S 3130 ISCommentsClose CommentsPermalink

To provide energy price relief by authorizing greater resources and authority for the Commodity Futures Trading Commission, and for other purposes.CommentsClose CommentsPermalink

June 12, 2008CommentsClose CommentsPermalink

Mr. DURBIN (for himself, Mr. REID, Mr. LEVIN, Mr. BINGAMAN, Mr. DORGAN, Mrs. FEINSTEIN, Ms. KLOBUCHAR, Mr. MENENDEZ, Mr. BROWN, Mr. CASEY, Mr. KERRY, Mr. LEAHY, Mrs. MURRAY, Ms. MIKULSKI, Mr. OBAMA, and Mr. REED) introduced the following bill; which was read twice and referred to the Committee on Agriculture, Nutrition, and ForestryCommentsClose CommentsPermalink

To provide energy price relief by authorizing greater resources and authority for the Commodity Futures Trading Commission, and for other purposes.CommentsClose CommentsPermalink

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,CommentsClose CommentsPermalink

SECTION 1. SHORT TITLE.

This Act may be cited as the ‘Increasing Transparency and Accountability in Oil Prices Act of 2008’.CommentsClose CommentsPermalink

SEC. 2. SENSE OF SENATE ON ADDITIONAL EMERGENCY FUNDING FOR COMMISSION.

(a) Findings- The Senate finds that--CommentsClose CommentsPermalink





(1) excessive speculation may be adding significantly to the price of oil and other energy commodities;CommentsClose CommentsPermalink





(2) the public and Congress are concerned that private, unregulated transactions and overseas exchange transactions are not being adequately reviewed by any regulatory body;CommentsClose CommentsPermalink





(3) an important Federal overseer of commodity speculation, the Commodity Futures Trading Commission, has staffing levels that have dropped to the lowest levels in the 33-year history of the Commission; andCommentsClose CommentsPermalink





(4) the acting Chairman of the Commission has said publicly that an additional 100 employees are needed in light of the inflow of trading volume.CommentsClose CommentsPermalink





(b) Sense of Senate- It is the sense of the Senate that the President should immediately send to Congress a request for emergency appropriations for fiscal year 2008 for the Commodity Futures Trading Commission in an amount that is sufficient--CommentsClose CommentsPermalink





(1) to help restore public confidence in energy commodities markets and Federal oversight of those markets;CommentsClose CommentsPermalink





(2) to potentially impose limits on excessive speculation that is increasing the price of oil, gasoline, diesel, and other energy commodities;CommentsClose CommentsPermalink





(3) to significantly improve the information technology capabilities of the Commission to help the Commission effectively regulate the energy futures markets; andCommentsClose CommentsPermalink





(4) to fund at least 100 new full-time positions at the Commission to oversee energy commodity market speculation and to enforce the Commodity Exchange Act (7 U.S.C. 1 et seq.).CommentsClose CommentsPermalink

SEC. 3. ADDITIONAL COMMISSION EMPLOYEES FOR IMPROVED ENFORCEMENT.

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





‘(D) ADDITIONAL EMPLOYEES- As soon as practicable after the date of enactment of this subparagraph, the Commission shall appoint at least 100 full-time employees (in addition to the employees employed by the Commission as of the date of enactment of this subparagraph)--CommentsClose CommentsPermalink





‘(i) to increase the public transparency of operations in energy futures markets;CommentsClose CommentsPermalink





‘(ii) to improve the enforcement of this Act in those markets; andCommentsClose CommentsPermalink





‘(iii) to carry out such other duties as are prescribed by the Commission.’.CommentsClose CommentsPermalink

SEC. 4. INSPECTOR GENERAL.

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





‘(13) INSPECTOR GENERAL-CommentsClose CommentsPermalink





‘(A) OFFICE- There shall be in the Commission, as an independent office, an Office of the Inspector General.CommentsClose CommentsPermalink





‘(B) APPOINTMENT- The Office shall be headed by an Inspector General, appointed in accordance with the Inspector General Act of 1978 (5 U.S.C. App.).CommentsClose CommentsPermalink





‘(C) COMPENSATION- The Inspector General shall be compensated at the rate provided for level IV of the Executive Schedule under section 5315 of title 5, United States Code.CommentsClose CommentsPermalink





‘(D) ADMINISTRATION- The Inspector General shall exert independent control of the budget allocations, expenditures, and staffing levels, personnel decisions and processes, procurement, and other administrative and management functions of the Office.’.CommentsClose CommentsPermalink

SEC. 5. STUDY OF INTERNATIONAL REGULATION OF ENERGY COMMODITY MARKETS.

(a) In General- The Comptroller General of the United States shall conduct a study of the international regime for regulating the trading of energy commodity futures and derivatives.CommentsClose CommentsPermalink





(b) Analysis- The study shall include an analysis of, at a minimum--CommentsClose CommentsPermalink





(1) key common features and differences among countries in the regulation of energy commodity trading, including with respect to market oversight and enforcement;CommentsClose CommentsPermalink





(2) agreements and practices for sharing market and trading data;CommentsClose CommentsPermalink





(3) the use of position limits or thresholds to detect and prevent price manipulation, excessive speculation, or other unfair trading practices;CommentsClose CommentsPermalink





(4) practices regarding the identification of commercial and noncommercial trading and the extent of market speculation; andCommentsClose CommentsPermalink





(5) agreements and practices for facilitating international cooperation on market oversight, compliance, and enforcement.CommentsClose CommentsPermalink





(c) Report- Not later than 120 days after the date of enactment of this Act, the Comptroller General shall submit to the appropriate committees of Congress a report that--CommentsClose CommentsPermalink





(1) describes the results of the study; andCommentsClose CommentsPermalink





(2) provides recommendations to improve openness, transparency, and other necessary elements of a properly functioning market in a manner that protects consumers in the United States from the effects of excessive speculation and energy price volatility.CommentsClose CommentsPermalink

SEC. 6. SPECULATIVE LIMITS AND TRANSPARENCY FOR OFF-SHORE OIL TRADING.

