Each Commissioner shall be selected solely on the basis
of integrity and demonstrated knowledge of the operations
of the markets subject to the jurisdiction of the Commis-
sion.
(b) TERMS.—Each commissioner shall be appointed
for a term of 5 years, except that—
(1) a commissioner may continue to serve after
the expiration of such term until a successor is ap-
pointed and has qualified, but may not continue to
so serve beyond the expiration of the next session of
Congress beginning after the expiration of such
term;
(2) the terms of office of the commissioners
first taking office after the enactment of this Act
shall expire, as designated by the President at the
time of their appointment—
(A) 1 at the end of 1 year;
(B) 2 at the end of 3 years; and
(C) 2 at the end of 5 years; and
(3) any member appointed to fill a vacancy oc-
curring prior to the expiration of the term for which
the predecessor was appointed shall be appointed for
the remainder of such term.
(c) CONFLICTS OF INTEREST.—
(1) IN GENERAL.—No commissioner shall en-
gage in any other business, vocation, or employment
than that of serving as commissioner, nor shall any
commissioner participate, directly or indirectly, in
any market operations or transactions of a character
subject to regulation by the Commission pursuant to
this title.
(2) REIMBURSEMENT FOR TRAVEL.—Notwith-
standing any other provision of law, in accordance
with regulations which the Commission shall pre-
scribe to prevent conflicts of interest, the Commis-
sion may accept payment and reimbursement, in
cash or in kind, from non-Federal agencies, organi-
zations, and individuals for travel, subsistence, and
other necessary expenses incurred by Commission
members and employees in attending meetings and
conferences concerning the functions or activities of
the Commission. Any payment or reimbursement ac-
cepted shall be credited to the appropriated funds of
the Commission. The amount of travel, subsistence,
and other necessary expenses for members and em-
ployees paid or reimbursed under this subsection
may exceed per diem amounts established in official
travel regulations, but the Commission may include
in its regulations under this subsection a limitation
on such amounts.
(3) 
PROFESSIONAL
FELLOWS.—Notwith-
standing any other provision of law, former employ-
ers of participants in the Commission’s professional
fellows programs may pay such participants their ac-
tual expenses for relocation to Washington, District
of Columbia, to facilitate their participation in such
programs, and program participants may accept
such payments.
(d) FEES.—Notwithstanding any other provision of
law, whenever any fee is required to be paid to the Com-
mission pursuant to any provision of the securities laws
or any other law, the Commission may provide by rule that
such fee shall be paid in a manner other than in cash.
SEC. 103. ORGANIZATION OF COMMISSION.
The Commission shall establish the principal divi-
sions and subdivisions of the Commission, except that the
Commission shall establish a separate division with re-
sponsibility for functions relating to markets in physical
commodities.
SEC. 104. GENERAL COUNSEL.
There shall be in the Commission an Office of Gen-
eral Counsel, headed by a General Counsel appointed by
the President, by and with the advice and consent of the
Senate.
TITLE II—TRANSFERS OF
FUNCTIONS
SEC. 201. COMMODITY FUTURES TRADING COMMISSION
FUNCTIONS.
There are transferred to the Commission all functions
of the Commodity Futures Trading Commission and of
any officer or component of the Commodity Futures Trad-
ing Commission.
SEC. 202. SECURITIES AND EXCHANGE COMMISSION.
There are transferred to the Commission all functions
of the Security and Exchange Commission and of any offi-
cer or component of the Securities and Exchange Commis-
sion.
SEC. 203. JURISDICTION OF MARGIN AUTHORITY.
(a) MARGIN AUTHORITY WITH RESPECT TO SECURI-
TIES.—There is transferred to the Commission the func-
tions of the Board of Governors of the Federal Reserve
System under section 7 of the Securities Exchange Act
of 1934.
(b) MARGIN AUTHORITY WITH RESPECT TO FU-
TURES.—Notwithstanding section 5a(12) of the Com-
modity Exchange Act, the Commission may—
(1) by order, direct contract markets to adjust
the level of margin required on any contract; or
(2) by regulation, prescribe limits on the level
of margin that a contract market may require on
any class or category of contract;
as necessary to ensure the financial integrity of such mar-
ket.
TITLE III—FEDERAL FINANCIAL
MARKETS 
COORDINATING
COUNCIL
SEC. 301. ESTABLISHMENT; MEMBERSHIP.
(a) ESTABLISHMENT.—There is established in the ex-
ecutive branch a council to be known as the Federal Fi-
nancial Markets Coordinating Council.
(b) MEMBERSHIP.—The Council shall be composed of
the heads of the following agencies or their designees for
this purpose:
(1) The Board of Governors of the Federal Re-
serve System.
