HR 707 CDS
102d CONGRESS
1st Session
H. R. 707
IN THE SENATE OF THE UNITED STATES
March 7 (legislative day, FEBRUARY 6), 1991
Received; read twice and referred to the Committees on Agriculture, Nutrition,
and Forestry
April 18 (legislative day, APRIL 9), 1991
Committee discharged
AN ACT
To amend the Commodity Exchange Act to improve the regulation of futures and
options traded under rules and regulations of the Commodity Futures Trading
Commission; to establish registration standards for all exchange floor traders;
to restrict practices which may lead to the abuse of outside customers of
the marketplace; to reinforce development of exchange audit trails to better
enable the detection and prevention of such practices; to establish higher
standards for service on governing boards and disciplinary committees of
self-regulatory organizations; to enhance the international regulation of
futures trading; to regularize the process of authorizing appropriations
for the Commodity Futures Trading Commission; and for other purposes.
Be it enacted by the Senate and House of Representatives of the United
States of America in Congress assembled,

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(a) SHORT TITLE- This Act may be cited as the `Commodity Futures Improvements
Act of 1991'.
(b) TABLE OF CONTENTS- The table of contents is as follows:
TABLE OF CONTENTS

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TITLE II

-ENHANCEMENT OF REGULATORY AND ENFORCEMENT ACTIVITIES

(a) PROHIBITION- Section 4j of the Commodity Exchange Act (7 U.S.C. 6j)
is amended by--
(1) redesignating subsection (2) as subsection (b); and
(2) amending subsection (1) to read as follows:
`(a)(1) The Commission shall issue regulations to prohibit dual trading by
a floor broker in any contract market in which the Commission determines
that the average daily trading volume is equal to or greater than the
threshold trading level established pursuant to this paragraph. For the
purposes of this subsection, the threshold trading level shall be seven
thousand contracts, based on a six-month moving average of the number
of contracts traded daily on such contract market. The Commission may
provide for increases or decreases in the threshold trading level for
specific contract markets if, in the judgment of the Commission, such a
change is warranted. In determining whether such a change is warranted, the
Commission shall consider the effects of this paragraph on the liquidity
of the contract market, price volatility, bid-ask spreads, and the public
interest. Any action by the Commission to adjust the threshold trading
level of a contract market pursuant to this paragraph shall be reported
to the Committee on Agriculture of the House of Representatives and the
Committee on Agriculture, Nutrition, and Forestry of the Senate not later
than 3 days after the Commission takes such action.
`(2) The regulations issued by the Commission to implement paragraph (1)
for such contract market shall--
`(A) define the term `dual trading';
`(B) specify the methodology by which the Commission shall determine the
average daily trading volume of contracts on a contract market;
`(C) provide for transition measures, as determined necessary by the
Commission to prevent market disruption or to protect the public interest,
for a contract market when the average daily trading volume on such
contract market increases to or above, or decreases below, the threshold
trading level;
`(D) provide that a floor broker may dual trade in a newly designated
contract market until the average daily trading volume on such contract
market has increased to or above the threshold trading level;
`(E) provide for limited exceptions, as the Commission determines necessary,
to the prohibition against dual trading required by paragraph (1) with
respect to spread trades and trades to correct errors;
`(F) provide that a floor broker affected by paragraph (1) shall indicate
prior to the opening of trading for any given trading session whether such
floor broker shall trade solely for such broker's own account or solely for
customers' accounts for the entire trading session, with limited exceptions
as determined by the Commission pursuant to subparagraphs (E) and (G); and
`(G) provide that a customer may designate an individual floor broker to
execute such customer's orders for future delivery and trade for such
broker's own account, notwithstanding the provisions of paragraph (1),
if such customer, not less than once annu- ally, executes a written form
so designating such broker by name;
unless the Commission determines with respect to the subparagraph involved that
the action required by such subparagraph is unnecessary because of action
taken by the Commission pursuant to paragraph (3). Such regulations may
also provide that if the average daily trading volume on a contract market
increases to or above, or decreases below, the threshold trading level,
any change in the status of dual trading otherwise required by paragraph (1)
may be delayed or suspended if the Commission determines that such increase
or decrease is a temporary, unusual occurrence.
`(3) Notwithstanding paragraphs (1), (2), and (4), the Commission shall, as
it determines necessary, make a determination from time to time, by rule,
regulation, or order, whether or not dual trading, as that term may be
defined in regulations issued by the Commission, by a floor broker may be
allowed in contract markets where such trading is not prohibited pursuant
to paragraph (1). If the Commission determines that dual trading by a
floor broker shall be permitted, the Commission shall further determine
the terms, conditions, and circumstances under which such dual trading
shall be conducted. Any such determination shall, at a minimum, take
into account the effect of dual trading on the liquidity of trading in
each contract market. Nothing in this subsection shall be construed to
prohibit the Commission from making separate determinations for different
contract markets when such are warranted in the judgment of the Commission,
or to prohibit contract markets from setting terms and conditions more
restrictive than those set by the Commission.
`(4) The Commission shall issue an order to exempt a contract market from
the provisions of paragraph (1) if the Commission determines that such
exception is in the public interest and if the applicable board of trade can
demonstrate to the Commission that the surveillance systems and procedures,
including but not limited to the audit trail, for that contract market--
`(A) can detect those instances of trading violations that the Commission
determines to be attributable to dual trading; and
`(B) are fully verifiable.
The Commission shall approve or deny any application by a board of trade for
such an order no later than 60 days after receipt of the application. The
Commission shall submit a report of the issuance of any such order to the
Committee on Agriculture of the House of Representatives and the Committee
on Agriculture, Nutrition, and Forestry of the Senate no later than three
days after the issuance of such order.'.
(b) REGULATIONS- (1) The Commodity Futures Trading Commission shall issue
the regulations required by section 4j(a)(2) of the Commodity Exchange
Act, as added by subsection (a), no later than 270 days after the date of
enactment of this Act. The Commission shall issue regulations to implement
section 4j(a)(4) of such Act, as added by subsection (a), no later than 240
days after the date of enactment of this Act or 30 days before the issuance
of the regulations required by section 4j(a)(2), whichever occurs earlier.
(2) If, no later than 270 days after the date of enactment of this Act, a
board of trade submits an application to the Commission for an order for a
contract market pursuant to section 4j(a)(4) of the Commodity Exchange Act,
the Commission may, pending the completion of its review of such application,
temporarily waive the application of section 4j(a)(1) of such Act to that
contract market if the Commission determines that there is a likelihood that
the contract market meets the conditions of section 4j(a)(4) of such Act.

