S. 577

Oil and Gas Traders Oversight Act of 2007

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II

110th CONGRESS

1st Session

S. 577

IN THE SENATE OF THE UNITED STATES

February 13, 2007

Mrs. Feinstein (for herself, Ms. Snowe, Mr. Levin, Ms. Cantwell, Mrs. Boxer, Mr. Feingold, Mr. Bingaman, Mr. Lieberman, Mr. Lautenberg, and Ms. Mikulski) introduced the following bill; which was read twice and referred to the Committee on Agriculture, Nutrition, and Forestry

A BILL

To amend the Commodity Exchange Act to add a provision relating to reporting and recordkeeping for positions involving energy commodities.

1.

Short title

This Act may be cited as the Oil and Gas Traders Oversight Act of 2007.

2.

Reporting and recordkeeping for positions involving energy commodities

(a)

In general

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

(7)

Reporting and recordkeeping for positions involving energy commodities

(A)

Definitions

In this paragraph:

(i)

Domestic terminal

The term domestic terminal means a technology, software, or other means of providing electronic access within the United States to a contract, agreement, or transaction traded on a foreign board of trade.

(ii)

Energy commodity

The term energy commodity means a commodity or the derivatives of a commodity that is used primarily as a source of energy, including—

(I)

coal;

(II)

crude oil;

(III)

gasoline;

(IV)

heating oil;

(V)

diesel fuel;

(VI)

electricity;

(VII)

propane; and

(VIII)

natural gas.

(iii)

Reportable contract

The term reportable contract means—

(I)

a contract, agreement, or transaction involving an energy commodity, executed on an electronic trading facility, or

(II)

a contract, agreement, or transaction for future delivery involving an energy commodity for which the underlying energy commodity has a physical delivery point within the United States and that is executed through a domestic terminal.

(B)

Record keeping

The Commission, by rule, shall require any person holding, maintaining, or controlling any position in any reportable contract under this section—

(i)

to maintain such records as directed by the Commission for a period of 5 years, or longer, if directed by the Commission; and

(ii)

to provide such records upon request to the Commission or the Department of Justice.

(C)

Reporting of positions involving energy commodities

The Commission shall prescribe rules requiring such regular or continuous reporting of positions in a reportable contract in accordance with such requirements regarding size limits for reportable positions and the form, timing, and manner of filing such reports under this paragraph, as the Commission shall determine.

(D)

Other rules not affected

(i)

In general

Except as provided in clause (ii), this paragraph does not prohibit or impair the adoption by any board of trade licensed, designated, or registered by the Commission of any bylaw, rule, regulation, or resolution requiring reports of positions in any agreement, contract, or transaction made in connection with a contract of sale for future delivery of an energy commodity (including such a contract of sale), including any bylaw, rule, regulation, or resolution pertaining to filing or recordkeeping, which may be held by any person subject to the rules of the board of trade.

(ii)

Exception

Any bylaw, rule, regulation, or resolution established by a board of trade described in clause (i) shall not be inconsistent with any requirement prescribed by the Commission under this paragraph.

(E)

Contract, agreement, or transaction for future delivery

Notwithstanding sections 4(b) and 4a, the Commission shall subject a contract, agreement, or transaction for future delivery in an energy commodity to the requirements established by this paragraph.

.

(b)

Conforming amendments

Section 4a(e) of the Commodity Exchange Act (7 U.S.C. 6a(e)) is amended—

(1)

in the first sentence—

(A)

by inserting or by an electronic trading facility operating in reliance on section 2(h)(3) after registered by the Commission; and

(B)

by inserting electronic trading facility, before or such board of trade; and

(2)

in the second sentence, by inserting or by an electronic trading facility operating in reliance on section 2(h)(3) after registered by the Commission.