[Congressional Bills 114th Congress]
[From the U.S. Government Publishing Office]
[S. 2917 Placed on Calendar Senate (PCS)]

<DOC>





                                                       Calendar No. 461
114th CONGRESS
  2d Session
                                S. 2917

  To reauthorize the Commodity Futures Trading Commission, to ensure 
   protections of futures customers, to provide relief for farmers, 
 ranchers, and end-users that manage risk to help keep consumer costs 
                      low, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                              May 10, 2016

    Mr. Roberts, from the Committee on Agriculture, Nutrition, and 
 Forestry, reported the following original bill; which was read twice 
                       and placed on the calendar

_______________________________________________________________________

                                 A BILL


 
  To reauthorize the Commodity Futures Trading Commission, to ensure 
   protections of futures customers, to provide relief for farmers, 
 ranchers, and end-users that manage risk to help keep consumer costs 
                      low, 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; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Commodity End-User 
Relief Act''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
                      TITLE I--CONSUMER PROTECTION

Sec. 101. Enhanced protections for futures customers.
Sec. 102. Electronic confirmation of customer funds.
Sec. 103. Notice and certifications providing additional customer 
                            protections.
Sec. 104. Futures commission merchant compliance.
Sec. 105. Certainty for futures customers and market participants.
         TITLE II--COMMODITY FUTURES TRADING COMMISSION REFORMS

Sec. 201. Extension of operations.
Sec. 202. Clarification of exemptive authority.
Sec. 203. Privilege retention.
Sec. 204. Judicial review of Commission rules.
Sec. 205. Report on status of any application of metals exchange to 
                            register as a foreign board of trade; 
                            deadline for action on application.
Sec. 206. Predominantly engaged.
Sec. 207. Public interest exemptions.
                       TITLE III--END-USER RELIEF

Sec. 301. Transactions with utility special entities.
Sec. 302. Relief for grain elevator operators, agricultural producers, 
                            agricultural counterparties, and commercial 
                            market participants.
Sec. 303. Relief for end-users who use physical contracts with 
                            volumetric optionality and treatment of 
                            Federal home loan bank products.
Sec. 304. Study of swap dealer de minimis exemption level.
Sec. 305. Models for non-bank swap dealers.
Sec. 306. Bona fide hedge defined to protect end-user risk management 
                            needs.
Sec. 307. Exemption of qualified charitable organizations from 
                            designation and regulation as commodity 
                            pool operators.
                    TITLE IV--TECHNICAL CORRECTIONS

Sec. 401. Correction of cross-references.
Sec. 402. Elimination of obsolete references to derivative transaction 
                            execution facilities.
Sec. 403. Elimination of obsolete references to electronic trading 
                            facilities.
Sec. 404. Elimination of obsolete references to exempt boards of trade.
Sec. 405. Elimination of obsolete reference to significant price 
                            discovery contract.
Sec. 406. Clarifications of retail foreign currency.
Sec. 407. Elimination of obsolete references to dealer options.
Sec. 408. Correction of references to designated contract markets.
Sec. 409. Compliance report flexibility.
Sec. 410. Reservations.
Sec. 411. Flexibility for registered entities.
Sec. 412. Elimination of obsolete reference to alternative swap 
                            execution facilities.
Sec. 413. Elimination of redundant references to types of registered 
                            entities.
Sec. 414. Clarification of Commission authority over swaps trading.
Sec. 415. Elimination of duplicative reference to Commission.
Sec. 416. Miscellaneous corrections.
Sec. 417. Elimination of report due in 1986.

                      TITLE I--CONSUMER PROTECTION

SEC. 101. ENHANCED PROTECTIONS FOR FUTURES CUSTOMERS.

    Section 17 of the Commodity Exchange Act (7 U.S.C. 21) (as amended 
by section 416(o)(1)) is amended by adding at the end the following:
    ``(t) Enhanced Protections for Futures Customers.--Each registered 
futures association shall submit to the Commission rules that--
            ``(1) require each member of the association that is a 
        futures commission merchant to maintain written policies and 
        procedures regarding the maintenance of--
                    ``(A) the residual interest of the member, as 
                described in section 1.23 of title 17, Code of Federal 
                Regulations (or successor regulations), in any customer 
                segregated funds of the member, as identified in 
                section 1.20 of that title (or successor regulations), 
                and in any foreign futures and foreign options customer 
                secured amount funds of the member, as identified in 
                section 30.7 of that title (or successor regulations); 
                and
                    ``(B) the residual interest of the member, as 
                described in section 22.2(e)(4) of that title (or 
                successor regulations), in any cleared swaps customer 
                collateral of the member, as identified in section 22.2 
                of that title (or successor regulations); and
            ``(2) govern the withdrawal, transfer, or disbursement by 
        any member, as described in section 1.23 of that title (or 
        successor regulations), of the association, that is a futures 
        commission merchant, of the residual interest of the member in 
        any customer segregated funds as provided in section 1.20 of 
        that title (or successor regulations), in any foreign futures 
        and foreign options customer secured amount funds, identified 
        as provided in section 30.7 of that title (or successor 
        regulations), and in any cleared swaps customer collateral, 
        identified as provided in section 22.2 of that title (or 
        successor regulations).''.

SEC. 102. ELECTRONIC CONFIRMATION OF CUSTOMER FUNDS.

    Section 17 of the Commodity Exchange Act (7 U.S.C. 21) (as amended 
by section 101), is amended by adding at the end the following:
    ``(u) Electronic Confirmation of Customer Funds.--Each registered 
futures association shall submit to the Commission rules that require 
any member of the association that is a futures commission merchant--
            ``(1) to use an electronic system or systems to report 
        financial and operational information to the association or 
        another party designated by the registered futures association, 
        including information related to customer segregated funds 
        accounts, foreign futures and foreign options customer secured 
        amount funds accounts, and cleared swaps customer collateral 
        accounts, in accordance with such terms, conditions, 
        documentation standards, and regular time intervals as are 
        established by the registered futures association;
            ``(2) to instruct each depository, including any bank, 
        trust company, derivatives clearing organization, or futures 
        commission merchant, holding customer segregated funds under 
        section 1.20 of title 17, Code of Federal Regulations (or 
        successor regulations), foreign futures and foreign options 
        customer secured amount funds under section 30.7 of that title 
        (or successor regulations), or cleared swaps customer 
        collateral under section 22.2 of that title (or successor 
        regulations), to report balances in section 1.20 customer 
        segregated funds accounts, section 30.7 foreign futures and 
        foreign options customer secured amount funds accounts, and 
        section 22.2 cleared swaps customer collateral accounts of the 
        futures commission merchant, to the registered futures 
        association or another party designated by the registered 
        futures association, in the form, manner, and interval 
        prescribed by the registered futures association; and
            ``(3) to hold section 1.20 customer segregated funds, 
        section 30.7 foreign futures and foreign options customer 
        secured amount funds and section 22.2 cleared swaps customer 
        collateral in a depository that reports the balances in those 
        accounts of the futures commission merchant held at the 
        depository to the registered futures association or another 
        party designated by the registered futures association in the 
        form, manner, and interval prescribed by the registered futures 
        association.''.

SEC. 103. NOTICE AND CERTIFICATIONS PROVIDING ADDITIONAL CUSTOMER 
              PROTECTIONS.

    Section 17 of the Commodity Exchange Act (7 U.S.C. 21) (as amended 
by section 102) is amended by adding at the end the following:
    ``(v) Notification Required.--A futures commission merchant that 
has adjusted net capital in an amount less than the amount required by 
regulations established by the Commission or a self-regulatory 
organization of which the futures commission merchant is a member shall 
immediately notify the Commission and the self-regulatory organization 
of that occurrence.
    ``(w) Insufficient Funds in Segregated Accounts.--A futures 
commission merchant that does not hold a sufficient amount of funds in 
segregated accounts for futures customers under section 1.20 of title 
17, Code of Federal Regulations (or successor regulations), in foreign 
futures and foreign options secured amount accounts for foreign futures 
and foreign options secured amount customers under section 30.7 of that 
title (or successor regulations), or in segregated accounts for cleared 
swap customers under section 22.2 of that title (or successor 
regulations), as required by regulations established by the Commission 
or a self-regulatory organization of which the futures commission 
merchant is a member, shall immediately notify the Commission and the 
self-regulatory organization of that occurrence.
    ``(x) Internal Compliance Program Assessment Report.--Not later 
than the last day of such period as is established by the Commission 
after the end of each fiscal year, each futures commission merchant 
shall file with the Commission a report from the chief compliance 
officer of the futures commission merchant containing an assessment of 
the internal compliance programs of the futures commission merchant.''.

