<enum>I</enum><header>General Provisions</header> <section id="HC13A23511CBE4330B3ADAADF080073A2"><enum>101.</enum><header>Commission authority over agreements, contracts or transactions in foreign currency</header> <subsection id="HB0232F480E04451D8B942DA4E2B9ADE1"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">Section 2(c)(2) of the Commodity Exchange Act (<external-xref legal-doc="usc" parsable-cite="usc/7/2">7 U.S.C. 2(c)(2)</external-xref>) is amended by striking subparagraphs (B) and (C) and inserting the following:</text> <quoted-block id="H3315C9B71A234ED3BEAF3384208BF552" style="OLC"> <subparagraph id="H606FAAD663604D12A7E7D37635238FD"><enum>(B)</enum><header>Agreements, contracts, and transactions in retail foreign currency</header> <clause id="H3D288A3F53C04ABDB0826D93F48CE8D2"><enum>(i)</enum><text>This Act applies to, and the Commission shall have jurisdiction over, an agreement, contract, or transaction in foreign currency that—</text> <subclause id="H1478F454578B4D399130469B0095592B"><enum>(I)</enum><text>is a contract of sale of a commodity for future delivery (or an option on such a contract) or an option (other than an option executed or traded on a national securities exchange registered pursuant to section 6(a) of the Securities Exchange Act of 1934 (<external-xref legal-doc="usc" parsable-cite="usc/15/78f">15 U.S.C. 78f(a)</external-xref>)); and</text></subclause> <subclause id="H350B1E5A47194CA18B21DF5D8DFEBF27"><enum>(II)</enum><text>is offered to, or entered into with, a person that is not an eligible contract participant, unless the counterparty, or the person offering to be the counterparty, of the person is—</text> <item id="H13BECA8786E7442E8EC69B33D6EC3267"><enum>(aa)</enum><text>a financial institution;</text></item> <item id="H571D25A674DC45629600E5DDA162F9E3"><enum>(bb)</enum> <subitem id="H1884DAA0ACB6405E95E01157852EA458" display-inline="yes-display-inline"><enum>(AA)</enum><text>a broker or dealer registered under section 15(b) (except paragraph (11) thereof) or 15C of the Securities Exchange Act of 1934 (<external-xref legal-doc="usc" parsable-cite="usc/15/78o">15 U.S.C. 78o(b)</external-xref>, 78o–5); or</text></subitem> <subitem id="H0837F58914AB4E4F986EAF57DF7EB133" indent="up1"><enum>(BB)</enum><text>an associated person of a broker or dealer registered under section 15(b) (except paragraph (11) thereof) or 15C of the Securities Exchange Act of 1934 (<external-xref legal-doc="usc" parsable-cite="usc/15/78o">15 U.S.C. 78o(b)</external-xref>, 78o–5) concerning 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 (<external-xref legal-doc="usc" parsable-cite="usc/15/78o-5">15 U.S.C. 78o–5(b)</external-xref>, 78q(h));</text></subitem></item> <item id="H711DA235E7D84347B85D917738141FB0"><enum>(cc)</enum><text>a futures commission merchant registered under this Act (that is not also a person described in item (bb)), or an affiliated 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;</text></item> <item id="HAABDA89F6A9E47B8A158BAC20727DFE8"><enum>(dd)</enum><text>an insurance company described in section 1a(12)(A)(ii) of this Act, or a regulated subsidiary or affiliate of such an insurance company;</text></item> <item id="H7F6A055766FC4202BABFB4B7D9B6B079"><enum>(ee)</enum><text>a financial holding company (as defined in section 2 of the Bank Holding Company Act of 1956); or</text></item> <item id="HB625F5970EC144B1B51952B5D19E297B"><enum>(ff)</enum><text display-inline="yes-display-inline">an investment bank holding company (as defined in section 17(i) of the Securities Exchange Act of 1934 (<external-xref legal-doc="usc" parsable-cite="usc/15/78q">15 U.S.C. 78q(i)</external-xref>)).</text></item></subclause></clause> <clause id="H01C3FDC375104C98007EF3F249506F1"><enum>(ii)</enum><text>Notwithstanding item (cc) of clause (i)(II) of this subparagraph, agreements, contracts, or transactions described in clause (i) of this subparagraph shall be subject to subsection (a)(1)(B) of this section 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 interstate 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 agreements, contracts, or transactions are offered, or entered into, by a person that is registered as a futures commission merchant or an affiliated person of a futures commission merchant registered under this Act that is not also a person described in any of items (aa), (bb), (dd), (ee), or (ff) of clause (i) of this subparagraph.</text></clause> <clause id="HB5075E6F45134110B1DCABE3BEA7583"><enum>(iii)</enum> <subclause id="H6BCA041FBEEF48BCB5A4AADA62337511" display-inline="yes-display-inline"><enum>(I)</enum><text>Notwithstanding item (cc) of clause (i)(II), a particular person shall not participate in the solicitation or recommendation of any agreement, contract, or transaction described in clause (i) entered into with or to be entered into with a person described in such item, unless the particular person—</text> <item id="HE3F0BEC19E7E4ADEA829A98D392B9DE3" indent="up1"><enum>(aa)</enum><text>is registered in such capacity as the Commission by rule, regulation, or order shall determine; and</text></item> <item id="HD3BCCD1D47C64EA1812D45846261316C" indent="up1"><enum>(bb)</enum><text>is a member of a futures association registered under section 17.</text></item></subclause> <subclause id="HEE1D2C6B6FE8419C95668724B6554D86" indent="up1"><enum>(II)</enum><text>Subclause (I) shall not apply to—</text> <item id="H2FBE504B09F944F19E1BE5D9601B2636"><enum>(aa)</enum><text>any person described in any of items (aa), (bb), (dd), (ee), or (ff) of subparagraph (B)(i)(II); or</text></item> <item id="H99B8B1350FB84977ACBCEC9450905015"><enum>(bb)</enum><text>any such person’s associated persons.</text></item></subclause></clause></subparagraph> <subparagraph id="HC98C05F6A9014433AD2DF8006D515FC1"><enum>(C)</enum> <clause id="H82EE59BCF5F545D4AD3602DA4E082478" display-inline="yes-display-inline"><enum>(i)</enum> <subclause id="H96B27C3CFBED458D94F1821E003C50F4" display-inline="yes-display-inline"><enum>(I)</enum><text>This subparagraph shall apply to any agreement, contract, or transaction in foreign currency that is—</text> <item id="H80BEAE7E21A346278D89F879DB218815" indent="up1"><enum>(aa)</enum><text>offered to, or entered into with, a person that is not an eligible contract participant (except that this subparagraph shall not apply if the counterparty, or the person offering to be the counterparty, of the person that is not an eligible contract participant is a person described in any of items (aa), (bb), (dd), (ee), or (ff) of subparagraph (B)(i)(II)); and</text></item> <item id="HCEAF1E89D2C14859AC593EFAA781A5D" indent="up1"><enum>(bb)</enum><text display-inline="yes-display-inline">offered, or entered into, on a leveraged or margined basis, or financed by the offeror, the counterparty, or a person acting in concert with the offeror or counterparty on a similar basis.