[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[S. 3129 Introduced in Senate (IS)]







110th CONGRESS
  2d Session
                                S. 3129

 To amend the Commodity Exchange Act to prevent price manipulation and 
  excessive speculation and to increase transparency with respect to 
energy trading on foreign exchanges conducted within the United States.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             June 12, 2008

Mr. Levin (for himself, Mrs. Feinstein, Mr. Durbin, Mr. Dorgan, and Mr. 
   Bingaman) introduced the following bill; which was read twice and 
   referred to the Committee on Agriculture, Nutrition, and Forestry

_______________________________________________________________________

                                 A BILL


 
 To amend the Commodity Exchange Act to prevent price manipulation and 
  excessive speculation and to increase transparency with respect to 
energy trading on foreign exchanges conducted within the United States.

    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 ``Close the London Loophole Act of 
2008''.

SEC. 2. COMMISSION AUTHORITY OVER TRADERS.

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

SEC. 3. SPECULATIVE LIMITS AND TRANSPARENCY FOR OFF-SHORE OIL TRADING.

    Section 4 of the Commodity Exchange Act (7 U.S.C. 6) (as amended by 
section 2) is amended by adding at the end the following:
    ``(f) Foreign Boards of Trade.--
            ``(1) In general.--In the case of any foreign board of 
        trade for which the Commission has granted or is considering an 
        application to grant a board of trade located outside of the 
        United States relief from the requirement of subsection (a) to 
        become a designated contract market, derivatives transaction 
        execution facility, or other registered entity, with respect to 
        an energy commodity that is physically delivered in 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.''.
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