‘‘(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 po-
sitions in fungible agreements, contracts, or trans-
actions that a person can hold in other markets. 
‘‘(4)(A) Not later than 150 days after the date of 
the enactment of this paragraph, and annually thereafter, 
the Commission shall hold 2 public hearings, 1 for agri-
culture commodities and 1 for energy commodities as such 
terms are defined by the Commission, in order to receive 
recommendations regarding the position limits to be estab-
lished 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 derivatives 
transaction execution facility upon which a contract in the 
commodity for future delivery is traded, and each elec-
tronic trading facility that has a significant price discovery 
contract in the commodity.’’; 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 contracts of sale for future 
delivery and options on such contracts or commodities, the 
Commission shall define what constitutes a bona fide 
hedging transaction or position as a transaction or posi-
tion that— 
‘‘(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 chan-
nel; 
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‘‘(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 
anticipates 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 re-
sulting from a transaction that— 
‘‘(i) was executed pursuant to subsection 
(d), (g), (h)(1), or (h)(2) of section 2, or an ex-
emption issued by the Commission by rule, reg-
ulation or order; and 
‘‘(ii)(I) 
was 
executed 
opposite 
a 
counterparty for which the transaction would 
qualify as a bona fide hedging transaction pur-
suant to subparagraph (A); or 
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‘‘(II) meets the requirements of subpara-
graph (A).’’. 
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 num-
ber of full-time employees (in addition to the 
employees employed by the Commission as of 
the date of the enactment of this subpara-
graph)— 
‘‘(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 
clearing of contracts, agreements, and 
transactions; and 
‘‘(iv) to carry out the provisions of the 
Derivatives Markets Transparency and Ac-
countability Act of 2009 and such other 
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duties as are prescribed by the Commis-
sion.’’. 
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, 
orders, other actions taken by or on behalf of the Commis-
sion, and any action taken pursuant to the Commodity 
Exchange Act by an exchange, self-regulatory organiza-
tion, or any other registered entity, that are currently in 
effect, to ensure that such prior actions are in compliance 
with the provisions 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 
position, other than bona fide hedge positions, that 
may be held by any person with respect to agree-
ments, contracts, or transactions involving an agri-
cultural or energy commodity, conducted in reliance 
on sections 2(g) and 2(h) of the Commodity Ex-
change Act and of any exemption issued by the 
Commission by rule, regulation or order, that are 
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fungible (as defined by the Commission) with agree-
ments, contracts, or transactions traded on or sub-
ject to the rules of any board of trade or of any elec-
tronic trading facility with respect to a significant 
price discovery contract, as a means to deter and 
prevent price manipulation or any other disruption 
to market integrity or to diminish, eliminate, or pre-
vent excessive speculation as described 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 lim-
its for similar agreements, contracts, or transactions 
for physical-based agricultural or energy commod-
ities traded— 
(A) on designated contract markets; 
(B) on derivatives transaction execution fa-
cilities; and 
(C) in reliance on such sections 2(g) and 
2(h) and of any exemption issued by the Com-
mission 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 
preparation 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 Agriculture of the House of Representatives and the 
Committee on Agriculture, Nutrition, and Forestry of the 
Senate a report 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 
regime for regulating the trading of energy commodity fu-
tures 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 
trading, 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 
manipulation, excessive speculation as described in 
section 4a of the Commodity Exchange Act, or other 
unfair trading practices; 
(3) variations in practices regarding the dif-
ferentiation of commercial and noncommercial trad-
ing; 
(4) agreements and practices for sharing mar-
ket and trading data among futures authorities and 
between futures authorities and the entities that the 
futures 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 specu-
lation, 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 find-
ing on whether agreements, contracts, or trans-
actions entered into in reliance on subsection (d), 
(g), (h)(1), or (h)(3) of section 2 or any other ex-
emption issued by the Commission by rule, regula-
tion, or order, that are fungible (as defined by the 
Commission) with agreements, contracts, or trans-
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actions traded on or subject to the rules of any 
board of trade or electronic trading facility with re-
spect to a significant price discovery contract, alone 
or in conjunction with other similar agreements, con-
tracts, or transactions, have the potential to— 
‘‘(A) disrupt the liquidity or price dis-
covery 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)(3) 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)(4) 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 by inserting after ‘‘of the 
Commission’s action’’ the following: ‘‘, and to fix 
and enforce position limits to agreements, contracts, 
or transactions subject to section 2(j)(1) pursuant to 
a finding made under section 2(j)(2)’’. 
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and cleared through a derivatives clearing orga-
nization 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 
subparagraph (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 set-
tled and cleared through a derivatives clearing 
organization 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 
subparagraph (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 clear-
ing organization registered with the Commis-
sion.’’. 
