< Back to S. 3577 (110th Congress, 2007–2009)

Text of the Prevent Excessive Speculation Act

This bill was introduced on September 25, 2008, in a previous session of Congress, but was not enacted. The text of the bill below is as of Sep 25, 2008 (Introduced).

Source: GPO

II

110th CONGRESS

2d Session

S. 3577

IN THE SENATE OF THE UNITED STATES

September 25 (legislative day, September 17), 2008

(for himself, Mr. Bingaman, and Mr. Harkin) 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 prevent excessive price speculation with respect to energy and agricultural commodities, and for other purposes.

1.

Short title; table of contents

(a)

Short title

This Act may be cited as the Prevent Excessive Speculation Act.

(b)

Table of contents

The table of contents of this Act is as follows:

Sec. 1. Short title; table of contents.

Sec. 2. Definition of energy and agricultural commodity.

Sec. 3. Speculative limits and transparency of off-shore trading.

Sec. 4. Authority of Commodity Futures Trading Commission with respect to certain traders.

Sec. 5. Working group of international regulators.

Sec. 6. Position limits for energy and agricultural commodities.

Sec. 7. Over-the-counter transactions.

Sec. 8. Index traders and swap dealers.

Sec. 9. Disaggregation of index funds and other data in energy and agricultural markets.

Sec. 10. Additional Commodity Futures Trading Commission employees for improved enforcement.

Sec. 11. Working Group on Energy Markets.

Sec. 12. Study of regulatory framework for energy markets.

Sec. 13. Collection and analysis of information on energy commodities.

Sec. 14. National natural gas market investigation.

Sec. 15. Studies; reports.

Sec. 16. Expedited procedures.

2.

Definitions of energy and agricultural commodity

(a)

Definition of energy commodity

Section 1a of the Commodity Exchange Act (7 U.S.C. 1a) is amended—

(1)

by redesignating paragraphs (13) through (34) as paragraphs (14) through (35), respectively; and

(2)

by inserting after paragraph (12) the following:

(13)

Energy commodity

The term energy commodity means—

(A)

crude oil;

(B)

natural gas;

(C)

coal;

(D)

gasoline, heating oil, diesel fuel, and any other source of energy derived from coal, crude oil, or natural gas;

(E)

electricity;

(F)

ethanol and any other fuel derived from a renewable biomass;

(G)

any commodity that results from the management of air emissions, including but not limited to greenhouse gases, sulfur dioxide, and nitrogen oxides; and

(H)

any other substance that is used as a source of energy, as the Commission, in its discretion, deems appropriate.

.

(b)

Definition of Agricultural Commodity

Section 1a of the Commodity Exchange Act (7 U.S.C. 1a) is amended—

(1)

by redesignating paragraphs (1) through (35) as paragraphs (2) through (36), respectively; and

(2)

by inserting a new paragraph (1) as follows:

(1)

Agricultural commodity

The term agricultural commodity means any commodity specifically described in paragraph (5).

.

(c)

Conforming Amendments

(1)

Section 2(c)(2)(B)(i)(II)(cc) of the Commodity Exchange Act (7 U.S.C. 2(c)(2)(B)(i)(II)(cc)) is amended—

(A)

in subitem (AA), by striking section 1a(20) and inserting section 1a(21); and

(B)

in subitem (BB), by striking section 1a(20) and inserting section 1a(21).

(2)

Section 13106(b)(1) of the Food, Conservation, and Energy Act of 2008 is amended by striking “section 1a(32)” and inserting “section 1a”.

(3)

Section 402 of the Legal Certainty for Bank Products Act of 2000 (7 U.S.C. 27) is amended—

(A)

in subsection (a)(7), by striking section 1a(20) and inserting section 1a; and

(B)

in subsection (d)—

(i)

in paragraph (1)(B), by striking section 1a(33) and inserting section 1a; and

(ii)

in paragraph (2)(D), by striking section 1a(13) and inserting section 1a.

3.