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TITLE I

-LIMITATIONS ON CERTAIN TRADING PRACTICES

(a) PROHIBITION- Section 4j of the Commodity Exchange Act (7 U.S.C. 6j),
as amended by section 101(a), is amended by adding at the end the following:
`(c) It shall be unlawful, pursuant to regulations issued by the Commission--
`(1) for a member of a broker association, for or on behalf of any
customer, to execute a transaction such that another member of the same
broker association, trading for such other member's own account, or the
account of the association, takes the opposite side of such transaction;
`(2) for any member of a broker association to trade with another member
of the same broker association, whether such brokers are trading for such
brokers' own accounts, for customers, or for the account of the broker
association, if such transactions in any month total more than 25 percent
of the total number of transactions of such broker; and
`(3) for any member of a broker association to engage in such other practices
as the Commission determines necessary to prohibit or curb abuses, and
otherwise to protect the interests of customers from potential trading
abuses by members of broker associations.
Such regulations shall include a definition of the term `broker association'
and may provide for exceptions from the provisions of this subsection in
the case of trades executed through trading systems in which the identity
of the opposite broker is unknown at the time of the trade. Nothing in
this subsection shall be construed to prohibit the Commission or contract
markets from prohibiting trading by broker associations or their members or
from setting terms and conditions for such trading that are more restrictive
than those set by this subsection.'.
(b) REGULATIONS- The Commodity Futures Trading Commission shall issue
regulations to implement section 4j(c) of the Commodity Exchange Act,
as added by subsection (a), no later than 270 days after the date of
enactment of this Act.
(c) REPORT TO CONGRESS- The Commodity Futures Trading Commission shall
determine whether the public interest would best be served by placing
alternative restrictions on trading by broker associations and their
members, and whether broker associations or trading by broker associations
should be prohibited. The Commission shall submit a report describing its
determination and containing any recommendations by the Commission for
regulatory or legislative initiatives to implement such recommendations
to the Committee on Agriculture of the House of Representatives and the
Committee on Agriculture, Nutrition, and Forestry of the Senate no later
than 270 days after the effective date of the regulations required under
this section.

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(a) AUDIT TRAIL REQUIREMENTS FOR CONTRACT MARKETS- Section 4g of the
Commodity Exchange Act (7 U.S.C. 6g) is amended--
(1) by redesignating subsections (1) through (6) as subsections (a) through
(f), respectively;
(2) in subsection (b), as so redesignated--
(A) by inserting `(1)' after `(b)'; and
(B) by adding at the end the following:
`(2)(A) Each contract market shall maintain or cause to be maintained
by its clearinghouse a single record that shall show for each futures
or options trade the transaction date, time of execution (as required by
subparagraph (B)), quantity, and such other information as the Commission
determines necessary. Such record shall enable such contract market to
rapidly reconstruct an accurate record, as determined by the Commission,
of the transactions executed on such contract market.
`(B) For the purposes of subparagraph (A), the time of execution of a
transaction shall be verifiable and shall--
`(i) be stated within an increment of no more than 1 minute in length,
beginning not later than 1 year after the date of enactment of the Commodity
Futures Improvements Act of 1991; and
`(ii) be stated within an increment of no more than 30 seconds in length,
beginning not later than 3 years after the date of enactment of the
Commodity Futures Improvements Act of 1991.
`(C) The Commission shall submit a report on the status of compliance with
the standards imposed by this paragraph to the Committee on Agriculture of
the House of Representatives and the Committee on Agriculture, Nutrition,
and Forestry of the Senate within 180 days after the expiration of the
1-year and 3-year periods specified in subparagraphs (B)(i) and (B)(ii),
respectively.
`(D) The Commission shall--
`(i) determine whether the record required by this paragraph has enabled
the affected contract markets to rapidly reconstruct an accurate, verifiable
record of the transactions executed on such contract markets, as determined
necessary by the Commission to provide for the effective enforcement of the
applicable provisions of this Act and the rules or regulations thereunder;
`(ii) determine whether the recording and reconstruction of the time
and sequence of trades can more accurately represent the real times of
such trades through the use of improved technologies or other means and
determine whether any regulatory or legislative changes would be necessary
or appropriate to implement such improvements; and
`(iii) report in writing its findings pursuant to this subparagraph to the
Committee on Agriculture of the House of Representatives and the Committee
on Agriculture, Nutrition, and Forestry of the Senate no later than 5 years
after the enactment of the Commodity Futures Improvements Act of 1991.'; and
(3) in subsection (c), as so redesignated, by striking `subsection (2)'
and inserting `subsection (b)'.
(b) AUDIT TRAIL COMPLIANCE AS CONDITION FOR CONTRACT MARKET DESIGNATION-
Section 5 of the Commodity Exchange Act (7 U.S.C. 7) is amended by--
(1) indenting the left margin of subdivisions (a) through (g) by 2 ems;
(2) striking `(a)', `(b)', `(c)', `(d)', `(e)', `(f)', and `(g)',
and inserting `(1)', `(2)', `(3)', `(4)', `(5)', `(6)', and `(7)',
respectively; and
(3) adding at the end the following:
`(8) When such board of trade demonstrates that every contract market for
which such board of trade is designated complies with the requirements of
sections 4g(b)(2)(B)(i) and 4g(b)(2)(B)(ii).'.

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Section 17 of the Commodity Exchange Act (7 U.S.C. 21) is amended by adding
at the end the following:
`(s) Each futures association registered under this section shall, subject
to the approval of the Commission pursuant to subsection (j), adopt a
rule specifying the factors it will consider in determining whether to
issue a summary member responsibility action or other disciplinary action
to require a member to adopt special supervisory procedures relating to
telephone solicitations for new futures or options customer accounts. Such
procedures shall require at a minimum that, with respect to an individual
with no previous futures or options trading experience who was solicited
by telephone, the member may not enter any order for such individual for
a period of not less than 3 days after the individual signs the required
acknowledgment of receipt of the applicable risk disclosure statement.'.

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Section 8(a) of the Commodity Exchange Act (7 U.S.C. 12(a)) is amended by--
(1) inserting `(1)' after `(a)'; and
(2) adding at the end the following:
`(2) In conducting investigations authorized under this subsection or other
provision of this Act, the Commission shall continue, as the Commission
determines necessary, to request the assistance of and cooperate with
the appropriate Federal agencies in the conduct of such investigations,
including undercover operations by such agencies.'.

