[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6604 Referred in Senate (RFS)]

  2d Session
                                H. R. 6604


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

           September 22 (legislative day, September 17), 2008

                                Received

            October 2 (legislative day, September 17), 2008

Read twice and referred to the Committee on Agriculture, Nutrition, and 
                                Forestry

_______________________________________________________________________

                                 AN ACT


 
 To amend the Commodity Exchange Act to bring greater transparency and 
      accountability to commodity markets, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Commodity Markets Transparency and 
Accountability Act of 2008''.

SEC. 2. TABLE OF CONTENTS.

    The table of contents of this Act is as follows:

Sec. 1. Short title.
Sec. 2. Table of contents.
Sec. 3. Definition of energy commodity.
Sec. 4. Speculative limits and transparency of off-shore trading.
Sec. 5. Disaggregation of index funds and other data in energy and 
                            agriculture markets.
Sec. 6. Detailed reporting from index traders and swap dealers.
Sec. 7. Transparency and recordkeeping authorities.
Sec. 8. Trading limits to prevent excessive speculation.
Sec. 9. Modifications to core principles applicable to position limits 
                            for contracts in agricultural and energy 
                            commodities.
Sec. 10. CFTC Administration.
Sec. 11. Review of prior actions.
Sec. 12. Review of over-the-counter markets.
Sec. 13. Studies; reports.
Sec. 14. Over-the-counter authority.
Sec. 15. Expedited process.

SEC. 3. DEFINITION OF ENERGY COMMODITY.

    (a) Definition of Energy Commodity.--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, jet fuel, 
                heating oil, and propane;
                    ``(C) electricity;
                    ``(D) natural gas; and
                    ``(E) any other substance that is used as a source 
                of energy, as the Commission, in its discretion, deems 
                appropriate.''.
    (b) Conforming Amendments.--
            (1) Section 2(c)(2)(B)(i)(II)(cc) of the Commodity Exchange 
        Act (7 U.S.C. 2(c)(2)(B)(i)(II)(cc)) is amended--
                    (A) in subitem (AA), by striking ``section 1a(20)'' 
                and inserting ``section 1a(21)''; and
                    (B) in subitem (BB), by striking ``section 1a(20)'' 
                and inserting ``section 1a(21)''.
            (2) Section 13106(b)(1) of the Food, Conservation, and 
        Energy Act of 2008 is amended by striking ``section 1a(32)'' 
        and inserting ``section 1a''.
            (3) Section 402 of the Legal Certainty for Bank Products 
        Act of 2000 (7 U.S.C. 27) is amended--
                    (A) in subsection (a)(7), by striking ``section 
                1a(20)'' and inserting ``section 1a''; and
                    (B) in subsection (d)--
                            (i) in paragraph (1)(B), by striking 
                        ``section 1a(33)'' and inserting ``section 
                        1a''; and
                            (ii) in paragraph (2)(D), by striking 
                        ``section 1a(13)'' and inserting ``section 
                        1a''.

SEC. 4. SPECULATIVE LIMITS AND TRANSPARENCY OF OFF-SHORE TRADING.

