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cant price discovery contract’’ after ‘‘facility or
facilities’’; and
(B) in paragraph (2), by inserting ‘‘or elec-
tronic trading facility with respect to a signifi-
cant price discovery contract’’ after ‘‘derivatives
transaction execution facility’’; and
(3) in subsection (e)—
(A) in the first sentence—
(i) by inserting ‘‘or by any electronic
trading facility’’ after ‘‘registered by the
Commission’’;
(ii) by inserting ‘‘or on an electronic
trading facility’’ after ‘‘derivatives trans-
action execution facility’’ the second place it
appears; and
(iii) by inserting ‘‘or electronic trading
facility’’ before ‘‘or such board of trade’’
each place it appears; and
(B) in the second sentence, by inserting ‘‘or
electronic trading facility with respect to a sig-
nificant price discovery contract’’ after ‘‘reg-
istered by the Commission’’.
(h) Section 5a(d) of the Commodity Exchange Act (7
U.S.C. 7a(d)(1)) is amended—
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(1) by redesignating paragraphs (4) through (9)
as paragraphs (5) through (10); and
(2) by inserting after paragraph (3) the fol-
lowing:
‘‘(4) POSITION LIMITS OR ACCOUNTABILITY.—To
reduce the potential threat of market manipulation,
price distortion, and disruption of the delivery or
cash-settled process or congestion, especially during
trading in the delivery month, the derivatives trans-
action execution facility shall adopt position limits or
position accountability for speculators, where nec-
essary and appropriate for a contract, agreement or
transaction with an underlying commodity that has
a physically deliverable supply.’’.
(i) Section 5c(a) of the Commodity Exchange Act (7
U.S.C. 7a–2(a)) is amended in paragraph (1) by inserting
‘‘, and section 2(h)(7) with respect to significant price dis-
covery contracts,’’ after ‘‘, and 5b(d)(2)’’.
(j) Section 5c(b) of the Commodity Exchange Act (7
U.S.C. 7a–2(b)) is amended—
(1) by striking paragraph (1) and inserting fol-
lowing:
‘‘(1) IN GENERAL.—A contract market, deriva-
tives transaction execution facility, or electronic trad-
ing facility with respect to a significant price dis-
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covery contract may comply with any applicable core
principle through delegation of any relevant function
to a registered futures association or a registered enti-
ty that is not an electronic trading facility.’’;
(2) in paragraph (2), by striking ‘‘contract mar-
ket or derivatives transaction execution facility’’ and
inserting ‘‘contract market, derivatives transaction
execution facility, or electronic trading facility’’; and
(3) in paragraph (3), by striking ‘‘contract mar-
ket or derivatives transaction execution facility’’ each
place it appears and inserting ‘‘contract market, de-
rivatives transaction execution facility, or electronic
trading facility’’.
(k) Section 5c(d)(1) of the Commodity Exchange Act
(7 U.S.C. 7a–2(d)(1)) is amended by inserting ‘‘or
2(h)(7)(C) with respect to a significant price discovery con-
tract traded or executed on an electronic trading facility,’’
after ‘‘5b(d)(2)’’.
(l) Section 5e of the Commodity Exchange Act (7
U.S.C. 7b) is amended by inserting ‘‘, or revocation of the
right of an electronic trading facility to rely on the exemp-
tion set forth in section 2(h)(3) with respect to a significant
price discovery contract,’’ after ‘‘revocation of designation
as a registered entity’’ ;
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(m) Section 6(b) of the Commodity Exchange Act (7
U.S.C. 8(b)) is amended by striking the first sentence and
all that follows through ‘‘resubmitted in completed form:
Provided,’’ and inserting the following:
‘‘The Commission is authorized to suspend for a period
not to exceed 6 months or to revoke the designation or reg-
istration of any contract market or derivatives transaction
execution facility, or to revoke the right of an electronic
trading facility to rely on the exemption set forth in section
2(h)(3) with respect to a significant price discovery con-
tract, on a showing that the contract market or derivatives
transaction execution facility is not enforcing or has not
enforced its rules of government, made a condition of its
designation or registration as set forth in sections 5 through
5b or section 5f, or that the contract market or derivatives
transaction execution facility or electronic trading facility,
or any director, officer, agent, or employee thereof, otherwise
is violating or has violated any of the provisions of this
Act or any of the rules, regulations, or orders of the Com-
mission thereunder. Such suspension or revocation shall
only be made after a notice to the officers of the contract
market or derivatives transaction execution facility or elec-
tronic trading facility affected and upon a hearing on the
record: Provided,’’.
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SEC. 13204. EFFECTIVE DATE.
(a) IN GENERAL.—Except as provided in this section,
this subtitle shall become effective on the date of enactment
of this Act.
(b) SIGNIFICANT
PRICE
DISCOVERY
STANDARDS
RULEMAKING.—The Commission shall—
(1) not later than 180 days after the date of the
enactment of this Act, issue a proposed rule regarding
the significant price discovery standards in section
13201; and
(2) not later than 270 days after the date of en-
actment of this Act, issue a final rule.
(c) SIGNIFICANT
PRICE
DISCOVERY
DETERMINA-
TIONS.—With respect to any electronic trading facility op-
erating on the effective date of the final rule regarding sig-
nificant price discovery standards, the Commission shall
complete a review of the agreements, contracts, and trans-
actions of such facilities not later than 180 days after that
effective date to determine whether any such agreement, con-
tract, or transaction performs a significant price discovery
function.
Attest:
Secretary.