SEC. 104. FUTURES COMMISSION MERCHANT COMPLIANCE.

    (a) In General.--Section 4d(a) of the Commodity Exchange Act (7 
U.S.C. 6d(a)) is amended--
            (1) by redesignating paragraphs (1) and (2) as 
        subparagraphs (A) and (B), respectively, and indenting 
        appropriately;
            (2) by striking ``Sec. 4d.'' and all that follows through 
        ``It shall be unlawful'' and inserting the following:

``SEC. 4D. DEALING BY UNREGISTERED FUTURES COMMISSION MERCHANTS OR 
              INTRODUCING BROKERS PROHIBITED.

    ``(a) Registration Requirements and Duties.--
            ``(1) In general.--It shall be unlawful''; and
            (3) by adding at the end the following:
            ``(2) Residual interest requirement.--Any rules or 
        regulations requiring a futures commission merchant to maintain 
        a residual interest in accounts held for the benefit of 
        customers in amounts at least sufficient to exceed the sum of 
        all uncollected margin deficits of the customers shall provide 
        that a futures commission merchant shall meet the residual 
        interest requirement as of the end of each business day 
        calculated as of the close of business on the previous business 
        day.''.
    (b) Conforming Amendments.--
            (1) Section 4d(h) of the Commodity Exchange Act (7 U.S.C. 
        6d(h)) is amended by striking ``Notwithstanding subsection 
        (a)(2)'' and inserting ``Notwithstanding subsection 
        (a)(1)(B)''.
            (2) Section 15(c)(3)(C) of the Securities Exchange Act of 
        1934 (15 U.S.C. 78o(c)(3)(C)) is amended by striking 
        ``4d(a)(2)'' and inserting ``4d(a)(1)(B)''.

SEC. 105. CERTAINTY FOR FUTURES CUSTOMERS AND MARKET PARTICIPANTS.

    Section 20(a) of the Commodity Exchange Act (7 U.S.C. 24(a)) is 
amended--
            (1) in paragraph (4), by striking ``and'' at the end;
            (2) in paragraph (5), by striking the period at the end and 
        inserting ``; and''; and
            (3) by adding at the end the following:
            ``(6) that cash, securities, or other property of the 
        estate, including the trading or operating accounts of the 
        commodity broker and commodities held in inventory by the 
        commodity broker, shall be included in customer property, 
        subject to any otherwise unavoidable security interest, or 
        otherwise unavoidable contractual offset or netting rights of 
        creditors (including rights set forth in a rule or bylaw of a 
        derivatives clearing organization or a securities clearing 
        agency) in respect of the property, but only to the extent that 
        the property that is otherwise customer property is 
        insufficient to satisfy the net equity claims of public 
        customers (as that term may be defined by the Commission by 
        rule or regulation) of the commodity broker.''.

         TITLE II--COMMODITY FUTURES TRADING COMMISSION REFORMS

SEC. 201. EXTENSION OF OPERATIONS.

    Section 12(d) of the Commodity Exchange Act (7 U.S.C. 16(d)) is 
amended by striking ``2013'' and inserting ``2019''.

SEC. 202. CLARIFICATION OF EXEMPTIVE AUTHORITY.

    Section 4(c)(1) of the Commodity Exchange Act (7 U.S.C. 6(c)(1)) is 
amended--
            (1) in the matter preceding subparagraph (A), by inserting 
        ``, or any swap,'' after ``otherwise subject to subsection 
        (a)''; and
            (2) by striking ``except that--'' and all that follows 
        through ``(B) the Commission'' and inserting ``except that the 
        Commission''.

SEC. 203. PRIVILEGE RETENTION.

    Section 8 of the Commodity Exchange Act (7 U.S.C. 12) is amended--
            (1) by redesignating subsections (h) and (i) as subsections 
        (i) and (j), respectively; and
            (2) by inserting after subsection (g) the following:
    ``(h) Sharing Privileged Information With Other Authorities.--
            ``(1) Definitions.--In this subsection:
                    ``(A) Foreign law enforcement authority.--The term 
                `foreign law enforcement authority' means any foreign 
                authority that is empowered under foreign law to 
                detect, investigate, or prosecute potential violations 
                of law.
                    ``(B) Privilege.--The term `privilege' includes any 
                applicable work-product privilege, attorney-client 
                privilege, governmental privilege, or other privilege 
                recognized under Federal, State, or foreign law.
            ``(2) Privileged information provided by the commission.--
        The Commission shall not be considered to have waived any 
        privilege by transferring information to or permitting that 
        information to be used in accordance with subsection (e).
            ``(3) Nondisclosure of privileged information provided to 
        the commission.--The Commission shall not be compelled to 
        disclose privileged information obtained from any foreign 
        futures authority, or foreign law enforcement authority, if the 
        authority has in good faith determined and represented to the 
        Commission that the information is privileged.
            ``(4) Nonwaiver of privileged information provided to the 
        commission.--The entities listed in subsection (e) shall not be 
        considered to have waived any privilege by transferring 
        information to or permitting information to be used by the 
        Commission.''.

SEC. 204. JUDICIAL REVIEW OF COMMISSION RULES.

    The Commodity Exchange Act (7 U.S.C. 1 et seq.) is amended by 
adding at the end the following:

``SEC. 24. JUDICIAL REVIEW OF COMMISSION RULES.

    ``(a) In General.--Except as provided in subsection (e), a person 
adversely affected by a rule of the Commission promulgated under this 
Act may obtain review of the rule in the United States Court of Appeals 
for the District of Columbia Circuit or the United States Court of 
Appeals for the circuit where the party resides or has the principal 
place of business, by filing in the court, not later than 60 days after 
publication in the Federal Register of the entry of the rule, a written 
petition requesting that the rule be set aside.
    ``(b) Action by Commission.--After a written petition described in 
subsection (a) has been filed--
            ``(1) the clerk of the court shall transmit to an officer 
        designated by the Commission for that purpose a copy of the 
        petition; and
            ``(2) the Commission shall file in the court the record on 
        which the rule complained of is entered, as provided in section 
        2112 of title 28, United States Code, and the Federal Rules of 
        Appellate Procedure.
    ``(c) Jurisdiction of the Court.--On the filing of the petition, 
the court has jurisdiction, which becomes exclusive on the filing of 
the record, to affirm and enforce or to set aside the rule in whole or 
in part.
    ``(d) Requirements.--The court shall affirm and enforce the rule 
unless the action of the Commission in promulgating the rule is found 
to be--
            ``(1) arbitrary, capricious, an abuse of discretion, or 
        otherwise not in accordance with law;
            ``(2) contrary to constitutional right, power, privilege, 
        or immunity;
            ``(3) in excess of statutory jurisdiction, authority, or 
        limitations, or without statutory authorization; or
            ``(4) without observance of procedure required by law.
    ``(e) District Court Alternative.--Notwithstanding the direct 
review process authorized by subsection (a), a person adversely 
affected by a rule of the Commission promulgated under this Act may, in 
the alternative, obtain review by filing an action in the United States 
District Court for the judicial district where the party resides or has 
the principal place of business or in the United States District Court 
for the District of Columbia.''.

SEC. 205. REPORT ON STATUS OF ANY APPLICATION OF METALS EXCHANGE TO 
              REGISTER AS A FOREIGN BOARD OF TRADE; DEADLINE FOR ACTION 
              ON APPLICATION.