    (a) In General.--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.--The Commission may not permit a foreign 
        board of trade to provide to the members of the foreign board 
        of trade or other participants located in the United States 
        direct access to the electronic trading and order matching 
        system of the foreign board of trade with respect to an 
        agreement, contract, or transaction in an energy or 
        agricultural commodity that settles against any price 
        (including the daily or final settlement price) of 1 or more 
        contracts listed for trading on a registered entity, unless--
                    ``(A) the foreign board of trade makes public daily 
                trading information regarding the agreement, contract, 
                or transaction that is comparable to the daily trading 
                information published by the registered entity for the 
                1 or more contracts against which the agreement, 
                contract, or transaction traded on the foreign board of 
                trade settles; and
                    ``(B) the foreign board of trade (or the foreign 
                futures authority that oversees the foreign board of 
                trade)--
                            ``(i) adopts position limits (including 
                        related hedge exemption provisions) for the 
                        agreement, contract, or transaction that are 
                        comparable, taking into consideration the 
                        relative sizes of the respective markets, to 
                        the position limits (including related hedge 
                        exemption provisions) adopted by the registered 
                        entity for the 1 or more contracts against 
                        which the agreement, contract, or transaction 
                        traded on the foreign board of trade settles;
                            ``(ii) has the authority to require or 
                        direct market participants to limit, reduce, or 
                        liquidate any position the foreign board of 
                        trade (or the foreign futures authority that 
                        oversees the foreign board of trade) determines 
                        to be necessary to prevent or reduce the threat 
                        of price manipulation, excessive speculation as 
                        described in section 4a, price distortion, or 
                        disruption of delivery or the cash settlement 
                        process;
                            ``(iii) agrees to promptly notify the 
                        Commission of any change regarding--
                                    ``(I) the information that the 
                                foreign board of trade will make 
                                publicly available;
                                    ``(II) the position limits that the 
                                foreign board of trade or foreign 
                                futures authority will adopt and 
                                enforce;
                                    ``(III) the position reductions 
                                required to prevent manipulation, 
                                excessive speculation as described in 
                                section 4a, price distortion, or 
                                disruption of delivery or the cash 
                                settlement process; and
                                    ``(IV) any other area of interest 
                                expressed by the Commission to the 
                                foreign board of trade or foreign 
                                futures authority;
                            ``(iv) provides information to the 
                        Commission regarding large trader positions in 
                        the agreement, contract, or transaction that is 
                        comparable to the large trader position 
                        information collected by the Commission for the 
                        1 or more contracts against which the 
                        agreement, contract, or transaction traded on 
                        the foreign board of trade settles; and
                            ``(v) provides the Commission with 
                        information necessary to publish reports on 
                        aggregate trader positions for the agreement, 
                        contract, or transaction traded on the foreign 
                        board of trade that are comparable to such 
                        reports for 1 or more contracts against which 
                        the agreement, contract, or transaction traded 
                        on the foreign board of trade settles.
            ``(2) Existing foreign boards of trade.--Paragraph (1) 
        shall not be effective with respect to any agreement, contract, 
        or transaction in an energy commodity executed on a foreign 
        board of trade to which the Commission had granted direct 
        access permission before the date of the enactment of this 
        subsection until the date that is 180 days after such date of 
        enactment.''.
    (b) Liability of Registered Persons Trading on a Foreign Board of 
Trade.--
            (1) Section 4(a) of such Act (7 U.S.C. 6(a)) is amended by 
        inserting ``or by subsection (f)'' after ``Unless exempted by 
        the Commission pursuant to subsection (c)''.
            (2) Section 4 of such Act (7 U.S.C. 6) is further amended 
        by adding at the end the following:
    ``(f) A person registered with the Commission, or exempt from 
registration by the Commission, under this Act may not be found to have 
violated subsection (a) with respect to a transaction in, or in 
connection with, a contract of sale of a commodity for future delivery 
if the person has reason to believe the transaction and the contract is 
made on or subject to the rules of a board of trade that is legally 
organized under the laws of a foreign country, authorized to act as a 
board of trade by a foreign futures authority, subject to regulation by 
the foreign futures authority, and has not been determined by the 
Commission to be operating in violation of subsection (a).''.
    (c) Contract Enforcement for Foreign Futures Contracts.--Section 
22(a) of such Act (7 U.S.C. 25(a)) is amended by adding at the end the 
following:
            ``(5) A contract of sale of a commodity for future delivery 
        traded or executed on or through the facilities of a board of 
        trade, exchange, or market located outside the United States 
        for purposes of section 4(a) shall not be void, voidable, or 
        unenforceable, and a party to such a contract shall not be 
        entitled to rescind or recover any payment made with respect to 
        the contract, based on the failure of the foreign board of 
        trade to comply with any provision of this Act.''.