Speculative limits and transparency of off-shore trading

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

(e)

Foreign Boards of Trade

(1)

In general

The Commission may not permit a foreign board of trade to provide to the members of the foreign board of trade or other participants located in the United States, or otherwise subject to the jurisdiction of the Commission, direct access to the electronic trading and order matching system of the foreign board of trade with respect to an agreement, contract, or transaction in an energy commodity that settles against any price (including the daily or final settlement price) of one or more contracts listed for trading on a registered entity, unless—

(A)

the foreign board of trade—

(i)

makes public daily trading information regarding the agreement, contract, or transaction that is comparable to the daily trading information published by the registered entity for the one or more contracts against which the agreement, contract or transaction traded on the foreign board of trade settles; and

(ii)

promptly notifies the Commission of any change regarding—

(I)

the information that the foreign board of trade will make publicly available;

(II)

the position limits and position accountability provisions that the foreign board of trade will adopt and enforce;

(III)

the position reductions required to prevent manipulation; and

(IV)

any other area of interest expressed by the Commission to the foreign board of trade; and

(B)

the foreign board of trade (or the foreign futures authority that oversees the foreign board of trade)—

(i)

adopts position limits or position accountability provisions for the agreement, contract, or transaction that are comparable to the position limits or position accountability provisions adopted by the registered entity for the one or more contracts against which the agreement, contract or transaction traded on foreign board of trade settles;

(ii)

has the authority to require or direct market participants to limit, reduce, or liquidate any position the foreign board of trade (or the foreign futures authority that oversees the foreign board of trade) determines to be necessary to prevent or reduce the threat of price manipulation, excessive speculation, price distortion, or disruption of delivery or the cash settlement process; and

(iii)

provides information to the Commission that is comparable to the information that the Commission determines to be necessary to publish the commitments of traders report of the Commission for the one or more contracts against which the agreement, contract or transaction traded on the foreign board of trade settles.

(2)

Existing foreign boards of trade

Paragraph (1) shall not be effective with respect to any agreement, contract, or transaction in an energy commodity executed on a foreign board of trade to which the Commission had granted direct access permission prior to the date of enactment of this subsection until the date that is 180 days after the date of enactment of this subsection.

(3)

Existing contracts

No contract of sale of a commodity for future delivery traded or executed on or through the facilities of a board of trade, exchange or market located outside the United States for purposes of subsection (a) shall be void, voidable or unenforceable and no party to such contract shall be entitled to rescind or recover any payments made with respect to such contract based upon the failure of the foreign board of trade to comply with any provision of this Act.

.

4.

Authority of commodity futures trading commission with respect to certain traders

(a)

In General

(1)

Restriction of futures trading to contract markets or derivatives transaction execution facilities

Section 4(b) of the Commodity Exchange Act (7 U.S.C. 6(b)) is amended by inserting after the first sentence the following: “The Commission may adopt rules and regulations requiring the maintenance of books and records by any person that is located within the United States (including the territories and possessions of the United States) or that enters trades directly into the trade matching system of a foreign board of trade from the United States (including the territories and possessions of the United States).”

(2)

Commission authority over traders

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

(e)

The Commission shall have authority under this Act to require or direct a person located in the United States, or otherwise subject to the jurisdiction of the Commission, to limit, reduce, or liquidate any position on a foreign board of trade to prevent or reduce the threat of price manipulation, excessive speculation, price distortion, or disruption of delivery or the cash settlement process with respect to any contract listed for trading on a registered entity.

(f)

Consultation

Before taking any action under subsection (e), the Commission shall consult with the appropriate—

(1)

foreign board of trade; and

(2)

foreign futures authority.

.

(3)

Violations

Section 9(a) of the Commodity Exchange Act (7 U.S.C. 13(a)) is amended by inserting “(including any person trading on a foreign board of trade)” after “Any person” each place it appears.

(4)

Effect

No amendment made by this subsection limits any of the otherwise applicable authorities of the Commodity Futures Trading Commission.

5.

Working group of international regulators

Section 4a of the Commodity Exchange Act (7 U.S.C. 6a) (as amended by section 4(a)(2)(B)) is amended by adding at the end the following:

(g)

Working Group of International Regulators

Not later than 90 days after the date of enactment of this subsection, the Commission shall invite regulators of foreign boards of trade to participate in a working group of international regulators to develop uniform international reporting and regulatory standards to ensure the protection of the energy and agricultural futures markets from excessive speculation, manipulation, and other trading practices that may pose systemic risks to energy and agricultural futures markets, countries, and consumers.