(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 
subparagraph (A); 
(ii) by striking the period at the end 
of subparagraph (B) and inserting ‘‘; 
and’’; and 
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(iii) by adding at the end the fol-
lowing: 
‘‘(C) except as provided in section 4(h), 
settled and cleared through a derivatives clear-
ing organization registered with the Commis-
sion.’’. 
(4) GENERAL
EXEMPTIVE
AUTHORITY.—Sec-
tion 4(c)(1) of such Act (7 U.S.C. 6(c)(1)) is 
amended by inserting ‘‘the agreement, contract, or 
transaction, except as provided in section 4(h), will 
be settled and cleared through a derivatives clearing 
organization registered with the Commission and’’ 
before ‘‘the Commission determines’’. 
(b) ALTERNATIVES TO CLEARING THROUGH DERIVA-
TIVES CLEARING ORGANIZATIONS.—Section 4 of such Act 
(7 U.S.C. 6), as amended by sections 3 and 4 of this Act, 
is amended by adding at the end the following: 
‘‘(h) ALTERNATIVES TO CLEARING THROUGH DE-
RIVATIVES CLEARING ORGANIZATIONS.— 
‘‘(1) SETTLEMENT
AND
CLEARING
THROUGH 
CERTAIN OTHER REGULATED ENTITIES.—An agree-
ment, contract, or transaction, or class thereof, re-
lating to an excluded commodity, that would other-
wise be required to be settled and cleared by section 
2(d)(1)(C), 2(d)(2)(D), 2(g)(4), 2(h)(1)(C), or 
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2(h)(3)(C) of this Act, or subsection (c)(1) of this 
section may be settled and cleared through an entity 
listed in section 409(b) of the Federal Deposit In-
surance Corporation Improvement Act of 1991. 
‘‘(2) REPORTING ALTERNATIVE.— 
‘‘(A) An agreement, contract, or trans-
action, or class thereof, that would otherwise be 
required to be settled and cleared by section 
2(d)(1)(C), 2(d)(2)(D), 2(g)(4), 2(h)(1)(C), or 
2(h)(3)(C) of this Act, or subsection (c)(1) of 
this section shall be exempt from the require-
ment if reported to the Commission in a man-
ner designated by the Commission, or to such 
other entity as the Commission deems appro-
priate. 
‘‘(B) Parties entering into an agreement, 
contract, or transaction, or class thereof re-
ported pursuant to subparagraph (A) shall 
demonstrate the financial integrity of the agree-
ment, contract, or transaction and their own fi-
nancial integrity, as such terms and standards 
are determined by the Commission. 
‘‘(C) The standards established pursuant 
to subparagraph (B) shall include a net capital 
requirement that is comparable to the net cap-
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ital requirement that would be associated with 
such a transaction were it cleared. 
‘‘(i) SPOT AND FORWARD EXCLUSION.—The settle-
ment and clearing requirements of section 2(d)(1)(C), 
2(d)(2)(D), 2(g)(4), 2(h)(1)(C), 2(h)(3)(C), or 4(c)(1) 
shall not apply to an agreement, contract, or transaction 
of any cash commodity for immediate or deferred ship-
ment or delivery, as defined by the Commission.’’. 
(c) ADDITIONAL REQUIREMENTS APPLICABLE
TO 
APPLICANTS
FOR REGISTRATION
AS
A DERIVATIVES 
CLEARING ORGANIZATION.—Section 5b(c)(2) of such Act 
(7 U.S.C. 7a–1(c)(2)) is amended by adding at the end 
the following: 
‘‘(O) DISCLOSURE OF GENERAL INFORMA-
TION.—The applicant shall disclose publicly and 
to the Commission information concerning— 
‘‘(i) the terms and conditions of con-
tracts, 
agreements, 
and 
transactions 
cleared and settled by the applicant; 
‘‘(ii) the conventions, mechanisms, 
and practices applicable to the contracts, 
agreements, and transactions; 
‘‘(iii) the margin-setting methodology 
and the size and composition of the finan-
cial resource package of the applicant; and 
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‘‘(iv) other information relevant to 
participation in the settlement and clearing 
activities of the applicant. 
‘‘(P) DAILY PUBLICATION OF TRADING IN-
FORMATION.—The applicant shall make public 
daily information on settlement prices, volume, 
and open interest for contracts settled or 
cleared pursuant to the requirements of 
2(d)(1)(C), 2(d)(2)(D), 2(g)(4), 2(h)(1)(C), 
2(h)(3)(C) or 4(c)(1) of this Act by the appli-
cant if the Commission determines that the 
contracts perform a significant price discovery 
function for transactions in the cash market for 
the commodity underlying the contracts. 