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BOARDS.
(a) DISCIPLINARY COMMITTEES AND MAJOR VIOLATIONS- Section 8c of the
Commodity Exchange Act (7 U.S.C. 12c) is amended--
(1) by redesignating subsections (1) through (4) as subsections (a) through
(d);
(2) in subsection (a), as so redesignated--
(A) by striking `(A)' and inserting `(1)'; and
(B) by striking `(B)' and inserting `(2)';
(3) in subsection (c), as so redesignated, by striking `subsection (2)'
each place it appears and inserting `subsection (b)';
(4) in subsection (d), as so redesignated, by striking `subsection (1)'
and inserting `subsection (a)'; and
(5) by adding at the end the following:
`(e)(1) The Commission shall issue regulations to require the establishment
of a system of contract market disciplinary committees. Under such system,
each board of trade designated as a contract market shall--
`(A) establish one or more disciplinary committees which shall be authorized
by such board of trade to determine whether violations of the rules of
the board of trade have been committed, to accept offers of settlement,
and to impose appropriate penalties;
`(B) provide that disciplinary committees established pursuant to
subparagraph (A) be composed of members of the board of trade, or staff
members of the board of trade, such that the committee, or any hearing
panel formed by the committee to conduct disciplinary hearings, shall be
composed of a majority of persons who are of a different trading status
than the respondent; and
`(C) provide that a hearing panel formed by the committee to conduct
disciplinary hearings may be composed of fewer than the total number of
members of the committee.
`(2) For the purposes of paragraph (1), a disciplinary committee member's
trading status shall be determined by whether such member is a--
`(A) floor broker or floor trader;
`(B) member of the board of trade other than a member who acts primarily
as a floor broker or floor trader; or
`(C) staff member of such board of trade.
`(f)(1) The Commission shall issue regulations requiring each contract market
to establish and make available to the public a schedule of major violations
of any rule within the disciplinary jurisdiction of such contract market.
`(2) The regulations issued by the Commission pursuant to this subsection
shall prohibit, for a period of time to be determined by the Commission,
any individual who is found to have committed any major violation from
service on the governing board of any contract market or registered futures
association, or on any disciplinary committee thereof.'.
(b) REGISTERED FUTURES ASSOCIATIONS- Section 17 of the Commodity Exchange
Act (7 U.S.C. 21), as amended by section 202, is amended by inserting
after subsection (q) the following:
`(r)(1) The Commission shall issue regulations requiring each registered
futures association to establish and make available to the public a schedule
of major violations of any rule within the disciplinary jurisdiction of
such registered futures association.
`(2) The regulations issued by the Commission pursuant to this subsection
shall prohibit, for a period of time to be determined by the Commission, any
member of a registered futures association who is found to have committed any
major violation from service on the governing board of any registered futures
association or contract market, or on any disciplinary committee thereof.'.
(c) OUTSIDE REPRESENTATION ON GOVERNING BOARDS- (1) Section 5a of the
Commodity Exchange Act (7 U.S.C. 7a) is amended by--
(A) striking `and' at the end of paragraph (11); and
(B) adding at the end the following:
`(13) ensure that outside members, as defined in regulations issued by
the Commission, comprise at least 20 percent of the governing board of
such contract market; and'.
(2) Section 17(b) of the Commodity Exchange Act (7 U.S.C. 21(b)) is amended--
(A) in subparagraphs (A) and (B) of paragraph 3 by striking `or' at the end;
(B) in paragraphs (3)(D), (4)(A), (4)(B), (4)(C), (4)(D), (4)(F), (5),
(6), (7), (8), (9), (9)(A), (9)(B), and (9)(D) by striking the period at
the end and inserting a semicolon;
(C) in paragraphs (4)(E), (9)(C), and (10) by striking the period at the
end and inserting `; and'; and
(D) by adding at the end the following:
`(11) at least 20 percent of the members of the governing board thereof
are outside members, as defined in regulations issued by the Commission.'.
(d) REGULATIONS- The Commodity Futures Trading Commission shall issue
the regulations required by sections 5a(13), 8c(e), 8c(f), 17(b)(11),
and 17(r) of the Commodity Exchange Act, as added by this section, no
later than 180 days after the date of enactment of this Act.

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(a) DEFINITION- Section 2(a)(1)(A) of the Com- modity Exchange Act (7
U.S.C. 2) is amended by inserting after the sentence beginning `The words
`floor broker' ' the following: `The words `floor trader' shall mean any
person who, in or surrounding any `pit', `ring', `post', or other place
provided by a contract market for the meeting of persons similarly engaged,
shall purchase or sell solely for such person's own account any commodity
for future delivery on or subject to the rules of any contract market.'.
(b) FLOOR TRADER REGISTRATION- Section 4e of the Commodity Exchange Act
(7 U.S.C. 6e) is amended to read as follows:
`SEC. 4e. It shall be unlawful for any person to act as floor trader in
executing purchases and sales, or as floor broker in executing any orders
for the purchase or sale, of any commodity for future delivery, or involving
any contracts of sale of any commodity for future delivery, on or subject to
the rules of any contract market unless such person shall have registered,
under this Act, with the Commission as such floor trader or floor broker and
such registration shall not have expired nor been suspended nor revoked.'.
(c) REGISTRATION PROCEDURE- Section 4f(1) of the Commodity Exchange Act
(7 U.S.C. 6f(1)) is amended by striking `or floor broker' and inserting
`floor broker, or floor trader'.
(d) REPORTS; BOOKS AND RECORDS- Section 4g(a) of the Commodity Exchange Act
(7 U.S.C. 6g(1)), as so redesignated by section 201(a)(1), is amended by
striking `or floor broker' and inserting `floor broker, or floor trader'.
(e) JURISDICTION OF THE STATES- (1) Section 6d(1) of the Commodity
Exchange Act (7 U.S.C. 13a-2(1)) is amended by striking `or floor broker'
and inserting `floor broker, or floor trader'.
(2) Section 6d(8)(A) of the Commodity Exchange Act (7 U.S.C. section
13a-2(8)(A)) is amended by inserting `, floor trader,' after `floor broker'.
(f) COMMISSION AUTHORITY TO REGISTER FLOOR TRADERS- Section 8a(1) of the
Commodity Exchange Act (7 U.S.C. 12a(1)) is amended by striking `and floor
brokers' and inserting `floor brokers, and floor traders'.
(g) REFUSAL TO REGISTER- (1) Section 8a(2)(C)(i) of the Commodity Exchange
Act (7 U.S.C. 12a(2)(C)(i)) is amended by inserting `floor trader,' after
`floor broker,'.
(2) Section 8a(2)(D)(ii) of the Commodity Exchange Act (7
U.S.C. 12a(2)(D)(ii)) is amended by inserting `floor trader,' after
`floor broker,'.
(3) Section 8a(3)(E)(ii) of the Commodity Exchange Act (7
U.S.C. 12a(3)(E)(ii)) is amended by inserting `floor trader,' after
`floor broker,'.
(h) REGULATIONS- The Commodity Futures Trading Commission shall issue any
regulations necessary to implement the amendments made by this section no
later than 180 days after the date of enactment of this Act.