.

6.

Position limits for energy and agricultural commodities

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

(1)

in subsection (a)—

(A)

by inserting “(1)” after “(a)”; and

(B)

by adding after and below the end the following:

(2)

In accordance with the standards set forth in paragraph (1) of this subsection and consistent with the good faith exception cited in subsection (b)(2), with respect to energy and agricultural commodities, the Commission, within 90 days after the date of the enactment of this paragraph, shall issue a proposed rule, and within 180 days after issuance of such proposed rule shall adopt a final rule, after notice and an opportunity for public comment, to establish limits on the amount of positions that may be held by any person with respect to contracts of sale for future delivery or with respect to options on such contracts or commodities traded on or subject to the rules of a contract market or derivatives transaction execution facility, or on an electronic trading facility with respect to a significant price discovery contract.

(3)

In establishing the limits required in paragraph (2), the Commission shall set limits—

(A)

on the number of positions that may be held by any person for the spot month, each other month, and the aggregate number of positions that may be held by any person for all months;

(B)

to the maximum extent practicable, in its discretion—

(i)

to diminish, eliminate, or prevent excessive speculation;

(ii)

to deter and prevent market manipulation, squeezes, and corners;

(iii)

to ensure sufficient market liquidity; and

(iv)

to ensure that the price discovery function of the underlying cash market is not distorted or disrupted.

(4)

In addition to the position limits for energy and agricultural commodities that the Commission establishes under paragraph (2), the Commission may require or permit a contract market, derivatives transaction execution facility, or electronic trading facility with respect to a significant price discovery contract, to establish and enforce position accountability, as the Commission determines may be necessary and appropriate to accomplish the objectives set forth in paragraph (3)(B), provided that the number of positions that may be authorized under position accountability may not exceed the position limits established under paragraph (2).

(5)

Nothing in this section shall require the Commission to revise any position limit for an agricultural commodity that is in effect on the date of enactment of this Act.

.

7.

Over-the-counter transactions

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

(j)

Over-the-Counter Transactions

(1)

Definitions

In this subsection:

(A)

Covered person

The term ‘covered person’ means a person that enters into an over-the-counter transaction that is required to be reported under paragraph (3)(C).

(B)

Over-the-counter transaction

The term ‘over-the-counter transaction’ means a contract, agreement, or transaction in an energy or agricultural commodity that is—

(i)

entered into only between persons that are eligible contract participants at the time the persons enter into the agreement, contract, or transaction;

(ii)

not entered into on a trading facility; and

(iii)

not a sale of any cash commodity for delivery.

(2)

Authority in major market disturbances

(A)

In general

In the case of a major market disturbance, as determined by the Commission, the Commission may require any trader subject to the reporting requirements described in paragraph (3) to take such action as the Commission considers to be necessary to maintain or restore orderly trading in any contract listed for trading on a registered entity, including—

(i)

the liquidation of any futures contract; and

(ii)

the fixing of any limit that may apply to a market position involving any over-the-counter transaction acquired in good faith before the date of the determination of the Commission.

(B)

Major market disturbance

The term ‘major market disturbance’ means any disturbance in a commodity market that disrupts the liquidity and price discovery function of that market from accurately reflecting the forces of supply and demand for a commodity, including—

(i)

a threatened or actual market manipulation or corner;

(ii)

excessive speculation; and

(iii)

any action of the United States or a foreign government that affects a commodity.

(C)

The term market disturbance shall be interpreted in a manner consistent with section 8a(9).

(D)

Judicial review

Any action taken by the Commission under subparagraph (A) shall be subject to judicial review carried out in accordance with section 8a(9).

(3)

Reporting; recordkeeping

(A)

In general

The Commission shall require each covered person to submit to the Commission a report—

(i)

at such time and in such manner as the Commission determines to be appropriate; and

(ii)

containing the information required under subparagraph (B) to assist the Commission in detecting and preventing potential price manipulation of, or excessive speculation in, any contract listed for trading on a registered entity.

