II 
Calendar No. 358 
109TH CONGRESS 
2D SESSION 
H. R. 4473 
IN THE SENATE OF THE UNITED STATES 
DECEMBER 15, 2005 
Received 
JANUARY 27, 2006 
Read twice and placed on the calendar 
AN ACT 
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 2005’’.
HR 4473 PCS 
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
HR 4473 PCS 
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) a futures commission 
merchant registered under this
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Act (that is not also a person de-
scribed in item (bb)), or an affili-
ated person of such a futures 
commission merchant (that is not 
also a person described in item 
(bb)) if such futures commission 
merchant 
makes 
and 
keeps 
records under section 4f(c)(2)(B) 
of this Act concerning the futures 
and other financial activities of 
such affiliated 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); or 
‘‘(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))).
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‘‘(ii) Notwithstanding item (cc) of 
clause (i)(II) of this subparagraph, agree-
ments, contracts, or transactions described 
in clause (i) of this subparagraph shall be 
subject to subsection (a)(1)(B) of this sec-
tion 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 
market price of any commodity in inter-
state commerce, or for future delivery on 
or subject to the rules of any market), 6c, 
6d, 8(a), 13(a), and 13(b) if the agree-
ments, contracts, or transactions are of-
fered, or entered into, by a person that is 
registered as a futures commission mer-
chant or an affiliated person of a futures 
commission 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 item (cc) of 
clause (i)(II), a particular person shall not 
participate in the solicitation or rec-
ommendation of any agreement, contract, 
or transaction described in clause (i) en-