IB 
Union Calendar No. 223 
111TH CONGRESS 
1ST SESSION 
H. R. 977 
[Report No. 111–385, Part I] 
To amend the Commodity Exchange Act to bring greater transparency and 
accountability to commodity markets, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
FEBRUARY 11, 2009 
Mr. PETERSON introduced the following bill; which was referred to the Com-
mittee on Agriculture, and in addition to the Committee on Financial 
Services, for a period to be subsequently determined by the Speaker, in 
each case for consideration of such provisions as fall within the jurisdic-
tion of the committee concerned 
DECEMBER 19, 2009 
Additional sponsors: Mr. HOLDEN, Mr. BOSWELL, Mr. CARDOZA, Ms. 
HERSETH SANDLIN, Mr. WALZ, Mr. KAGEN, Mr. SCHRADER, Mr. MASSA, 
Ms. MARKEY of Colorado, Mr. SCHAUER, Mr. KISSELL, Mr. POMEROY, 
Mr. WELCH, Mr. HIGGINS, Mr. ANDREWS, Mr. MICHAUD, Mr. SHULER, 
Mr. RAHALL, Mr. WEXLER, Mr. PASCRELL, Mr. HALL of New York, Mr. 
BRIGHT, Mr. BISHOP of New York, Mr. COHEN, and Mr. HODES 
DECEMBER 19, 2009 
Reported from the Committee on Agriculture with an amendment and referred 
to the Committee on the Judiciary for a period ending not later than De-
cember 19, 2009, for consideration of such provisions of the bill and 
amendment as fall within the jurisdiction of that committee pursuant to 
clause 1(k), rule X 
[Strike out all after the enacting clause and insert the part printed in italic] 
DECEMBER 19, 2009 
Committees on Financial Services and the Judiciary discharged; committed to 
the Committee of the Whole House on the State of the Union and or-
dered to be printed 
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[For text of introduced bill, see copy of bill as introduced on February 11, 2009] 
A BILL 
To amend the Commodity Exchange Act to bring greater 
transparency and accountability to commodity markets, 
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 ‘‘Derivatives Markets 
Transparency and Accountability Act of 2009’’. 
SEC. 2. TABLE OF CONTENTS. 
The table of contents of this Act is as follows: 
Sec. 1. Short title. 
Sec. 2. Table of contents. 
Sec. 3. Speculative limits and transparency of off-shore trading. 
Sec. 4. Detailed reporting and disaggregation of market data. 
Sec. 5. Transparency and recordkeeping authorities. 
Sec. 6. Trading limits to prevent excessive speculation. 
Sec. 7. CFTC Administration. 
Sec. 8. Review of prior actions. 
Sec. 9. Review of over-the-counter markets. 
Sec. 10. Study relating to international regulation of energy commodity markets. 
Sec. 11. Over-the-counter authority. 
Sec. 12. Expedited process. 
Sec. 13. Certain exclusions and exemptions available only for certain transactions 
settled and cleared through registered derivatives clearing orga-
nizations. 
Sec. 14. Treatment of emission allowances and offset credits. 
Sec. 15. Inspector General of the Commodity Futures Trading Commission. 
Sec. 16. Authority of Commodity Futures Trading Commission to suspend trad-
ing in credit default swaps. 
Sec. 17. Authority of Commodity Futures Trading Commission to prosecute 
criminal violations of the Commodity Exchange Act. 
Sec. 18. Diversity of directors of boards of trade. 
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SEC. 3. SPECULATIVE LIMITS AND TRANSPARENCY OF OFF- 
SHORE TRADING. 
