S.Amdt. 4893

1. Adds Subtitle H--Commodity Futures SEC. 1771. MARGIN LEVEL FOR CRUDE OIL at the end of title XVII

   Adds a section

   Inserted: Subtitle H--Commodity Futures SEC. 1771. MARGIN LEVEL FOR CRUDE OIL.

   Inserted: Section 2(a)(1) of the Commodity Exchange Act (7 U.S.C. 2(a)(1)) is amended by adding at the end the following:

   Inserted: "(G) Margin level for crude oil.--

   Inserted: "(i) In general.--Except as provided in clause (ii), not later than 90 days after the date of enactment of this subparagraph, the Commission shall promulgate regulations to increase by not less than 25 percent the margin level of crude oil traded on any trading facility or as part of any agreement, contract, or transaction covered by this Act.

   Inserted: "(ii) Exception.--The Commission shall not increase the margin level of crude oil if--

   Inserted: "(I) the buyer and seller of the crude oil are primarily engaged in the business of extracting, refining, transporting, or selling crude oil (including products refined from crude oil); or

   Inserted: "(II) the buyer or seller of the crude oil is a retail consumer or other final user of the crude oil or a product refined from the crude oil (including an entity that uses the crude oil in a manufacturing process) that is the subject of any agreement, contract, or transaction covered by this Act.".

   Inserted: SEC. 1772. ENERGY COMMODITIES AND RELATED SWAPS TRADED ON FOREIGN BOARDS OF TRADE.

   Inserted: Section 2 of the Commodity Exchange Act (7 U.S.C. 2) is amended by adding at the end the following:

   Inserted: "(j) Energy Commodities and Related Swaps Traded on Foreign Boards of Trade.--

   Inserted: "(1) In general.--Notwithstanding paragraphs (3) through (5) of subsection (h), agreements, contracts, or transactions, including futures, swaps, and derivatives transactions that serve a price discovery function for energy commodities delivered in the United States, that are facilitated or transacted on any contract market or electronic trading facility that is regulated by a foreign regulatory agency, shall--

   Inserted: "(A) register as a designated contract market pursuant to section 4(a); and

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   Inserted: "(B) be subject to the rules and regulations of the Commission, including disclosure requirements, that apply to designated contract markets.

   Inserted: "(2) Registration.--A contract market or electronic trading facility that is subject to paragraph (1) shall register with the Commission not later than 180 days after the date of enactment of this subsection.

   Inserted: "(3) Inapplicability of exemptions.--Any exemption from registration, including no action letters, issued by the Commission or the staff of the Commission shall not be applicable after this date.".

   Inserted: SEC. 1773. CONFLICTS OF INTEREST IN COMMODITIES MARKETS.

   Inserted: Section 2 of the Commodity Exchange Act (7 U.S.C. 2) (as amended by section 1772) is amended by adding at the end the following:

   Inserted: "(k) Conflicts of Interest in Commodities Markets.--

   Inserted: "(1) In general.--The Commission or the Securities and Exchange Commission, as appropriate, shall establish and enforce rules to eliminate or minimize conflicts of interest in transactions in commodities traded on or subject to the rules of a board of trade, and establish a process for resolving such conflicts of interest, including rules that (with respect to a commodity that is traded on or subject to the rules of a board of trade by any covered person)--

   Inserted: "(A) prohibit the crude oil research division of the covered person that is responsible for predicting the price of crude oil from any communications between the division and energy traders;

   Inserted: "(B) prohibit energy traders from conducting transactions that relate to the energy infrastructure of the covered person;

   Inserted: "(C) prohibit a covered person from engaging in energy derivative transactions or energy futures contracts on behalf of themselves or the clients of the covered person;

   Inserted: "(D) prohibit investment banks from owning energy commodities;

   Inserted: "(E) require investment banks to disclose income from oil and gas trading activities;

   Inserted: "(F) prohibit investment banks from having an interest in an energy exchange;

   Inserted: "(G) prohibit United States investors from trading on an unregulated exchange; and

   Inserted: "(H) require investment banks to disclose the long and short positions of the banks in the filings of the bank.

   Inserted: "(2) Penalty.--An individual or entity that (as determined by the Commission or the Securities and Exchange Commission, as appropriate) repeatedly violates an applicable provision of this subsection or a rule or regulation promulgated pursuant to this subsection shall be subject to a fine of $1,000,000, imprisoned for not more than 10 years, or both, for each violation.".

   Original wording

   At the end of title XVII, add the following:

Read automatically from the Congressional Record. Check the original before relying on it.

As printed