(B)

Contents of report

A report required under subparagraph (A) shall contain—

(i)

information describing large trading positions of the covered person obtained through one or more over-the-counter transactions that involve—

(I)

substantial quantities of a commodity in the cash market; or

(II)

substantial positions, investments, or trades in agreements or contracts relating to the commodity; and

(ii)

any other information relating to over-the-counter transactions required to be reported under subparagraph (C) carried out by the covered person that the Commission determines to be necessary to accomplish the purposes described in subparagraph (A).

(C)

Over-the-counter transactions to be reported

(i)

In general

The Commission shall identify each large over-the-counter transaction or class of large over-the-counter transactions the reporting of which the Commission determines to be appropriate to assist the Commission in detecting and preventing potential price manipulation of, or excessive speculation in, any contract listed for trading on a registered entity.

(ii)

Mandatory factors for determinations

(I)

In general

In carrying out a determination under clause (i), the Commission shall consider the extent to which each factor described in subclause (II) applies.

(II)

Factors

The factors required for carrying out a determination under clause (i) include whether—

(aa)

a standardized agreement is used to execute the over-the-counter transaction;

(bb)

the over-the-counter transaction settles against any price (including the daily or final settlement price) of one or more contracts listed for trading on a registered entity;

(cc)

the price of the over-the-counter transaction is reported to a third party, published, or otherwise disseminated;

(dd)

the price of the over-the-counter transaction is referenced in any other transaction;

(ee)

there is a significant volume of the over-the-counter transaction or class of over-the-counter transactions; and

(ff)

there is any other factor that the Commission determines to be appropriate.

(iii)

Periodic review

The Commission shall periodically conduct a review, but not less than once every 2 years, to determine whether to initiate a rulemaking to include any additional transactions or classes of transactions or to exclude any transactions or classes of transactions from the reporting requirements of this paragraph.

(D)

Alternate reporting

The Commission may permit any report required to be reported under paragraph (A) by—

(i)

a member of a derivatives clearing organization; or

(ii)

only one of the persons entering into the transaction, provided that each person entering into the transaction or transactions has notified the Commission, in the manner specified by the Commission, that one of the persons to the transaction or transactions has assumed, on behalf of the other person to the transaction, the legal obligations for such other person to submit reports under this section, including liabilities for failure to file such reports in accordance with the Commission’s regulations. Any notification provided under this paragraph shall be effective in imposing such legal obligations and liabilities upon such person.

(E)

Recordkeeping

The Commission, by rule, shall require each covered person—

(i)

in accordance with section 4i, 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.

(4)

Position limits for over-the-counter transactions

Upon review of the information reported to the Commission under paragraph (3), or following a major market disturbance as determined by the Commission under paragraph (2), the Commission may establish, after due notice and opportunity for hearing, by rule, regulation, or order, such limits on the amount of trading in over-the-counter transactions as the Commission determines are necessary and appropriate to accomplish one or more of the following objectives with respect to any contract listed for trading on a registered entity—

(A)

diminish, eliminate, or prevent excessive speculation;

(B)

deter and prevent market manipulation, squeezes, and corners;

(C)

ensure sufficient market liquidity; and

(D)

ensure that the price discovery function of the underlying cash market is not distorted or disrupted.

(5)

Protection of proprietary information

In carrying out this subsection, the Commission may not—

(A)

require the publication of any proprietary information;

(B)

prohibit the commercial sale or licensing of any proprietary information; and

(C)

except as provided in section 8, publicly disclose any information relating to any market position, business transaction, trade secret, or name of any customer of a covered person.

(6)

Applicability

Notwithstanding subsections (g) and (h), and any exemption issued by the Commission for any energy or agricultural commodity, each over-the-counter transaction shall be subject to this subsection.

(7)

Savings clause

Nothing in this subsection modifies or alters—

(A)

the guidance of the Commission; or

(B)

any applicable requirements with respect the disclosure of proprietary information.

(8)

Bona fide hedging transaction review

(A)

In general

The Commission shall review and revise the definition of bona fide hedging transaction in subsection (c) of Section 4a of the Commodity Exchange Act (7 U.S.C 2(h)(2)(A)) as the Commission determines is necessary and appropriate to ensure that the commodity markets effectively perform their risk management and price discovery functions.