SEC. 5. DISAGGREGATION OF INDEX FUNDS AND OTHER DATA IN ENERGY AND 
              AGRICULTURE MARKETS.

    Section 4 of the Commodity Exchange Act (7 U.S.C. 6), as amended by 
section 4 of this Act, is amended by adding at the end the following:
    ``(g) Disaggregation of Index Funds and Other Data in Energy and 
Agriculture Markets.--Subject to section 8 and beginning within 30 days 
of the issuance of the final rule required by section 4(h), the 
Commission shall disaggregate and make public weekly--
            ``(1) the number of positions and total value of index 
        funds and other passive, long-only and short-only positions (as 
        defined by the Commission) in all energy and agricultural 
        markets to the extent such information is available; and
            ``(2) data on speculative positions relative to bona fide 
        physical hedgers in those markets to the extent such 
        information is available.''.

SEC. 6. DETAILED REPORTING FROM INDEX TRADERS AND SWAP DEALERS.

    Section 4 of the Commodity Exchange Act (7 U.S.C. 6), as amended by 
sections 4 and 5 of this Act, is amended by adding at the end the 
following:
    ``(h) Index Traders and Swap Dealers Reporting.--The Commission 
shall issue a proposed rule defining and classifying index traders and 
swap dealers (as those terms are defined by the Commission) for 
purposes of data reporting requirements and setting routine detailed 
reporting requirements for such entities in designated contract 
markets, derivatives transaction execution facilities, foreign boards 
of trade subject to section 4(e), and electronic trading facilities 
with respect to significant price discovery contracts with respect to 
exempt and agricultural commodities not later than 60 days after the 
date of the enactment of this subsection, and issue a final rule within 
120 days after such date of enactment.''.

SEC. 7. TRANSPARENCY AND RECORDKEEPING AUTHORITIES.

    (a) In General.--Section 4g(a) of the Commodity Exchange Act (7 
U.S.C. 6g(a)) is amended--
            (1) by inserting ``a'' before ``futures commission 
        merchant''; and
            (2) by inserting ``and transactions and positions traded 
        pursuant to subsection (g), (h)(1), or (h)(2) of section 2, or 
        any exemption issued by the Commission by rule, regulation or 
        order,'' after ``United States or elsewhere,''.
    (b) Reports of Deals Equal to or in Excess of Trading Limits.--
Section 4i of such Act (7 U.S.C. 6i) is amended--
            (1) in the first sentence--
                    (A) by inserting ``(a)'' before ``It shall''; and
                    (B) by inserting ``in the United States or 
                elsewhere, and of transactions and positions in any 
                such commodity entered into pursuant to subsection (g), 
                (h)(1), or (h)(2) of section 2, or any exemption issued 
                by the Commission by rule, regulation or order'' before 
                ``, and of cash or spot''; and
            (2) by striking all that follows the 1st sentence and 
        inserting the following:
    ``(b) With respect to agricultural and energy commodities, upon 
special call by the Commission, any person shall provide to the 
Commission, in a form and manner and within the period specified in the 
special call, books and records of all transactions and positions 
traded on or subject to the rules of any board of trade or electronic 
trading facility in the United States or elsewhere, or pursuant to 
subsection (g), (h)(1), or (h)(2) of section 2, or any exemption issued 
by the Commission by rule, regulation, or order, as the Commission may 
determine appropriate to deter and prevent price manipulation or any 
other disruption to market integrity or to diminish, eliminate, or 
prevent excessive speculation as described in section 4a(a).
    ``(c) Such books and records described in subsections (a) and (b) 
shall show complete details concerning all such transactions, 
positions, inventories, and commitments, including the names and 
addresses of all persons having any interest therein, shall be kept for 
a period of 5 years, and shall be open at all times to inspection by 
any representative of the Commission or the Department of Justice. For 
the purposes of this section, the futures and cash or spot transactions 
and positions of any person shall include such transactions and 
positions of any persons directly or indirectly controlled by the 
person.''.
    (c) Conforming Amendments.--
            (1) Section 2(g) of such Act (7 U.S.C. 2(g)) is amended--
                    (A) by inserting ``4g(a), 4i,'' before ``5a (to''; 
                and
                    (B) by inserting ``, and the regulations of the 
                Commission pursuant to section 4i(b) requiring 
                reporting in connection with commodity option 
                transactions,'' before ``shall apply''.
            (2) Section 2(h)(2)(A) of such Act (7 U.S.C. 2(h)(2)(A)) is 
        amended to read as follows:
                    ``(A) sections 4g(a), 4i, 5b and 12(e)(2)(B), and 
                the regulations of the Commission pursuant to section 
                4i(b) requiring reporting in connection with commodity 
                option transactions;''.