    (a) Report to Congress.--Not later than 90 days after the date of 
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 written report describing--
            (1) the status of the review by the Commission of any 
        application submitted by a metals exchange to register with the 
        Commission under section 4(b)(1) of the Commodity Exchange Act 
        (7 U.S.C. 6(b)(1));
            (2) the status of Commission negotiations with foreign 
        regulators regarding aluminum warehousing; and
            (3) the status of consultations with all United States 
        market participants concerning metals exchanges and 
        warehousing, including major producers and consumers.
    (b) Deadline for Action.--Not later than September 30, 2017, the 
Commission shall take action on any application described in subsection 
(a)(1) that is submitted to the Commission on or before August 14, 
2012.

SEC. 206. PREDOMINANTLY ENGAGED.

    Section 2(h)(7)(C) of the Commodity Exchange Act (7 U.S.C. 
2(h)(7)(C)) is amended by adding at the end the following:
                            ``(iv) Regulations.--
                                    ``(I) In general.--Not later than 
                                90 days after the date of enactment of 
                                this clause, the Commission shall 
                                promulgate regulations to define the 
                                term `predominantly engaged' for 
                                purposes of clause (i)(VIII).
                                    ``(II) Revenue requirement.--
                                Regulations under this clause shall 
                                provide that an entity will not be 
                                considered to be predominantly engaged 
                                in activities that are in the business 
                                of banking or financial in nature if 
                                the consolidated revenues of the entity 
                                derived from such activities constitute 
                                less than 85 percent of the total 
                                consolidated revenues of the entity.
                                    ``(III) Determination.--For 
                                purposes of subclause (II), in 
                                determining the percentage of the 
                                revenues of an entity that are derived 
                                from activities that are in the 
                                business of banking or financial in 
                                nature, all revenues that are, or 
                                result from, transactions used to hedge 
                                or mitigate commercial risk shall be 
                                excluded.''.

SEC. 207. PUBLIC INTEREST EXEMPTIONS.

    Section 4(c)(6) of the Commodity Exchange Act (7 U.S.C. 6(c)(6)) is 
amended in the matter preceding subparagraph (A) by inserting ``, on 
the condition that an exemption pursuant to this paragraph shall 
include an exemption from section 22,'' after ``requirements of this 
Act''.

                       TITLE III--END-USER RELIEF

SEC. 301. TRANSACTIONS WITH UTILITY SPECIAL ENTITIES.

    (a) In General.--Section 1a(49) of the Commodity Exchange Act (7 
U.S.C. 1a(49)) is amended by adding at the end the following:
                    ``(E) Certain transactions with a utility special 
                entity.--In making a determination to exempt pursuant 
                to subparagraph (D), the Commission shall treat a 
                utility operations-related swap entered into with a 
                utility special entity as if the swap were entered into 
                with an entity that is not a special entity (as defined 
                in section 4s(h)(2)(C)).''.
    (b) Reporting Transactions in Utility Operations-related Swaps.--
Section 4r(a)(3) of the Commodity Exchange Act (7 U.S.C. 6r(a)(3)) is 
amended by adding at the end the following:
                    ``(D) Transactions in utility operations-related 
                swaps.--Transactions in utility operations-related 
                swaps shall be reported pursuant to this section.''.
    (c) Utility Operations-related Swap.--Section 1a(47)(A)(iii) of the 
Commodity Exchange Act (7 U.S.C. 1a(47)(A)(iii)) is amended--
            (1) in subclause (XXI), by striking ``and'' at the end;
            (2) in subclause (XXII), by adding ``and'' at the end; and
            (3) by adding at the end the following:
                                    ``(XXIII) a utility operations-
                                related swap;''.
    (d) Definitions.--Section 1a of the Commodity Exchange Act (7 
U.S.C. 1a) is amended by adding at the end the following:
            ``(52) Utility operations-related swap.--The term `utility 
        operations-related swap' means a swap that--
                    ``(A) is entered into by a utility to hedge or 
                mitigate a commercial risk;
                    ``(B) is not a contract, agreement, or transaction 
                based on, derived on, or referencing--
                            ``(i) an interest rate, credit, equity, or 
                        currency asset class;
                            ``(ii) except as used for fuel for electric 
                        energy generation, a metal, agricultural 
                        commodity, or crude oil or gasoline commodity 
                        of any grade; or
                            ``(iii) any other commodity or category of 
                        commodities identified for this purpose in a 
                        rule or order adopted by the Commission in 
                        consultation with the appropriate Federal and 
                        State regulatory commissions; and
                    ``(C) is associated with--
                            ``(i) the generation, production, purchase, 
                        or sale of natural gas or electric energy, the 
                        supply of natural gas or electric energy to a 
                        utility, or the delivery of natural gas or 
                        electric energy service to utility customers;
                            ``(ii) fuel supply for the facilities or 
                        operations of a utility;
                            ``(iii) compliance with an electric system 
                        reliability obligation;
                            ``(iv) compliance with an energy, energy 
                        efficiency, conservation, or renewable energy 
                        or environmental law, regulation, or government 
                        order applicable to a utility; or
                            ``(v) any other electric energy or natural 
                        gas swap to which a utility is a party.
            ``(53) Utility special entity.--The term `utility special 
        entity' means a special entity, or any instrumentality, 
        department, or corporation of or established by a State or 
        political subdivision of a State, that--
                    ``(A) owns or operates, or anticipates owning or 
                operating, an electric or natural gas facility or an 
                electric or natural gas operation;
                    ``(B) supplies, or anticipates supplying, natural 
                gas and or electric energy to another utility special 
                entity;
                    ``(C) has, or anticipates having, public service 
                obligations under Federal, State, or local law 
                (including regulations) to deliver electric energy or 
                natural gas service to customers; or
                    ``(D) is a Federal power marketing agency (as 
                defined in section 3 of the Federal Power Act (16 
                U.S.C. 796)).''.

SEC. 302. RELIEF FOR GRAIN ELEVATOR OPERATORS, AGRICULTURAL PRODUCERS, 
              AGRICULTURAL COUNTERPARTIES, AND COMMERCIAL MARKET 
              PARTICIPANTS.

    The Commodity Exchange Act is amended by inserting after section 4t 
(7 U.S.C. 6t) the following:

``SEC. 4U. RECORDKEEPING REQUIREMENTS APPLICABLE TO NONREGISTERED 
              MEMBERS OF CERTAIN REGISTERED ENTITIES.

    ``(a) In General.--Except as provided in section 4(a)(3), a member 
of a designated contract market or a swap execution facility that is 
not registered with the Commission and not required to be registered 
with the Commission in any capacity shall satisfy the recordkeeping 
requirements of this Act and any recordkeeping rule, order, or 
regulation under this Act by maintaining a written record of each 
transaction in a contract for future delivery, option on a future, 
swap, swaption, trade option, and related cash or forward transactions.
    ``(b) Sufficiency.--A written record described in subsection (a) 
shall be sufficient if the written record includes the final agreement 
between the parties and the material economic terms of the 
transaction.''.

SEC. 303. RELIEF FOR END-USERS WHO USE PHYSICAL CONTRACTS WITH 
              VOLUMETRIC OPTIONALITY AND TREATMENT OF FEDERAL HOME LOAN 
              BANK PRODUCTS.

    Section 1a(47)(B) of the Commodity Exchange Act (7 U.S.C. 
1a(47)(B)) is amended--
            (1) in clause (ix), by striking ``and'' at the end;
            (2) in clause (x), by striking the period at the end and 
        inserting a semicolon; and
            (3) by adding at the end the following:
                            ``(xi) any option in a nonfinancial 
                        commodity for which exercise is intended to 
                        result in a physical delivery obligation; and
                            ``(xii) any advance by a Federal Home Loan 
                        Bank.''.

SEC. 304. STUDY OF SWAP DEALER DE MINIMIS EXEMPTION LEVEL.