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(a) INJUNCTIONS- Section 8a(2)(C)(ii) of the Commodity Exchange Act (7
U.S.C. 12a(2)(C)(ii)) is amended to read as follows:
`(ii) engaging in or continuing any activity where such activity
involves embezzlement, theft, extortion, fraud, fraudulent conversion,
misappropriation of funds, securities or property, forgery, counterfeiting,
false pretenses, bribery, gambling, or any transaction in or advice
concerning contracts of sale of a commodity for future delivery, concerning
matters subject to Commission regulation under section 4c or 19, or
concerning securities'.
(b) CERTAIN VIOLATIONS OF LAW- Section 8a(2)(D)(iv) of the Commodity
Exchange Act (7 U.S.C. 12a(2)(D)(iv)) is amended by--
(1) inserting `1001,' after `152,';
(2) striking `or' after `1342,';
(3) inserting `1503, 1623, 1961, 1962, 1963, or 2314,' after `1343,'; and
(4) inserting `, or section 7201 or 7206 of the Internal Revenue Code of
1986' after `Code'.
(c) OTHER VIOLATIONS OF LAW- Section 8a(2)(E) of the Commodity Exchange Act
(7 U.S.C. 12a(2)(E)) is amended--
(1) by striking `by any court of competent jurisdiction,' and inserting
`in a proceeding brought'; and
(2) in clause (i) by inserting `chapter 96 of title 18 of the United States
Code,' after `1977,'.
(d) REGISTRATION REVOCATION BASED ON INACCURATE STATEMENTS- Section 8a(2)(G)
of the Commodity Exchange Act (7 U.S.C. 12a(2)(G)) is amended by--
(1) striking `subparagraphs (A) through (F) of this paragraph,' and inserting
`this paragraph and paragraph (3),';
(2) striking `material' the first place it appears and inserting
`materially'; and
(3) striking `application' and inserting `application or any update thereto'.
(e) GENERAL FELONY CONVICTIONS- Section 8a(3)(D) of the Commodity Exchange
Act (7 U.S.C. 12a(3)(D)) is amended by--
(1) inserting `pleaded guilty to or' after `person';
(2) inserting a comma after `section' the first place it appears;
(3) striking `within ten years preceding the filing of the application or
at any time thereafter,';
(4) striking `, including a felony'; and
(5) striking `, more than' and inserting `more than'.
(f) SPECIAL FELONY CONVICTIONS- Section 8a(3)(E) of the Commodity Exchange
Act (7 U.S.C. 12a(3)(E)) is amended--
(1) by inserting `pleaded guilty to or' after `person';
(2) by striking `within ten years preceding the filing of the application
for registration or at any time thereafter'; and
(3) in clause (iv) by inserting `, or section 7203, 7204, 7205, or 7207
of the Internal Revenue Code of 1986' after `Code'.
(g) REGISTRATION DENIED OR CONDITIONED BASED ON INACCURATE STATEMENTS-
Section 8a(3)(G) of the Commodity Exchange Act (7 U.S.C. 12a(3)(G)) is
amended by--
(1) striking `material' the first place it appears and inserting
`materially';
(2) striking the comma after `application';
(3) inserting `or any update thereto,' after `application';
(4) striking `thereunder, or' and inserting `thereunder,'; and
(5) inserting `or in any registration disqualification proceeding' after
`Commission'.
(h) NON-FEDERAL CRIMINAL CONDUCT- Section 8a(3)(H) of the Commodity
Exchange Act (7 U.S.C. 12a(3)(H)) is amended by inserting `, in a United
States military court,' after `State court'.
(i) EXISTING RESTRICTIONS ON MEMBERSHIPS- Section 8a(3)(J) of the Commodity
Exchange Act (7 U.S.C. 12a(3)(J)) is amended by--
(1) striking `or' after `association,' the first place it appears;
(2) inserting `or any foreign regulatory body that the Commission recognizes
as having a comparable regulatory program,' after `organization,' the
first place it appears;
(3) striking `or' after `association,' the second place it appears; and
(4) striking `organization;' and inserting `organization, or foreign
regulatory body;'.

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(a) MONEY PENALTIES- Section 6 of the Commodity Exchange Act (7 U.S.C. 8
et seq.) is amended--
(1) by redesignating subsections (a) through (d) as subsections (b) through
(e), respectively;
(2) by inserting `(a)' after `SEC. 6.';
(3) in subsection (a), as so redesignated, by striking `paragraph (a)'
and inserting `subsection (b)';
(4) in subsection (d), as so redesignated--
(A) by striking `paragraph (b) of this section' and inserting `subsection
(c)'; and
(B) by striking `section 6(b) of this Act' and inserting `subsection
(c)'; and
(5) by amending subsection (e), as so redesignated, to read as follows:
`(e)(1) In determining the amount of the money penalty assessed under
subsection (c), the Commission shall consider the appropriateness of such
penalty to the gravity of the violation.
`(2) Unless the person against whom a money penalty is assessed under
subsection (c) shows to the satisfaction of the Commission within 15 days
from the expiration of the period allowed for payment of such penalty that
either an appeal as authorized by subsection (c) has been taken or payment
of the full amount of the penalty then due has been made, at the end of
such 15-day period and until such person shows to the satisfaction of the
Commission that payment of such amount with interest thereon to date of
payment has been made--
`(A) such person shall be prohibited automatically from trading on all
contract markets; and
`(B) if such person is registered with the Commission, such registration
shall be suspended automatically.
`(3) If a person against whom a money penalty is assessed under subsection
(c) takes an appeal and if the Commission prevails or the appeal is
dismissed, unless such person shows to the satisfaction of the Commission
that payment of the full amount of the penalty then due has been made by
the end of 30 days from the date of entry of judgment on the appeal--
`(A) such person shall be prohibited automatically from trading on all
contract markets; and
`(B) if such person is registered with the Commission, such registration
shall be suspended automatically.
If the person against whom the money penalty is assessed fails to pay
such penalty after the lapse of the period allowed for appeal or after
the affirmance of such penalty, the Commission may refer the matter to the
Attorney General who shall recover such penalty by action in the appropriate
United States district court.'.
(b) CONFORMING AMENDMENTS- The Commodity Exchange Act (7 U.S.C. 1 et
seq.) is amended--
(1) in section 2(a)(1)(B)(iv)--
(A) in subclause (I) by striking `section 6(b)' and inserting `section
6(c)'; and
(B) in subclause (II) by striking `section 6(a)' and inserting `section
6(b)';
(2) in section 5(6), as so redesignated by section 201(b)(2), by striking
`paragraph (b) of section 6' and inserting `section 6(c)';
(3) in section 5b by striking `paragraph (a) of section 6' and inserting
`section 6(b)';
(4) in section 6a(1) by striking `paragraph (a) of section 6' and inserting
`section 6(b)';
(5) in section 6b by striking `paragraph (a) of section 6' and inserting
`section 6(b)';
(6) in section 8a--
(A) in the first proviso to paragraph (2) by striking `section 6(b)'
and inserting `section 6(c)';
(B) in the second proviso to paragraph (3) by striking `section 6(b)'
and inserting `section 6(c)'; and
(C) in paragraph (4) by striking `section 6(b)' each place it appears and
inserting `section 6(c)';
(7) in section 14(e) by striking `paragraph (b) of section 6' and inserting
`section 6(c)'; and
(8) in section 17--
(A) in subsection (b)--
(i) in paragraph (3)(B) by striking `section 6(b)' and inserting `section
6(c)'; and
(ii) in paragraph (4)(F) by striking `subsection (b) of section 6' and
inserting `section 6(c)';
(B) in subsection (i)(4) by striking `section 6(b)' and inserting `section
6(c)'; and
(C) in subsection (o)(4) by striking `section 6(b)' and inserting `section
6(c)'.

