S.Amdt. 4895

1. Adds Subtitle H--Commodity Futures SEC. 1771. CONFLICTS OF INTEREST IN COMMODITIES MARKETS at the end of title XVII

   Adds a section

   Inserted: Subtitle H--Commodity Futures SEC. 1771. CONFLICTS OF INTEREST IN COMMODITIES MARKETS.

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

   Inserted: "(j) 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.

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   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