‘‘(Q) FITNESS STANDARDS.—The applicant 
shall establish and enforce appropriate fitness 
standards for directors, members of any dis-
ciplinary committee, and members of the appli-
cant, and any other persons with direct access 
to the settlement or clearing activities of the 
applicant, including any parties affiliated with 
any of the persons described in this subpara-
graph.’’. 
(d) AMENDMENTS.— 
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(1) Section 409 of the Federal Deposit Insur-
ance Corporation Improvement Act of 1991 (12 
U.S.C. 4422) is amended— 
(A) in subsection (a), by inserting after 
‘‘Federal Reserve Act’’ the following: ‘‘, and the 
person is registered as a clearing agency under 
the Securities Exchange Act of 1934 or as a de-
rivatives clearing organization under the Com-
modity Exchange Act’’; and 
(B) in subsection (b)(3), by striking ‘‘the 
Comptroller of the Currency, the Board of Gov-
ernors of the Federal Reserve System, the Fed-
eral Deposit Insurance Corporation’’. 
(2) Section 407 of the Legal Certainty for 
Bank Products Act of 2000 (7 U.S.C. 27e) is 
amended by inserting ‘‘and the settlement and clear-
ing requirements of sections 2(d)(1)(C), 2(d)(2)(D), 
2(g)(4), 2(h)(1)(C), 2(h)(3)(C), and 4(c)(1) of such 
Act’’ after ‘‘the clearing of covered swap agree-
ments’’. 
(3) Section 10 of the Federal Reserve Act is 
amended by adding at the end the following new 
provision: 
‘‘The Board shall have no power to issue any rule, regula-
tion, or order, or otherwise to establish the standards of 
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regulation of any entity in its capacity as a multilateral 
clearing organization as defined in section 408 of the Fed-
eral Deposit Insurance Corporation Improvement Act of 
1991.’’. 
(4) Section 5b(b) of the Commodity Exchange 
Act (7 U.S.C. 7a–1(b)) is amended— 
(A) by striking ‘‘(b) VOLUNTARY REG-
ISTRATION.—A derivatives clearing organiza-
tion’’ and inserting the following: 
‘‘(b) VOLUNTARY REGISTRATION.— 
‘‘(1) A derivatives clearing organization’’; and. 
(B) by adding at the end the following: 
‘‘(2)(A) A national bank, a State member bank, 
an insured State nonmember bank, an affiliate of a 
national bank, a State member bank, an insured 
State nonmember bank, or a corporation chartered 
under section 25A of the Federal Reserve Act may 
register with the Commission as a derivatives clear-
ing organization. 
‘‘(B) The Commission shall expedite the appli-
cation of any institution referred to in subparagraph 
(A) to the extent that, as of the date of enactment 
of this paragraph, the institution had received the 
approval of the Board of Governors of the Federal 
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Reserve System to act as a multilateral clearing or-
ganization.’’. 
(e) EFFECTIVE DATE.—The amendments made by 
this section shall take effect 150 days after the date of 
the enactment of this Act. 
(f) TRANSITION RULE.—Any agreement, contract, or 
transaction entered into before the date of the enactment 
of this Act or within 150 days after such date of enact-
ment, in reliance on subsection (d), (g), (h)(1), or (h)(3) 
of section 2 of the Commodity Exchange Act or any other 
exemption issued by the Commission Futures Trading 
Commission by rule, regulation, or order shall, within 150 
days after such date of enactment, unless settled and 
cleared through an entity registered with the Commission 
as a derivatives clearing organization or another clearing 
entity pursuant to section 4(h) of such Act, be reported 
to the Commission in a manner designated by the Com-
mission, or to such other entity as the Commission deems 
appropriate. 
SEC. 14. TREATMENT OF EMISSION ALLOWANCES AND OFF-
SET CREDITS. 
(a) Section 1a(14) of the Commodity Exchange Act 
(7 U.S.C. 1a(14)) is amended by striking ‘‘or an agricul-
tural commodity’’ and inserting ‘‘, an agricultural com-
modity, any allowance authorized under law to emit a 
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greenhouse gas, and any credit authorized under law to-
ward the reduction in greenhouse gas emissions or an in-
crease in carbon sequestration’’. 
(b) Within 180 days after the date of the enactment 
of this section, the Commodity Futures Trading Commis-
sion shall enter into a memorandum of understanding with 
the Secretary of Agriculture which shall include provi-
sions, consistent with section 1245 of the Food Security 
Act of 1985, ensuring that the development of any proce-
dures and protocols for a market-based greenhouse gas 
program are properly constructed and coordinated to 
maximize credits for carbon sequestration. 
SEC. 15. INSPECTOR GENERAL OF THE COMMODITY FU-
TURES TRADING COMMISSION. 