(a) IN GENERAL.—Section 4 of the Commodity Ex-
change Act (7 U.S.C. 6) is amended by adding at the end 
the following: 
‘‘(e) FOREIGN BOARDS OF TRADE.— 
‘‘(1) IN GENERAL.—The Commission may not 
permit a foreign board of trade to provide to the 
members of the foreign board of trade or other partici-
pants located in the United States direct access to the 
electronic trading and order matching system of the 
foreign board of trade with respect to an agreement, 
contract, or transaction that settles against any price 
(including the daily or final settlement price) of 1 or 
more contracts listed for trading on a registered enti-
ty, unless— 
‘‘(A) the foreign board of trade makes public 
daily trading information regarding the agree-
ment, contract, or transaction that is comparable 
to the daily trading information published by 
the registered entity for the 1 or more contracts 
against which the agreement, contract, or trans-
action traded on the foreign board of trade set-
tles; and 
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‘‘(B) the foreign board of trade (or the for-
eign futures authority that oversees the foreign 
board of trade)— 
‘‘(i) adopts position limits (including 
related hedge exemption provisions) for the 
agreement, contract, or transaction that are 
comparable, taking into consideration the 
relative sizes of the respective markets, to 
the position limits (including related hedge 
exemption provisions) adopted by the reg-
istered entity for the 1 or more contracts 
against which the agreement, contract, or 
transaction traded on the foreign board of 
trade settles; 
‘‘(ii) has the authority to require or di-
rect market participants to limit, reduce, or 
liquidate any position the foreign board of 
trade (or the foreign futures authority that 
oversees the foreign board of trade) deter-
mines to be necessary to prevent or reduce 
the threat of price manipulation, excessive 
speculation as described in section 4a, price 
distortion, or disruption of delivery or the 
cash settlement process; 
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‘‘(iii) agrees to promptly notify the 
Commission, with regard to the agreement, 
contract, or transaction, of any change re-
garding— 
‘‘(I) the information that the for-
eign board of trade will make publicly 
available; 
‘‘(II) the position limits that the 
foreign board of trade or foreign fu-
tures authority will adopt and enforce; 
‘‘(III) the position reductions re-
quired to prevent manipulation, exces-
sive speculation as described in section 
4a, price distortion, or disruption of 
delivery or the cash settlement process; 
and 
‘‘(IV) any other area of interest 
expressed by the Commission to the for-
eign board of trade or foreign futures 
authority; 
‘‘(iv) provides information to the Com-
mission regarding large trader positions in 
the agreement, contract, or transaction that 
is comparable to the large trader position 
information collected by the Commission for 
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the 1 or more contracts against which the 
agreement, contract, or transaction traded 
on the foreign board of trade settles; and 
‘‘(v) provides the Commission with in-
formation necessary to publish reports on 
aggregate trader positions for the agree-
ment, contract, or transaction traded on the 
foreign board of trade that are comparable 
to such reports on aggregate trading posi-
tions for 1 or more contracts against which 
the agreement, contract, or transaction 
traded on the foreign board of trade settles. 
‘‘(2) EXISTING FOREIGN BOARDS OF TRADE.— 
Paragraph (1) shall not be effective with respect to 
any agreement, contract, or transaction executed on a 
foreign board of trade to which the Commission had 
granted direct access permission before the date of the 
enactment of this subsection until the date that is 180 
days after such date of enactment.’’. 
(b) LIABILITY OF REGISTERED PERSONS TRADING ON 
A FOREIGN BOARD OF TRADE.— 
(1) Section 4(a) of such Act (7 U.S.C. 6(a)) is 
amended by inserting ‘‘or by subsection (f)’’ after 
‘‘Unless exempted by the Commission pursuant to 
subsection (c)’’. 
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(2) Section 4 of such Act (7 U.S.C. 6) is further 
amended by adding at the end the following: 
‘‘(f)(1) A person registered with the Commission, or 
exempt from registration by the Commission, under this Act 
may not be found to have violated subsection (a) with re-
spect to a transaction in, or in connection with, a contract 
of sale of a commodity for future delivery if the person— 
‘‘(A) has reason to believe the transaction and 
the contract is made on or subject to the rules of a 
board of trade that is— 
‘‘(i) legally organized under the laws of a 
foreign country; 
‘‘(ii) authorized to act as a board of trade 
by a foreign futures authority; and 
‘‘(iii) subject to regulation by the foreign fu-
tures authority; and 
‘‘(B) has not been determined by the Commission 
to be operating in violation of subsection (a). 
‘‘(2) Nothing in this subsection shall be construed as 
implying or creating any presumption that a board of 
trade, exchange, or market is located outside the United 
States, or its territories or possessions, for purposes of sub-
section (a).’’. 
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(c) CONTRACT ENFORCEMENT FOR FOREIGN FUTURES 
CONTRACTS.—Section 22(a) of such Act (7 U.S.C. 25(a)) 
is amended by adding at the end the following: 
‘‘(5) A contract of sale of a commodity for future 
delivery traded or executed on or through the facilities 
of a board of trade, exchange, or market located out-
side the United States for purposes of section 4(a) 
shall not be void, voidable, or unenforceable, and a 
party to such a contract shall not be entitled to re-
scind or recover any payment made with respect to 
the contract, based on the failure of the foreign board 
of trade to comply with any provision of this Act.’’. 