    (a) In General.--The Commodity Futures Trading Commission shall 
conduct a study of the appropriate de minimis exemption level of swap 
dealing under section 1a(49)(D) of the Commodity Exchange Act (7 U.S.C. 
1a(49)(D)).
    (b) Considerations.--In conducting the study described in 
subsection (a), the Commission may consider--
            (1) the potential impact of modifying the de minimis 
        threshold;
            (2) whether the de minimis threshold should be increased or 
        decreased;
            (3) the factors that are useful for identifying swap 
        dealing activity, including the application of the dealer 
        trader distinction for that purpose, and the potential use of 
        objective tests or safe harbors as part of the analysis; and
            (4) any other factors, or any other analysis of swap data 
        and information relating to swaps, that the Commission 
        considers to be relevant.
    (c) Regulation Required.--
            (1) In general.--Based on the information gathered in the 
        study under this section, the Commission, through a rulemaking, 
        shall promulgate a regulation that sets an appropriate swap 
        dealer de minimis exemption level.
            (2) Existing exemption level.--
                    (A) In general.--The swap dealer de minimis 
                exemption level in effect on the date of enactment of 
                this Act shall remain in effect until changed by the 
                Commission through a rulemaking described in paragraph 
                (1).
                    (B) Effectiveness.--Any Commission regulation that 
                changes the swap dealer de minimis exemption level 
                shall take effect not less than 1 year after the date 
                on which the final regulation is published in the 
                Federal Register.

SEC. 305. MODELS FOR NON-BANK SWAP DEALERS.

    (a) In General.--Section 4s(e) of the Commodity Exchange Act (7 
U.S.C. 6s(e)) is amended--
            (1) in paragraph (2)(B), in the matter preceding clause 
        (i), by striking ``The Commission'' and inserting ``In 
        consultation with the prudential regulators and the Securities 
        and Exchange Commission, the Commission''; and
            (2) in paragraph (3)(D)--
                    (A) in clause (ii), in the matter preceding 
                subclause (I), by inserting ``and in consultation with 
                each other'' after ``practicable'' ; and
                    (B) by adding at the end the following:
                            ``(iii) Financial models.--To the extent 
                        that swap dealers and major swap participants 
                        that are banks are permitted to use financial 
                        models approved by the prudential regulators or 
                        the Securities and Exchange Commission to 
                        calculate minimum capital requirements and 
                        minimum initial and variation margin 
                        requirements, including the use of noncash 
                        collateral, the Commission shall, in 
                        consultation with the prudential regulators and 
                        the Securities and Exchange Commission and to 
                        the maximum extent practicable, permit the use 
                        of comparable financial models by swap dealers 
                        and major swap participants that are not 
                        banks.''.
    (b) Conforming Amendment.--Section 15F(e) of the Securities 
Exchange Act of 1934 (15 U.S.C. 78o-10(e)) is amended--
            (1) in paragraph (2)(B), in the matter preceding clause 
        (i), by striking ``The Commission'' and inserting ``In 
        consultation with the prudential regulators and the Commodity 
        Futures Trading Commission, the Commission''; and
            (2) in paragraph (3)(D)--
                    (A) in clause (ii), in the matter preceding 
                subclause (I), by inserting ``and in consultation with 
                each'' after ``practicable''; and
                    (B) by adding at the end the following:
                            ``(iii) Financial models.--To the extent 
                        that security-based swap dealers and major 
                        security-based swap participants that are banks 
                        are permitted to use financial models approved 
                        by the prudential regulators or the Commodity 
                        Futures Trading Commission to calculate minimum 
                        capital requirements and minimum initial and 
                        variation margin requirements, including the 
                        use of noncash collateral, the Commission 
                        shall, in consultation with the Commodity 
                        Futures Trading Commission and to the maximum 
                        extent practicable, permit the use of 
                        comparable financial models by security-based 
                        swap dealers and major security-based swap 
                        participants that are not banks.''.

SEC. 306. BONA FIDE HEDGE DEFINED TO PROTECT END-USER RISK MANAGEMENT 
              NEEDS.

    Section 4a(c) of the Commodity Exchange Act (7 U.S.C. 6a(c)) is 
amended--
            (1) in paragraph (1), in the second sentence--
                    (A) by striking ``may'' and inserting ``shall''; 
                and
                    (B) by striking ``future for which'' and inserting 
                ``future, to be determined by the Commission, for which 
                either an appropriate swap is available or'';
            (2) in paragraph (2)--
                    (A) in the matter preceding subparagraph (A), by 
                striking ``subsection (a)(2)'' and all that follows 
                through ``position as'' and inserting ``paragraphs (2) 
                and (5) of subsection (a) for swaps, contracts of sale 
                for future delivery, or options on the contracts or 
                commodities, a bona fide hedging transaction or 
                position is''; and
                    (B) in subparagraph (A)(ii), by striking ``of 
                risks'' and inserting ``or management of current or 
                anticipated risks''; and
            (3) by adding at the end the following:
            ``(3) Bona fide hedging transaction.--The Commission may 
        further define, by rule or regulation, what constitutes a bona 
        fide hedging transaction, if the rule or regulation is 
        consistent with the requirements of subparagraphs (A) and (B) 
        of paragraph (2).''.

SEC. 307. EXEMPTION OF QUALIFIED CHARITABLE ORGANIZATIONS FROM 
              DESIGNATION AND REGULATION AS COMMODITY POOL OPERATORS.

    (a) Exclusion From Definition of Commodity Pool.--Section 1a(10) of 
the Commodity Exchange Act (7 U.S.C. 1a(10)) is amended by adding at 
the end the following:
                    ``(C) Exclusion.--The term `commodity pool' does 
                not include any investment trust, syndicate, or similar 
                form of enterprise excluded from the definition of 
                `investment company' pursuant to paragraph (10) or (14) 
                of section 3(c) of the Investment Company Act of 1940 
                (15 U.S.C. 80a-3(c)).''.
    (b) Inapplicability of Prohibition on Use of Instrumentalities of 
Interstate Commerce by Unregistered Commodity Trading Advisor.--Section 
4m of the Commodity Exchange Act (7 U.S.C. 6m) is amended--
            (1) by striking ``Sec. 4m. (1) It'' and inserting the 
        following:

``SEC. 4M. USE OF MAILS OR OTHER MEANS OR INSTRUMENTALITIES OF 
              INTERSTATE COMMERCE BY COMMODITY TRADING ADVISORS AND 
              COMMODITY POOL OPERATORS.

