seq.) (and amendments made by that Act). 
(B) SENSE OF CONGRESS.—It is the sense 
of Congress that, if finalized, the proposed posi-
tion limits for derivatives that the Commission 
included in the notice of proposed rulemaking 
entitled ‘‘Position Limits for Derivatives’’ (76 
Fed. Reg. 4752 (January 26, 2011)) are not 
sufficient to fulfill the statutory requirements of 
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title VII of the Dodd-Frank Wall Street Reform 
and Consumer Protection Act (15 U.S.C. 8301 
et seq.) (and amendments made by that Act) to 
diminish, eliminate, or prevent excessive specu-
lation. 
Æ 
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