SEC. 4. DETAILED REPORTING AND DISAGGREGATION OF 
MARKET DATA. 
Section 4 of the Commodity Exchange Act (7 U.S.C. 
6), as amended by section 3 of this Act, is amended by add-
ing at the end the following: 
‘‘(g) DETAILED REPORTING AND DISAGGREGATION OF 
MARKET DATA.— 
‘‘(1) INDEX TRADERS AND SWAP DEALERS RE-
PORTING.—The Commission shall issue a proposed 
rule defining and classifying index traders and swap 
dealers (as those terms are defined by the Commis-
sion) for purposes of data reporting requirements and 
setting routine detailed reporting requirements for 
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any positions of such entities in contracts traded on 
designated contract markets, derivatives transaction 
execution facilities, foreign boards of trade subject to 
section 4(e), and electronic trading facilities with re-
spect to significant price discovery contracts not later 
than 90 days after the date of the enactment of this 
subsection, and issue a final rule within 180 days 
after such date of enactment. 
‘‘(2) DISAGGREGATION
OF
INDEX
FUNDS
AND 
OTHER DATA IN MARKETS.—Subject to section 8 and 
beginning within 60 days of the issuance of the final 
rule required by paragraph (1), the Commission shall 
disaggregate and make public monthly— 
‘‘(A) the number of positions and total no-
tional value of index funds and other passive, 
long-only and short-only positions (as defined by 
the Commission) in all markets to the extent 
such information is available; and 
‘‘(B) data on speculative positions relative 
to bona fide hedgers in those markets to the ex-
tent such information is available.’’. 
SEC. 5. TRANSPARENCY AND RECORDKEEPING AUTHORI-
TIES. 
(a) IN GENERAL.—Section 4g(a) of the Commodity 
Exchange Act (7 U.S.C. 6g(a)) is amended— 
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(1) by inserting ‘‘a’’ before ‘‘futures commission 
merchant’’; and 
(2) by inserting ‘‘and transactions and positions 
traded pursuant to subsection (d), (g), (h)(1), or 
(h)(3) of section 2, or any exemption issued by the 
Commission by rule, regulation or order,’’ after 
‘‘United States or elsewhere,’’. 
(b) REPORTS OF DEALS EQUAL TO OR IN EXCESS OF 
TRADING LIMITS.— 
(1) IN
GENERAL.—Section 4i of such Act (7 
U.S.C. 6i) is amended— 
(A) in the first sentence— 
(i) by inserting ‘‘(a)’’ before ‘‘It shall’’; 
and 
(ii) by inserting ‘‘in the United States 
or elsewhere, and of transactions and posi-
tions in any such commodity entered into 
pursuant to subsection (d), (g), (h)(1), or 
(h)(3) of section 2, or any exemption issued 
by the Commission by rule, regulation or 
order’’ before ‘‘, and of cash or spot’’; and 
(B) by striking all that follows the 1st sen-
tence and inserting the following: 
‘‘(b) Upon special call by the Commission, any person 
shall provide to the Commission, in a form and manner 
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and within the period specified in the special call, books 
and records of all transactions and positions traded on or 
subject to the rules of any board of trade or electronic trad-
ing facility in the United States or elsewhere, or pursuant 
to subsection (d), (g), (h)(1), or (h)(3) of section 2, or any 
exemption issued by the Commission by rule, regulation, 
or order, as the Commission may determine appropriate to 
deter and prevent price manipulation or any other disrup-
tion to market integrity or to diminish, eliminate, or pre-
vent excessive speculation as described in section 4a(a). 
‘‘(c) Such books and records described in subsections 
(a) and (b) shall show complete details concerning all such 
transactions, positions, inventories, and commitments, in-
cluding the names and addresses of all persons having any 
interest therein, shall be kept for a period of 5 years, and 
shall be open at all times to inspection by any representa-
tive of the Commission or the Department of Justice. For 
the purposes of this section, the futures and cash or spot 
transactions and positions of any person shall include such 
transactions and positions of any persons directly or indi-
rectly controlled by the person.’’. 