.

8.

Index traders and swap dealers

Section 4 of the Commodity Exchange Act (7 U.S.C. 6) (as amended by section 3) is amended by adding at the end the following:

(f)

Index Traders and Swap Dealers

Not later than 60 days after the date of enactment of this subsection, the Commission shall—

(1)

routinely require detailed reporting from index traders and swap dealers in markets under the jurisdiction of the Commission;

(2)

reclassify the types of traders for regulatory and reporting purposes to distinguish between index traders and swaps dealers; and

(3)

review the trading practices for index traders in markets under the jurisdiction of the Commission—

(A)

to ensure that index trading is not adversely impacting the price discovery process; and

(B)

to determine whether different practices or regulations should be implemented.

.

9.

Disaggregation of index funds and other data in energy and agricultural 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:

(g)

Disaggregation of Index Funds and Other Data in Energy and Agricultural Markets

The Commission shall disaggregate and make public monthly—

(1)

the number of positions and total value of index funds and other passive, long-only positions in energy and agricultural markets; and

(2)

data on speculative positions relative to bona fide physical hedgers in those markets.

.

10.

Additional commodity futures trading 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:

(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)—

(i)

to increase the public transparency of operations in energy futures markets;

(ii)

to improve the enforcement of this Act in those markets; and

(iii)

to carry out such other duties as are prescribed by the Commission.

.

11.

Working group on energy markets

(a)

Establishment

There is established a Working Group on Energy Markets.

(b)

Composition

The Working Group shall be composed of—

(1)

the Secretary of Energy (referred to in this section as the Secretary);

(2)

the Secretary of the Treasury;

(3)

the Chairman of the Federal Energy Regulatory Commission;

(4)

the Chairman of Federal Trade Commission;

(5)

the Chairman of the Securities and Exchange Commission;

(6)

the Chairman of the Commodity Futures Trading Commission; and

(7)

the Administrator of the Energy Information Administration.

(c)

Chairperson

(1)

Initial chairperson

The Secretary shall serve as the Chairperson of the Working Group for the 1-year period beginning on the date of enactment of this Act.

(2)

Rotation of chairpersons

For each 1-year period following the period described in paragraph (1), each individual described in subsection (b) shall serve as the Chairperson of the Working Group in the order corresponding to which the individual is described in that subsection.

(d)

Purpose and Function

The Working Group shall—

(1)

investigate the effect of speculation in energy commodities on energy prices and the energy security of the United States;

(2)

recommend to the President and Congress laws (including regulations) that may be needed to prevent excessive speculation in energy commodities to prevent or minimize the adverse impact of high energy prices on consumers and the economy of the United States; and

(3)

review energy security considerations posed by developments in international energy markets.

(e)

Administration

The Secretary shall provide the Working Group with such administrative and support services as may be necessary for the performance of the functions of the Working Group.

(f)

Cooperation of Other Agencies

The heads of Executive departments, agencies, and independent instrumentalities shall, to the extent permitted by law, provide the Working Group with such information as the Working Group requires to carry out this section.

(g)

Consultation

The Working Group shall consult, as appropriate, with representatives of the various exchanges, clearinghouses, self-regulatory bodies, other major market participants, consumers, and the general public.

12.

Study of regulatory framework for energy markets

(a)

Study

The Working Group established under section 11(a) shall conduct a study to—

(1)

identify the factors that affect the pricing of crude oil and refined petroleum products, including an examination of the effects of market speculation on prices; and

(2)

review and assess the roles, missions, and structures of relevant Federal agencies, examine interagency coordination, and identify and assess the gaps that need to be filled for the Federal Government to effectively oversee and regulate markets critical to the energy security of the United States.

(b)

Elements of Study

The study shall include—

(1)

an examination of price formation with respect to crude oil and refined petroleum products;

(2)

an examination of relevant international regulatory regimes; and

(3)

an examination of the degree to which changes in energy market transparency, liquidity, and structure have influenced or driven abuse, manipulation, excessive speculation, or inefficient price formation.