SEC. 8. TRADING LIMITS TO PREVENT EXCESSIVE SPECULATION.

    Section 4a of the Commodity Exchange Act (7 U.S.C. 6a) is amended--
            (1) in subsection (a)--
                    (A) by inserting ``(1)'' after ``(a)''; and
                    (B) by adding after and below the end the 
                following:
    ``(2) In accordance with the standards set forth in paragraph (1) 
of this subsection and consistent with the good faith exception cited 
in subsection (b)(2), with respect to agricultural commodities 
enumerated in section 1a(4) and energy commodities, the Commission, 
within 60 days after the date of the enactment of this paragraph, shall 
by rule, regulation, or order establish limits on the amount of 
positions, other than bona fide hedge positions, that may be held by 
any person with respect to contracts of sale for future delivery or 
with respect to options on such contracts or commodities traded on or 
subject to the rules of a contract market or derivatives transaction 
execution facility, or on an electronic trading facility as a 
significant price discovery contract.
    ``(3) In establishing the limits required in paragraph (2), the 
Commission shall set limits--
            ``(A) on the number of positions that may be held by any 
        person for the spot month, each other month, and the aggregate 
        number of positions that may be held by any person for all 
        months;
            ``(B) to the maximum extent practicable, in its 
        discretion--
                    ``(i) to diminish, eliminate, or prevent excessive 
                speculation as described under this section;
                    ``(ii) to deter and prevent market manipulation, 
                squeezes, and corners;
                    ``(iii) to ensure sufficient market liquidity for 
                bona fide hedgers; and
                    ``(iv) to ensure that the price discovery function 
                of the underlying market is not disrupted; and
            ``(C) to the maximum extent practicable, in its discretion, 
        take into account the total number of positions in fungible 
        agreements, contracts, or transactions that a person can hold 
        in agricultural and energy commodities in other markets.
    ``(4)(A) Not later than 150 days after the date of the enactment of 
this paragraph, the Commission shall convene a Position Limit 
Agricultural Advisory Group and a Position Limit Energy Group, each 
group consisting of representatives from--
            ``(i) 7 predominantly commercial short hedgers of the 
        actual physical commodity for future delivery;
            ``(ii) 7 predominantly commercial long hedgers of the 
        actual physical commodity for future delivery;
            ``(iii) 4 non-commercial participants in markets for 
        commodities for future delivery; and
            ``(iv) each designated contract market or derivatives 
        transaction execution facility upon which a contract in the 
        commodity for future delivery is traded, and each electronic 
        trading facility that has a significant price discovery 
        contract in the commodity.
    ``(B) Not later than 60 days after the date on which the advisory 
groups are convened under subparagraph (A), and annually thereafter, 
the advisory groups shall submit to the Commission advisory 
recommendations regarding the position limits to be established in 
paragraph (2) and a recommendation as to whether the position limits 
should be administered directly by the Commission, or by the registered 
entity on which the commodity is listed (with enforcement by both the 
registered entity and the Commission).''; and
            (2) in subsection (c)--
                    (A) by inserting ``(1)'' after ``(c)''; and
                    (B) by adding after and below the end the 
                following:
    ``(2) With respect to agricultural and energy commodities, for the 
purposes of contracts of sale for future delivery and options on such 
contracts or commodities, the Commission shall define what constitutes 
a bona fide hedging transaction or position as a transaction or 
position that--
            ``(A)(i) represents a substitute for transactions to be 
        made or positions to be taken at a later time in a physical 
        marketing channel;
            ``(ii) is economically appropriate to the reduction of 
        risks in the conduct and management of a commercial enterprise; 
        and
            ``(iii) arises from the potential change in the value of--
                    ``(I) assets that a person owns, produces, 
                manufactures, processes, or merchandises or anticipates 
                owning, producing, manufacturing, processing, or 
                merchandising;
                    ``(II) liabilities that a person owns or 
                anticipates incurring; or
                    ``(III) services that a person provides, purchases, 
                or anticipates providing or purchasing; or
            ``(B) reduces risks attendant to a position resulting from 
        a transaction that--
                    ``(i) was executed pursuant to subsection (g), 
                (h)(1), or (h)(2) of section 2, or an exemption issued 
                by the Commission by rule, regulation or order; and
                    ``(ii) was executed opposite a counterparty for 
                which the transaction would qualify as a bona fide 
                hedging transaction pursuant to paragraph (2)(A) of 
                this subsection.''.