(2) NOTICE
AND
COMMENT.—Within 60 days 
after the date of the enactment of this subsection, the 
Commodity Futures Trading Commission shall con-
duct rulemaking, including an opportunity for notice 
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and comment, on implementing the amendments 
made by paragraph (1). 
(c) CONFORMING AMENDMENTS.— 
(1) Section 2(d)(1) of such Act (7 U.S.C. 
2(d)(1)) is amended by striking ‘‘5b or 12(e)(2)(B)’’ 
and inserting ‘‘4g(a), 4i, 5b, or 12(e)(2)(B), and the 
regulations of the Commission pursuant to section 
4i(b) requiring reporting in connection with com-
modity option transactions)’’. 
(2) Section 2(d)(2) of such Act (7 U.S.C. 
2(d)(2)) is amended— 
(A) by inserting ‘‘4g(a), 4i,’’ before ‘‘5a 
(to’’; and 
(B) by inserting ‘‘, and the regulations of 
the Commission pursuant to section 4i(b) requir-
ing reporting in connection with commodity op-
tion transactions’’ after ‘‘12(e)(2)(B)’’. 
(3) Section 2(g) of such Act (7 U.S.C. 2(g)) is 
amended— 
(A) by inserting ‘‘4g(a), 4i,’’ before ‘‘5a 
(to’’; and 
(B) by inserting ‘‘, and the regulations of 
the Commission pursuant to section 4i(b) requir-
ing reporting in connection with commodity op-
tion transactions’’ after ‘‘12(e)(2)’’. 
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(4) Section 2(h)(2)(A) of such Act (7 U.S.C. 
2(h)(2)(A)) is amended to read as follows: 
‘‘(A) sections 4g(a), 4i, 5b and 12(e)(2)(B), 
and the regulations of the Commission pursuant 
to section 4i(b) requiring reporting in connection 
with commodity option transactions;’’. 
(5) Section 2(h)(4)(A) of such Act (7 U.S.C. 
2(h)(4)(A)) is amended to read as follows: 
‘‘(A) sections 4g(a), 4i, 5a (to the extent 
provided 
in 
section 
5a(g)), 
5b, 
5d, 
and 
12(e)(2)(B), and the regulations of the Commis-
sion pursuant to section 4i(b) requiring report-
ing in connection with commodity option trans-
actions;’’. 
SEC. 6. TRADING LIMITS TO PREVENT EXCESSIVE SPECULA-
TION. 
(a) POSITION LIMITS.—Section 4a of the Commodity 
Exchange Act (7 U.S.C. 6a) is amended— 
(1) in subsection (a)— 
(A) by inserting ‘‘(1)’’ after ‘‘(a)’’; and 
(B) by adding after and below the end the 
following: 
‘‘(2)(A) In accordance with the standards set forth in 
paragraph (1) of this subsection and consistent with the 
good faith exception cited in subsection (b)(2), with respect 
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to physical commodities other than excluded commodities 
as defined by the Commission, the Commission shall by 
rule, regulation, or order establish limits on the amount of 
positions, as appropriate, other than bona fide hedge posi-
tions, that may be held by any person with respect to con-
tracts of sale for future delivery or with respect to options 
on such contracts or commodities traded on or subject to 
the rules of a contract market or derivatives transaction 
execution facility, or on an electronic trading facility as 
a significant price discovery contract. 
‘‘(B)(i) For exempt commodities, the limits shall be es-
tablished within 180 days after the date of the enactment 
of this paragraph. 
‘‘(ii) For agricultural commodities, the limits shall be 
established within 270 days after the date of the enactment 
of this paragraph. 
‘‘(3) In establishing the limits required in paragraph 
(2), the Commission, as appropriate, shall set limits— 
‘‘(A) on the number of positions that may be 
held by any person for the spot month, each other 
month, and the aggregate number of positions that 
may be held by any person for all months; 
‘‘(B) to the maximum extent practicable, in its 
discretion— 
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‘‘(i) to diminish, eliminate, or prevent ex-
cessive speculation as described under this sec-
tion; 
‘‘(ii) to deter and prevent market manipu-
lation, squeezes, and corners; 
‘‘(iii) to ensure sufficient market liquidity 
for bona fide hedgers; and 
‘‘(iv) to ensure that the price discovery 
function of the underlying market is not dis-
rupted; and 
‘‘(C) to the maximum extent practicable, in its 
discretion, take into account the total number of posi-
tions in fungible agreements, contracts, or trans-
actions that a person can hold in other markets. 
