S.Amdt. 5141
What it does: 17 changes: replaces text in 16 places, rewrites a provision
Sen. Susan M. Collins (R-ME)What it changes
17 changes to S. 3268
We couldn't read part of this amendment. That part is shown as written below.
Change 1: Replaces “legitimate and nonlegitimate hedge trading” at the section 4(e)(1)(B)(iii) of the Commodity Exchange Act (as added by section 3) with “bona fide and non-bona fide hedge trading (as those terms are defined in section 4a(h)(1))”
Replaces[struck: legitimate and nonlegitimate hedge trading][inserted: bona fide and non-bona fide hedge trading (as those terms are defined in section 4a(h)(1))]Original wording
In section 4(e)(1)(B)(iii) of the Commodity Exchange Act (as added by section 3), strike “legitimate and nonlegitimate hedge trading” and insert “bona fide and non-bona fide hedge trading (as those terms are defined in section 4a(h)(1))”.
Change 2: Replaces “nonlegitimate hedge trading” at the section 4a(g) of the Commodity Exchange Act (as added by section 5) with “non-bona fide hedge trading (as defined in section 4a(h)(1))”
Replaces[struck: nonlegitimate hedge trading][inserted: non-bona fide hedge trading (as defined in section 4a(h)(1))]Original wording
In section 4a(g) of the Commodity Exchange Act (as added by section 5), strike “nonlegitimate hedge trading” and insert “non-bona fide hedge trading (as defined in section 4a(h)(1))”.
Change 3: Rewrites section 4a(h)(1)
ReplacesRemoves section 4a(h)(1).
Inserted: (1) Definitions.--In this subsection:
Inserted: (A) Bona fide hedge trade.--
Inserted: (i) In general.--The term 'bona fide hedge trade' means a transaction that--
Inserted: (I) represents a substitute for a transaction to be made or a position to be taken at a later time in a physical marketing channel;
Inserted: (II) is economically appropriate for the reduction of risks in the conduct and management of a commercial enterprise; and
Inserted: (III) arises from the potential change in the value of--
Inserted: (aa) assets that a person owns, produces, manufactures, possesses, or merchandises (or anticipates owning, producing, manufacturing, possessing, or merchandising);
Inserted: (bb) liabilities that a person incurs or anticipates incurring; or
Inserted: (cc) services that a person provides or purchases (or anticipates providing or purchasing).
Inserted: (ii) Exclusion.--The term 'bona fide hedge trade' does not include a transaction entered into on a designated contract market for the purpose of offsetting a financial risk arising from an over-the-counter commodity derivative.
Inserted: (B) Non-bona fide hedge trade.--The term 'non-bona fide hedge trade' means a transaction that is not a bona fide hedge trade.
Original wording
(2) strike paragraph (1) and insert the following:
Change 4: Replaces “legitimate hedge” at the section 4a(h)(A) with “bona fide hedge”
Replaces[struck: legitimate hedge][inserted: bona fide hedge]Original wording
(B) in subparagraph (A), strike “legitimate hedge” and insert “bona fide hedge”;
Change 5: Replaces “legitimate hedge” at the section 4a(h)(3)(A) with “bona fide hedge”
Replaces[struck: legitimate hedge][inserted: bona fide hedge]Original wording
(4) in paragraph (3)(A), strike “legitimate hedge” and insert “bona fide hedge”; and
Change 6: Replaces “legitimate hedge” at the section 4a(h)(A)(i) with “bona fide hedge”
Replaces[struck: legitimate hedge][inserted: bona fide hedge]Original wording
(A) in subparagraph (A)(i), strike “legitimate hedge” and insert “bona fide hedge”;
Change 7: Replaces “legitimate hedge” at the section 4a(h)(B)(i) with “bona fide hedge”
Replaces[struck: legitimate hedge][inserted: bona fide hedge]Original wording
(B) in subparagraph (B)(i), strike “legitimate hedge” and insert “bona fide hedge”;
Change 8: Replaces “legitimate hedge” at the section 4a(h)(i)(I) with “bona fide hedge”
Replaces[struck: legitimate hedge][inserted: bona fide hedge]Original wording