SEC. 9. MODIFICATIONS TO CORE PRINCIPLES APPLICABLE TO POSITION LIMITS 
              FOR CONTRACTS IN AGRICULTURAL AND ENERGY COMMODITIES.

    (a) Contracts Traded on Contract Markets.--Section 5(d)(5) of the 
Commodity Exchange Act (7 U.S.C. 7(d)(5)) is amended by striking all 
that follows ``adopt'' and inserting ``, for speculators, position 
limitations with respect to agricultural commodities enumerated in 
section 1a(4) or energy commodities, and position limitations or 
position accountability with respect to other commodities, where 
necessary and appropriate.''.
    (b) Contracts Traded on Derivatives Transaction Execution 
Facilities.--Section 5a(d)(4) of such Act (7 U.S.C. 7a(d)(4)) is 
amended by striking all that follows ``adopt'' and inserting ``, for 
speculators, position limitations with respect to energy commodities, 
and position limitations or position accountability with respect to 
other commodities, where necessary and appropriate for a contract, 
agreement or transaction with an underlying commodity that has a 
physically deliverable supply.''.
    (c) Significant Price Discovery Contracts.--Section 
2(h)(7)(C)(ii)(IV) of such Act (7 U.S.C. 2(h)(7)(C)(ii)(IV)) is amended 
by striking ``where necessary'' and all that follows through ``in 
significant price discovery contracts'' and inserting ``for 
speculators, position limitations with respect to significant price 
discovery contracts in energy commodities, and position limitations or 
position accountability with respect to significant price discovery 
contracts in other commodities''.

SEC. 10. CFTC ADMINISTRATION.

    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 the enactment of this subparagraph, 
                subject to appropriations, the Commission shall appoint 
                at least 100 full-time employees (in addition to the 
                employees employed by the Commission as of the date of 
                the enactment of this subparagraph)--
                            ``(i) to increase the public transparency 
                        of operations in agriculture and energy 
                        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.''.

SEC. 11. REVIEW OF PRIOR ACTIONS.

    Notwithstanding any other provision of the Commodity Exchange Act, 
the Commodity Futures Trading Commission shall review, as appropriate, 
all regulations, rules, exemptions, exclusions, guidance, no action 
letters, orders, other actions taken by or on behalf of the Commission, 
and any action taken pursuant to the Commodity Exchange Act by an 
exchange, self-regulatory organization, or any other registered entity, 
that are currently in effect, to ensure that such prior actions are in 
compliance with the provisions of this Act.

SEC. 12. REVIEW OF OVER-THE-COUNTER MARKETS.