</text></item></subclause> <subclause id="H6C60488D36854A1186FC972EF9F0AAAB" indent="up2"><enum>(II)</enum><text>Subclause (I) shall not apply to—</text> <item id="HA16047B36E3A4A02B61528DEAD85C35C"><enum>(aa)</enum><text>a security that is not a security futures product; or</text></item> <item id="HB1C5266D3B834F87A639CBD8FAA95265"><enum>(bb)</enum><text>a contract of sale that—</text> <subitem id="H7C55FAC0F06946388D84C8CF8E75875E"><enum>(AA)</enum><text>results in actual delivery within 2 days; or</text></subitem> <subitem id="H01294D9773B2449C8C20CBF2C1CFBA6"><enum>(BB)</enum><text>creates an enforceable obligation to deliver between a seller and buyer that have the ability to deliver and accept delivery, respectively, in connection with their line of business.</text></subitem></item></subclause></clause> <clause id="H67107F3009844F81A43FCF0812A06BCE" indent="up1"><enum>(ii)</enum> <subclause id="H6DE0255B330E4F8A8803946FACD3FBF1" display-inline="yes-display-inline"><enum>(I)</enum><text>Agreements, contracts, or transactions described in clause (i) of this subparagraph shall be subject to subsection (a)(1)(B) of this section 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 interstate commerce, or for future delivery on or subject to the rules of any market), 6c, 6d, 8(a), 13(a), and 13(b).</text></subclause> <subclause id="HEFDBEC63219B49E49988894109E2C345" indent="up1"><enum>(II)</enum><text>Subclause (I) of this clause shall not apply to—</text> <item id="HF45C760974BC4253816300C6D2F320CE"><enum>(aa)</enum><text>any person described in any of items (aa), (bb), (dd), (ee), or (ff) of subparagraph (B)(i)(II); or</text></item> <item id="H2AF11AAB3917463EACC3CD81612F68C"><enum>(bb)</enum><text>any such person’s associated persons.</text></item></subclause></clause> <clause id="H0C68EEBA9263414FB0FC78B1B251844E" indent="up1"><enum>(iii)</enum> <subclause id="H172B7FC741E248FF8C21B66D727B2585" display-inline="yes-display-inline"><enum>(I)</enum><text>A person shall not participate in the solicitation or recommendation of any agreement, contract, or transaction described in clause (i) of this subparagraph unless the person is registered in such capacity as the Commission by rule, regulation or order shall determine, and is a member of a futures association registered under section 17.</text></subclause> <subclause id="HC58296C13B7B4FFDA554DC6DB365E414" indent="up1"><enum>(II)</enum><text>Subclause (I) shall not apply to any person—</text> <item id="H53A4995695A648AF8BE1D9F9748DD9F"><enum>(aa)</enum><text>any person described in any of items (aa), (bb), (dd), (ee), or (ff) of subparagraph (B)(i)(II); or</text></item> <item id="H2858D444DBC344EC8500D618EF145EC7"><enum>(bb)</enum><text>any such person’s associated persons.</text></item></subclause></clause> <clause id="H925531CAE86E4CCC9E7697392ECBFBCF" indent="up1"><enum>(iv)</enum><text>Sections 4(b) and 4b shall apply to any agreement, contract, or transaction described in clause (i) of this subparagraph as if the agreement, contract, or transaction were a contract of sale of a commodity for future delivery.</text></clause> <clause id="HF11D4ABDD7C94A5A911DB0F0D4152C09" indent="up1"><enum>(v)</enum><text>This subparagraph shall not be construed to limit any jurisdiction that the Commission may otherwise have under any other provision of this Act over an agreement, contract, or transaction that is a contract of sale of a commodity for future delivery.</text></clause> <clause id="H5974F4838BB64F5C0011D44D0034C142" indent="up1"><enum>(vi)</enum><text display-inline="yes-display-inline">This subparagraph shall not be construed to limit any jurisdiction that the Commission or the Securities and Exchange Commission may otherwise have under any other provision of this Act with respect to security futures products and persons effecting transactions in security futures products.</text></clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="H0C1826CE44B04476925885D770D716BE"><enum>(b)</enum><header>Effective date</header><text display-inline="yes-display-inline">Clause (iii) of section 2(c)(2)(B) and clause (iii) of section 2(c)(2)(C) of the Commodity Exchange Act, as amended by subsection (a) of this section, shall be effective 120 days after the date of the enactment of this Act or such other time as the Commodity Futures Trading Commission shall determine.</text></subsection></section> <section id="H05DD5D3D02954D5BAC00B128636708E4"><enum>102.</enum><header>Antifraud authority</header><text display-inline="no-display-inline">Section 4b of the Commodity Exchange Act (<external-xref legal-doc="usc" parsable-cite="usc/7/6b">7 U.S.C. 6b</external-xref>) is amended—</text> <paragraph id="HAD226EADD4434DBC9FF868B7B9C28DA"><enum>(1)</enum><text>by redesignating subsections (b) and (c) as subsections (c) and (d), respectively; and</text></paragraph> <paragraph id="H2EEE8063FAAC497AB043284121E4EE93"><enum>(2)</enum><text>by striking <quote>SEC. 4b.</quote> and all that follows through the end of subsection (a) and inserting the following:</text> <quoted-block id="H518494885E99425199D630AEEAC1BC52" style="OLC"> <section id="H58D683418CD04B52A5E82015ADE38D6F"><enum>4b.</enum><header>Contracts designed to defraud or mislead</header> <subsection id="H3EC36969CDED4A3995DB001E96C65E73"><enum>(a)</enum><header>Unlawful actions</header><text>It shall be unlawful—</text> <paragraph id="H6BF1176B6958432AB1FB5464DC2609A0"><enum>(1)</enum><text>for any person, in or in connection with any order to make, or the making of, any contract of sale of any commodity in interstate commerce or for future delivery that is made, or to be made, on or subject to the rules of a designated contract market, for or on behalf of any other person; or</text></paragraph> <paragraph id="H1260F37AE9EF42A58B82009E327545FF"><enum>(2)</enum><text>for any person, in or in connection with any order to make, or the making of, any contract of sale of any commodity for future delivery, or other agreement, contract, or transaction subject to paragraphs (1) and (2) of section 5a(g), that is made, or to be made, for or on behalf of, or with, any other person, other than on or subject to the rules of a designated contract market—</text> <subparagraph id="HB156D66F6DCF4BA9BDD82C6C19DA18DE"><enum>(A)</enum><text>to cheat or defraud or attempt to cheat or defraud the other person;</text></subparagraph> <subparagraph id="HC2116926EC664A3AB7907ED3678EBD60"><enum>(B)</enum><text>willfully to make or cause to be made to the other person any false report or statement or willfully to enter or cause to be entered for the other person any false record;</text></subparagraph> <subparagraph id="H607C33ED678A4BC7B159D7402C5D237D"><enum>(C)</enum><text>willfully to deceive or attempt to deceive the other person by any means whatsoever in regard to any order or contract or the disposition or execution of any order or contract, or in regard to any act of agency performed, with respect to any order or contract for or, in the case of paragraph (2), with the other person; or</text></subparagraph> <subparagraph id="H611921A118AA4BA0A0FCA68391AAF96D"><enum>(D)</enum> <clause id="H88F7BD6E96834DA3BCEECB36C5147D57" display-inline="yes-display-inline"><enum>(i)</enum><text>to bucket an order if the order is represented by the person as an order to be executed, or is required to be executed, on or subject to the rules of a designated contract market; or</text></clause> <clause id="H73DDE8D4D3F74AF4B8A33C493F08CC34" indent="up1"><enum>(ii)</enum><text>to fill an order by offset against the order or orders of any other person, or willfully and knowingly and without the prior consent of the other person to become the buyer in respect to any selling order of the other person, or become the seller in respect to any buying order of the other person, if the order is represented by the person as an order to be executed, or is required to be executed, on or subject to the rules of a designated contract market unless the order is executed in accordance with the rules of the designated contract market.