(ii) in clause (i)(I), strike “legitimate hedge” and insert “bona fide hedge”;
Change 9: Replaces “legitimate hedge” at the section 4a(h)(ii)(II)(aa) with “bona fide hedge”
Replaces[struck: legitimate hedge][inserted: bona fide hedge]Original wording
(iii) in clause (ii)(II)(aa), strike “legitimate hedge” and insert “bona fide hedge”;
Change 10: Replaces “nonlegitimate hedge” at the section 4a(h)(iv)(I)(aa) with “non-bona fide hedge”
Replaces[struck: nonlegitimate hedge][inserted: non-bona fide hedge]Original wording
(iv) in clause (iv)(I)(aa), strike “nonlegitimate hedge” and insert “non-bona fide hedge”; and
Change 11: Replaces “nonlegitimate traders” before section 4a(h)(v)(I)(aa) with “non-bona fide traders”
Replaces[struck: nonlegitimate traders][inserted: non-bona fide traders]Original wording
(v) in clause (v)(I), in the matter preceding item (aa), strike “nonlegitimate traders” and insert “non-bona fide traders”; and
Change 12: Replaces “legitimate hedging” at the section 4a(h)(I) with “bona fide hedging”
Replaces[struck: legitimate hedging][inserted: bona fide hedging]Original wording
(i) in subclause (I), strike “legitimate hedging” and insert “bona fide hedging”;
Change 13: Replaces “legitimate hedge” at the section 4a(h)(III) with “bona fide hedge”
Replaces[struck: legitimate hedge][inserted: bona fide hedge]Original wording
(ii) in subclause (III), strike “legitimate hedge” and insert “bona fide hedge”; and
Change 14: Replaces “nonlegitimate hedge” at the section 4a(h)(IV) with “non-bona fide hedge”
Replaces[struck: nonlegitimate hedge][inserted: non-bona fide hedge]Original wording
(iii) in subclause (IV), strike “nonlegitimate hedge” and insert “non-bona fide hedge”.
Change 15: Replaces “nonlegitimate hedge trading” at the section 2(j)(1)(C)(iii) with “non-bona fide hedge trading (as defined in section 4a(h)(1))”
Replaces[struck: nonlegitimate hedge trading][inserted: non-bona fide hedge trading (as defined in section 4a(h)(1))]Original wording
(1) in paragraph (1)(C)(iii), strike “nonlegitimate hedge trading” and insert “non-bona fide hedge trading (as defined in section 4a(h)(1))”; and
Change 16: Replaces “legitimate hedge trading from nonlegitimate hedge trading” at the section 2(j)(3)(B)(iii) with “bona fide hedge trading from non-bona fide hedge trading (as those terms are defined in s…”
Replaces[struck: legitimate hedge trading from nonlegitimate hedge trading][inserted: bona fide hedge trading from non-bona fide hedge trading (as those terms are defined in section 4a(h)(1))]Original wording
(2) in paragraph (3)(B)(iii), strike “legitimate hedge trading from nonlegitimate hedge trading” and insert “bona fide hedge trading from non-bona fide hedge trading (as those terms are defined in section 4a(h)(1))”.
Change 17: Replaces “legitimate and nonlegitimate hedge trading” at the section 4(f)(4) of the Commodity Exchange Act (as added by section 8) with “bona fide hedge trading and non-bona fide hedge trading (as those terms are defined in se…”
Replaces[struck: legitimate and nonlegitimate hedge trading][inserted: bona fide hedge trading and non-bona fide hedge trading (as those terms are defined in section 4a(h)(1))]Original wording
In section 4(f)(4) of the Commodity Exchange Act (as added by section 8), strike “legitimate and nonlegitimate hedge trading” and insert “bona fide hedge trading and non-bona fide hedge trading (as those terms are defined in section 4a(h)(1))”.
Shown as written
(1) in the heading, strike “Nonlegitimate Hedge” and insert “Non-Bona Fide Hedge”;
(3) in paragraph (2)--
(A) in the heading, strike “legitimate hedge” and insert “bona fide hedge”; and
(5) in paragraph (4)--
(C) in subparagraph (C)--
(i) in the heading, strike “nonlegitimate hedge” and insert “non-bona fide hedge”;
(D) in subparagraph (D)(i)--
Read automatically from the Congressional Record. Check the original before relying on it.