    (a) Study.--The Commodity Futures Trading Commission shall conduct 
a study--
            (1) to determine the efficacy, practicality, and 
        consequences of establishing limits on the amount of positions, 
        other than bona fide hedge positions, that may be held by any 
        person with respect to agreements, contracts, or transactions 
        involving an agricultural or energy commodity, conducted in 
        reliance on sections 2(g) and 2(h) of the Commodity Exchange 
        Act and of any exemption issued by the Commission by rule, 
        regulation or order, that are fungible (as defined by the 
        Commission) with agreements, contracts, or transactions traded 
        on or subject to the rules of any board of trade or of any 
        electronic trading facility with respect to a significant price 
        discovery contract, as a means to deter and prevent price 
        manipulation or any other disruption to market integrity or to 
        diminish, eliminate, or prevent excessive speculation as 
        described in section 4a of such Act for physical-based 
        agricultural or energy commodities; and
            (2) to determine the efficacy, practicality, and 
        consequences of establishing aggregate position limits for 
        similar agreements, contracts, or transactions for physical-
        based agricultural or energy commodities traded--
                    (A) on designated contract markets;
                    (B) on derivatives transaction execution 
                facilities; and
                    (C) in reliance on such sections 2(g) and 2(h) and 
                of any exemption issued by the Commission by rule, 
                regulation or order.
    (b) Public Hearings.--The Commission shall provide for not less 
than 2 public hearings to take testimony, on the record, as part of the 
fact- gathering process in preparation of the report.
    (c) Report and Recommendations.--Not less than 12 months after the 
date of the enactment of this section, the Commission shall provide to 
the Committee on Agriculture of the House of Representatives and the 
Committee on Agriculture, Nutrition, and Forestry of the Senate a 
report that--
            (1) describes the results of the study; and
            (2) provides recommendations on any actions necessary to 
        deter and prevent price manipulation or any other disruption to 
        market integrity or to diminish, eliminate, or prevent 
        excessive speculation as described in section 4a of the 
        Commodity Exchange Act for physical-based commodities, 
        including--
                    (A) any additional statutory authority that the 
                Commission determines to be necessary to implement the 
                recommendations; and
                    (B) a description of the resources that the 
                Commission considers to be necessary to implement the 
                recommendations.

SEC. 13. STUDIES; REPORTS.

    (a) Study Relating to International Regulation of Energy Commodity 
Markets.--
            (1) 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.
            (2) Analysis.--The study shall include an analysis of, at a 
        minimum--
                    (A) key common features and differences among 
                countries in the regulation of energy commodity 
                trading, including with respect to market oversight and 
                enforcement standards and activities;
                    (B) variations among countries with respect to the 
                use of position limits, position accountability levels, 
                or other thresholds to detect and prevent price 
                manipulation, excessive speculation as described in 
                section 4a of the Commodity Exchange Act, or other 
                unfair trading practices;
                    (C) variations in practices regarding the 
                differentiation of commercial and noncommercial 
                trading;
                    (D) agreements and practices for sharing market and 
                trading data among futures authorities and between 
                futures authorities and the entities that the futures 
                authorities oversee; and
                    (E) agreements and practices for facilitating 
                international cooperation on market oversight, 
                compliance, and enforcement.
            (3) Report.--Not later than 1 year after the date of the 
        enactment of this Act, the Comptroller General 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 that--
                    (A) describes the results of the study;
                    (B) addresses whether there is excessive 
                speculation, and if so, the effects of any such 
                speculation and energy price volatility on energy 
                futures; and
                    (C) 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.
    (b) Study Relating to Effects of Speculators on Agriculture and 
Energy Futures Markets and Agriculture and Energy Prices.--
            (1) Study.--The Commodity Futures Trading Commission shall 
        conduct a study of the effects of speculators on agriculture 
        and energy futures markets and agriculture and energy prices.
            (2) Analysis.--The study shall include an analysis of, at a 
        minimum--
                    (A) the effect of increased amounts of capital in 
                agriculture and energy futures markets;
                    (B) the impact of the roll-over of positions by 
                index fund traders and swap dealers on agriculture and 
                energy futures markets and agriculture and energy 
                prices; and
                    (C) the extent to which each factor described in 
                subparagraphs (A) and (B) and speculators--
                            (i) affect--
                                    (I) the pricing of agriculture and 
                                energy commodities; and
                                    (II) risk management functions; and
                            (ii) contribute to economically efficient 
                        price discovery.
            (3) Report.--Not later than 2 years after the date of the 
        enactment 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 that describes the results 
        of the study.

