Short title

This Act may be cited as the

Increasing Transparency and Accountability in Oil Prices Act of 2008

Sense of senate on additional emergency funding for commission

(a)

Findings

The House of Representatives finds that— (1)excessive speculation may be adding significantly to the price of oil and other energy commodities; (2)the public and Congress are concerned that private, unregulated transactions and overseas exchange transactions are not being adequately reviewed by any regulatory body; (3)an important Federal overseer of commodity speculation, the Commodity Futures Trading Commission, has staffing levels that have dropped to the lowest levels in the 33-year history of the Commission; and (4)the acting Chairman of the Commission has said publicly that an additional 100 employees are needed in light of the inflow of trading volume. (b)

Sense of the House

It is the sense of the House of Representatives that the President should immediately send to Congress a request for emergency appropriations for fiscal year 2008 for the Commodity Futures Trading Commission in an amount that is sufficient— (1)to help restore public confidence in energy commodities markets and Federal oversight of those markets; (2)to potentially impose limits on excessive speculation that is increasing the price of oil, gasoline, diesel, and other energy commodities; (3)to significantly improve the information technology capabilities of the Commission to help the Commission effectively regulate the energy futures markets; and (4)to fund at least 100 new full-time positions at the Commission to oversee energy commodity market speculation and to enforce the Commodity Exchange Act (7 U.S.C. 1 et seq.).

Additional commission employees for improved enforcement

Section 2(a)(7) of the Commodity Exchange Act (7 U.S.C. 2(a)(7)) is amended by adding at the end the following:

(D)

Additional employees

As soon as practicable after the date of enactment of this subparagraph, the Commission shall appoint at least 100 full-time employees (in addition to the employees employed by the Commission as of the date of enactment of this subparagraph)— (i)to increase the public transparency of operations in energy futures markets; (ii)to improve the enforcement of this Act in those markets; and (iii)to carry out such other duties as are prescribed by the Commission.

Inspector general

Section 2(a) of the Commodity Exchange Act (7 U.S.C. 2(a)) is amended by adding at the end the following:

(13)

Inspector general

(A)

Office

There shall be in the Commission, as an independent office, an Office of the Inspector General. (B)

Appointment

The Office shall be headed by an Inspector General, appointed in accordance with the Inspector General Act of 1978 (5 U.S.C. App.). (C)

Compensation

The Inspector General shall be compensated at the rate provided for level IV of the Executive Schedule under section 5315 of title 5, United States Code. (D)

Administration

The Inspector General shall exert independent control of the budget allocations, expenditures, and staffing levels, personnel decisions and processes, procurement, and other administrative and management functions of the Office.

Study of international regulation 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 futures and derivatives. (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; (2)agreements and practices for sharing market and trading data; (3)the use of position limits or thresholds to detect and prevent price manipulation, excessive speculation, or other unfair trading practices; (4)practices regarding the identification of commercial and noncommercial trading and the extent of market speculation; and (5)agreements and practices for facilitating international cooperation on market oversight, compliance, and enforcement. (c)

Report

Not later than 120 days after the date of enactment of this Act, the Comptroller General shall submit to the appropriate committees of Congress a report that— (1)describes the results of the study; and (2)provides recommendations to improve openness, transparency, and other necessary elements of a properly functioning market in a manner that protects consumers in the United States from the effects of excessive speculation and energy price volatility.

Speculative limits and transparency for off-shore commodity trading

Section 4 of the Commodity Exchange Act (7 U.S.C. 6) is amended by adding at the end the following:

(e)

Foreign Boards of Trade

(1)

In general

In the case of any board of trade, exchange, or market located outside of the United States, its territories or possessions (i) for which the Commission has granted or is considering granting an application for relief from the requirement of subsection (a) to become a designated contract market, derivatives transaction execution facility, or other registered entity, and (ii) upon which there is traded any contract, agreement, or transaction in an energy commodity the settlement price of which is established with reference to the price of a contract, agreement, or transaction in an energy commodity traded on a designated contract market, derivatives transaction execution facility or other registered entity for which the primary physical delivery point is located within the United States, prior to continuing to or initially granting the relief, the Commission shall determine that the foreign board of trade— (A)applies comparable principles or requirements regarding the daily publication of trading information and position limits or accountability levels for speculators as apply to a designated contract market, derivatives transaction execution facility, or other registered entity trading energy commodities physically delivered in the United States; and (B)provides such information to the Commission regarding the extent of speculative and nonspeculative trading in the energy commodity that is comparable to the information the Commission determines necessary to publish a Commitment of Traders report for a designated contract market, derivatives transaction execution facility, or other registered entity trading energy commodities physically delivered in the United States. (2)

Existing foreign boards of trade

During the period beginning 1 year after the date of enactment of this subsection and ending 18 months after the date of enactment of this subsection, the Commission shall determine whether to continue to grant relief in accordance with paragraph (1) to any foreign board of trade for which the Commission granted relief prior to the date of enactment of this subsection.

Commission authority over traders

Section 4 of the Commodity Exchange Act (7 U.S.C. 6) (as amended by section 6) is amended by adding at the end the following:

(f)

Commission Authority Over Traders

(1)

In general

Notwithstanding any other provision of this section or any determination made by the Commission to grant relief from the requirements of subsection (a) to become a designated contract market, derivatives transaction execution facility, or other registered entity, in the case of a person located within the United States, or otherwise subject to the jurisdiction of the Commission, trading on a foreign board of trade, exchange, or market located outside the United States (including the territories and or possessions of the United States), the Commission shall have authority under this Act— (A)to apply and enforce section 9, including provisions relating to manipulation or attempted manipulation, the making of false statements, and willful violations of this Act; (B)to require or direct the person to limit, reduce, or liquidate any position to prevent or reduce the threat of price manipulation, excessive speculation, price distortion, or disruption of delivery or the cash settlement process; and (C)to apply such recordkeeping requirements as the Commission determines are necessary. (2)

Consultation

Prior to the issuance of any order under paragraph (1) to reduce a position on a foreign board of trade, exchange, or market located outside the United States (including the territories and possessions of the United States), the Commission shall consult with the foreign board of trade, exchange, or market and the appropriate regulatory authority. (3)

Administration

Nothing in this subsection limits any of the otherwise applicable authorities of the Commission.

Index traders and swap dealers

Section 4 of the Commodity Exchange Act (7 U.S.C. 6) (as amended by section 7) is amended by adding at the end the following:

(g)

Index Traders and Swap Dealers

Not later than 60 days after the date of enactment of this subsection, the Commission shall— (1)routinely require detailed reporting from index traders and swap dealers in markets under the jurisdiction of the Commission; (2)reclassify the types of traders for regulatory and reporting purposes to distinguish between index traders and swaps dealers; and (3)review the trading practices for index traders in markets under the jurisdiction of the Commission— (A)to ensure that index trading is not adversely impacting the price discovery process; and (B)to determine whether different practices or regulations should be implemented.

Disaggregation of index funds and other data in energy markets

Section 4 of the Commodity Exchange Act (7 U.S.C. 6) (as amended by section 8) is amended by adding at the end the following:

(h)

Disaggregation of Index Funds and Data in Energy Markets

The Commission shall disaggregate and make public monthly— (1)the number of positions and total value of index funds and other passive, long-only positions in energy markets; and (2)data on speculative positions relative to bona fide physical hedgers in those markets.