    ``(a) Prohibition.--
            ``(1) In general.--It'';
            (2) in the second sentence--
                    (A) by striking ``The provisions of this section'' 
                and inserting the following:
            ``(2) Exceptions.--
                    ``(A) Commodity trading advisors.--
                            ``(i) In general.--Subject to clause (ii) 
                        and except as provided in subparagraphs (B) and 
                        (C), this section'';
                    (B) by striking ``commodity trading advisor who is 
                a (1) dealer'' and inserting the following: ``commodity 
                trading advisor who is a--
                                    ``(I) dealer'';
                    (C) by striking ``or (2) nonprofit'' and inserting 
                the following: ``; or
                                    ``(II) nonprofit'';
                    (D) by striking ``Commodity Futures Trading 
                Commission Act of 1974; if the advice by the person 
                described in clause (1) or (2) of this sentence'' and 
                inserting the following: ``Commodity Futures Trading 
                Commission Act of 1974.
                            ``(ii) Applicability.--Clause (i) only 
                        applies if the advice by the person described 
                        in subclause (I) or (II) of clause (i)'';
                    (E) by striking ``business:'' and inserting 
                ``business.''; and
                    (F) by striking ``Provided, That such person shall 
                be subject to proceedings under section 14 of this 
                Act.'' and inserting the following:
                    ``(B) Complaints against excepted persons.--A 
                person described in subclause (I) or (II) of clause (i) 
                shall be subject to proceedings under section 14.
                    ``(C) Charitable organizations.--This section shall 
                not apply to any commodity trading advisor that is--
                            ``(i) a charitable organization, as defined 
                        in section 3(c)(10)(D)(iii) of the Investment 
                        Company Act of 1940 (15 U.S.C. 80a-
                        3(c)(10)(D)(iii)), or a trustee, director, 
                        officer, employee, or volunteer of such a 
                        charitable organization acting within the scope 
                        of the employment or duties of the person with 
                        the organization, whose trading advice is 
                        provided only to, or with respect to, 1 or more 
                        of--
                                    ``(I) any such charitable 
                                organization; or
                                    ``(II) an investment trust, 
                                syndicate, or similar form of 
                                enterprise excluded from the definition 
                                of `investment company' pursuant to 
                                section 3(c)(10) of the Investment 
                                Company Act of 1940 (15 U.S.C. 80a-
                                3(c)(10)); or
                            ``(ii) any plan, company, or account 
                        described in section 3(c)(14) of the Investment 
                        Company Act of 1940 (15 U.S.C. 80a-3(c)(14)), 
                        any person or entity who establishes or 
                        maintains such a plan, company, or account, or 
                        any trustee, director, officer, employee, or 
                        volunteer for any of the foregoing plans, 
                        persons, or entities acting within the scope of 
                        the employment or duties of the person with the 
                        organization, whose trading advice is provided 
                        only to, or with respect to, any investment 
                        trust, syndicate, or similar form of enterprise 
                        excluded from the definition of `investment 
                        company' pursuant to section 3(c)(14) of the 
                        Investment Company Act of 1940 (15 U.S.C. 80a-
                        3(c)(14)).'';
            (3) by striking ``(2) Nothing in this Act'' and inserting 
        the following:
    ``(b) Relationship to Other Law.--Nothing in this Act'';
            (4) by striking ``(3) Exception.--'' and all that follows 
        through ``Paragraph (1) shall not apply'' and inserting the 
        following:
    ``(c) Exception.--
            ``(1) In general.--Subsection (a) shall not apply'';
            (5) by striking ``(B) Engaged primarily.--For purposes of 
        subparagraph (A)'' and inserting the following:
            ``(2) Engaged primarily.--For purposes of paragraph (1)'';
            (6) by striking ``(C) Commodity interests.--For purposes of 
        this paragraph'' and inserting the following:
            ``(3) Commodity interests.--For purposes of this 
        subsection''; and
            (7) by adding at the end the following:
    ``(d) Disclosure Concerning Excluded Charitable Organizations.--The 
operator of or advisor to any investment trust, syndicate, or similar 
form of enterprise excluded from the definition of `commodity pool' by 
reason of section 1a(10)(C) of this Act pursuant to section 3(c)(10) of 
the Investment Company Act of 1940 (15 U.S.C. 80a-3(c)(10)) shall 
provide disclosure in accordance with section 7(e) of that Act (15 
U.S.C. 80a-7(e).''.

                    TITLE IV--TECHNICAL CORRECTIONS

SEC. 401. CORRECTION OF CROSS-REFERENCES.

    (a) Section 2(h)(8)(A)(ii) of the Commodity Exchange Act (7 U.S.C. 
2(h)(8)(A)(ii)) is amended by striking ``5h(f) of this Act'' and 
inserting ``5h(g)''.
    (b) Section 5c(c)(5)(C)(i) of the Commodity Exchange Act (7 U.S.C. 
7a-2(c)(5)(C)(i)) is amended in the matter preceding subclause (I) by 
striking ``section 1a(2)(i))'' and inserting ``section 1a(19)(A))''.
    (c) Section 23(f) of the Commodity Exchange Act (7 U.S.C. 26(f)) is 
amended by striking ``section 7064'' and inserting ``section 706''.

SEC. 402. ELIMINATION OF OBSOLETE REFERENCES TO DERIVATIVE TRANSACTION 
              EXECUTION FACILITIES.

    (a) Section 1a of the Commodity Exchange Act (7 U.S.C. 1a) is 
amended--
            (1) in paragraph (12)(B)(vi), by striking ``or derivatives 
        transaction execution facility'';
            (2) in paragraph (34)--
                    (A) by striking the paragraph designation and 
                heading and inserting the following:
            ``(34) Member.--''; and
                    (B) by striking ``or derivatives transaction 
                execution facility'' each place it appears; and
            (3) in paragraph (35)(B)(iii)(I), by striking ``or 
        registered derivatives transaction execution facility''.
    (b) Section 2 of the Commodity Exchange Act (7 U.S.C. 2) is 
amended--
            (1) in subsection (a)--
                    (A) in paragraph (1)--
                            (i) in subparagraph (C)--
                                    (I) in clause (ii), in the matter 
                                preceding subclause (I)--
                                            (aa) by striking ``, or 
                                        register a derivatives 
                                        transaction execution facility 
                                        that trades or executes,'';
                                            (bb) by striking ``, and no 
                                        derivatives transaction 
                                        execution facility shall trade 
                                        or execute such contracts of 
                                        sale (or options on such 
                                        contracts) for future 
                                        delivery''; and
                                            (cc) by striking ``or the 
                                        derivatives transaction 
                                        execution facility,''; and
                                    (II) in clause (v)--
                                            (aa) in subclause (I), by 
                                        striking ``, or any derivatives 
                                        transaction execution facility 
                                        on which such contract or 
                                        option is traded,'';
                                            (bb) in subclause (II), by 
                                        striking ``or derivatives 
                                        transaction execution 
                                        facility'' each place it 
                                        appears; and
                                            (cc) in subclause (V), by 
                                        striking ``or registered 
                                        derivatives transaction 
                                        execution facility''; and
                            (ii) in subparagraph (D)--
                                    (I) in clause (i)--
                                            (aa) in the matter 
                                        preceding subclause (I)--

                                                    (AA) by striking 
                                                ``, or register a 
                                                derivatives transaction 
                                                execution facility''; 
                                                and

                                                    (BB) by striking 
                                                ``, or registered as a 
                                                derivatives transaction 
                                                execution facility 
                                                for,''; and

                                            (bb) in subclause (IV), by 
                                        striking ``registered 
                                        derivatives transaction 
                                        execution facility,'' each 
                                        place it appears;
                                    (II) in clause (ii)--
                                            (aa) by striking subclause 
                                        (I) and inserting the 
                                        following:
            ``(I) the transaction is conducted on, or subject to, the 
        rules of a board of trade that has been designated by the 
        Commission as a contract market in the security futures 
        product; or'';
                                            (bb) in subclause (II)--

                                                    (AA) by striking 
                                                ``(II) the contract'' 
                                                and inserting the 
                                                following:

            ``(II)(aa) the contract''; and

                                                    (BB) by striking 
                                                ``or registered 
                                                derivatives transaction 
                                                execution facility''; 
                                                and

                                            (cc) in subclause (III)--

                                                    (AA) by striking 
                                                ``or registered 
                                                derivatives transaction 
                                                execution facility 
                                                member''; and

                                                    (BB) by striking 
                                                ``(III) the security'' 
                                                and inserting the 
                                                following:

            ``(bb) the security''; and
                                    (III) in clause (vi)(III)(aa), by 
                                striking ``and registered derivatives 
                                transaction execution facilities''; and
                    (B) in paragraph (9)(B)(ii)--
                            (i) by striking ``or registration'' each 
                        place it appears;
                            (ii) by striking ``or derivatives 
                        transaction execution facility'' each place it 
                        appears;
                            (iii) in the second sentence, by striking 
                        ``or register''; and
                            (iv) in the fourth sentence--
                                    (I) by striking ``, registering,''; 
                                and
                                    (II) by striking ``, 
                                registration''; and
            (2) in subsection (c)(2), by striking ``or a derivatives 
        transaction execution facility'' each place it appears.
    (c) Section 4 of the Commodity Exchange Act (7 U.S.C. 6) is 
amended--
            (1) in subsection (a)--
                    (A) in paragraph (1), by striking ``or derivatives 
                transaction execution facility''; and
                    (B) in paragraph (3), by striking ``or derivatives 
                transaction execution facility''; and
            (2) in subsection (c)--
                    (A) in paragraph (1), in the matter preceding 
                subparagraph (A), by striking ``or registered as a 
                contract market or derivatives transaction execution 
                facility'' and inserting ``as a contract market''; and
                    (B) in paragraph (2)(B)(ii), by striking ``or 
                derivatives transaction execution facility''.
    (d) Section 4a of the Commodity Exchange Act (7 U.S.C. 6a) is 
amended--
            (1) in subsection (a)(1)--
                    (A) by striking ``or derivatives transaction 
                execution facilities''; and
                    (B) by striking ``or derivatives transaction 
                execution facility''; and
            (2) in subsection (e)--
                    (A) by striking ``, derivatives transaction 
                execution facility,'' each place it appears; and
                    (B) by striking ``or derivatives transaction 
                execution facility''.
    (e) Section 4c(g) of the Commodity Exchange Act (7 U.S.C. 6c(g)) is 
amended by striking ``or derivatives transaction execution facility'' 
each place it appears.
    (f) Section 4d of the Commodity Exchange Act (7 U.S.C. 6d) is 
amended by striking ``or derivatives transaction execution facility'' 
each place it appears.
    (g) Section 4e of the Commodity Exchange Act (7 U.S.C. 6e) is 
amended by striking ``or derivatives transaction execution facility''.
    (h) Section 4f of the Commodity Exchange Act (7 U.S.C. 6f) is 
amended by striking ``or derivatives transaction execution facility'' 
each place it appears.
    (i) Section 4i of the Commodity Exchange Act (7 U.S.C. 6i) is 
amended in the matter preceding paragraph (1) by striking ``or 
derivatives transaction execution facility''.
    (j) Section 4j of the Commodity Exchange Act (7 U.S.C. 6j) is 
amended--
            (1) in the section heading, by striking ``and registered 
        derivatives transaction execution facilities'';
            (2) in subsection (a), in the first sentence, by striking 
        ``and registered derivatives transaction execution facility'';
            (3) in subsection (b), in the matter preceding paragraph 
        (1), by striking ``or registered derivatives transaction 
        execution facility''; and
            (4) in subsection (c), in the matter preceding paragraph 
        (1), by striking ``or registered derivatives transaction 
        execution facility members''.
    (k) Section 4k(5) of the Commodity Exchange Act (7 U.S.C. 6k(5)) is 
amended, in the matter preceding subparagraph (A), by striking ``or 
registered derivatives transaction execution facility''.
    (l) Section 4l of the Commodity Exchange Act (7 U.S.C. 6l) is 
amended by striking ``or registered derivatives transaction execution 
facilities'' each place it appears.
    (m) Section 4p of the Commodity Exchange Act (7 U.S.C. 6p) is 
amended--
            (1) in subsection (a), in the third sentence, by striking 
        ``contract markets, or derivatives transaction execution 
        facilities'' and inserting ``or contract markets''; and
            (2) in subsection (b), by striking ``derivatives 
        transaction execution facility,''.
    (n) Section 5(e) of the Commodity Exchange Act (7 U.S.C. 7(e)) is 
amended--
            (1) by striking the subsection designation and heading and 
        all that follows through ``a contract for'' in paragraph (1) 
        and inserting the following:
    ``(e) Current Agricultural Commodities.--A contract for''; and
            (2) by striking paragraph (2).
    (o) Section 5c of the Commodity Exchange Act (7 U.S.C. 7a-2) is 
amended--
            (1) in subsection (b), by striking ``, derivatives 
        transaction execution facility,'' each place it appears; and
            (2) in subsection (f)--
                    (A) in the matter preceding paragraph (1), by 
                striking ``and registered derivatives transaction 
                execution facility''; and
                    (B) in paragraph (1), by striking ``or registered 
                derivatives transaction execution facility''.
    (p) Section 6 of the Commodity Exchange Act is amended--
            (1) by striking the section designation (42 Stat. 1001, 
        chapter 39) and all that follows through ``Any person'' in 
        subsection (a) (7 U.S.C. 8) and inserting the following:

``SEC. 6. APPLICATION FOR DESIGNATION AS CONTRACT MARKET.

    ``(a) Application.--Any person'';
            (2) in subsection (a) (7 U.S.C. 8)--
                    (A) in the first sentence, by striking ``or 
                registered as a contract market or derivatives 
                transaction execution facility'' and inserting ``as a 
                contract market''; and
                    (B) in the last sentence, by striking ``or 
                register''; and
            (3) in subsections (a) and (b) (7 U.S.C. 8)--
                    (A) by striking ``or derivatives transaction 
                execution facility'' each place it appears; and
                    (B) by striking ``or registration'' each place it 
                appears.
    (q) Section 6a of the Commodity Exchange Act (7 U.S.C. 10a) is 
amended--
            (1) in subsection (a), by striking ``or registered as a 
        contract market or a derivatives transaction execution facility 
        exclude'' and inserting ``as a contract market shall exclude''; 
        and
            (2) in subsection (b)--
                    (A) by striking ``or registered''; and
                    (B) by striking ``or a derivatives transaction 
                execution facility''.
    (r) Section 6d(1) of the Commodity Exchange Act (7 U.S.C. 13a-2(1)) 
is amended by striking ``derivatives transaction execution facility,''.

SEC. 403. ELIMINATION OF OBSOLETE REFERENCES TO ELECTRONIC TRADING 
              FACILITIES.

    (a) Section 1a of the Commodity Exchange Act (7 U.S.C. 1a) is 
amended--
            (1) in paragraph (18)(A)(x), by striking ``(other than an 
        electronic trading facility with respect to a significant price 
        discovery contract)''; and
            (2) in paragraph (40)--
                    (A) in subparagraph (D), by adding ``and'' at the 
                end;
                    (B) in subparagraph (E), by striking ``; and'' at 
                the end and inserting a period; and
                    (C) by striking subparagraph (F).
    (b) Section 2(a)(1)(A) of the Commodity Exchange Act (7 U.S.C. 
2(a)(1)(A)) is amended in the first sentence by striking ``(including 
significant price discovery contracts)''.
    (c) Section 4a of the Commodity Exchange Act (7 U.S.C. 6a) (as 
amended by section 402(d)) is amended--
            (1) in subsection (b)--
                    (A) in paragraph (1), by striking ``with respect to 
                a significant price discovery contract''; and
                    (B) in paragraph (2), by striking ``any contract'' 
                and all that follows through ``price discovery 
                contract'' and inserting ``any contract market or swap 
                execution facility''; and
            (2) in subsection (e)--
                    (A) in the first sentence--
                            (i) by striking ``or by any electronic 
                        trading facility'';
                            (ii) by striking ``or on an electronic 
                        trading facility''; and
                            (iii) by striking ``or electronic trading 
                        facility'' each place it appears; and
                    (B) in the second sentence, by striking ``or 
                electronic trading facility with respect to a 
                significant price discovery contract''.
    (d) Section 4g(a) of the Commodity Exchange Act (7 U.S.C. 6g(a)) is 
amended by striking ``and in any significant price discovery contract 
traded or executed on an electronic trading facility or any agreement, 
contract, or transaction that is treated by a derivatives clearing 
organization, whether registered or not registered, as fungible with a 
significant price discovery contract;''.
    (e) Section 4i of the Commodity Exchange Act (7 U.S.C. 6i) is 
amended in the matter preceding paragraph (1) by striking ``, or any 
significant price discovery contract traded or executed on an 
electronic trading facility or any agreement, contract, or transaction 
that is treated by a derivatives clearing organization, whether 
registered or not registered, as fungible with a significant price 
discovery contract''.
    (f) Section 5c(b) of the Commodity Exchange Act (7 U.S.C. 7a-2(b)) 
(as amended by section 402(o)) is amended--
            (1) in paragraph (1)--
                    (A) by striking ``or electronic trading facility 
                with respect to a significant price discovery 
                contract''; and
                    (B) by striking ``that is not an electronic trading 
                facility'';
            (2) in paragraph (2), by striking ``or electronic trading 
        facility''; and
            (3) in paragraph (3), by striking ``or electronic trading 
        facility''.
    (g) Section 6(b) of the Commodity Exchange Act (7 U.S.C. 8(b)) is 
amended by striking ``or electronic trading facility'' each place it 
appears.
    (h) Section 12(e)(2) of the Commodity Exchange Act (7 U.S.C. 
16(e)(2)) is amended by striking ``in the case of--'' and all that 
follows through the period at the end and inserting the following: ``in 
the case of an agreement, contract, or transaction that is excluded 
from this Act under subsection (c) or (f) of section 2 of this Act or 
title IV of the Commodity Futures Modernization Act of 2000 (as enacted 
by section 1(a)(5) of the Consolidated Appropriations Act, 2001 (Public 
Law 106-554; 114 Stat. 2763, 2763A-457)), or exempted under section 
4(c) (regardless of whether any such agreement, contract, or 
transaction is otherwise subject to this Act).''.