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





‘(e) Foreign Boards of Trade-CommentsClose CommentsPermalink





‘(1) IN GENERAL- In the case of any foreign board of trade for which the Commission has granted or is considering an application to grant a board of trade located outside of the United States relief from the requirement of subsection (a) to become a designated contract market, derivatives transaction execution facility, or other registered entity, with respect to an energy commodity that is physically delivered in the United States, prior to continuing to or initially granting the relief, the Commission shall determine that the foreign board of trade--CommentsClose CommentsPermalink





‘(A) applies comparable principles or requirements regarding the daily publication of trading information and position limits or accountability levels for speculators as apply to a designated contract market, derivatives transaction execution facility, or other registered entity trading energy commodities physically delivered in the United States; andCommentsClose CommentsPermalink





‘(B) provides such information to the Commission regarding the extent of speculative and nonspeculative trading in the energy commodity that is comparable to the information the Commission determines necessary to publish a Commitment of Traders report for a designated contract market, derivatives transaction execution facility, or other registered entity trading energy commodities physically delivered in the United States.CommentsClose CommentsPermalink





‘(2) EXISTING FOREIGN BOARDS OF TRADE- During the period beginning 1 year after the date of enactment of this subsection and ending 18 months after the date of enactment of this subsection, the Commission shall determine whether to continue to grant relief in accordance with paragraph (1) to any foreign board of trade for which the Commission granted relief prior to the date of enactment of this subsection.’.CommentsClose CommentsPermalink

SEC. 7. COMMISSION AUTHORITY OVER TRADERS.

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





‘(f) Commission Authority Over Traders-CommentsClose CommentsPermalink





‘(1) IN GENERAL- Notwithstanding any other provision of this section or any determination made by the Commission to grant relief from the requirements of subsection (a) to become a designated contract market, derivatives transaction execution facility, or other registered entity, in the case of a person located within the United States, or otherwise subject to the jurisdiction of the Commission, trading on a foreign board of trade, exchange, or market located outside the United States (including the territories and or possessions of the United States), the Commission shall have authority under this Act--CommentsClose CommentsPermalink





‘(A) to apply and enforce section 9, including provisions relating to manipulation or attempted manipulation, the making of false statements, and willful violations of this Act;CommentsClose CommentsPermalink





‘(B) to require or direct the person to limit, reduce, or liquidate any position to prevent or reduce the threat of price manipulation, excessive speculation, price distortion, or disruption of delivery or the cash settlement process; andCommentsClose CommentsPermalink





‘(C) to apply such recordkeeping requirements as the Commission determines are necessary.CommentsClose CommentsPermalink





‘(2) CONSULTATION- Prior to the issuance of any order under paragraph (1) to reduce a position on a foreign board of trade, exchange, or market located outside the United States (including the territories and possessions of the United States), the Commission shall consult with the foreign board of trade, exchange, or market and the appropriate regulatory authority.CommentsClose CommentsPermalink





‘(3) ADMINISTRATION- Nothing in this subsection limits any of the otherwise applicable authorities of the Commission.’.CommentsClose CommentsPermalink

SEC. 8. INDEX TRADERS AND SWAP DEALERS.

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





‘(g) Index Traders and Swap Dealers- Not later than 60 days after the date of enactment of this subsection, the Commission shall--CommentsClose CommentsPermalink





‘(1) routinely require detailed reporting from index traders and swap dealers in markets under the jurisdiction of the Commission;CommentsClose CommentsPermalink





‘(2) reclassify the types of traders for regulatory and reporting purposes to distinguish between index traders and swaps dealers; andCommentsClose CommentsPermalink





‘(3) review the trading practices for index traders in markets under the jurisdiction of the Commission--CommentsClose CommentsPermalink





‘(A) to ensure that index trading is not adversely impacting the price discovery process; andCommentsClose CommentsPermalink





‘(B) to determine whether different practices or regulations should be implemented.’.CommentsClose CommentsPermalink

SEC. 9. DISAGGREGATION OF INDEX FUNDS AND OTHER DATA IN ENERGY MARKETS.

Section 4 of the Commodity Exchange Act (7 U.S.C. 6) (as amended by section 8) is amended by adding at the end the following:CommentsClose CommentsPermalink





‘(h) Disaggregation of Index Funds and Data in Energy Markets- The Commission shall disaggregate and make public monthly--CommentsClose CommentsPermalink





‘(1) the number of positions and total value of index funds and other passive, long-only positions in energy markets; andCommentsClose CommentsPermalink





‘(2) data on speculative positions relative to bona fide physical hedgers in those markets.’.CommentsClose CommentsPermalink