</text></clause></subparagraph></paragraph></subsection> <subsection id="H5ACFEDEED2034DC2AE76FE6B35657423"><enum>(b)</enum><header>Clarification</header><text>Subsection (a)(2) of this section shall not obligate any person, in or in connection with a transaction in a contract of sale of a commodity for future delivery, or other agreement, contract or transaction subject to paragraphs (1) and (2) of section 5a(g), with another person, to disclose to the other person nonpublic information that may be material to the market price, rate, or level of the commodity or transaction, except as necessary to make any statement made to the other person in or in connection with the transaction, not misleading in any material respect.</text></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></section> <section id="HD6D83BFB3FB24E54A00011CEE9D495C"><enum>103.</enum><header>Portfolio margining and security index issues</header> <subsection id="HB6C97489ECB04DEBBD7BEFBBEA38B62D"><enum>(a)</enum><text>The agencies represented on the President’s Working Group on Financial Markets shall work to ensure that the Securities and Exchange Commission (SEC), the Commodity Futures Trading Commission (CFTC), or both, as appropriate, have taken the actions required under subsection (b).</text></subsection> <subsection id="HC515195319F2445FA1004087B0FE636B"><enum>(b)</enum><text>The SEC, the CFTC, or both, as appropriate, shall take action under their existing authorities to permit—</text> <paragraph id="HD108D7C855494D759DD58359AAC3BB9F"><enum>(1)</enum><text>by September 30, 2006, risk-based portfolio margining for security options and security futures products; and</text></paragraph> <paragraph id="HF20396140094491789C3776630076C48"><enum>(2)</enum><text>by June 30, 2006, the trading of futures on certain security indexes by resolving issues related to debt security indexes and foreign security indexes.</text></paragraph></subsection></section> <section id="HDC08E023093149EEAC798094651FCCBE"><enum>104.</enum><header>Authorization of appropriations</header><text display-inline="no-display-inline"> Section 12(d) of the Commodity Exchange Act (<external-xref legal-doc="usc" parsable-cite="usc/7/16">7 U.S.C. 16(d)</external-xref>) is amended to read as follows:</text> <quoted-block id="HFF43CA15CCE147E49873A09905CA47C6" style="OLC"> <subsection id="H6E32FB7AA6EB40219713BC31AE31CF5"><enum>(d)</enum><text>There are authorized to be appropriated such sums as are necessary to carry out this Act for each of the fiscal years 2006 through 2010.</text></subsection><after-quoted-block></after-quoted-block></quoted-block></section> <section id="H9FB5D2DFFFD346FB9EDD3FB83CBCA9D3"><enum>105.</enum><header>Technical and conforming amendments</header> <subsection id="H2037288BED33404EA87D879443166212"><enum>(a)</enum><text display-inline="yes-display-inline">Section 4a(e) of the Commodity Exchange Act (7 U.S.C 6a(e)) is amended in the last proviso by striking <quote>section 9(c)</quote> and inserting <quote>section 9(a)(5)</quote>.</text></subsection> <subsection id="H7C822BA6262A4C0F86F27F07B31EDD7D"><enum>(b)</enum><text display-inline="yes-display-inline">Section 4f(c)(4)(B)(i) of such Act (<external-xref legal-doc="usc" parsable-cite="usc/7/6f">7 U.S.C. 6f(c)(4)(B)(i)</external-xref>) is amended by striking <quote>compiled</quote> and inserting <quote>complied</quote>.</text></subsection> <subsection id="H0E8B903567684E6E8FE4DC90D40733F3"><enum>(c)</enum><text display-inline="yes-display-inline">Section 4k of such Act (<external-xref legal-doc="usc" parsable-cite="usc/7/6k">7 U.S.C. 6k</external-xref>) is amended by redesignating the second paragraph (5) as paragraph (6).</text></subsection> <subsection id="H0C725E1AFE214F5DBAFF3B00E4D90008"><enum>(d)</enum><text display-inline="yes-display-inline">The Commodity Exchange Act is amended—</text> <paragraph id="H241FCE96BDC44D268DBC30C8B7AB07E"><enum>(1)</enum><text>by redesignating the first section 4p (<external-xref legal-doc="usc" parsable-cite="usc/7/6o-1">7 U.S.C. 6o–1</external-xref>), as added by section 121 of the Commodity Futures Modernization Act of 2000, as section 4q; and</text></paragraph> <paragraph id="HED84ED00C6C94A4D8FF9619700AFF02C"><enum>(2)</enum><text display-inline="yes-display-inline">by moving such section to after the second section 4p, as added by section 206 of <external-xref legal-doc="public-law" parsable-cite="pl/93/446">Public Law 93–446</external-xref>.</text></paragraph></subsection> <subsection id="HFCA41D2541E648F687EAABBAB2CD43BA"><enum>(e)</enum><text display-inline="yes-display-inline">Subsections (a)(1) and (d)(1) of section 5c of such Act (<external-xref legal-doc="usc" parsable-cite="usc/7/7a-2">7 U.S.C. 7a–2(a)(1)</external-xref>, (d)(1)) are each amended by striking <quote>5b(d)(2)</quote> and inserting <quote>5b(c)(2)</quote>.</text></subsection> <subsection id="HABF1B2C7C4CE4D8CA9B7423532E5DEE4"><enum>(f)</enum><text display-inline="yes-display-inline">Sections 5c(f) and 17(r) of such Act (<external-xref legal-doc="usc" parsable-cite="usc/7/7a-2">7 U.S.C. 7a–2(f)</external-xref>, 21(r)) are each amended by striking <quote>4d(3)</quote> and inserting <quote>4d(c)</quote>.</text></subsection> <subsection id="H8E419063BE80483B85E4AADC289992C"><enum>(g)</enum><text display-inline="yes-display-inline">Section 8(a)(1) of such Act (<external-xref legal-doc="usc" parsable-cite="usc/7/12">7 U.S.C. 12(a)(1)</external-xref>) is amended in the matter following subparagraph (B)—</text> <paragraph id="HB08718B6024E4914816088DAB0D3DF69"><enum>(1)</enum><text>by striking <quote>commenced</quote> the 2nd place it appears; and</text></paragraph> <paragraph id="H8ED4A37BC9D2405480A252BC1E054F8C"><enum>(2)</enum><text>by inserting <quote>commenced</quote> after <quote>in a judicial proceeding</quote>.</text></paragraph></subsection> <subsection id="HEE87F297439449ABB819C107C4996136"><enum>(h)</enum><text display-inline="yes-display-inline">Section 22(a)(2) of such Act (<external-xref legal-doc="usc" parsable-cite="usc/7/25">7 U.S.C. 25(a)(2)</external-xref>) is amended by striking <quote>5b(b)(1)(E)</quote> and inserting <quote>5b(c)(2)(H)</quote>.</text></subsection></section>

109 HR 4473 IH: CFTC Reauthorization Act of 2005 U.S. House of Representatives 2005-12-08 text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.

