110 HR 6372 IH: To reestablish standards from the Commodity Exchange Act U.S. House of Representatives 2008-06-25 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.

I 110th CONGRESS 2d Session H. R. 6372 IN THE HOUSE OF REPRESENTATIVES June 25, 2008 Mr. Hill introduced the following bill; which was referred to the Committee on Agriculture A BILL To reestablish standards from the Commodity Exchange Act to provide for the regulation of United States markets in energy commodity futures, and for other purposes.

1.

Short title

This Act may be cited as the Commodity Futures Restoration Act.

2.

Jurisdiction of the Commodity Futures Trading Commission extended to derivatives involving energy commodities

(a)

Removal of energy commodities from definition of exempt commodity

Section 1a(14) of the Commodity Exchange Act (7 U.S.C. 1a(14)) is amended by inserting , an energy commodity, after excluded commodity. (b)

Energy commodity defined

Section 1a of the Commodity Exchange Act (7 U.S.C. 1a) is amended— (1)by redesignating paragraphs (13) through (34) as paragraphs (14) through (35), respectively; and (2)by inserting after paragraph (12) the following: (13)

Energy commodity

The term energy commodity means— (A)coal; (B)crude oil, gasoline, diesel fuel, heating oil, and propane; (C)electricity; (D)natural gas; and (E)any other commodity (other than an excluded commodity, a metal, or an agricultural commodity) that is used as a source of energy, as the Commission deems appropriate. .

3.

Narrowing of the foreign board of trade exception to the requirement that certain futures transactions be conducted on or through a designated contract market or derivatives transaction execution facility

Section 4 of the Commodity Exchange Act (7 U.S.C. 6) is amended by adding at the end the following: (e)(1)For purposes of this Act, a board of trade, exchange, or market shall not be considered to be foreign or located outside the United States if— (A)the board of trade, exchange, or market has an affiliate located in the United States; (B)a contract of sale of a commodity other than an exempt commodity for future delivery in the United States is executed or traded on or through the board of trade, exchange, or market; or (C)a significant price discovery contract is executed or traded on or through the board of trade, exchange, or market. (2)For the purposes of paragraph (1)(A), an entity is deemed to be an affiliate of a board of trade, exchange or market if— (A)the entity owns 50 percent or more of the board of trade, exchange, or market; (B)the board, exchange, or market owns 50 percent or more of the entity; or (C)a third person owns 50 percent or more of the entity and 50 percent or more of the board of trade, exchange, or market. .

4.

Jurisdiction of the Commodity Futures Trading Commission extended to swaps involving an energy commodity

(a)

Elimination of exemption for excluded swap transactions involving an energy commodity

Section 2(g) of the Commodity Exchange Act (7 U.S.C. 2(g)) is amended by inserting or an energy commodity after agricultural commodity. (b)

Swaps involving an energy commodity To be taken into account in determining compliance with position and transaction limits, without regard to exemption for bona fide hedging transactions

Section 4a(c) of such Act (7 U.S.C. 6a(c)) is amended by adding at the end the following: The preceding provisions of this subsection shall not apply to swaps that involve an energy commodity..

5.

Progress report

(a)

Report on limits fixed with respect to energy commodities

Within 90 day after the effective date of this Act, the Commodity Futures Trading Commission shall submit to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate a report on— (1)the progress of the Commission in implementing the amendments made by the preceding provisions of this Act, including an explanation of— (A)any exemptions provided by the Commission from the requirements resulting from any such amendment; and (B)if the Commission has not established position limits with respect to contracts of sale of an energy commodity for future delivery, why the Commission has not done so; and (2)any margin requirements applicable to transactions in the contracts. (b)

Definitions

The terms used in subsection (a) shall have the meanings given the terms in the Commodity Exchange Act.

6.

Federal Energy Regulatory Commission oversight

Nothing in this Act shall affect the authority of the Federal Energy Regulatory Commission under the Natural Gas Act (15 U.S.C. 717 et seq.) or any other law to obtain information or otherwise carry out the responsibilities of the Federal Energy Regulatory Commission.

7.

Federal Trade Commission authority over market manipulation

Nothing in this Act shall be construed as interfering with the prohibition contained in subtitle B of title VIII of the Energy Independence and Security Act of 2007 (42 U.S.C. 17301 et seq.) or the authority of the Federal Trade Commission to enforce such subtitle.

8.

Effective date

This Act and the amendments made by this Act shall take effect 6 months after the date of the enactment of this Act.