SEC. 404. ELIMINATION OF OBSOLETE REFERENCES TO EXEMPT BOARDS OF TRADE.

    (a) Section 1a(18)(A)(x) of the Commodity Exchange Act (7 U.S.C. 
1a(18)(A)(x)) (as amended by section 403(a)(1)) is amended by striking 
``or an exempt board of trade''.
    (b) Section 12(e)(1)(B)(i) of the Commodity Exchange Act (7 U.S.C. 
16(e)(1)(B)(i)) is amended by striking ``or exempt board of trade''.

SEC. 405. ELIMINATION OF OBSOLETE REFERENCE TO SIGNIFICANT PRICE 
              DISCOVERY CONTRACT.

    Section 1a of the Commodity Exchange Act (7 U.S.C. 1a) is amended 
by striking paragraph (46) and inserting the following:
            ``(46) Reserved.--''.

SEC. 406. CLARIFICATIONS OF RETAIL FOREIGN CURRENCY.

    Section 2(c)(2) of the Commodity Exchange Act (7 U.S.C. 2(c)(2)) is 
amended--
            (1) in subparagraph (B)--
                    (A) by striking ``(gg)'' each place it appears and 
                inserting ``(ee)'';
                    (B) in clause (i)(II), by redesignating item (ff) 
                as item (ee);
                    (C) in clause (iii), by striking ``item (aa), (bb), 
                (ee), or (ff) of clause (i)(II) of this subparagraph'' 
                and inserting ``item (aa), (bb), or (dd) of clause 
                (i)(II)''; and
                    (D) in clause (iv)--
                            (i) in subclauses (I) and (II), by striking 
                        ``(ee), or (ff)'' each place it appears and 
                        inserting ``or (dd)'';
                            (ii) in subclause (I)(bb), by inserting ``, 
                        or otherwise act as a commodity trading advisor 
                        with respect to any agreement, contract, or 
                        transaction described in clause (i)'' before 
                        the semicolon; and
                            (iii) in subclause (IV)(aa), by striking 
                        ``(ff)'' and inserting ``(dd)''; and
            (2) in subparagraph (C)--
                    (A) by striking ``(ee), or (ff)'' each place it 
                appears and inserting ``or (dd)'';
                    (B) by striking ``item (aa) through (ff)'' each 
                place it appears and inserting ``items (aa) through 
                (dd)''; and
                    (C) in clause (iii)(I)(bb), by inserting ``, or 
                otherwise act as a commodity trading advisor with 
                respect to any agreement, contract, or transaction 
                described in clause (i)'' before the semicolon.

SEC. 407. ELIMINATION OF OBSOLETE REFERENCES TO DEALER OPTIONS.

    (a) In General.--Section 4c of the Commodity Exchange Act (7 U.S.C. 
6c) is amended--
            (1) by striking subsections (d) and (e); and
            (2) by redesignating subsections (f) and (g) as subsections 
        (d) and (e), respectively.
    (b) Conforming Amendments.--
            (1) Section 2(d) of the Commodity Exchange Act (7 U.S.C. 
        2(d)) is amended by striking ``(g) of'' and inserting ``(e) 
        of''.
            (2) Section 4f(a)(4)(A)(i) of the Commodity Exchange Act (7 
        U.S.C. 6f(a)(4)(A)(i)) is amended by striking ``, (d), (e), and 
        (g)'' and inserting ``and (e)''.
            (3) Section 4k(5)(A) of the Commodity Exchange Act (7 
        U.S.C. 6k(5)(A)) is amended by striking ``, (d), (e), and (g)'' 
        and inserting ``and (e)''.
            (4) Section 5f(b)(1)(A) of the Commodity Exchange Act (7 
        U.S.C. 7b-1(b)(1)(A)) is amended by striking ``, (e), and (g)'' 
        and inserting ``and (e)''.
            (5) Section 9(a)(2) of the Commodity Exchange Act (7 U.S.C. 
        13(a)(2)) is amended by striking ``through (e) of subsection 
        4c'' and inserting ``and (c) of section 4c''.

SEC. 408. CORRECTION OF REFERENCES TO DESIGNATED CONTRACT MARKETS.

    (a) Section 4a(c)(1) of the Commodity Exchange Act (7 U.S.C. 
6a(c)(1)) is amended in the second sentence by striking ``an exchange'' 
and inserting ``a designated contract market''.
    (b) Section 4b(c) of the Commodity Exchange Act (7 U.S.C. 6b(c)) is 
amended in the first proviso--
            (1) by striking ``the exchange'' and inserting ``the 
        designated contract market''; and
            (2) by striking ``such exchange'' and inserting ``that 
        designated contract market''.
    (c) Section 4g(e) of the Commodity Exchange Act (7 U.S.C. 6g(e)) is 
amended by striking ``the exchange'' and inserting ``each designated 
contract market and swap execution facility''.
    (d) Section 4s(h)(7)(A) of the Commodity Exchange Act (7 U.S.C. 
6s(h)(7)(A)) is amended by striking ``an exchange'' and inserting ``a 
designated contract market''.
    (e) Section 8c of the Commodity Exchange Act (7 U.S.C. 12c) is 
amended--
            (1) in subsection (a)--
                    (A) in paragraph (1), by striking ``exchange'' each 
                place it appears and inserting ``registered entity''; 
                and
                    (B) in paragraph (2)--
                            (i) in the first sentence--
                                    (I) by striking ``an exchange'' and 
                                inserting ``a registered entity''; and
                                    (II) by striking ``the exchange'' 
                                and inserting ``the registered 
                                entity''; and
                            (ii) in the second sentence--
                                    (I) by striking ``An exchange'' and 
                                inserting ``A registered entity''; and
                                    (II) by striking ``the exchange'' 
                                and inserting ``the registered 
                                entity'';
            (2) in subsection (b)--
                    (A) in the first sentence--
                            (i) by striking ``an exchange'' and 
                        inserting ``a registered entity''; and
                            (ii) by striking ``the exchange'' and 
                        inserting ``the registered entity''; and
                    (B) in the second sentence, by striking 
                ``exchange'' and inserting ``registered entity''; and
            (3) in subsection (c), by striking ``exchange'' each place 
        it appears and inserting ``registered entity''.

SEC. 409. COMPLIANCE REPORT FLEXIBILITY.

    Section 4s(k)(3) of the Commodity Exchange Act (7 U.S.C. 6s(k)(3)) 
is amended by striking subparagraph (B) and inserting the following:
                    ``(B) Requirements.--A compliance report under 
                subparagraph (A) shall--
                            ``(i) include a certification that, under 
                        penalty of law, the compliance report is 
                        materially accurate and complete; and
                            ``(ii) be furnished at such time as the 
                        Commission determines, by rule, regulation, or 
                        order, to be appropriate.''.

SEC. 410. RESERVATIONS.

    (a) Section 5 of the Commodity Exchange Act (7 U.S.C. 7) is amended 
by inserting after subsection (a) the following:
    ``(b) Reserved.--''.
    (b) The Commodity Exchange Act is amended by inserting after 
section 5 (7 U.S.C. 7) the following:

``SEC. 5A. RESERVED.''.