54045f5c18d6c5fca98ca5a4fd7920f4a873f419eb373c03f690a3430a6e1ddb

(a) MANDATORY TRAINING FOR REGISTRANTS- Section 4p of the Commodity Exchange
Act (7 U.S.C. 6p) is amended by--
(1) inserting `(a)' after `SEC. 4p.'; and
(2) adding at the end the following:
`(b) The Commission shall issue regulations to require new registrants,
within 6 months after receiving such registration, to attend a training
session, and all other registrants to attend periodic training sessions,
to ensure that registrants understand their responsibilities to the public
under this Act, including responsibilities to observe just and equitable
principles of trade, any rule or regulation of the Commission, any rule of
any appropriate contract market, registered futures association, or other
self-regulatory organization, or any other applicable Federal or State law,
rule or regulation.'.
(b) REGULATIONS- The Commodity Futures Trading Commission shall issue
the regulations required by section 4p(b) of the Commodity Exchange Act,
as added by subsection (a), no later than 180 days after the date of
enactment of this Act.

c1cef2d95671231ee3be13df4b1844859bd6c95e795f1bf593d543eada8d4da1

Section 22(c) of the Commodity Exchange Act (7 U.S.C. 25(c)) is amended
to read as follows:
`(c) The United States district courts shall have exclusive jurisdiction of
actions brought under this section. Any such action shall be brought not
later than 2 years after the date the cause of action arises. Any action
brought under subsection (a) of this section may be brought in any judicial
district wherein the defendant is found, resides, or transacts business,
or in the judicial district wherein any act or transaction constituting
the violation occurs. Process in such action may be served in any judicial
district of which the defendant is an inhabitant or wherever the defendant
may be found.'.

5aabdaa3e86eeb735a009655d07b3253f1493707d5a04199c00e866a16e57372

(a) MONITORING BY CONTRACT MARKETS- Section 4a of the Commodity Exchange
Act (7 U.S.C. 6a) is amended--
(1) in subsection (1) by striking `subparagraphs 2 (A) and (B)' and inserting
`paragraphs (1) and (2) of subsection (b)';
(2) in subsection (3) by--
(A) striking `subsection (1)' and inserting `subsection (a)';
(B) striking the last sentence; and
(C) adding at the end the following:
`The Commission shall issue regulations to require each contract market to
monitor closely the trading activities of any person granted an exemption
from subsection (a) under this subsection to ensure that such person has
not acquired or is not maintaining any position in excess of any position
limit established pursuant to this section other than what is shown to be a
bona fide hedging position, or otherwise exempt pursuant to this section, or
otherwise acts in a manner inconsistent with the conditions for an exemption
granted under this subsection. If the contract market determines that such
person has acquired or is maintaining a position in excess of any position
limit established pursuant to this section other than what is shown to be
a bona fide hedging position, or otherwise exempt pursuant to this section,
or is otherwise acting in a manner inconsistent with the conditions for such
exemption, the contract market shall notify such person and take such action
as is appropriate under the circumstances. Nothing in this subsection shall
be construed to affect the authority of the Commission or a contract market
to act immediately to restrict such person's transactions or positions in
accordance with the limits established under this section.';
(3) by redesignating subsections (1) through (5) as subsections (a) through
(e), respectively; and
(4) in subsection (b), as so redesignated, by redesignating paragraphs
(A) and (B) as paragraphs (1) and (2), respectively.
(b) REGULATIONS- The Commodity Futures Trading Commission shall issue
the regulations required by section 4a(c) of the Commodity Exchange Act,
as so redesignated by subsection (a), no later than 180 days after the
date of enactment of this Act.

89a42fe5b6e22ea0d24a20f94664dd358a3b19df4beb13a313bdf128037f2780

Section 9 of the Commodity Exchange Act (7 U.S.C. 13) is amended--
(1) in subsection (a)--
(A) by striking `$500,000' and inserting `$1,000,000'; and
(B) by striking `$100,000' and inserting `$500,000';
(2) in subsection (b)--
(A) by striking `$500,000' and inserting `$1,000,000'; and
(B) by striking `$100,000' and inserting `$500,000';
(3) in subsection (d) by striking `$100,000' and inserting `$500,000'; and
(4) in subsection (e) by striking `$100,000' and inserting `$500,000'.

5402330e001bb0112b3c2bae6a294ddec2939cb3ecd80a7353b46d3ac6715193

(a) PRIOR COMMISSION NOTIFICATION REQUIRED- Section 5a(12) of the Commodity
Exchange Act (7 U.S.C. 7a(12)), as amended by section 204(c), is amended
by striking the last 2 sentences and inserting the following:
`The Commission shall issue regulations to specify the terms and conditions
under which, in an emergency as defined by the Commission, a contract market
may, by a two-thirds vote of its governing board, make a rule (hereafter in
this section referred to as an `emergency rule') effective on a temporary
basis without prior Commission approval, or without compliance with the
10-day notice requirement under this paragraph, or during any period
of review by the Commission, if the contract market makes every effort
practicable to notify the Commission of such emergency rule, along with a
complete explanation of the emergency involved, prior to making the emergency
rule effective. If the contract market does not provide the Commission with
such notification and explanation before making the emergency rule effective,
the contract market shall provide the Commission with such notification and
explanation at the earliest possible date. The Commission may delegate the
power to receive such notification and explanation to such individuals as
the Commission determines necessary and appropriate. Within 10 days of the
receipt from a contract market of notification of such an emergency rule
and an explanation of the emergency involved, or as soon as practicable,
the Commission shall approve or disapprove such emergency rule and submit
a report justifying its approval or disapproval of such emergency rule
to the affected contract market, to the Committee on Agriculture of the
House of Representatives and the Committee on Agriculture, Nutrition,
and Forestry of the Senate. If such report is submitted more than 10 days
after the Commission's receipt of notification of such an emergency rule
from a contract market, the report shall include a full explanation and
justification as to why submission within such 10-day period was not
practicable. Nothing in this paragraph shall be construed to limit the
authority of the Commission under section 8a(9);'.
(b) REGULATIONS- The Commodity Futures Trading Commission shall issue
regulations to implement section 5a(12) of the Commodity Exchange Act, as
added by subsection (a), no later than 90 days after the date of enactment
of this Act. Until the effective date of such regulations, any regulation
of the Commission that implements the last 2 sentences of section 5a(12),
as such sentences were in effect immediately before the date of enactment
of this Act, shall remain in effect.