(2) The Comptroller of the Currency.
(3) The Department of the Treasury.
(4) The Securities and Derivatives Oversight
Commission.
(5) The National Credit Union Administration.
(6) The Office of Thrift Supervision.
(7) The Federal Deposit Insurance Corporation.
(c) CHAIRMAN.—The Council shall elect one of its
members to serve as chairman.
SEC. 302. FUNCTIONS OF THE COUNCIL.
The Federal Financial Markets Coordinating Council
shall—
(1) serve as a facility for the coordination of
the regulatory operations of each of the agencies
represented on the Council;
(2) meet bimonthly and at the call of the chair
to discuss issues relating to the safety and effective-
ness of the financial services industry and other
issues relating to those regulatory operations;
(3) establish an advisory committee of not more
than 5 members representative of the futures, com-
modities, options, and securities exchanges and the
banking industry to meet no less than 4 times annu-
ally; and
(4) report biennially to the Congress on its
functions and activities, including in the first such
report such recommendations for legislative action
as it considers appropriate.
SEC. 303. STAFF; ADMINISTRATIVE SUPPORT; EXPENSES.
(a) STAFF; ADMINISTRATIVE SUPPORT.—The Com-
mission and each agency represented on the Council shall
provide to the Council such personnel and administrative
support as the Council may require to carry out its func-
tions under this title.
(b) EXPENSES.—There are authorized to be appro-
priated such sums as may be necessary for the expenses
of the Commission in carrying out this title. Funds appro-
priated under this subsection may be available to reim-
burse agencies for personnel detailed to the Council and
for administrative support provided under subsection (a).
TITLE IV—ADMINISTRATIVE
PROVISIONS
PART A—PERSONNEL PROVISIONS
SEC. 401. OFFICERS AND EMPLOYEES.
(a) APPOINTMENT AND COMPENSATION.—The Com-
mission is authorized to appoint and fix the compensation
of such officers and employees, including attorneys, as
may be necessary to carry out the functions of the Com-
mission. Except as otherwise provided by law, such officers
and employees shall be appointed in accordance with the
civil service laws and their compensation fixed in accord-
ance with title 5 of the United States Code.
(b) SPECIAL PROVISIONS.—
(1) CONTINUITY OF SUPERGRADE POSITIONS.—
At the request of the Commission, the Director of
the Office of Personnel Management shall, under
section 5108 of title 5, United States Code, provide
for the establishment in each of the grade levels GS–
16, GS–17, and GS–18 of a number of positions in
the Commission equal to the number of positions in
that grade level which were used primarily for the
performance of functions and offices transferred
under this Act and which were assigned and filled on
the day before the effective date of this Act.
(2) CONTINUITY OF PROFESSIONAL AND TECH-
NICAL POSITIONS.—At the request of the Commis-
sion, the Director of the Office of Personnel Man-
agement shall, under section 3104 of title 5, United
States Code, provide for the establishment in the
Commission of a number of professional and tech-
nical positions outside of the General Schedule equal
to the number of such positions which were used pri-
marily for the performance of functions and offices
transferred under this Act and which were assigned
and filled on the day before the effective date of this
Act.
(3) APPOINTMENTS TO SPECIAL POSITIONS.—
Appointments to positions provided for under this
subsection may be made without regard to the provi-
sions of section 3324 of title 5 of the United States
Code, if the individual appointed in such position is
an individual who is transferred in connection with
the transfer of functions and offices under this Act
and, on the day preceding the effective date of this
Act, holds a position and has duties comparable to
those of the position to which appointed hereunder.
(4) TERMINATION OF SPECIAL AUTHORITY.—
The authority under this subsection with respect to
any position shall terminate when the person first
appointed to fill such position ceases to hold such
position.
(5) TECHNICAL PROVISION.—For purposes of
section 414(a)(3)(A) of the Civil Service Reform Act
of 1978, an individual appointed under this sub-
section shall be deemed to occupy the same position
as the individual occupied on the day preceding the
effective date of this Act.
(c) ADDITIONAL TECHNICAL
AND PROFESSIONAL
POSITIONS.—The Commission may appoint, without re-
gard to the provisions of title 5, United States Code, gov-
erning appointment in the competitive service, up to 100
technical or professional employees of the Commission and
may compensate employees so appointed without regard
to the provisions of chapter 51 and subchapter III of chap-
ter 53 of such title relating to classification and General
Schedule pay rates. The rate of basic compensation for
such employees shall not be equal to or in excess of the
minimum rate of pay currently paid for GS–16 of the Gen-
eral Schedule under section 5332 of such title.