‘‘(4)(A) Not later than 150 days after the establishment 
of position limits pursuant to paragraph (2), and bian-
nually thereafter, the Commission shall hold 2 public hear-
ings, 1 for agriculture commodities and 1 for energy com-
modities as such terms are defined by the Commission, in 
order to receive recommendations regarding the position 
limits to be established in paragraph (2). 
‘‘(B) Each public hearing held pursuant to subpara-
graph (A) shall, at a minimum providing there is sufficient 
interest, receive recommendations from— 
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‘‘(i) 7 predominantly commercial short hedgers 
of the actual physical commodity for future delivery; 
‘‘(ii) 7 predominantly commercial long hedgers 
of the actual physical commodity for future delivery; 
‘‘(iii) 4 non-commercial participants in markets 
for commodities for future delivery; and 
‘‘(iv) each designated contract market or deriva-
tives transaction execution facility upon which a con-
tract in the commodity for future delivery is traded, 
and each electronic trading facility that has a signifi-
cant price discovery contract in the commodity. 
‘‘(C) Within 60 days after each public hearing held 
pursuant to subparagraph (A), the Commission shall pub-
lish in the Federal Register its response to the recommenda-
tions regarding position limits heard at the hearing.’’; and 
(2) in subsection (c)— 
(A) by inserting ‘‘(1)’’ after ‘‘(c)’’; and 
(B) by adding after and below the end the 
following: 
‘‘(2) For the purposes of implementation of subsection 
(a)(2) for contracts of sale for future delivery and options 
on such contracts or commodities, the Commission shall de-
fine what constitutes a bona fide hedging transaction or po-
sition as a transaction or position that— 
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‘‘(A)(i) represents a substitute for transactions 
made or to be made or positions taken or to be taken 
at a later time in a physical marketing channel; 
‘‘(ii) is economically appropriate to the reduc-
tion of risks in the conduct and management of a 
commercial enterprise; and 
‘‘(iii) arises from the potential change in the 
value of— 
‘‘(I) assets that a person owns, produces, 
manufactures, processes, or merchandises or an-
ticipates owning, producing, manufacturing, 
processing, or merchandising; 
‘‘(II) liabilities that a person owns or an-
ticipates incurring; or 
‘‘(III) services that a person provides, pur-
chases, or anticipates providing or purchasing; 
or 
‘‘(B) reduces risks attendant to a position result-
ing from a transaction that— 
‘‘(i) was executed pursuant to subsection 
(g), (h)(1), or (h)(3) of section 2, or an exemp-
tion issued by the Commission by rule, regula-
tion or order; and 
‘‘(ii)(I) 
was 
executed 
opposite 
a 
counterparty for which the transaction would 
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qualify as a bona fide hedging transaction pur-
suant to subparagraph (A); or 
‘‘(II) meets the requirements of subpara-
graph (A).’’. 
(b) CONFORMING AMENDMENTS.— 
(1) Section 5(d)(5) of such Act (7 U.S.C. 
7(d)(5)) is amended to read as follows: 
‘‘(5) To reduce the potential threat of market 
manipulation or congestion, especially during trading 
in the delivery month, the board of trade shall adopt 
for each of its contracts, where necessary and appro-
priate, position limitations or position accountability 
standards for speculators. For any contract that is 
subject to a position limitation established by the 
Commission pursuant to section 4a(a), the board of 
trade shall set its position limitation at a level no 
higher than the Commission-established limitation.’’. 
(2) Section 5a(d)(4) of such Act (7 U.S.C. 
7a(d)(4)) is amended to read as follows: 
‘‘(4) To reduce the potential threat of market 
manipulation or congestion, especially during trading 
in the delivery month, the board of trade shall adopt 
for each of its contracts, where necessary and appro-
priate, position limitations or position accountability 
standards for speculators. For any contract that is 
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subject to a position limitation established by the 
Commission pursuant to section 4a(a), the board of 
trade shall set its position limitation at a level no 
higher than the Commission-established limitation.’’. 