Short title

This Act may be cited as the

CFTC Reauthorization Act of 2005

<enum>I</enum><header>General Provisions</header> <section id="HC13A23511CBE4330B3ADAADF080073A2"><enum>101.</enum><header>Commission authority over agreements, contracts or transactions in foreign currency</header> <subsection id="HB0232F480E04451D8B942DA4E2B9ADE1"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">Section 2(c)(2) of the Commodity Exchange Act (<external-xref legal-doc="usc" parsable-cite="usc/7/2">7 U.S.C. 2(c)(2)</external-xref>) is amended by striking subparagraphs (B) and (C) and inserting the following:</text> <quoted-block id="H3315C9B71A234ED3BEAF3384208BF552" style="OLC"> <subparagraph id="H606FAAD663604D12A7E7D37635238FD"><enum>(B)</enum><header>Agreements, contracts, and transactions in retail foreign currency</header> <clause id="H3D288A3F53C04ABDB0826D93F48CE8D2"><enum>(i)</enum><text>This Act applies to, and the Commission shall have jurisdiction over, an agreement, contract, or transaction in foreign currency that—</text> <subclause id="H1478F454578B4D399130469B0095592B"><enum>(I)</enum><text>is a contract of sale of a commodity for future delivery (or an option on such a contract) or an option (other than an option executed or traded on a national securities exchange registered pursuant to section 6(a) of the Securities Exchange Act of 1934 (<external-xref legal-doc="usc" parsable-cite="usc/15/78f">15 U.S.C. 78f(a)</external-xref>)); and</text></subclause> <subclause id="H350B1E5A47194CA18B21DF5D8DFEBF27"><enum>(II)</enum><text>is offered to, or entered into with, a person that is not an eligible contract participant, unless the counterparty, or the person offering to be the counterparty, of the person is—</text> <item id="H13BECA8786E7442E8EC69B33D6EC3267"><enum>(aa)</enum><text>a financial institution;</text></item> <item id="H571D25A674DC45629600E5DDA162F9E3"><enum>(bb)</enum> <subitem id="H1884DAA0ACB6405E95E01157852EA458" display-inline="yes-display-inline"><enum>(AA)</enum><text>a broker or dealer registered under section 15(b) (except paragraph (11) thereof) or 15C of the Securities Exchange Act of 1934 (<external-xref legal-doc="usc" parsable-cite="usc/15/78o">15 U.S.C. 78o(b)</external-xref>, 78o–5); or</text></subitem> <subitem id="H0837F58914AB4E4F986EAF57DF7EB133" indent="up1"><enum>(BB)</enum><text>an associated person of a broker or dealer registered under section 15(b) (except paragraph (11) thereof) or 15C of the Securities Exchange Act of 1934 (<external-xref legal-doc="usc" parsable-cite="usc/15/78o">15 U.S.C. 78o(b)</external-xref>, 78o–5) concerning 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 (<external-xref legal-doc="usc" parsable-cite="usc/15/78o-5">15 U.S.C. 78o–5(b)</external-xref>, 78q(h));</text></subitem></item> <item id="H711DA235E7D84347B85D917738141FB0"><enum>(cc)</enum><text>a futures commission merchant registered under this Act (that is not also a person described in item (bb)), or an affiliated 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;</text></item> <item id="HAABDA89F6A9E47B8A158BAC20727DFE8"><enum>(dd)</enum><text>an insurance company described in section 1a(12)(A)(ii) of this Act, or a regulated subsidiary or affiliate of such an insurance company;</text></item> <item id="H7F6A055766FC4202BABFB4B7D9B6B079"><enum>(ee)</enum><text>a financial holding company (as defined in section 2 of the Bank Holding Company Act of 1956); or</text></item> <item id="HB625F5970EC144B1B51952B5D19E297B"><enum>(ff)</enum><text display-inline="yes-display-inline">an investment bank holding company (as defined in section 17(i) of the Securities Exchange Act of 1934 (<external-xref legal-doc="usc" parsable-cite="usc/15/78q">15 U.S.C. 78q(i)</external-xref>)).</text></item></subclause></clause> <clause id="H01C3FDC375104C98007EF3F249506F1"><enum>(ii)</enum><text>Notwithstanding item (cc) of clause (i)(II) of this subparagraph, agreements, contracts, or transactions described in clause (i) of this subparagraph shall be subject to subsection (a)(1)(B) of this section 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 interstate 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 agreements, contracts, or transactions are offered, or entered into, by a person that is registered as a futures commission merchant or an affiliated person of a futures commission merchant registered under this Act that is not also a person described in any of items (aa), (bb), (dd), (ee), or (ff) of clause (i) of this subparagraph.</text></clause> <clause id="HB5075E6F45134110B1DCABE3BEA7583"><enum>(iii)</enum> <subclause id="H6BCA041FBEEF48BCB5A4AADA62337511" display-inline="yes-display-inline"><enum>(I)</enum><text>Notwithstanding item (cc) of clause (i)(II), a particular person shall not participate in the solicitation or recommendation of any agreement, contract, or transaction described in clause (i) entered into with or to be entered into with a person described in such item, unless the particular person—</text> <item id="HE3F0BEC19E7E4ADEA829A98D392B9DE3" indent="up1"><enum>(aa)</enum><text>is registered in such capacity as the Commission by rule, regulation, or order shall determine; and</text></item> <item id="HD3BCCD1D47C64EA1812D45846261316C" indent="up1"><enum>(bb)</enum><text>is a member of a futures association registered under section 17.</text></item></subclause> <subclause id="HEE1D2C6B6FE8419C95668724B6554D86" indent="up1"><enum>(II)</enum><text>Subclause (I) shall not apply to—</text> <item id="H2FBE504B09F944F19E1BE5D9601B2636"><enum>(aa)</enum><text>any person described in any of items (aa), (bb), (dd), (ee), or (ff) of subparagraph (B)(i)(II); or</text></item> <item id="H99B8B1350FB84977ACBCEC9450905015"><enum>(bb)</enum><text>any such person’s associated persons.</text></item></subclause></clause></subparagraph> <subparagraph id="HC98C05F6A9014433AD2DF8006D515FC1"><enum>(C)</enum> <clause id="H82EE59BCF5F545D4AD3602DA4E082478" display-inline="yes-display-inline"><enum>(i)</enum> <subclause id="H96B27C3CFBED458D94F1821E003C50F4" display-inline="yes-display-inline"><enum>(I)</enum><text>This subparagraph shall apply to any agreement, contract, or transaction in foreign currency that is—</text> <item id="H80BEAE7E21A346278D89F879DB218815" indent="up1"><enum>(aa)</enum><text>offered to, or entered into with, a person that is not an eligible contract participant (except that this subparagraph shall not apply if the counterparty, or the person offering to be the counterparty, of the person that is not an eligible contract participant is a person described in any of items (aa), (bb), (dd), (ee), or (ff) of subparagraph (B)(i)(II)); and</text></item> <item id="HCEAF1E89D2C14859AC593EFAA781A5D" indent="up1"><enum>(bb)</enum><text display-inline="yes-display-inline">offered, or entered into, on a leveraged or margined basis, or financed by the offeror, the counterparty, or a person acting in concert with the offeror or counterparty on a similar basis.