(d) LIMITED-TERM APPOINTEES.—Notwithstanding
any other provision of law, the Director of the Office of
Personnel Management shall establish positions within the
Senior Executive Service for 10 limited-term appointees.
The Commission shall appoint individuals to such posi-
tions as provided by section 3394 of title 5, United States
Code. Such positions shall expire on the later of three
years after the effective date of this Act or three years
after the initial appointment to each position. Positions
in effect under this subsection shall be taken into account
in applying the limitations on positions prescribed under
section 3134(e) and section 5108 of such title.
SEC. 402. EXPERTS AND CONSULTANTS.
The Commission may as provided in appropriation
Acts obtain the services of experts and consultants in ac-
cordance with the provisions of section 3109 of title 5,
United States Code, and may compensate such experts
and consultants at rates not to exceed the daily rate pre-
scribed for GS–18 of the General Schedule under section
5332 of such title.
PART B—GENERAL ADMINISTRATIVE
PROVISIONS
SEC. 411. GENERAL AUTHORITY.
In carrying out any function transferred by this Act,
the Commission, or any officer or employee of the Com-
mission, may exercise any authority available by law (in-
cluding appropriation Acts) with respect to such function
to the official or agency from which such function is trans-
ferred, and the actions of the Commission in exercising
such authority shall have the same force and effect as
when exercised by such official or agency.
SEC. 412. DELEGATION.
Exception as otherwise provided in this Act, the Com-
mission may delegate any function to such officers and
employees of the Commission as the Commission may des-
ignate, and may authorize such successive redelegations
of such functions within the Commission as may be nec-
essary or appropriate. No delegation of functions by the
Commission under this section or under any other provi-
sion of this Act shall relieve the Commission of responsi-
bility for the administration of such functions.
SEC. 413. REORGANIZATION.
The Commission is authorized to allocate or reallo-
cate functions among the officers of the Commission, and
to establish, consolidate, alter, or discontinue such organi-
zational entities within the Commission as may be nec-
essary or appropriate.
SEC. 414. RULES.
The Commission is authorized to prescribe such rules
and regulations as the Commission determines necessary
or appropriate to administer and manage the functions of
the Commission.
SEC. 415. CONTRACTS.
(a) IN GENERAL.—Subject to the provisions of the
Federal Property and Administrative Services Act of
1949, the Commission is authorized to make, enter into,
and perform such contracts, grants, leases, cooperative
agreements, or other similar transactions with Federal or
other public agencies (including State and local govern-
ments) and private organizations and persons, and to
make such payments, by way of advance or reimburse-
ment, as the Commission may determine necessary or ap-
propriate to carry out functions of the Commission.
(b) APPROPRIATIONS REQUIRED.—Notwithstanding
any other provision of this Act, no authority to enter into
contracts or to make payments under this title shall be
effective except to such extent or in such amounts as are
provided in advance under appropriation Acts.
SEC. 416. REGIONAL AND FIELD OFFICES.
The Commission is authorized to establish, alter, dis-
continue, or maintain such regional or other field offices
as the Commission may find necessary or appropriate to
perform functions of the Commission.
SEC. 417. USE OF FACILITIES.
(a) USE BY COMMISSION.—With their consent, the
Commission may, with or without reimbursement, use the
research, equipment, services, and facilities of any agency
or instrumentality of the United States, of any State or
political subdivision thereof, or of any foreign government,
in carrying out any function of the Commission.
(b) USE BY OTHERS.—The Commission is authorized
to permit public and private agencies, corporations, asso-
ciations, organizations, or individuals to use any real prop-
erty, or any facilities, structures, or other improvements
thereon, under the custody and control of the Commission
for Commission purposes. The Commission shall permit
the use of such property, facilities, structures, or improve-
ments under such terms and rates and for such period
as may be in the public interest, except that the periods
of such uses may not exceed five years. The Commission
may require permittees under this section to recondition
and maintain, at their own expense, the real property, fa-
cilities, structures, and improvements used by such per-
mittees to a standard satisfactory to the Commission. This
subsection shall not apply to excess property as defined
in section 3(e) of the Federal Property and Administrative
Services Act of 1949.
(c) PROCEEDS FROM REIMBURSEMENTS.—Proceeds
from reimbursements under this section may be credited
to the appropriation of funds that bear or will bear all
or part of the cost of such equipment or facilities provided
or to refund excess sums when necessary.
(d) TITLE TO PROPERTY.—Any interest in real prop-
erty acquired pursuant to this Act shall be acquired in
the name of the United States Government.
SEC. 418. WORKING CAPITAL FUND.