As printed
SA 5141. Ms. COLLINS (for herself and Mr. Lieberman) submitted an amendment intended to be proposed by her to the bill S. 3268, to amend the Commodity Exchange Act, to prevent excessive price speculation with respect to energy commodities, and for other purposes; which was ordered to lie on the table; as follows:
In section 4(e)(1)(B)(iii) of the Commodity Exchange Act (as added by section 3), strike “legitimate and nonlegitimate hedge trading” and insert “bona fide and non-bona fide hedge trading (as those terms are defined in section 4a(h)(1))”.
In section 4a(g) of the Commodity Exchange Act (as added by section 5), strike “nonlegitimate hedge trading” and insert “non-bona fide hedge trading (as defined in section 4a(h)(1))”.
In section 4a(h) of the Commodity Exchange Act (as added by section 6)--
(1) in the heading, strike “Nonlegitimate Hedge” and insert “Non-Bona Fide Hedge”;
(2) strike paragraph (1) and insert the following:
“(1) Definitions.--In this subsection:
“(A) Bona fide hedge trade.--
“(i) In general.--The term ‘bona fide hedge trade' means a transaction that--
“(I) represents a substitute for a transaction to be made or a position to be taken at a later time in a physical marketing channel;
“(II) is economically appropriate for the reduction of risks in the conduct and management of a commercial enterprise; and
“(III) arises from the potential change in the value of--
“(aa) assets that a person owns, produces, manufactures, possesses, or merchandises (or anticipates owning, producing, manufacturing, possessing, or merchandising);
“(bb) liabilities that a person incurs or anticipates incurring; or
“(cc) services that a person provides or purchases (or anticipates providing or purchasing).
“(ii) Exclusion.--The term ‘bona fide hedge trade' does not include a transaction entered into on a designated contract market for the purpose of offsetting a financial risk arising from an over-the-counter commodity derivative.
“(B) Non-bona fide hedge trade.--The term ‘non-bona fide hedge trade' means a transaction that is not a bona fide hedge trade.”;
(3) in paragraph (2)--
(A) in the heading, strike “legitimate hedge” and insert “bona fide hedge”; and
(B) in subparagraph (A), strike “legitimate hedge” and insert “bona fide hedge”;
(4) in paragraph (3)(A), strike “legitimate hedge” and insert “bona fide hedge”; and
(5) in paragraph (4)--
(A) in subparagraph (A)(i), strike “legitimate hedge” and insert “bona fide hedge”;
(B) in subparagraph (B)(i), strike “legitimate hedge” and insert “bona fide hedge”;
(C) in subparagraph (C)--
(i) in the heading, strike “nonlegitimate hedge” and insert “non-bona fide hedge”;
(ii) in clause (i)(I), strike “legitimate hedge” and insert “bona fide hedge”;
(iii) in clause (ii)(II)(aa), strike “legitimate hedge” and insert “bona fide hedge”;
(iv) in clause (iv)(I)(aa), strike “nonlegitimate hedge” and insert “non-bona fide hedge”; and
(v) in clause (v)(I), in the matter preceding item (aa), strike “nonlegitimate traders” and insert “non-bona fide traders”; and
(D) in subparagraph (D)(i)--
(i) in subclause (I), strike “legitimate hedging” and insert “bona fide hedging”;
(ii) in subclause (III), strike “legitimate hedge” and insert “bona fide hedge”; and
(iii) in subclause (IV), strike “nonlegitimate hedge” and insert “non-bona fide hedge”.
In section 2(j) of the Commodity Exchange Act (as added by section 7)--
(1) in paragraph (1)(C)(iii), strike “nonlegitimate hedge trading” and insert “non-bona fide hedge trading (as defined in section 4a(h)(1))”; and
(2) in paragraph (3)(B)(iii), strike “legitimate hedge trading from nonlegitimate hedge trading” and insert “bona fide hedge trading from non-bona fide hedge trading (as those terms are defined in section 4a(h)(1))”.
In section 4(f)(4) of the Commodity Exchange Act (as added by section 8), strike “legitimate and nonlegitimate hedge trading” and insert “bona fide hedge trading and non-bona fide hedge trading (as those terms are defined in section 4a(h)(1))”.
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Senate amendment submitted
July 24, 2008