    (c) Section 5b of the Commodity Exchange Act (7 U.S.C.7a-1) is 
amended after subsection (i) the following:
    ``(j) Reserved.--''.
    (d) The Commodity Exchange Act is amended by inserting after 
section 5c (7 U.S.C. 7a-2) the following:

``SEC. 5D. RESERVED.''.

SEC. 411. FLEXIBILITY FOR REGISTERED ENTITIES.

    Section 5c(b) of the Commodity Exchange Act (7 U.S.C. 7a-2(b)) (as 
amended by sections 402(o) and 403(f)) is amended by striking 
``contract market'' each place it appears and inserting ``registered 
entity''.

SEC. 412. ELIMINATION OF OBSOLETE REFERENCE TO ALTERNATIVE SWAP 
              EXECUTION FACILITIES.

    Section 5h(h) of the Commodity Exchange Act (7 U.S.C. 7b-3(h)) is 
amended by striking ``alternative''.

SEC. 413. ELIMINATION OF REDUNDANT REFERENCES TO TYPES OF REGISTERED 
              ENTITIES.

    Section 6b of the Commodity Exchange Act (7 U.S.C. 13a) is amended 
in the first sentence by striking ``as set forth in sections 5 through 
5c''.

SEC. 414. CLARIFICATION OF COMMISSION AUTHORITY OVER SWAPS TRADING.

    Section 8a of the Commodity Exchange Act (7 U.S.C. 12a) is 
amended--
            (1) in paragraph (7)--
                    (A) in the matter preceding subparagraph (A), by 
                inserting ``the protection of swaps traders and to 
                assure fair dealing in swaps,'' after ``appropriate 
                for'';
                    (B) in subparagraph (A), by inserting ``swaps or'' 
                after ``conditions in''; and
                    (C) in subparagraph (B), by inserting ``or swaps'' 
                after ``future delivery''; and
            (2) in paragraph (9), in the first sentence--
                    (A) by inserting ``swap or'' after ``or liquidation 
                of any''; and
                    (B) by inserting ``swap or'' after ``margin levels 
                on any''.

SEC. 415. ELIMINATION OF DUPLICATIVE REFERENCE TO COMMISSION.

    Section 13(c) of the Commodity Exchange Act (7 U.S.C. 13c(c)) is 
amended by striking ``or the Commission''.

SEC. 416. MISCELLANEOUS CORRECTIONS.

    (a) Section 1a of the Commodity Exchange Act (7 U.S.C. 1a) is 
amended--
            (1) in paragraph (12)(A)(i)(II), by adding a semicolon at 
        the end; and
            (2) in paragraph (19)--
                    (A) by redesignating clauses (i) through (iv) as 
                subparagraphs (A) through (D), respectively, and 
                indenting the subparagraphs appropriately; and
                    (B) in each of subparagraphs (B) and (D) (as so 
                redesignated)--
                            (i) by redesignating subclauses (I) and 
                        (II) as clauses (i) and (ii), respectively, and 
                        indenting the clauses appropriately; and
                            (ii) by striking ``clause (i)'' each place 
                        it appears and inserting ``subparagraph (A)''.
    (b) Section 2(a)(1)(C) of the Commodity Exchange Act (7 U.S.C. 
2(a)(1)(C)) is amended--
            (1) in clause (ii), by indenting subclause (III) 
        appropriately;
            (2) by indenting clause (iii) appropriately;
            (3) in clause (iv), by striking ``under or'' and inserting 
        ``under'';
            (4) by indenting clause (v) appropriately; and
            (5) in clause (v)(VI), by striking ``III'' and inserting 
        ``(III)''.
    (c) Section 2(c)(1) of the Commodity Exchange Act (7 U.S.C. 
2(c)(1)) is amended in the matter preceding subparagraph (A) by 
striking ``section, 5b, or'' and inserting ``section 5b or''.
    (d) Section 4(c)(3)(H) of the Commodity Exchange Act (7 U.S.C. 
6(c)(3)(H)) is amended by striking ``state'' and inserting ``State''.
    (e) Section 4c of the Commodity Exchange Act (7 U.S.C. 6c) is 
amended by striking subsection (c) and inserting the following:
    ``(c) Regulations.--The Commission shall issue regulations to 
continue to permit the trading of options on contract markets under 
such terms and conditions that the Commission from time to time may 
prescribe.''.
    (f) Section 4d(b) of the Commodity Exchange Act (7 U.S.C. 6d(b)) is 
amended by striking ``paragraph (2) of this section'' and inserting 
``subsection (a)(1)(B)''.
    (g) Section 4f(c) of the Commodity Exchange Act (7 U.S.C. 6f(c)) is 
amended--
            (1) in paragraph (3)(A), by striking the first comma; and
            (2) in paragraph (4)--
                    (A) in subparagraph (A), in the first sentence, by 
                striking ``in developing'' and inserting ``In 
                developing''; and
                    (B) in subparagraph (B), by striking ``1817(a)'' 
                and inserting ``1817(a))''.
    (h) Section 4p(b) of the Commodity Exchange Act (7 U.S.C. 6p(b)) is 
amended by striking ``state law'' and inserting ``State law''.
    (i) Section 5f(b)(1) of the Commodity Exchange Act (7 U.S.C. 7b-
1(b)(1)) is amended in the matter preceding subparagraph (A) by 
striking ``section 5f'' and inserting ``this section''.
    (j) Section 6(a) of the Commodity Exchange Act (7 U.S.C. 8(a)) is 
amended in the first sentence by striking ``the the'' and inserting 
``the''.
    (k) Section 8a of the Commodity Exchange Act (7 U.S.C. 12a) is 
amended in paragraphs (2)(E)(i) and (3)(B)(i) by striking ``Investors'' 
each place it appears and inserting ``Investor''.
    (l) Section 12(b) of the Commodity Exchange Act (7 U.S.C. 16(b)) is 
amended by indenting paragraph (4) appropriately.
    (m) Section 14(a) of the Commodity Exchange Act (7 U.S.C. 18(a)) is 
amended--
            (1) by indenting paragraph (2) appropriately; and
            (2) in paragraph (2), by indenting subparagraph (B) 
        appropriately.
    (n) Section 17(b) of the Commodity Exchange Act (7 U.S.C. 21(b)) is 
amended--
            (1) in paragraph (9)(D), by striking the semicolon at the 
        end and inserting a period;
            (2) in paragraph (10)(C)(ii), by striking ``and'' at the 
        end;
            (3) in paragraph (11), by striking the period at the end 
        and inserting a semicolon;
            (4) in paragraph (12)--
                    (A) by striking ``(A)''; and
                    (B) by striking the period at the end and inserting 
                ``; and''; and
            (5) in paragraph (13), in the matter preceding subparagraph 
        (A), by striking ``A major'' and inserting ``a major''.
    (o) Section 17 of the Commodity Exchange Act (7 U.S.C. 21) is 
amended--
            (1) by redesignating subsection (r) as subsection (s); and
            (2) by redesignating the second subsection (q) (relating to 
        comprehensive rule implementation programs) as subsection (r).
    (p) Section 22 of the Commodity Exchange Act (7 U.S.C. 25) is 
amended--
            (1) in subsection (a)(1)(C), by indenting clause (iv) 
        appropriately; and
            (2) in subsection (b)--
                    (A) in paragraph (3), by striking ``of registered'' 
                and inserting ``of a registered''; and
                    (B) in paragraph (4), by inserting a comma after 
                ``entity''.

SEC. 417. ELIMINATION OF REPORT DUE IN 1986.

    Section 26 of the Futures Trading Act of 1978 (7 U.S.C. 16a) is 
amended--
            (1) by striking subsection (b); and
            (2) by redesignating subsection (c) as subsection (b).
                                                       Calendar No. 461

114th CONGRESS

  2d Session

                                S. 2917

_______________________________________________________________________

                                 A BILL

  To reauthorize the Commodity Futures Trading Commission, to ensure 
   protections of futures customers, to provide relief for farmers, 
 ranchers, and end-users that manage risk to help keep consumer costs 
                      low, and for other purposes.

_______________________________________________________________________

                              May 10, 2016

                 Read twice and placed on the calendar