(a) AUTHORITY AND USE.—The Commission, with
the approval of the Director of the Office of Management
and Budget, is authorized to establish for the Commission
a working capital fund, to be available without fiscal year
limitation, for expenses necessary for the maintenance and
operation of such common administrative services as the
Commission shall find to be desirable in the interests of
economy and efficiency, including such services as—
(1) a central supply service for stationery and
other supplies and equipment for which adequate
stocks may be maintained to meet in whole or in
part the requirements of the Commission and its
components;
(2) central messenger, mail, telephone, and
other communications services;
(3) office space, central services for document
reproduction, and for graphics and visual aids; and
(4) a central library service.
(b) CONTENTS AND MANAGEMENT OF FUND.—The
capital of the fund shall consist of any appropriations
made for the purpose of providing working capital and the
fair and reasonable value of such stocks of supplies, equip-
ment, and other assets and inventories on order as the
Commission may transfer to the fund, less the related li-
abilities and unpaid obligations. Such funds shall be reim-
bursed in advance from available funds of agencies and
offices in the Commission, or from other sources, for sup-
plies and services at rates that will approximate the ex-
pense of operation, including the accrual of annual leave
and the depreciation of equipment. The fund shall also be
credited with receipts from sale or exchange of property
and receipts in payment for loss or damage to property
owned by the fund. There shall be covered into the Treas-
ury as miscellaneous receipts any surplus of the fund (all
assets, liabilities, and prior losses considered) above the
amounts transferred or appropriated to establish and
maintain such fund. There shall be transferred to the fund
the stocks of supplies, equipment, other assets, liabilities,
and unpaid obligations relating to the services which the
Commission determines, with the approval of the Director
of the Office of Management and Budget, will be per-
formed.
SEC. 419. FUNDS TRANSFER.
The Commission may, when authorized in an appro-
priation Act in any fiscal year, transfer funds from one
appropriation to another within the Commission, except
that no appropriation for any fiscal year shall be either
increased or decreased pursuant to this section by more
than 5 percent and no such transfer shall result in increas-
ing any such appropriation above the amount authorized
to be appropriated therefor.
SEC. 420. SEAL OF COMMISSION.
The Commission shall cause a seal of office to be
made for the Commission of such design as the Commis-
sion shall approve. Judicial notice shall be taken of such
seal.
SEC. 421. ANNUAL REPORT.
(a) CONTENTS.—The Commission shall, as soon as
practicable after the close of each fiscal year, make a sin-
gle, comprehensive report to the President for trans-
mission to the Congress on the activities of the Commis-
sion during such fiscal year. The report shall include a
statement of goals, priorities, and plans for the Commis-
sion together with an assessment of the progress made
toward—
(1) the attainment of such goals, priorities, and
plans; and
(2) the more effective and efficient management
of the Commission and the coordination of its func-
tions;
accompanied where necessary by recommendations for
proposed legislation for the achievement of such objectives.
(b) CONTRACTING-OUT ESTIMATE.—The report re-
quired by subsection (a) shall also include an estimate of
the extent of the non-Federal personnel employed pursu-
ant to contracts entered into by the Commission under
section 415 or under any other authority (including any
subcontract thereunder), the number of such contracts
and subcontracts pursuant to which non-Federal per-
sonnel are employed, and the total cost of those contracts
and subcontracts.
TITLE 
V—TRANSITIONAL, 
SAV-
INGS, 
AND 
CONFORMING
PROVISIONS
SEC. 501. TRANSFER AND ALLOCATION OF APPROPRIA-
TIONS AND PERSONNEL.
(a) IN GENERAL.—Except as otherwise provided in
this Act, the personnel employed in connection with, and
the assets, liabilities, contracts, property, records, and un-
expended balance of appropriations, authorizations, alloca-
tions, and other funds employed, held, used, arising from,
available to, or to be made available in connection with
the functions and offices, or portions thereof transferred
by this Act, subject to section 202 of the Budget and Ac-
counting Procedures Act of 1950, shall be transferred to
the Commission for appropriate allocation. Unexpended
funds transferred pursuant to this subsection shall be used
only for the purposes for which the funds were originally
authorized and appropriated.
(b) EXCEPTION.—Positions expressly specified by
statute or reorganization plan to carry out functions or
offices transferred by this Act, personnel occupying those
positions on the effective date of this Act, and personnel
authorized to receive compensation in such positions at the
rate prescribed for offices and positions at level IV or V
of the Executive Schedule (5 U.S.C. 5315–5316) on the
effective date of this Act, shall be subject to the provisions
of section 503.
SEC. 502. EFFECT ON PERSONNEL.
(a) PROTECTION AGAINST REDUCTION IN GRADE OR
COMPENSATION.—Except as otherwise provided in this
Act, the transfer pursuant to this title of full-time per-
sonnel (except special Government employees) and part-