[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6976 Introduced in House (IH)]
110th CONGRESS
2d Session
H. R. 6976
To amend the Commodity Exchange Act to bring greater transparency and
accountability to commodity markets, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
September 18, 2008
Mrs. Tauscher (for herself, Mr. Davis of Alabama, and Mrs. McCarthy of
New York) introduced the following bill; which was referred to the
Committee on Agriculture
_______________________________________________________________________
A BILL
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 ``Preventing Manipulation in Commodity
Markets 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 4h, 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 4c(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
4c(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 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) 5 predominantly commercial short hedgers of the
actual physical commodity for future delivery;
``(ii) 5 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, a bona fide hedging transaction or position
is a transaction or position that--
``(A)(i) represents a substitute for transactions to be
made or positions to be taken at a later time;
``(ii) is economically appropriate to the reduction of
risks in the conduct and management of a commercial or other
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 (d), (g),
(h)(1), or (h)(2) of section 2, or an exemption issued
by the Commission by rule, regulation or order; and
``(ii) 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.
(a) Additional Commodity Futures Trading 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 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.''.
(b) Inspector General of Commodity Futures Trading Commission.--
(1) Elevation of office.--
(A) Inclusion of cftc in definition of
establishment.--Section 11(2) of the Inspector General
Act of 1878 (5 U.S.C. App.) is amended by striking ``or
the Export-Import Bank,'' and inserting ``, the Export-
Import Bank, or the Commodity Futures Trading
Commission,''.
(B) Exclusion of cftc from definition of designated
federal entity.--Section 8G(a)(2) of such Act (5 U.S.C.
App.) is amended by striking ``the Commodity Futures
Trading Commission,''.
(2) Transition.--Until such time as the Inspector General
of the Commodity Futures Trading Commission is appointed in
accordance with section 3 of the Inspector General Act of 1978,
the Office of Inspector General of the Commission shall
continue in effect as provided in such Act before the date of
the enactment of this Act.
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 position limits for agreements,
contracts, or transactions 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, 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 commodities; and
(2) to determine the efficacy, practicality, and
consequences of establishing aggregate position limits for
similar agreements, contracts, or transactions for physical-
based 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 Comptroller General of the United States
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 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 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 for speculators on the 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.
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