S. 2697 (106th): Commodity Futures Modernization Act of 2000

Introduced:
Jun 08, 2000 (106th Congress, 1999–2000)
Status:
Died (Reported by Committee)
See Instead:

H.R. 4541 (same title)
Passed House — Oct 19, 2000

Sponsor
Richard Lugar
Senator from Indiana
Party
Republican
Text
Read Text »
Last Updated
Aug 25, 2000
Length
224 pages
Related Bills
H.R. 4541 (Related)
Commodity Futures Modernization Act of 2000

Passed House
Last Action: Oct 19, 2000

 
Status

This bill was introduced on June 29, 2000, in a previous session of Congress, but was not enacted.

Progress
Introduced Jun 08, 2000
Referred to Committee Jun 08, 2000
Reported by Committee Jun 29, 2000
 
Full Title

A bill to reauthorize and amend the Commodity Exchange Act to promote legal certainty, enhance competition, and reduce systemic risk in markets for futures and over-the-counter derivatives, and for other purposes.

Summary

No summaries available.

Cosponsors
2 cosponsors (2R) (show)
Committees

Senate Agriculture, Nutrition, and Forestry

Senate Banking, Housing, and Urban Affairs

The committee chair determines whether a bill will move past the committee stage.

 
Primary Source

THOMAS.gov (The Library of Congress)

GovTrack gets most information from THOMAS, which is updated generally one day after events occur. Activity since the last update may not be reflected here. Data comes via the congress project.

Widget

Get a bill status widget for your website »

Citation

Click a format for a citation suggestion:

Notes

S. stands for Senate bill.

A bill must be passed by both the House and Senate in identical form and then be signed by the president to become law.

The bill’s title was written by its sponsor.

GovTrack’s Bill Summary

We don’t have a summary available yet.

Library of Congress Summary

The summary below was written by the Congressional Research Service, which is a nonpartisan division of the Library of Congress.


8/25/2000--Reported to Senate amended.
Commodity Futures Modernization Act of 2000 - Amends the Commodity Exchange Act (Act) to define specified terms.
Section 4 -
Excludes the following agreements, contracts, and transactions, except as otherwise provided for, from coverage under the Act:
(1) foreign currency, other than those transactions conducted on an organized exchange between specified regulated entities and persons who are not eligible contract participants;
(2) government securities;
(3) security warrants;
(4) security rights;
(5) sales and resales of installment loan contracts;
(6) purchase and repurchase transactions in an excluded commodity; or
(7) mortgages or mortgage purchase agreements.
Section 5 -
Excludes from coverage under the Act a transaction in an excluded commodity: (1) entered into between eligible contract participants and not executed on a trading facility; or (2) executed on electronic trading facilities as long as the transaction is entered into on a principal-to-principal basis by eligible contract participants trading for themselves.
Section 6 -
Excludes from coverage under the Act electronic trading of excluded and exempt commodities. States that a board of trade designated as a contract market or derivatives transaction execution facility may establish and operate an electronic trading facility.
Section 7 -
Excludes from coverage under the Act a hybrid instrument that is predominantly a security or deposit instrument.
Section 8 -
Excludes from coverage under the Act over-the-counter equity instruments.Prohibits the Commodity Futures Trading Commission (Commission) from designating a board of trade as a contract market in options on securities.
Includes within the coverage of the Act, and gives the Commission exclusive jurisdiction over, the trading of nondesignated futures on securities on a contract market.Authorizes the trading of designated futures on securities on designated contract markets and national securities exchanges or associations.Authorizes the Securities and Exchange Commission (SEC), after notifying the Commission, to enforce insider trading laws with respect to futures on securities contracts listed on a contract market.Sets forth margin provisions.
Authorizes the Board of Governors of the Federal Reserve System to establish an intermarket margin board.Requires registered futures associations to adopt customer suitability standards.Expresses the sense of the Senate that Congress should take harmonizing action with respect to the tax treatment and transaction fees of equity options and designated futures on securities.
Section 9 -
Excludes from coverage under the Act certain nonagricultural transactions between eligible contract participants not executed on a trading facility.
Section 10 -
Revises public interest protection and prohibited transaction provisions.
Section 12 -
Provides for designation of boards of trade as contract markets. Sets forth designation and status maintenance criteria.
Section 13 -
Authorizes a board of trade, in lieu of compliance with contract market designation requirements, to elect to operate as a registered derivatives transaction execution facility if: (1) designated as a contract market; or (2) registered as a derivatives transaction execution facility. Sets forth related trading requirements and registration criteria and core principles.
Section 14 -
Requires a derivatives clearing organization to register with the Commission unless it is registered with another Federal regulator and does not clear futures. (Permits voluntary registration with the Commission in such instance.)
Section 15 -
Amends the Act to permit the Commission to issue or approve interpretations of acceptable business practices under core provisions for all registered entities (contract markets, derivatives clearing organizations, derivatives transaction execution facilities).Permits a registered entity to: (1) delegate functions to a registered futures association or other registered entity; and (2) trade new products.
Section 16 -
Authorizes a board of trade to elect to operate as an exempt board of trade if: (1) the commodity underlying the trade has a nearly inexhaustible delivery supply, is not susceptible to manipulation, or has no cash market; (2) the futures contracts are entered into only by eligible contract participants; and (3) the contracts do not involve securities. Subjects exempt-board futures contracts to antimanipulation provisions and Commission jurisdiction.
Section 17 -
Subjects a registered entity to suspension or revocation of designation for noncompliance with provisions of the Act.
Section 18 -
Authorizes appropriations through FY 2005.
Section 19 -
Revises preemption provisions.
Section 20 -
Permits predispute resolution agreements for institutional customers.
Section 21 -
Requires the Commission to consider the costs and benefits of its action before issuing an order or regulation, with exceptions for emergency actions or adjudicatory or investigative matters.
Section 22 -
States that an agreement, contract, or transaction between eligible parties shall not be voidable or unenforceable solely because of a failure to comply with the terms of an exemption or exclusion from any provision of the Act or Commission regulation.
Section 23 -
States that nothing in this Act gives the SEC or the Commission jurisdiction over swap agreement.
Section 24 -
Repeals deficiency order provisions.(Sec.25) Makes technical and conforming amendments.

House Republican Conference Summary

The summary below was written by the House Republican Conference, which is the caucus of Republicans in the House of Representatives.


No summary available.

House Democratic Caucus Summary

The House Democratic Caucus does not provide summaries of bills.

So, yes, we display the House Republican Conference’s summaries when available even if we do not have a Democratic summary available. That’s because we feel it is better to give you as much information as possible, even if we cannot provide every viewpoint.

We’ll be looking for a source of summaries from the other side in the meanwhile.

Use the comment space below for discussion of the merits of S. 2697 (106th) with other GovTrack users.
Your comments are not read by Congressional staff.

comments powered by Disqus