</text></item></subclause> <subclause id="H6C60488D36854A1186FC972EF9F0AAAB" indent="up2"><enum>(II)</enum><text>Subclause (I) shall not apply to—</text> <item id="HA16047B36E3A4A02B61528DEAD85C35C"><enum>(aa)</enum><text>a security that is not a security futures product; or</text></item> <item id="HB1C5266D3B834F87A639CBD8FAA95265"><enum>(bb)</enum><text>a contract of sale that—</text> <subitem id="H7C55FAC0F06946388D84C8CF8E75875E"><enum>(AA)</enum><text>results in actual delivery within 2 days; or</text></subitem> <subitem id="H01294D9773B2449C8C20CBF2C1CFBA6"><enum>(BB)</enum><text>creates an enforceable obligation to deliver between a seller and buyer that have the ability to deliver and accept delivery, respectively, in connection with their line of business.</text></subitem></item></subclause></clause> <clause id="H67107F3009844F81A43FCF0812A06BCE" indent="up1"><enum>(ii)</enum> <subclause id="H6DE0255B330E4F8A8803946FACD3FBF1" display-inline="yes-display-inline"><enum>(I)</enum><text>Agreements, contracts, or transactions described in clause (i) of this subparagraph shall be subject to subsection (a)(1)(B) of this section 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 interstate commerce, or for future delivery on or subject to the rules of any market), 6c, 6d, 8(a), 13(a), and 13(b).</text></subclause> <subclause id="HEFDBEC63219B49E49988894109E2C345" indent="up1"><enum>(II)</enum><text>Subclause (I) of this clause shall not apply to—</text> <item id="HF45C760974BC4253816300C6D2F320CE"><enum>(aa)</enum><text>any person described in any of items (aa), (bb), (dd), (ee), or (ff) of subparagraph (B)(i)(II); or</text></item> <item id="H2AF11AAB3917463EACC3CD81612F68C"><enum>(bb)</enum><text>any such person’s associated persons.</text></item></subclause></clause> <clause id="H0C68EEBA9263414FB0FC78B1B251844E" indent="up1"><enum>(iii)</enum> <subclause id="H172B7FC741E248FF8C21B66D727B2585" display-inline="yes-display-inline"><enum>(I)</enum><text>A person shall not participate in the solicitation or recommendation of any agreement, contract, or transaction described in clause (i) of this subparagraph unless the person is registered in such capacity as the Commission by rule, regulation or order shall determine, and is a member of a futures association registered under section 17.</text></subclause> <subclause id="HC58296C13B7B4FFDA554DC6DB365E414" indent="up1"><enum>(II)</enum><text>Subclause (I) shall not apply to any person—</text> <item id="H53A4995695A648AF8BE1D9F9748DD9F"><enum>(aa)</enum><text>any person described in any of items (aa), (bb), (dd), (ee), or (ff) of subparagraph (B)(i)(II); or</text></item> <item id="H2858D444DBC344EC8500D618EF145EC7"><enum>(bb)</enum><text>any such person’s associated persons.</text></item></subclause></clause> <clause id="H925531CAE86E4CCC9E7697392ECBFBCF" indent="up1"><enum>(iv)</enum><text>Sections 4(b) and 4b shall apply to any agreement, contract, or transaction described in clause (i) of this subparagraph as if the agreement, contract, or transaction were a contract of sale of a commodity for future delivery.</text></clause> <clause id="HF11D4ABDD7C94A5A911DB0F0D4152C09" indent="up1"><enum>(v)</enum><text>This subparagraph shall not be construed to limit any jurisdiction that the Commission may otherwise have under any other provision of this Act over an agreement, contract, or transaction that is a contract of sale of a commodity for future delivery.</text></clause> <clause id="H5974F4838BB64F5C0011D44D0034C142" indent="up1"><enum>(vi)</enum><text display-inline="yes-display-inline">This subparagraph shall not be construed to limit any jurisdiction that the Commission or the Securities and Exchange Commission may otherwise have under any other provision of this Act with respect to security futures products and persons effecting transactions in security futures products.</text></clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="H0C1826CE44B04476925885D770D716BE"><enum>(b)</enum><header>Effective date</header><text display-inline="yes-display-inline">Clause (iii) of section 2(c)(2)(B) and clause (iii) of section 2(c)(2)(C) of the Commodity Exchange Act, as amended by subsection (a) of this section, shall be effective 120 days after the date of the enactment of this Act or such other time as the Commodity Futures Trading Commission shall determine.</text></subsection></section> <section id="H05DD5D3D02954D5BAC00B128636708E4"><enum>102.</enum><header>Antifraud authority</header><text display-inline="no-display-inline">Section 4b of the Commodity Exchange Act (<external-xref legal-doc="usc" parsable-cite="usc/7/6b">7 U.S.C. 6b</external-xref>) is amended—</text> <paragraph id="HAD226EADD4434DBC9FF868B7B9C28DA"><enum>(1)</enum><text>by redesignating subsections (b) and (c) as subsections (c) and (d), respectively; and</text></paragraph> <paragraph id="H2EEE8063FAAC497AB043284121E4EE93"><enum>(2)</enum><text>by striking <quote>SEC. 4b.</quote> and all that follows through the end of subsection (a) and inserting the following:</text> <quoted-block id="H518494885E99425199D630AEEAC1BC52" style="OLC"> <section id="H58D683418CD04B52A5E82015ADE38D6F"><enum>4b.