802867daa4ce71f0021c2ff442beb93b67b15c9360fbb5576f6ca6c07ccea645

(a) PROHIBITION- Section 9 of the Commodity Exchange Act (7 U.S.C. 13)
is amended by adding at the end the following:
`(f) It shall be a felony for any person who is an employee, member of the
governing board, or member of any committee of a board of trade, contract
market, or registered futures association to willfully use or disclose, in
violation of a regulation adopted by the Commission, for any purpose other
than the performance of such person's official duties as such employee or
member, any material, nonpublic information obtained in the performance
of such duties. Such felony shall be punishable by a fine of not more
than $100,000 plus that amount of any profits realized from such use or
disclosure made in violation of this subsection, or imprisonment for not
more than 3 years, or both, together with the costs of prosecution.
`(g)(1) It shall be a felony for any individual willfully, and in violation
of a regulation issued by the Commission, to use as the basis for any
commodity contract transaction for the account of such individual any
material, nonpublic information as to one or more present or anticipated
cash commodity transactions or commodity contract transactions by any
person of whom such individual is a principal or employee, if such present
or anticipated transactions, in the aggregate, are in amounts greater
than the reporting levels specified by the Commission pursuant to section
4i. Such felony shall be punishable by a fine of not more than $100,000
plus that amount of any profits realized from such use in violation of
this subsection, or imprisonment for not more than 3 years, or both,
together with the costs of prosecution.
`(2) For purposes of paragraph (1)--
`(A) the term `commodity contract transaction' shall mean any transaction in
a contract for the purchase or sale of any commodity for future delivery,
or in any option to purchase or sell any commodity or any such contract,
made or to be made on or subject to the rules of any contract market; and
`(B) the term `principal' shall mean a general partner, officer, director,
or individual occupying a similar status or performing similar functions,
and any holder or beneficial owner of 10 percent or more of the outstanding
shares of any class of stock of the person.
`(h)(1) It shall be a felony for any individual willfully, and in violation
of a regulation issued by the Commission, to disclose any material,
nonpublic information as to one or more present or anticipated cash commodity
transactions or commodity contract transactions by any person of whom such
individual is a principal or employee if--
`(A) such transactions, in the aggregate, are in amounts greater than the
reporting levels specified by the Commission pursuant to section 4i;
`(B) such disclosure is with the intent that any recipient of the information
engage in commodity contract transactions on the basis of the disclosed
information; and
`(C) such disclosure is unrelated to the legitimate business of the person
of whom the individual is a principal or employee.
Such felony shall be punishable by a fine of not more than $100,000 plus
that amount of any profits realized from such disclosure in violation
of this subsection, or imprisonment for not more than 3 years, or both,
together with the costs of prosecution.
`(2) For the purpose of paragraph (1), the terms `commodity contract
transaction' and `principal' shall have the same meaning as specified in
section 9(g).'.
(b) REGULATIONS- The Commission shall issue regulations to implement the
amendments made by this section not later than 360 days after the date of
enactment of this Act.

1a73fba37a6a145c6cd3a7d58a519a03fcadf131eb32b147f2f4c466dfc98d5f

Section 2(a)(2)(A) of the Commodity Exchange Act (7 U.S.C. 4a(a)(1))
is amended by striking the second and third sentences and inserting the
following: `The Commission shall be composed of five Commissioners who
shall--
`(i) be appointed by the President, by and with the advice of the Senate; and
`(ii) each have demonstrated knowledge in futures trading or its regulation,
or the production, merchandising, processing or distribution of one or
more of the commodities or other goods and articles, services, rights,
and interests covered by this Act.
In nominating persons for appointment, the President shall seek to ensure
that the demonstrated knowledge of the Commissioners is balanced with respect
to such areas.'.

8736c392e73f4945d7b50face38e55b9b19abc80af9401df53bd45e3c97bfc34

Section 2(a) of the Commodity Exchange Act (7 U.S.C. 2, 2a, 4, and 4a)
is amended by adding at the end the following:
`(12)(A) The Commission shall monitor the margin level initially required
and subsequently maintained on any contract of sale for future delivery
of a group or index of equity securities (or any interest therein or based
upon the value thereof) to ensure that such margin level is sufficient--
`(i) to maintain the integrity of the futures markets; and
`(ii) to protect the public interest.
`(B) If the Commission determines that such margin level on any such
contract presents a clear and present danger to the interests specified in
subparagraphs (A)(i) and (A)(ii), the Commission shall, after consultation
with the relevant contract market, take such action as it deems necessary to
ensure that such margin level is sufficient to protect such interests. If
the Commission takes action pursuant to this subparagraph with respect to
any contract market, the Commission may, notwithstanding the provisions
of section 5a(12), require such contract market to submit all rules, as
defined in section 5a(12), relating to the setting of levels of margin
to the Commission for the Commission's prior approval or for review in
accordance with the 10-day notice provisions of section 5a(12).'.

2cd78d8503fa9d92c16301d43a332ede0ff82df267025daa1382c62ffebe2c81

Section 2(a) of the Commodity Exchange Act (7 U.S.C. 2, 2a, 4, and 4a)
is amended adding at the end the following:
`(13)(A) The Commission shall monitor arbitrage trading, including the use
of computers to execute such arbitrage trading, on contracts of sale for
future delivery of a group or index of equity securities (or any interest
therein or based upon the value thereof) to ensure that such arbitrage
trading does not--
`(i) threaten the integrity of the futures markets;
`(ii) create excessive volatility in the futures markets; or
`(iii) otherwise adversely affect the public interest.
`(B) It is the sense of Congress that if the Commission determines that
such arbitrage trading presents a clear and present danger:
`(i) to the integrity of the futures markets;
`(ii) of creating excessive volatility in the futures markets; or
`(iii) of otherwise adversely affecting the public interest;
the Commission should take such action pursuant to its existing authority
as it deems necessary to ensure that such arbitrage trading does not present
such a clear and present danger.'.

d8fc3dda36c707931d066de6fab01e793443036a0d2d621e3402fa0a3e8d9bff

Section 5a of the Commodity Exchange Act (7 U.S.C. 7a) is amended by
inserting at the end the following:
`(14) ensure that no member of a governing board or committee thereof votes
on any rule, as defined in paragraph (12), if, as determined in accordance
with regulations promulgated by the Commission--
`(A) the member;
`(B) a legal entity of which the member is an officer or employee;
`(C) a legal entity in which the member owns a substantial interest; or
`(D) a legal entity which is the parent or subsidiary of any legal entity
specified in subparagraph (B) or (C);
has a direct financial interest in the subject matter of the rule. Any
member prohibited from voting on a rule pursuant to this paragraph shall
not be included in determining whether there has been a two-thirds vote
of a governing board for purposes of paragraph (12). For purposes of this
paragraph the term `legal entity' includes a corporation, partnership,
sole proprietorship, or joint venture.'.

f179bcb79196fbc9dea50d8b879fd9d19926972915e8de571f098aec73b8af53

(a) STUDY- The Comptroller General of the United States shall conduct a
study of the provision for, and functioning of, delivery points regarding
contracts of sale for future delivery of any agricultural commodity to
determine whether the objectives of section 5a(10) of the Commodity Exchange
Act are being achieved. The study shall also examine such issues as--
(1) whether the objectives of such Act relative to such delivery points
need to be revised;
(2) whether the availability and adequacy of storage facilities for
agricultural commodities at such delivery points affect prices;
(3) whether the number, accessibility, and volume of storage facilities
at such delivery points contribute to consistency and reasonableness in
price discovery in the contract market; and
(4) such other issues relating to such delivery points as the Comptroller
General determines relevant to the efficient operation and improvement of
contract markets for agricultural commodities.
(b) REPORT- Not later than 1 year after the date of enactment of this Act,
the Comptroller General shall submit to the Committee on Agriculture of the
House of Representatives and the Committee on Agriculture, Nutrition, and
Forestry of the Senate a report containing the results of the study conducted
under subsection (a), together with any appropriate recommendations.

