H.R. 6264

To prevent excessive speculation in over-the-counter derivatives markets for certain energy commodities by limiting participation in those markets to persons who are capable of producing, manufacturing, or taking physical delivery of the commodities.

Latest
Raw Text PDF XML

I

110th CONGRESS

2d Session

H. R. 6264

IN THE HOUSE OF REPRESENTATIVES

June 12, 2008

Mr. Larson of Connecticut (for himself, Mr. LoBiondo, Mr. Courtney, Mr. Kagen, Mr. Wu, Mr. Hill, Mr. Hinchey, and Mr. Welch of Vermont) introduced the following bill; which was referred to the Committee on Agriculture

A BILL

To prevent excessive speculation in over-the-counter derivatives markets for certain energy commodities by limiting participation in those markets to persons who are capable of producing, manufacturing, or taking physical delivery of the commodities.

1.

Limitation on participation in over-the-counter derivatives markets for certain energy commodities

(a)

In general

Section 4 of the Commodity Exchange Act (7 U.S.C. 6) is amended by adding at the end the following:

(e)
(1)
(A)

It shall be unlawful for a person to enter into or execute a transaction which involves a specified energy commodity, and which is otherwise excluded under section 2(g) or exempted under section 2(h), unless the person—

(i)

meets the requirement of paragraph (2)(A) of this subsection; or

(ii)
(I)

is purchasing the contract or agreement as an agent of a person who meets the requirement; and

(II)

discloses the identity of the person referred to in subclause (I) of this clause to the seller of the contract.

(B)

It shall be unlawful for a person, after the 60-day period that begins with the effective date of this subsection, to hold a contract or agreement of sale of a specified energy commodity for future delivery which is otherwise excluded under section 2(g) or exempted under section 2(h), unless the person—

(i)

meets the requirement of paragraph (2)(A) or (2)(B) of this subsection; or

(ii)

is holding the contract or agreement as an agent of a person who meets the requirement.

(2)
(A)

A person meets the requirement of this subparagraph with respect to a commodity if—

(i)

the person has filed with the Commission an affidavit attesting that the person has the capacity to accept physical delivery of the commodity; and

(ii)

the Commission has certified that the person has the capacity.

(B)

A person meets the requirement of this subparagraph with respect to a commodity if—

(i)

the person has filed with the Commission an affidavit attesting that the person has the capacity to produce or manufacture the commodity; and

(ii)

the Commission has certified that the person has the capacity.

(3)

In this subsection, the term specified energy commodity means crude oil, heating oil, gasoline, or diesel fuel.

.

(b)

Conforming amendments

(1)

Section 2(g) of such Act (7 U.S.C. 2(g)) is amended by inserting 4(e), before 5a.

(2)

Section 2(h)(2)(A) of such Act (7 U.S.C. 2(h)(2)(A)) is amended by striking 5b and inserting 4(e), 5b.