</enum><header>Contracts designed to defraud or mislead</header> <subsection id="H3EC36969CDED4A3995DB001E96C65E73"><enum>(a)</enum><header>Unlawful actions</header><text>It shall be unlawful—</text> <paragraph id="H6BF1176B6958432AB1FB5464DC2609A0"><enum>(1)</enum><text>for any person, in or in connection with any order to make, or the making of, any contract of sale of any commodity in interstate commerce or for future delivery that is made, or to be made, on or subject to the rules of a designated contract market, for or on behalf of any other person; or</text></paragraph> <paragraph id="H1260F37AE9EF42A58B82009E327545FF"><enum>(2)</enum><text>for any person, in or in connection with any order to make, or the making of, any contract of sale of any commodity for future delivery, or other agreement, contract, or transaction subject to paragraphs (1) and (2) of section 5a(g), that is made, or to be made, for or on behalf of, or with, any other person, other than on or subject to the rules of a designated contract market—</text> <subparagraph id="HB156D66F6DCF4BA9BDD82C6C19DA18DE"><enum>(A)</enum><text>to cheat or defraud or attempt to cheat or defraud the other person;</text></subparagraph> <subparagraph id="HC2116926EC664A3AB7907ED3678EBD60"><enum>(B)</enum><text>willfully to make or cause to be made to the other person any false report or statement or willfully to enter or cause to be entered for the other person any false record;</text></subparagraph> <subparagraph id="H607C33ED678A4BC7B159D7402C5D237D"><enum>(C)</enum><text>willfully to deceive or attempt to deceive the other person by any means whatsoever in regard to any order or contract or the disposition or execution of any order or contract, or in regard to any act of agency performed, with respect to any order or contract for or, in the case of paragraph (2), with the other person; or</text></subparagraph> <subparagraph id="H611921A118AA4BA0A0FCA68391AAF96D"><enum>(D)</enum> <clause id="H88F7BD6E96834DA3BCEECB36C5147D57" display-inline="yes-display-inline"><enum>(i)</enum><text>to bucket an order if the order is represented by the person as an order to be executed, or is required to be executed, on or subject to the rules of a designated contract market; or</text></clause> <clause id="H73DDE8D4D3F74AF4B8A33C493F08CC34" indent="up1"><enum>(ii)</enum><text>to fill an order by offset against the order or orders of any other person, or willfully and knowingly and without the prior consent of the other person to become the buyer in respect to any selling order of the other person, or become the seller in respect to any buying order of the other person, if the order is represented by the person as an order to be executed, or is required to be executed, on or subject to the rules of a designated contract market unless the order is executed in accordance with the rules of the designated contract market.</text></clause></subparagraph></paragraph></subsection> <subsection id="H5ACFEDEED2034DC2AE76FE6B35657423"><enum>(b)</enum><header>Clarification</header><text>Subsection (a)(2) of this section shall not obligate any person, in or in connection with a transaction in a contract of sale of a commodity for future delivery, or other agreement, contract or transaction subject to paragraphs (1) and (2) of section 5a(g), with another person, to disclose to the other person nonpublic information that may be material to the market price, rate, or level of the commodity or transaction, except as necessary to make any statement made to the other person in or in connection with the transaction, not misleading in any material respect.</text></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></section> <section id="HD6D83BFB3FB24E54A00011CEE9D495C"><enum>103.</enum><header>Portfolio margining and security index issues</header> <subsection id="HB6C97489ECB04DEBBD7BEFBBEA38B62D"><enum>(a)</enum><text>The agencies represented on the President’s Working Group on Financial Markets shall work to ensure that the Securities and Exchange Commission (SEC), the Commodity Futures Trading Commission (CFTC), or both, as appropriate, have taken the actions required under subsection (b).</text></subsection> <subsection id="HC515195319F2445FA1004087B0FE636B"><enum>(b)</enum><text>The SEC, the CFTC, or both, as appropriate, shall take action under their existing authorities to permit—</text> <paragraph id="HD108D7C855494D759DD58359AAC3BB9F"><enum>(1)</enum><text>by September 30, 2006, risk-based portfolio margining for security options and security futures products; and</text></paragraph> <paragraph id="HF20396140094491789C3776630076C48"><enum>(2)</enum><text>by June 30, 2006, the trading of futures on certain security indexes by resolving issues related to debt security indexes and foreign security indexes.</text></paragraph></subsection></section> <section id="HDC08E023093149EEAC798094651FCCBE"><enum>104.</enum><header>Authorization of appropriations</header><text display-inline="no-display-inline"> Section 12(d) of the Commodity Exchange Act (<external-xref legal-doc="usc" parsable-cite="usc/7/16">7 U.S.C. 16(d)</external-xref>) is amended to read as follows:</text> <quoted-block id="HFF43CA15CCE147E49873A09905CA47C6" style="OLC"> <subsection id="H6E32FB7AA6EB40219713BC31AE31CF5"><enum>(d)</enum><text>There are authorized to be appropriated such sums as are necessary to carry out this Act for each of the fiscal years 2006 through 2010.</text></subsection><after-quoted-block></after-quoted-block></quoted-block></section> <section id="H9FB5D2DFFFD346FB9EDD3FB83CBCA9D3"><enum>105.</enum><header>Technical and conforming amendments</header> <subsection id="H2037288BED33404EA87D879443166212"><enum>(a)</enum><text display-inline="yes-display-inline">Section 4a(e) of the Commodity Exchange Act (7 U.S.C 6a(e)) is amended in the last proviso by striking <quote>section 9(c)</quote> and inserting <quote>section 9(a)(5)</quote>.</text></subsection> <subsection id="H7C822BA6262A4C0F86F27F07B31EDD7D"><enum>(b)</enum><text display-inline="yes-display-inline">Section 4f(c)(4)(B)(i) of such Act (<external-xref legal-doc="usc" parsable-cite="usc/7/6f">7 U.S.C. 6f(c)(4)(B)(i)</external-xref>) is amended by striking <quote>compiled</quote> and inserting <quote>complied</quote>.</text></subsection> <subsection id="H0E8B903567684E6E8FE4DC90D40733F3"><enum>(c)</enum><text display-inline="yes-display-inline">Section 4k of such Act (<external-xref legal-doc="usc" parsable-cite="usc/7/6k">7 U.S.C. 6k</external-xref>) is amended by redesignating the second paragraph (5) as paragraph (6).</text></subsection> <subsection id="H0C725E1AFE214F5DBAFF3B00E4D90008"><enum>(d)</enum><text display-inline="yes-display-inline">The Commodity Exchange Act is amended—</text> <paragraph id="H241FCE96BDC44D268DBC30C8B7AB07E"><enum>(1)</enum><text>by redesignating the first section 4p (<external-xref legal-doc="usc" parsable-cite="usc/7/6o-1">7 U.S.C. 6o–1</external-xref>), as added by section 121 of the Commodity Futures Modernization Act of 2000, as section 4q; and</text></paragraph> <paragraph id="HED84ED00C6C94A4D8FF9619700AFF02C"><enum>(2)</enum><text display-inline="yes-display-inline">by moving such section to after the second section 4p, as added by section 206 of <external-xref legal-doc="public-law" parsable-cite="pl/93/446">Public Law 93–446</external-xref>.