(3) Section 2(h)(7)(C)(ii)(IV) of such Act (7 
U.S.C. 2(h)(7)(C)(ii)(IV)) is amended to read as fol-
lows: 
‘‘(IV) The electronic trading facil-
ity shall adopt, where necessary and 
appropriate, position limitations or 
position accountability standards for 
speculators in significant price dis-
covery contracts, taking into account 
positions in other agreements, con-
tracts, and transactions that are treat-
ed by a derivatives clearing organiza-
tion, whether registered or not reg-
istered, as fungible with such signifi-
cant price discovery contracts to reduce 
the potential threat of market manipu-
lation or congestion, especially during 
trading in the delivery month. For any 
contract that is subject to a position 
limitation established by the Commis-
sion pursuant to section 4a(a), the 
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electronic trading facility shall set its 
position limitation at a level no higher 
than the Commission-established limi-
tation.’’. 
SEC. 7. CFTC ADMINISTRATION. 
Section 2(a)(7) of the Commodity Exchange Act (7 
U.S.C. 2(a)(7)) is amended by adding at the end the fol-
lowing: 
‘‘(D) ADDITIONAL EMPLOYEES.—As soon as 
practicable after the date of the enactment of this 
subparagraph, subject to appropriations, the 
Commission shall appoint a sufficient number of 
full-time employees (in addition to the employees 
employed by the Commission as of the date of the 
enactment of this subparagraph)— 
‘‘(i) to increase the public trans-
parency of operations in markets; 
‘‘(ii) to improve the enforcement of this 
Act in those markets; 
‘‘(iii) to enhance oversight of the trad-
ing and clearing of contracts, agreements, 
and transactions; and 
‘‘(iv) to carry out the provisions of the 
Derivatives Markets Transparency and Ac-
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countability Act of 2009 and such other du-
ties as are prescribed by the Commission.’’. 
SEC. 8. REVIEW OF PRIOR ACTIONS. 
Notwithstanding any other provision of the Com-
modity Exchange Act, the Commodity Futures Trading 
Commission shall review, as appropriate, all regulations, 
rules, exemptions, exclusions, guidance, no action letters, or-
ders, other actions taken by or on behalf of the Commission, 
and any action taken pursuant to the Commodity Exchange 
Act by an exchange, self-regulatory organization, or any 
other registered entity, that are currently in effect, to ensure 
that such prior actions are in compliance with the provi-
sions of this Act. 
SEC. 9. REVIEW OF OVER-THE-COUNTER MARKETS. 
(a) STUDY.—The Commodity Futures Trading Com-
mission shall conduct a study— 
(1) to determine the efficacy, practicality, and 
consequences of establishing limits on the size of a po-
sition, other than bona fide hedge positions, that may 
be held by any person with respect to agreements, 
contracts, or transactions involving an agricultural 
or energy commodity, conducted in reliance on section 
2(g) or 2(h) of the Commodity Exchange Act and of 
any exemption issued by the Commission by rule, reg-
ulation or order, that are fungible (as defined by the 
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Commission) with agreements, contracts, or trans-
actions traded on or subject to the rules of any board 
of trade or of any electronic trading facility with re-
spect to a significant price discovery contract, as a 
means to deter and prevent price manipulation or 
any other disruption to market integrity or to dimin-
ish, eliminate, or prevent excessive speculation as de-
scribed in section 4a of such Act for physical-based 
agricultural or energy commodities; and 
(2) to determine the efficacy, practicality, and 
consequences of establishing aggregate position limits 
for similar agreements, contracts, or transactions for 
physical-based agricultural or energy commodities 
traded— 
(A) on designated contract markets; 
(B) on derivatives transaction execution fa-
cilities; and 
(C) in reliance on such section 2(g) or 2(h) 
and of any exemption issued by the Commission 
by rule, regulation or order. 
(b) PUBLIC HEARINGS.—The Commission shall pro-
vide for not less than 2 public hearings to take testimony, 
on the record, as part of the fact- gathering process in prep-
aration of the report. 
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(c) REPORT AND RECOMMENDATIONS.—Not less than 
12 months after the date of the enactment of this section, 
the Commission shall provide to the Committee on Agri-
culture of the House of Representatives and the Committee 
on Agriculture, Nutrition, and Forestry of the Senate a re-
port that— 
(1) describes the results of the study; and 
(2) provides recommendations on any actions 
necessary to deter and prevent price manipulation or 
any other disruption to market integrity or to dimin-
ish, eliminate, or prevent excessive speculation as de-
scribed in section 4a of the Commodity Exchange Act 
for physical-based commodities, including— 
(A) any additional statutory authority that 
the Commission determines to be necessary to 
implement the recommendations; and 
(B) a description of the resources that the 
Commission considers to be necessary to imple-
ment the recommendations. 