942cced8cea6f284b7c4a51b9d703dcea4f4a5bdf805b309dfd295f12639a60e

(a) STUDY- The Comptroller General of the United States shall conduct a
study to determine whether--
(1) it is feasible to fund some or all of the enforcement and market
surveillance activities of the Commodity Futures Trading Commission,
as required by the amendments to the Commodity Exchange Act made by the
Commodity Futures Improvements Act of 1991, through the imposition of an
assessment on commodity futures and options transactions executed pursuant
to the Commodity Exchange Act; and
(2) a program of assessment-based funding for some or all of such enforcement
and market surveillance activities would better provide resources to the
Commodity Futures Trading Commission to enable the Commission to--
(A) protect the interests of market users (including hedgers and
speculators), producers of commodities traded on the futures markets,
and the general public; and
(B) maintain and enhance the credibility of such futures and options markets.
(b) REPORT- Not later than 1 year after the date of enactment of this Act,
the Comptroller General shall submit to the Committee on Agriculture of
the House of Representatives and the Committee on Agriculture, Nutrition,
and Forestry of the Senate a report containing the Comptroller General's
determinations pursuant to subsection (a), together with any appropriate
recommendations for the implementation of such a program of assessment-based
funding for some or all of the Commodity Futures Trading Commission's
enforcement and market surveillance activities.

1722acd4c00ae958f2380b09db7409926d42568394e5c844b58c76fee05ab370

No later than 18 months following the enactment of this Act, the Commodity
Futures Trading Commission shall study the competitiveness of boards of trade
over which it has jurisdiction compared with the boards of trade (or their
foreign equivalent) over which foreign futures authorities, as defined in
section 2(a)(1)(A) of the Commodity Exchange Act (7 U.S.C. 2(a)(1)(A)),
have jurisdiction, and submit to the Committee on Agriculture of the
House of Representatives and the Committee on Agriculture, Nutrition,
and Forestry of the Senate a report of its findings with respect to--
(1) the overall competitive status of United States boards of trade in
the world market;
(2) a comparison of applicable statutes, rules, or regulations as they
relate to futures and options administered and enforced by the Commission
and those administered and enforced by foreign futures authorities;
(3) any trends in, or movements of, volume of futures and options trading
to or from United States boards of trade during the period of the study;
(4) whether the trends or movements, if any, were the result of the
adoption of statutes, regulations, or other enforcement mechanisms in
foreign countries or the United States; and
(5) any recommendations the Commission may have as a result of its study
to enhance the competitive status of United States boards of trade in the
world market that will not impair customer confidence in United States
boards of trade.

921a4adf72d508390f95640c1cd6fb94b5dc0d9fd6719374f6f9401dd14de7a8

(a) STUDY- The Commodity Futures Trading Commission (hereinafter in this
section referred to as `the Commission') shall conduct a study to determine--
(1) whether it is or may be feasible for all, or substantially all, trading
in futures and options subject to the jurisdiction of the Commission under
the Commodity Exchange Act to be conducted by a system of computers or by
other electronic means; and
(2) whether such a system of trading would enhance access to the futures and
options markets by potential market participants, improve the ability of the
Commission to audit the activities of the futures and options markets, reduce
the opportunity for trading abuses, and otherwise be in the public interest.
(b) REPORT- Not later than 2 years after the date of enactment of this Act,
the Commission shall submit to the Committee on Agriculture of the House of
Representatives and the Committee on Agriculture, Nutrition, and Forestry
of the Senate a report containing the results of the study conducted under
subsection (a), together with any appropriate recommendations.
(c) PILOT PROGRAM- Effective 2 years after the date of enactment of this
Act, the Commission shall establish a pilot program to collect information
on, and encourage, the use of computers and other electronic means to
effect trading in the futures and options markets within the regulatory
jurisdiction of the Commission.

9fd1523fc728040c81c88cd79da2a54fca149f85df3ef5ab44fd208d9ea59444

Section 6c of the Commodity Exchange Act (7 U.S.C. 13a-1) is amended by
adding after the third sentence two new sentences to read as follows:
`In any action brought under this section, the Commission may seek and
the court shall have jurisdiction to impose, upon a proper showing, upon
any person found to have committed any violation in such action a civil
penalty for each violation in the amount of not more than the higher of
$100,000 or triple the monetary gain to such person.  If a person upon
whom such a penalty is imposed shall fail to pay such penalty within the
time prescribed in the court's order, the Commission may refer the matter
to the Attorney General who shall recover such penalty by action in the
appropriate United States district court.'.

832c3849fe4b23927a0a5abafcbefa784d259a19c082ef60f63b01c92fbb0d8a

Section 2(a)(1)(A) of the Commodity Exchange Act (7 U.S.C. 2), as amended
by section 205(a), is amended by adding at the end the following: `The term
`foreign futures authority' means any foreign government, or any department,
agency, governmental body or regulatory organization empowered by a foreign
government to administer or enforce laws, rules, or regulations as they
relate to futures or options matters, or any department or agency of a
political subdivision of a foreign government empowered to administer or
enforce laws, rules or regulations as they relate to futures or options
matters.'.

cf79feb7aa035bc6efd3dd51e417b89624529ebba0081e443f1040d2f39eb9cd

TITLE III

-ASSISTANCE TO FOREIGN FUTURES AUTHORITIES

The third sentence of section 6(c) of the Commodity Exchange Act (7
U.S.C. 15), as so redesignated by section 207(1), is amended by inserting
`or for purposes of any action taken under section 12(f) of this Act,'
after `under this Act,'.

5b176489a3174d5c9466df3b9eee14076f70587da0c544eb52aefaa653682f68

Section 12(a) of the Commodity Exchange Act (7 U.S.C. 16(a)) is amended by
inserting after `thereof,' the following: `any foreign futures authority,
any department or agency of a foreign government or political subdivision
thereof,'.

72123ee0df4aa0cd93e73a682f9d7df0263bd91f71015f11f03ce1b7b1d432f5

Section 12 of the Commodity Exchange Act (7 U.S.C. 16) is amended by adding
at the end the following:
`(f)(1) On request from a foreign futures authority, the Commission may,
in its discretion, provide assistance in accordance with this section if
the requesting authority states that the requesting authority is conducting
an investigation which it deems necessary to determine whether any person
has violated, is violating, or is about to violate any laws, rules or
regulations relating to futures or options matters that the requesting
authority administers or enforces. The Commission may conduct such
investigation as the Commission deems necessary to collect information and
evidence pertinent to the request for assistance. Such assistance may be
provided without regard to whether the facts stated in the request would
also constitute a violation of the laws of the United States.
`(2) In deciding whether to provide assistance under this subsection,
the Commission shall consider whether--
`(A) the requesting authority has agreed to provide reciprocal assistance
to the Commission in futures and options matters; and
`(B) compliance with the request would prejudice the public interest of
the United States.
`(3) Notwithstanding any other provision of law, the Commission may accept
payment and reimbursement, in cash or in kind, from a foreign futures
authority, or made on behalf of such authority, for necessary expenses
incurred by the Commission, its members, and employees in carrying out
any investigation, or in providing any other assistance to a foreign
futures authority, pursuant to this section. Any payment or reimbursement
accepted shall be considered a reimbursement to the appropriated funds of
the Commission.'.