(c)

Report and Recommendations

Not later than 1 year after the date of enactment of this Act, the Secretary of Energy shall submit to the appropriate committees of Congress a report that—

(1)

describes the results of the study; and

(2)

provides options and the recommendations of the Working Group for appropriate Federal coordination of oversight and regulatory actions to ensure transparency of crude oil and refined petroleum product pricing and the elimination of excessive speculation.

(d)

Authorization of Appropriations

There are authorized to be appropriated such sums as are necessary to carry out this section.

13.

Collection and analysis of information on energy commodities

(a)

Accurate and Complete Information on Energy Producing Companies

Section 205(h)(1) of the Department of Energy Organization Act (42 U.S.C. 7135(h)(1)) is amended by adding at the end the following:

(C)

Information on energy-producing companies

Notwithstanding any other provision of law, the head of each Federal department or agency shall provide to the Administrator, on the request of the Administrator, such information as the Administrator may require to identify each energy-producing company.

.

(b)

Enhanced Data on Ownership of Critical Energy Commodities

Section 205 of the Department of Energy Organization Act (42 U.S.C. 7135) is amended by adding at the end the following:

(n)

Collection of Information on Ownership of Energy Commodities

(1)

In general

To ensure transparency of information with respect to critical energy infrastructure and product ownership in the United States, the Administrator shall collect on a weekly basis information identifying the ownership of all commercially held oil and natural gas inventories in the United States.

(2)

Company-specific data

The information shall include company-specific data, including—

(A)

volumes of product under ownership; and

(B)

storage and transportation capacity (including owned and leased capacity).

(3)

Protection of proprietary information

Section 11(d) of the Energy Supply and Environmental Coordination Act of 1974 (15 U.S.C. 796(d)) shall apply to information collected under this section.

(o)

Monthly Reporting on Energy Commodity Transactions

(1)

In general

In accordance with paragraph (2), to improve the ability to evaluate the energy security of the United States, any person holding or controlling energy futures contracts or energy commodity swaps (as defined in section 202 of the Energy Policy and Conservation Act) at a level to be determined by the Secretary for which the underlying energy commodity is physically delivered within the United States shall report on a monthly basis, with respect to the energy commodities and the byproducts of the energy commodities—

(A)

the quantity of physical stocks owned;

(B)

the quantity of fixed price purchase commitments open;

(C)

the quantity of fixed price sales commitments open;

(D)

the physical storage capacity owned or leased; and

(E)

such other information as the Secretary determines is necessary to provide adequate transparency with respect to entities that control critical energy assets in the United States.

(2)

Use of data

Any data collected under paragraph (1) shall not be made public in a manner that is inconsistent with this Act.

(p)

Financial Market Analysis Office

(1)

Establishment

There shall be within the Energy Information Administration a Financial Market Analysis Office, headed by a director, who shall report directly to the Administrator of the Energy Information Administration.

(2)

Duties

The Office shall be responsible for analysis of the financial aspects of energy markets.

(3)

Analyses

The Administrator of the Energy Information Administration shall take analyses by the Office into account in conducting analyses and forecasting of energy prices.

.

(c)

Conforming Amendment

Section 645 of the Department of Energy Organization Act (42 U.S.C. 7255) is amended by inserting “(15 U.S.C. 3301 et seq.) and the Natural Gas Act (15 U.S.C. 717 et seq.)” after “Natural Gas Policy Act of 1978”.

14.

National natural gas market investigation

(a)

In General

Not later than 30 days after the date of enactment of this Act, in order to ensure the integrity of natural gas markets, the Federal Energy Regulatory Commission (referred to in this section as the “Commission”) shall commence an investigation into the role of financial institutions in natural gas markets, including—

(1)

trends in investment in natural gas storage, transportation capacity, and pipeline infrastructure;

(2)

factors contributing to potential effects on wholesale natural gas prices, including the mechanisms covered by physical natural gas supply contracts;

(3)

the character and number of positions held in related financial markets; and

(4)

any international considerations the Commission considers relevant.

(b)

Assessment

The Commission may include in the investigation an assessment of real-time market dynamics during the 2008 winter heating season.