(a) ELEVATION OF OFFICE.— 
(1) INCLUSION OF CFTC IN DEFINITION OF ES-
TABLISHMENT.— 
(A) Section 11(1) of the Inspector General 
Act of 1978 (5 U.S.C. App.) is amended by 
striking ‘‘or the Federal Cochairpersons of the 
Commissions established under section 15301 
of title 40, United States Code;’’ and inserting 
‘‘the Federal Cochairpersons of the Commis-
sions established under section 15301 of title 
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40, United States Code; or the Chairman of the 
Commodity Futures Trading Commission;’’. 
(B) Section 11(2) of the Inspector General 
Act of 1978 (5 U.S.C. App.) is amended by 
striking ‘‘or the Commissions established under 
section 15301 of title 40, United States Code,’’ 
and inserting ‘‘the Commissions established 
under section 15301 of title 40, United States 
Code, or the Commodity Futures Trading Com-
mission,’’. 
(2) EXCLUSION OF CFTC FROM DEFINITION OF 
DESIGNATED
FEDERAL
ENTITY.—Section 8G(a)(2) 
of the Inspector General Act of 1978 (5 U.S.C. 
App.) is amended by striking ‘‘the Commodity Fu-
tures Trading Commission,’’. 
(b) EFFECTIVE DATE; TRANSITION RULE.— 
(1) EFFECTIVE DATE.—The amendments made 
by this section shall take effect 30 days after the 
date of the enactment of this Act. 
(2) TRANSITION RULE.—An individual serving 
as Inspector General of the Commodity Futures 
Trading Commission on the effective date of this 
section pursuant to an appointment made under sec-
tion 8G of the Inspector General Act of 1978 (5 
U.S.C. App.)— 
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(A) may continue so serving until the 
President makes an appointment under section 
3(a) of such Act consistent with the amend-
ments made by this section; and 
(B) shall, while serving under subpara-
graph (A), remain subject to the provisions of 
section 8G of such Act which apply with respect 
to the Commodity Futures Trading Commis-
sion. 
SEC. 16. AUTHORITY OF COMMODITY FUTURES TRADING 
COMMISSION 
TO 
SUSPEND 
TRADING 
IN 
CREDIT DEFAULT SWAPS. 
(a) IN GENERAL.—Section 4c of the Commodity Ex-
change Act (7 U.S.C. 6c) is amended by adding at the 
end the following: 
‘‘(h) AUTHORITY
OF COMMISSION TO SUSPEND 
TRADING OF CREDIT DEFAULT SWAPS.— 
‘‘(1) IN GENERAL.—If, in the opinion of the 
Commission, the public interest and the protection 
of investors so require, the Commission may, by 
order— 
‘‘(A) summarily suspend trading in any 
credit default swap; and 
‘‘(B) summarily suspend all trading on any 
contract market, derivatives transaction execu-
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tion facility, or otherwise, in credit default 
swaps. 
‘‘(2) LIMITATION.—An action described in 
paragraph (1) shall not take effect unless the Com-
mission notifies the President of its decision, and the 
President notifies the Commission that the President 
does not disapprove of the decision.’’. 
(b) DEFINITION OF CREDIT DEFAULT SWAP.—Sec-
tion 1a of such Act (7 U.S.C. 1a) is amended by adding 
at the end the following: 
‘‘(34) CREDIT
DEFAULT
SWAP.—The term 
‘credit default swap’ means a contract which insures 
a party to the contract against the risk that an enti-
ty may experience a loss of value as a result of an 
event specified in the contract, such as a default or 
credit downgrade. A credit default swap that is trad-
ed on or cleared by a registered entity shall be ex-
cluded from the definition of a security as defined in 
this Act and in section 2(a)(1) of the Securities Act 
of 1933 or section 3(a)(10) of the Securities Ex-
change Act of 1934, except as necessary solely for 
purposes of enforcing prohibitions against insider 
trading in sections 10 and 16 of the Securities Ex-
change Act of 1934.’’. 
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(c) EFFECTIVE DATE.—The amendment made by 
subsection (b) shall be effective for credit default swaps 
entered into after 90 days after the date of the enactment 
of this section. 
SEC. 17. AUTHORITY OF COMMODITY FUTURES TRADING 
COMMISSION TO PROSECUTE CRIMINAL VIO-
LATIONS OF THE COMMODITY EXCHANGE 
ACT. 
Section 9 of the Commodity Exchange Act (7 U.S.C. 
13) is amended by adding at the end the following: 
‘‘(f) Notwithstanding section 516 of title 28, United 
States Code, the Commission may initiate and conduct 
criminal litigation relating to a violation of this Act, and 
secure evidence therefor, if the Attorney General has de-
clined to do so.’’. 
Æ 
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