2c2ebf5f0ae004da5134cce1d1238bd69d001dc7c75354134241ee2fc079acf8

Section 8 of the Commodity Exchange Act (7 U.S.C. 12) is amended--
(1) by adding at the end of subsection (a)(1), as so redesignated by
section 203(1), the following:
`The Commission shall not be compelled to disclose any information or data
obtained from a foreign futures authority if--
`(1) the foreign futures authority has in good faith determined and
represented to the Commission that disclosure of such information or data
by that foreign futures authority would violate the laws applicable to
that foreign futures authority; and
`(2) the Commission obtains such information pursuant to--
`(A) such procedure as the Commission may authorize for use in connection
with the administration or enforcement of this Act; or
`(B) a memorandum of understanding with that foreign futures authority;
except that nothing in this subsection shall prevent the Commission from
disclosing publicly any information or data obtained by the Commission from
a foreign futures authority when such disclosure is made in connection with a
congressional proceeding, an administrative or judicial proceeding commenced
by the United States or the Commission, in any receivership proceeding
commenced by the United States or the Commission, or in any proceeding under
title 11 of the United States Code in which the Commission has intervened
or in which the Commission has the right to appear and be heard. Nothing in
this subsection shall be construed to authorize the Commission to withhold
information on data from Congress'; and
(2) by adding at the end of subsection (b) the following: `This subsection
shall not apply to the disclosure of data or information obtained by the
Commission from a foreign futures authority.'.

de5b0456ed61fb588de77b2bc9c8dd4ed05f6a523206a59c0e6f3d3af54b170a

Section 8(e) of the Commodity Exchange Act (7 U.S.C. 12(e)) is amended--
(1) in the fifth sentence--
(A) by inserting `or any foreign futures authority' after `jurisdiction,'
the first place it appears; and
(B) by inserting `foreign futures authority,' after `such'; and
(2) in the last sentence--
(A) by inserting `foreign futures authority or to a' after `information
to a';
(B) by inserting `foreign futures authority,' after `disclosed by such'; and
(C) by inserting `or foreign futures authority' after `or agency thereof'.

56ea16577dfc28959111f836c3cb59fbc868c7bc20e71182c7f9155ebc6e52af

Section 12(d) of the Commodity Exchange Act (7 U.S.C. 16(d)) is amended
to read as follows:
`(d) There are authorized to be appropriated to carry out this Act--
`(1) $48,500,000 for fiscal year 1992; and
`(2) $53,000,000 for fiscal year 1993.'.

b3c0264ead485bc0eea15d9c61fe11999ee86f52f5c187b717a2099a5a90231b

TITLE IV

-AUTHORIZATION OF APPROPRIATIONS; TECHNICAL AMENDMENTS; EFFECTIVE DATE

The Commodity Exchange Act (7 U.S.C. 1 et seq.) is amended--
(1) by striking `commission' in--
(A) section 4a, as amended by section 210(a), each place it appears other
than in subsection (d) as so redesignated;
(B) section 6(b), as so redesignated by section 207(a)(1), each place
it appears;
(C) section 6(c), as so redesignated by section 207(a)(1);
(D) section 13(c);
and inserting `Commission';
(2) in section 4b--
(A) by redesignating subdivisions (A) through (D) as subdivisions (i)
through (iv), respectively;
(B) by striking `(a)', `(b)', and `(c)', and inserting `(A)', `(B)', and
`(C)', respectively;
(C) by inserting `(a)' after `Sec. 4b.';
(D) by inserting `(b)' before `Nothing in this section or'; and
(E) by inserting `(c)' before `Nothing in this section shall';
(3) in section 4c(d)(2)--
(A) in subparagraph (A)(iv) by striking `(15 U.S.C. 78c(a)(12))' and
inserting `(15 U.S.C. 78c(a)(12)))'; and
(B) in the matter following subparagraph (C) by striking `section (2)(a)'
and inserting `section 2(a)';
(4) in section 4j(b), as so redesignated by section 101(a)(1), by striking
`within nine months after the effective date of the Commodity Futures
Trading Commission Act of 1974, and subsequently' and inserting a comma;
(5) in section 6(c), as so redesignated by section 207(a)(1), by striking
`offending person.' and inserting `offending person';
(6) in section 6(c), as so redesignated by section 207, and in section 8(f)
by striking `subpena' and `subpenas' each place they appear and inserting
`subpoena' and `subpoenas', respectively;
(7) in section 6a, as amended by section 207(b)(4), by redesignating
subsections (1) and (2) as subsections (a) and (b), respectively;
(8) by striking `the Secretary of Agriculture or'--
(A) in the first sentence of section 6(b), as so redesignated by section
207(a)(1);
(B) in the first sentence of section 6(c), as so redesignated by section
207(a)(1); and
(C) in section 13(c);
(9) in section 8a--
(A) in paragraph (5) by striking `and' at the end; and
(B) in paragraph (7) by striking `matters as:' and inserting `matters as--';
(10) in section 14(g) by striking `fifteen months' the second place it
appears and inserting `15-month';
(11) in section 17--
(A) in subsection (a) by indenting the left margin of paragraphs (1) and
(2) by 2 ems; and
(B) in subsection (l)(2)(B)--
(i) by striking `the Commodity Exchange' and inserting `this'; and
(ii) by striking the period at the end and inserting `; and';
(12) by striking section 21;
(13) in section 22(a)--
(A) in paragraph (1)--
(i) in the matter preceding subparagraph (A) by striking `clauses (A)
through (D)' and inserting `subparagraphs (A) through (D)'; and
(ii) in subparagraph (D) by striking `clause (B)' and inserting `subparagraph
(B)'; and
(B) in paragraph (2) by striking `17b(10)' and inserting `17(b)(10)'; and
(14) by striking section 23.

2309af8ab662eaa03dab74b0d7210c5736116bdc8e5763b4566221a4f2b90a72

This Act and the amendments made by this Act shall take effect on the date
of enactment of this Act.
Passed the House of Representatives March 5, 1991.
Attest:
DONNALD K. ANDERSON,
Clerk.
HR 707 CDS----2
HR 707 CDS----3
HR 707 CDS----4

1807f025ff38d5b2c73f247a4529aa03d7895d1b8b48ee123a69d46ae0866e23

Futures Trading Practices Act of 1992

Other Sections

TITLE II

TITLE I

TITLE III

TITLE IV

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