(c)

Required Data

Each Federal department and agency shall comply with any request from the Commission for records, papers, and information in the possession of the department or agency relating to any agreement, contract, or transaction for the sale of an energy commodity for future delivery in interstate or foreign commerce, or any energy commodity swap.

(d)

Reports

Not later than 270 days after the date of enactment of this Act, the Commission shall submit to the Committee on Energy and Natural Resources of the Senate and the Committee on Energy and Commerce of the House of Representatives a report on the findings, conclusions, and recommendations of the investigation conducted under this section.

(e)

Additional Investigations

On an annual basis and during any other period the Commission determines necessary, the Commission shall—

(1)

conduct an investigation that is similar to the investigation required under subsections (a) through (c); and

(2)

submit to the Committee on Energy and Natural Resources of the Senate and the Committee on Energy and Commerce of the House of Representatives a report on the findings, conclusions, and recommendations of the investigation.

(f)

Authorization of Appropriations

There are authorized to be appropriated such sums as are necessary to carry out this section.

15.

Studies; reports

(a)

Study Relating to International Regulation of Energy Commodity Markets

(1)

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.

(2)

Analysis

The study shall include an analysis of, at a minimum—

(A)

key common features and differences among countries in the regulation of energy commodity trading, including with respect to market oversight and enforcement standards and activities;

(B)

variations among countries with respect to the use of position limits, accountability limits, or other thresholds to detect and prevent price manipulation, excessive speculation, or other unfair trading practices;

(C)

variations in practices regarding the differentiation of commercial and noncommercial trading;

(D)

agreements and practices for sharing market and trading data among regulatory bodies and among individual regulators and the entities that the bodies and regulators oversee; and

(E)

agreements and practices for facilitating international cooperation on market oversight, compliance, and enforcement.

(3)

Report

Not later than 1 year after the date of enactment of this Act, the Comptroller General shall submit to the appropriate committees of Congress a report that—

(A)

describes the results of the study;

(B)

addresses the effects of excessive speculation and energy price volatility on energy futures; and

(C)

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.

(b)

Study Relating to Effects of Noncommercial Speculators on Energy Futures Markets and Energy Prices

(1)

Study

The Comptroller General of the United States shall conduct a study of the effects of noncommercial speculators on energy futures markets and energy prices.

(2)

Analysis

The study shall include an analysis of, at a minimum—

(A)

the effect of increased amounts of capital in energy futures markets;

(B)

the impact of the roll-over of positions by index fund traders and swap dealers on energy futures markets and energy prices; and

(C)

the extent to which each factor described in subparagraphs (A) and (B) and noncommercial speculators—

(i)

affect—

(I)

the pricing of energy commodities; and

(II)

risk management functions; and

(ii)

contribute to economically efficient price discovery.

(3)

Report

Not later than 2 years after the date of enactment of this Act, the Comptroller General shall submit to the appropriate committees of Congress a report that describes the results of the study.

(c)

Reports of Commodity Futures Trading Commission

(1)

In general

The Commission shall submit to Congress—

(A)

not later than 60 days after the date of enactment of this Act, a report that describes in detail the actions the Commission has taken, is taking, and intends to take to carry out this subsection (including any recommended legislative changes that are necessary to carry out this subsection); and

(B)

not later than 45 days after the date described in subparagraph (A) and every 45 days thereafter until the date of implementation of this subsection, an update on the report required under subparagraph (A).

(2)

Additional employees or resources

Not later than 60 days after the date of enactment of this Act, the Commission shall submit to Congress a report that describes the number of additional positions and resources that the Commission determines to be necessary to carry out this subsection (including the specific duty of each additional employee).

16.

Expedited procedures

(a)

In General

Except as specifically provided otherwise in this Act, the Commodity Futures Trading Commission (referred to in this section as the “Commission”) shall issue any proposed rule required by this Act within 90 days of enactment of this Act and shall issue any final rule or order required by this Act within 180 days of enactment.

(b)

Report

If the Commission is unable to issue any proposed or final rule within the period of time specified in subsection (a), the Commission shall submit to Congress a detailed report that describes in each instance the reasons for its inability to act in a timely manner.