SEC. 10. STUDY RELATING TO INTERNATIONAL REGULA-
TION OF ENERGY COMMODITY MARKETS. 
(a) IN GENERAL.—The Comptroller General of the 
United States shall conduct a study of the international re-
gime for regulating the trading of energy commodity futures 
and derivatives. 
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(b) ANALYSIS.—The study shall include an analysis 
of, at a minimum— 
(1) key common features and differences among 
countries in the regulation of energy commodity trad-
ing, including with respect to market oversight and 
enforcement standards and activities; 
(2) variations among countries with respect to 
the use of position limits, position accountability lev-
els, or other thresholds to detect and prevent price ma-
nipulation, excessive speculation as described in sec-
tion 4a of the Commodity Exchange Act, or other un-
fair trading practices; 
(3) variations in practices regarding the dif-
ferentiation of commercial and noncommercial trad-
ing; 
(4) agreements and practices for sharing market 
and trading data among futures authorities and be-
tween futures authorities and the entities that the fu-
tures authorities oversee; and 
(5) agreements and practices for facilitating 
international cooperation on market oversight, com-
pliance, and enforcement. 
(c) REPORT.—Not later than 1 year after the date of 
the enactment of this Act, the Comptroller General shall 
submit to the Committee on Agriculture of the House of 
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Representatives and the Committee on Agriculture, Nutri-
tion, and Forestry of the Senate a report that— 
(1) describes the results of the study; 
(2) addresses whether there is excessive specula-
tion, and if so, the effects of any such speculation and 
energy price volatility on energy futures; and 
(3) provides recommendations to improve open-
ness, transparency, and other necessary elements of a 
properly functioning market in a manner that pro-
tects consumers in the United States. 
SEC. 11. OVER-THE-COUNTER AUTHORITY. 
(a) IN GENERAL.—Section 2 of the Commodity Ex-
change Act (7 U.S.C. 2) is amended by adding at the end 
the following: 
‘‘(j) OVER-THE-COUNTER AUTHORITY.— 
‘‘(1) Notwithstanding subsections (d), (g), (h)(1), 
and (h)(3) of section 2, and any exemption issued by 
the Commission by rule, regulation, or order, the 
Commission shall assess and issue a finding on 
whether agreements, contracts, or transactions entered 
into in reliance on subsection (d), (g), (h)(1), or 
(h)(3) of section 2 or any other exemption issued by 
the Commission by rule, regulation, or order, that are 
fungible (as defined by the Commission) with agree-
ments, contracts, or transactions traded on or subject 
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to the rules of any board of trade or electronic trading 
facility with respect to a significant price discovery 
contract, alone or in conjunction with other similar 
agreements, contracts, or transactions, have the poten-
tial to— 
‘‘(A) disrupt the liquidity or price discovery 
function on a registered entity; 
‘‘(B) cause a severe market disturbance in 
the underlying cash or futures market; or 
‘‘(C) prevent or otherwise impair the price 
of a contract listed for trading on a registered 
entity from reflecting the forces of supply and 
demand in any market. 
‘‘(2) If the Commission makes a finding pursu-
ant to paragraph (1) of this subsection, the Commis-
sion may, in its discretion, utilize its authority under 
section 8a(9) to impose position limits (including, as 
appropriate and in its discretion, related hedge ex-
emption provisions for bona fide hedging comparable 
to bona fide hedge provisions of section 4a(c)(2)) on 
agreements, contracts, or transactions involved, and 
take corrective actions to enforce the limits.’’. 
(b) CONFORMING AMENDMENTS.— 
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(1) Section 2(d)(1) of such Act (7 U.S.C. 
2(d)(1)) is amended by inserting ‘‘subsection (j) of 
this section, and’’ after ‘‘(other than’’. 
(2) Section 2(d)(2) of such Act (7 U.S.C. 
2(d)(2)) is amended by inserting ‘‘subsection (j) of 
this section, and’’ after ‘‘(other than’’. 