</text></paragraph></subsection> <subsection id="HFCA41D2541E648F687EAABBAB2CD43BA"><enum>(e)</enum><text display-inline="yes-display-inline">Subsections (a)(1) and (d)(1) of section 5c of such Act (<external-xref legal-doc="usc" parsable-cite="usc/7/7a-2">7 U.S.C. 7a–2(a)(1)</external-xref>, (d)(1)) are each amended by striking <quote>5b(d)(2)</quote> and inserting <quote>5b(c)(2)</quote>.</text></subsection> <subsection id="HABF1B2C7C4CE4D8CA9B7423532E5DEE4"><enum>(f)</enum><text display-inline="yes-display-inline">Sections 5c(f) and 17(r) of such Act (<external-xref legal-doc="usc" parsable-cite="usc/7/7a-2">7 U.S.C. 7a–2(f)</external-xref>, 21(r)) are each amended by striking <quote>4d(3)</quote> and inserting <quote>4d(c)</quote>.</text></subsection> <subsection id="H8E419063BE80483B85E4AADC289992C"><enum>(g)</enum><text display-inline="yes-display-inline">Section 8(a)(1) of such Act (<external-xref legal-doc="usc" parsable-cite="usc/7/12">7 U.S.C. 12(a)(1)</external-xref>) is amended in the matter following subparagraph (B)—</text> <paragraph id="HB08718B6024E4914816088DAB0D3DF69"><enum>(1)</enum><text>by striking <quote>commenced</quote> the 2nd place it appears; and</text></paragraph> <paragraph id="H8ED4A37BC9D2405480A252BC1E054F8C"><enum>(2)</enum><text>by inserting <quote>commenced</quote> after <quote>in a judicial proceeding</quote>.</text></paragraph></subsection> <subsection id="HEE87F297439449ABB819C107C4996136"><enum>(h)</enum><text display-inline="yes-display-inline">Section 22(a)(2) of such Act (<external-xref legal-doc="usc" parsable-cite="usc/7/25">7 U.S.C. 25(a)(2)</external-xref>) is amended by striking <quote>5b(b)(1)(E)</quote> and inserting <quote>5b(c)(2)(H)</quote>.</text></subsection></section> <enum>II</enum><header>Natural gas price transparency</header> <section id="H5DB85A3720EA4C8290959E66B04B8CDD"><enum>201.</enum><header>Market surveillance</header> <subsection id="H643B650476CC4558832C60AED6C7F846"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">The Commodity Futures Trading Commission (in this section referred to as the <quote>Commission</quote>) shall detect and deter manipulation and attempted manipulation and increase the transparency of the pricing of natural gas by conducting surveillance of trading in contracts for natural gas.</text></subsection> <subsection id="H11C07B7794F74FDBA733EFFDD839B466"><enum>(b)</enum><header>Certain events required to be reviewed</header> <paragraph id="H5846B397C7BD4982B3865941B201FCE6"><enum>(1)</enum><header>Requirement</header><text>In the event of a significant and highly unusual change in the settlement price of any physically delivered natural gas futures contract traded on a contract market (within the meaning of section 5 of the Commodity Exchange Act) or derivatives transaction execution facility (within the meaning of section 5a of such Act), the Commission shall conduct a review of the factors that caused the price movement in order to determine if manipulation or attempted manipulation in violation of such Act has occurred.</text></paragraph> <paragraph id="H04A9DA7357374C138D7BB71CC323DC4"><enum>(2)</enum><header>Certain factors required to be considered</header><text>The Commission shall consider in its review, among other things and as appropriate to the circumstances, the following:</text> <subparagraph id="HAA1AADF73BAB49E29237E46BBF1FFF21"><enum>(A)</enum><text>Prices and price relationships in the futures and cash markets.</text></subparagraph> <subparagraph id="HE71503BD88DB4C3B9D843304CBF9D04D"><enum>(B)</enum><text>Market information, and cash market supply and demand factors which may be relevant to the price event.</text></subparagraph> <subparagraph id="H934013806803449693DB5100F69EF6F9"><enum>(C)</enum><text>Large futures and options market positions and large futures and options market transactions on the contract market or derivatives transaction execution facility.</text></subparagraph> <subparagraph id="HB3C6D8C153F44A72B01078A5D8E7BC8F"><enum>(D)</enum><text>Any related contract, agreement or transaction in natural gas.</text></subparagraph></paragraph></subsection></section> <section id="H18797C037F6C49179E7C53AAA9E79446"><enum>202.</enum><header>Reporting of large positions involving natural gas</header> <subsection id="H48FA0B2E1FC64891B8F17957B424263D"><enum>(a)</enum><header>In general</header><text>Section 4a of the Commodity Exchange Act (<external-xref legal-doc="usc" parsable-cite="usc/7/6a">7 U.S.C. 6a</external-xref>) is amended—</text> <paragraph id="HF01EF7AB26A84F089113805CFF2E9DCD"><enum>(1)</enum><text>in subsection (e), by striking the last sentence; and</text></paragraph> <paragraph id="H3A0CD23321D74253A58649FB522E0342"><enum>(2)</enum><text>by adding at the end the following:</text> <quoted-block id="HCE35BE07660F453292F0AF023CBB64C" style="OLC"> <subsection id="H6F0B70943B524B399B748457E456A52F"><enum>(f)</enum><header>Reporting of large positions involving natural gas</header> <paragraph id="HBBADBF659DC8481CBEF75FD94226F676"><enum>(1)</enum><header>In general</header><text>The Commission, by rule, shall require any person holding, maintaining, or controlling any position in a contract of sale of natural gas for future delivery, or option thereon, on or subject to the rules of any contract market or derivatives transaction execution facility, at or in excess of such limits as the Commission may specify as reportable, to maintain for a period of 5 years and provide on request to the Commission, records of the person regarding the position and any related contract, agreement, or transaction in natural gas to which the person is a party.</text></paragraph> <paragraph id="H45DBBBB2F20349B0BC10089040A6FED8"><enum>(2)</enum><header>No duplicate reports</header><text>Except as otherwise provided in this paragraph, the rules prescribed under paragraph (1) shall not apply to any position that otherwise is required to be reported to any agency of the United States if the report would otherwise satisfy the requirements under this subsection and the report of the position is available to the Commission at the request of the Commission. Notwithstanding the preceding sentence, any report of any such position to any agency of the United States shall constitute a statement, report, or document required for the purposes of section 9.