SEC. 14. OVER-THE-COUNTER AUTHORITY.

    (a) In General.--Section 2 of the Commodity Exchange Act (7 U.S.C. 
2) is amended by adding at the end the following:
    ``(j) Over-the-Counter Authority.--
            ``(1) Within 60 days after the date of the enactment of 
        this subsection, the Commission shall, by rule, regulation, or 
        order, require routine reporting as it deems in its discretion 
        appropriate, on not less than a monthly basis, of agreements, 
        contracts, or transactions, with regard to an agricultural or 
        energy commodity, entered into in reliance on subsection (g), 
        (h)(1), or (h)(2) of section 2, or any exemption issued by the 
        Commission by rule, regulation, or order that are fungible (as 
        defined by the Commission) with agreements, contracts, or 
        transactions traded on or subject to the rules of any board of 
        trade or of any electronic trading facility with respect to a 
        significant price discovery contract.
            ``(2) Notwithstanding subsections (g), (h)(1), and (h)(2) 
        of section 2, and any exemption issued by the Commission by 
        rule, regulation, or order, the Commission shall assess and 
        issue a finding on whether the agreements, contracts, or 
        transactions reported pursuant to paragraph (1), alone or in 
        conjunction with other similar agreements, contracts, or 
        transactions, have the potential to--
                    ``(A) disrupt the liquidity or price discovery 
                function on a registered entity;
                    ``(B) cause a severe market disturbance in the 
                underlying cash or futures market for an agricultural 
                or energy commodity; or
                    ``(C) prevent or otherwise impair the price of a 
                contract listed for trading on a registered entity from 
                reflecting the forces of supply and demand in any 
                market for an agricultural commodity enumerated in 
                section 1a(4) or an energy commodity.
            ``(3) If the Commission makes a finding pursuant to 
        paragraph (2) of this subsection, the Commission may, in its 
        discretion, utilize its authority under section 8a(9) to impose 
        position limits (including, as appropriate and in its 
        discretion, related hedge exemption provisions for bona fide 
        hedging comparable to bona fide hedge provisions of section 
        4a(c)(2)) on agreements, contracts, or transactions involved, 
        and take corrective actions to enforce the limits.''.
    (b) Conforming Amendments.--
            (1) Section 2(g) of such Act (7 U.S.C. 2(g)) is amended by 
        inserting ``subsection (j) of this section, and'' after 
        ``(other than''.
            (2) Section 2(h)(2)(A) of such Act (7 U.S.C. 2(h)(2)(A)) is 
        amended by inserting ``subsection (j) of this section and'' 
        before ``sections''.
            (3) Section 8a(9) of such Act (7 U.S.C. 12a(a)(9)) is 
        amended by inserting after ``of the Commission's action'' the 
        following: ``, and to fix and enforce limits to agreements, 
        contracts, or transaction subject to section 2(j)(1) pursuant 
        to a finding made under section 2(j)(2)''.

SEC. 15. EXPEDITED PROCESS.

    The Commodity Futures Trading Commission may use emergency and 
expedited procedures (including any administrative or other procedure 
as appropriate) to carry out this Act if, in its discretion, it deems 
it necessary to do so.

            Passed the House of Representatives September 18, 2008.

            Attest:

                                            LORRAINE C. MILLER,

                                                                 Clerk.