(3) Section 2(g) of such Act (7 U.S.C. 2(g)) is 
amended by inserting ‘‘subsection (j) of this section, 
and’’ after ‘‘(other than’’. 
(4) Section 2(h)(2)(A) of such Act (7 U.S.C. 
2(h)(2)(A)), as amended by section 5(c)(4) of this Act, 
is amended by inserting ‘‘subsection (j) of this section 
and’’ before ‘‘sections’’. 
(5) Section 2(h)(4)(A) of such Act (7 U.S.C. 
2(h)(4)(A)), as amended by section 5(c)(5) of this Act, 
is amended by inserting ‘‘subsection (j) of this section 
and’’ before ‘‘sections’’. 
(6) Section 8a(9) of such Act (7 U.S.C. 
12a(a)(9)) is amended— 
(A) 
by 
striking 
‘‘(9)’’ 
and 
inserting 
‘‘(9)(A)’’; and 
(B) by striking ‘‘action.’’ and inserting ‘‘ac-
tion; and (B) to direct any person to abide by 
any position limits to agreements, contracts, or 
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transactions subject to section 2(j)(1) that are 
imposed pursuant to section 2(j)(2).’’. 
SEC. 12. EXPEDITED PROCESS. 
The Commodity Futures Trading Commission may 
use emergency and expedited procedures (including any ad-
ministrative or other procedure as appropriate) to carry 
out this Act if, in its discretion, it deems it necessary to 
do so. 
SEC. 13. CERTAIN EXCLUSIONS AND EXEMPTIONS AVAIL-
ABLE ONLY FOR CERTAIN TRANSACTIONS 
SETTLED 
AND 
CLEARED 
THROUGH 
REG-
ISTERED DERIVATIVES CLEARING ORGANIZA-
TIONS. 
(a) IN GENERAL.— 
(1) EXCLUSION OF CERTAIN DERIVATIVE TRANS-
ACTIONS.— 
(A) Section 2(d)(1) of the Commodity Ex-
change Act (7 U.S.C. 2(d)(1)) is amended— 
(i) by striking ‘‘and’’ at the end of sub-
paragraph (A); 
(ii) by striking the period at the end of 
subparagraph (B) and inserting ‘‘; and’’; 
and 
(iii) by adding at the end the fol-
lowing: 
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‘‘(C) except as provided in section 4(h), the 
agreement, contract, or transaction is settled and 
cleared through a derivatives clearing organiza-
tion registered with the Commission.’’. 
(B) Section 2(d)(2) of such Act (7 U.S.C. 
2(d)(2)) is amended— 
(i) by striking ‘‘and’’ at the end of sub-
paragraph (B); 
(ii) by striking the period at the end of 
subparagraph (C) and inserting ‘‘; and’’; 
and 
(iii) by adding at the end the fol-
lowing: 
‘‘(D) except as provided in section 4(h), the 
agreement, contract, or transaction is settled and 
cleared through a derivatives clearing organiza-
tion registered with the Commission.’’. 
(2) EXCLUSION
FOR
CERTAIN
SWAP
TRANS-
ACTIONS.—Section 2(g) of such Act (7 U.S.C. 2(g)) is 
amended— 
(A) by striking ‘‘and’’ at the end of para-
graph (2); 
(B) by striking the period at the end of 
paragraph (3) and inserting ‘‘; and’’; and 
(C) by adding at the end the following: 
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‘‘(4) except as provided in section 4(h), settled 
and cleared through a derivatives clearing organiza-
tion registered with the Commission.’’. 
(3) EXEMPTION FOR CERTAIN TRANSACTIONS IN 
EXEMPT COMMODITIES.— 
(A) Section 2(h)(1) of such Act ( 7 U.S.C. 
2(h)(1)) is amended— 
(i) by striking ‘‘and’’ at the end of sub-
paragraph (A); 
(ii) by striking the period at the end of 
subparagraph (B) and inserting ‘‘; and’’; 
and 
(iii) by adding at the end the fol-
lowing: 
‘‘(C) except as provided in section 4(h), is 
settled and cleared through a derivatives clearing 
organization registered with the Commission.’’. 
(B) Section 2(h)(3) of such Act (7 U.S.C. 
2(h)(3)) is amended— 
(i) by striking ‘‘and’’ at the end of sub-
paragraph (A); 
(ii) by striking the period at the end of 
subparagraph (B) and inserting ‘‘; and’’; 
and 
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