</text></paragraph> <paragraph id="HE8377232479642558CB88074EF5EF435"><enum>(3)</enum><header>Criteria for rules</header> <subparagraph id="H9C073FB32CC14087AC00BAB713DCB283"><enum>(A)</enum><header>In general</header><text>In prescribing rules required by paragraph (1), the Commission shall consider—</text> <clause id="H09FFFB60658949BAA67E18A19563F29C"><enum>(i)</enum><text>the purposes for monitoring large positions in any contract for future delivery of natural gas;</text></clause> <clause id="HF6FFA96F838845298D9C00D2718F43A4"><enum>(ii)</enum><text>the effect of the reporting requirements on the efficiency and liquidity of the market for any agreement, contract, or transaction made in connection with any contract for the future delivery of natural gas; and</text></clause> <clause id="HDB958B9D0B8943A6B5D1CA0065DC10D2"><enum>(iii)</enum><text>the costs and burden on the persons that would be required to file the reports.</text></clause></subparagraph> <subparagraph id="H6C49061793A1478EB2250390620341AC"><enum>(B)</enum><header>Frequency</header><text>The Commission shall require the provision of records under paragraph (1) only in circumstances where manipulation is suspected, except that the Commission may prescribe rules requiring regular or continuous reporting if the Commission finds that such reporting would help to deter or to detect manipulation in any market for any agreement, contract, or transaction made in connection with any contract for the future delivery of natural gas.</text></subparagraph> <subparagraph id="HDE84DC44AA0E4792BF93D9FE129436D7"><enum>(C)</enum><header>Filing requirements</header><text>Records required to be provided under paragraph (1) shall be required to be filed with the Commission in accordance with such requirements regarding the form, timing, and manner of filing such reports, as the Commission may prescribe by rule.</text></subparagraph></paragraph> <paragraph id="HA0416CAB12274E5582D3A248A7F100BF"><enum>(5)</enum><header>Other rules not affected</header><text>This subsection shall not be interpreted to prohibit or impair the adoption by any board of trade licensed, designated, or registered by the Commission of any bylaw, rule, regulation, or resolution requiring reports of positions in any agreement, contract, or transaction made in connection with a contract of sale for future delivery of natural gas (including such a contract of sale), including any bylaw, rule, regulation, or resolution pertaining to filing or recordkeeping, which may be held by any person subject to the rules of the board of trade, except that any bylaw, rule, regulation, or resolution established by the board of trade shall not be inconsistent with any requirement prescribed by the Commission under this subsection.</text></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection></section> <section id="H91834B0F829F4C0AB57B1BD54D00ED64"><enum>203.</enum><header>Criminal and civil penalties</header> <subsection id="H72D4074CB1D944828F5F37ECDA698FF"><enum>(a)</enum><header>Enforcement powers of the commission</header><text>Section 6(c) of the Commodity Exchange Act (<external-xref legal-doc="usc" parsable-cite="usc/7/9">7 U.S.C. 9</external-xref>, 15) is amended in clause (3) of the 10th sentence—</text> <paragraph id="HC7F002EFED0C4243AE96A2DD020438F0"><enum>(1)</enum><text>by inserting <quote>(A)</quote> after <quote>assess such person</quote>; and</text></paragraph> <paragraph id="H91832699FA4A466AA238E4BACE4861EC"><enum>(2)</enum><text>by inserting after <quote>each such violation</quote> the following: <quote>or (B) in any case of manipulation of, or attempt to manipulate under section 9(a)(2), a civil penalty of not more than the greater of $1,000,000 or triple the monetary gain to such person for each such violation,</quote>.</text></paragraph></subsection> <subsection id="H56A590AFB63F4580B7DD7B89800C64C"><enum>(b)</enum><header>Nonenforcement of rules of government or other violations</header><text>Section 6b of such Act (<external-xref legal-doc="usc" parsable-cite="usc/7/13a">7 U.S.C. 13a</external-xref>) is amended—</text> <paragraph id="H33C93195677B489BBA3628BF80E298D2"><enum>(1)</enum><text>in the 1st sentence, by inserting <quote>, or, in any case of manipulation of, or an attempt to manipulate, the price of any commodity, a civil penalty of not more than $1,000,000 for each such violation</quote> before the period; and</text></paragraph> <paragraph id="H2076E14AA95540E6A7FBE23C8416B75B"><enum>(2)</enum><text>in the 2nd sentence, by inserting <quote>, except that if the failure or refusal to obey or comply with the order involved any offense under section 9(a)(2), the registered entity, director, officer, agent, or employee shall be guilty of a felony and, on conviction, shall be subject to penalties under section 9(f)</quote> before the period.</text></paragraph></subsection> <subsection id="H2EFFABB6627B4926A05D887BDF81C8D"><enum>(c)</enum><header>Action to enjoin or restrain violations</header><text>Section 6c(d) of such Act (<external-xref legal-doc="usc" parsable-cite="usc/7/13a-1">7 U.S.C. 13a–1(d)</external-xref>) is amended by striking <quote>(d)</quote> and all that follows through the end of the paragraph (1) and inserting the following:</text> <quoted-block id="H280996A49DB34B0B8300A274EDF076C5" style="OLC"> <subsection id="HD1274C217B294837BDD76FEC005FC3E9"><enum>(d)</enum><header>Civil penalties</header> <paragraph id="H682D6C48CB3648C39B7200B260276C63" display-inline="yes-display-inline"><enum>(1)</enum><text>In any action brought under this section, the Commission may seek and the court shall have jurisdiction to impose, on a proper showing, on any person found in the action to have committed any violation—</text> <subparagraph id="H016D9E9A9F29443FBC641FB048762E52"><enum>(A)</enum><text>a civil penalty in the amount of not more than the greater of $100,000 or triple the monetary gain to the person for each violation; or</text></subparagraph> <subparagraph id="H877A575CF55C41D1885B8F36EEA34292"><enum>(B)</enum><text>in any case of manipulation of, or an attempt to manipulate, the price of any commodity, a civil penalty in the amount of not more than the greater of $1,000,000 or triple the monetary gain to the person for each violation.</text></subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="H32471533D8184D578FC356046C27BD32"><enum>(d)</enum><header>Violations generally</header><text>Section 9(a) of such Act (<external-xref legal-doc="usc" parsable-cite="usc/7/13">7 U.S.C. 13(a)</external-xref>) is amended—</text> <paragraph id="H365EABD5EF214FD29B65BC87AA048585"><enum>(1)</enum><text>by striking <quote>(or $500,000 in the case of a person who is an individual)</quote>; and</text></paragraph> <paragraph id="HA917302BEFBD4EE80035785676C291FB"><enum>(2)</enum><text>by striking <quote>five years</quote> and inserting <quote>10 years</quote>.</text></paragraph></subsection></section>