[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