To provide regulatory oversight over energy trading markets and metals trading markets, and for other purposes.

To provide regulatory oversight over energy trading markets and metals trading markets, and for other purposes.

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

SECTION 1. JURISDICTION OF THE COMMODITY FUTURES TRADING COMMISSION OVER ENERGY TRADING MARKETS AND METALS TRADING MARKETS.

(a) FERC LIAISON- Section 2(a)(8) of the Commodity Exchange Act (7 U.S.C. 2(a)(8)) is amended by adding at the end the following:

`(C) FERC LIAISON- The Commission shall, in cooperation with the Federal Energy Regulatory Commission, maintain a liaison between the Commission and the Federal Energy Regulatory Commission.'.

(b) EXEMPT TRANSACTIONS- Section 2 of the Commodity Exchange Act (7 U.S.C. 2) is amended--

(1) in subsection (h), by adding at the end the following:

`(7) APPLICABILITY- This subsection does not apply to an agreement, contract, or transaction in an exempt energy commodity or an exempt metal commodity described in section 2(j)(1).'; and

(2) by adding at the end the following:

`(j) EXEMPT TRANSACTIONS-

`(1) TRANSACTIONS IN EXEMPT ENERGY COMMODITIES AND EXEMPT METALS COMMODITIES- An agreement, contract, or transaction (including a transaction described in section 2(g)) in an exempt energy commodity or exempt metal commodity shall be subject to--

`(A) sections 4b, 4c(a), 4c(b), 4o, and 5b;

`(B) subsections (c) and (d) of section 6 and sections 6c, 6d, and 8a, to the extent that those provisions--

`(i) provide for the enforcement of the requirements specified in this subsection; and

`(ii) prohibit the manipulation of the market price of any commodity in interstate commerce or for future delivery on or subject to the rules of any contract market;

`(C) sections 6c, 6d, 8a, and 9(a)(2), to the extent that those provisions prohibit the manipulation of the market price of any commodity in interstate commerce or for future delivery on or subject to the rules of any contract market;

`(D) section 12(e)(2); and

`(E) section 22(a)(4).

`(2) BILATERAL DEALER MARKETS-

`(A) IN GENERAL- Except as provided in paragraph (6), a person or group of persons that constitutes, maintains, administers, or provides a physical or electronic facility or system in which a person has the ability to offer, execute, trade, or confirm the execution of an agreement, contract, or transaction (including a transaction described in section 2(g)) (other than an agreement, contract, or transaction in an excluded commodity) by making or accepting the bids and offers of 1 or more participants on the facility or system (including facilities or systems described in clauses (i) and (iii) of section 1a(33)(B)), the person or group of persons, and the facility or system (referred to in this subsection as a `bilateral dealer market') may offer to enter into, enter into, or confirm the execution of any agreement, contract, or transaction under paragraph (1) (other than an agreement, contract, or transaction in an excluded commodity) if the bilateral dealer market meets the requirement of subparagraph (B).

`(B) REQUIREMENT- The requirement of this subparagraph is that a bilateral dealer market shall--

`(i) provide notice to the Commission in such form as the Commission may specify by rule or regulation;

`(ii) file with the Commission any reports (including large trader position reports) that the Commission requires by rule or regulation;

`(iii)(I) consistent with section 4i, maintain books and records relating to each transaction in such form as the Commission may specify for a period of 5 years after the date of the transaction; and

`(II) make those books and records available to representatives of the Commission and the Department of Justice for inspection for a period of 5 years after the date of each transaction; and

`(iv) make available to the public on a daily basis such information as total volume by commodity, settlement price, open interest, opening and closing ranges, and any other information that the Commission determines to be appropriate for public disclosure, except that the Commission may not--

`(I) require the real time publication of proprietary information; or

`(II) prohibit the commercial sale of real time proprietary information.

`(3) REPORTING REQUIREMENTS- On request of the Commission, an eligible contract participant that trades on a bilateral dealer market shall provide to the Commission, within the time period specified in the request and in such form and manner as the Commission may specify, any information relating to the transactions of the eligible contract participant on the bilateral dealer market within 5 years after the date of any transaction that the Commission determines to be appropriate.

`(4) CAPITAL REQUIREMENTS-

`(A) IN GENERAL- Except as provided in subparagraph (B), a bilateral dealer market shall adopt a value-at-risk model approved by the Commission.

`(B) CAPITAL COMMENSURATE WITH RISK- If there is an interaction of multiple bids and multiple offers on the bilateral dealer market in a predetermined, nondiscretionary automated trade matching and trade execution algorithm or bids and offers and acceptances of bids and offers made on the bilateral dealer market are binding, a bilateral dealer market shall maintain sufficient capital commensurate with the risk associated with transactions on the bilateral dealer market, as determined by the Commission.

`(5) TRANSACTIONS EXEMPTED BY COMMISSION ACTION- Any agreement, contract, or transaction on a bilateral dealer market (other than an agreement, contract, or transaction in an excluded commodity) that would otherwise be exempted by the Commission under section 4(c) shall be subject to--

`(A) sections 4b, 4c(a), 4c(b), 4o, and 5b; and

`(B) subsections (c) and (d) of section 6 and sections 6c, 6d, 8a, and 9(a)(2), to the extent that those provisions prohibit the manipulation of the market price of any commodity in interstate commerce or for future delivery on or subject to the rules of any contract market.

`(6) NO EFFECT ON OTHER FERC AUTHORITY- This subsection does not affect the authority of the Federal Energy Regulatory Commission to regulate transactions under the Federal Power Act (16 U.S.C. 791a et seq.) or the Natural Gas Act (15 U.S.C 717 et seq.).

`(7) APPLICABILITY- This subsection does not apply to--

`(A) a designated contract market regulated under section 5; or

`(B) a registered derivatives transaction execution facility regulated under section 5a.'.

(c) CONTRACTS DESIGNED TO DEFRAUD OR MISLEAD- Section 4b of the Commodity Exchange Act (7 U.S.C. 6b) is amended by striking subsection (a) and inserting the following:

`(a) PROHIBITION- It shall be unlawful for any member of a registered entity, or for any correspondent, agent, or employee of any member, in or in connection with any order to make, or the making of, any contract of sale of any commodity in interstate commerce, made, or to be made on or subject to the rules of any registered entity, or for any person, in or in connection with any order to make, or the making of, any agreement, transaction, or contract in a commodity subject to this Act--

`(1) to cheat or defraud or attempt to cheat or defraud any person;

`(2) willfully to make or cause to be made to any person any false report or statement, or willfully to enter or cause to be entered any false record;

`(3) willfully to deceive or attempt to deceive any person by any means; or

`(4) to bucket the order, or to fill the order by offset against the order of any person, or willfully, knowingly, and without the prior consent of any person to become the buyer in respect to any selling order of any person, or to become the seller in respect to any buying order of any person.'

(d) CONFORMING AMENDMENTS- The Commodity Exchange Act is amended--

(1) in section 2 (7 U.S.C. 2)--

(A) in subsection (h)--

(i) in paragraph (1), by striking `paragraph (2)' and inserting `paragraphs (2) and (7)'; and

(ii) in paragraph (3), by striking `paragraph (4)' and inserting `paragraphs (4) and (7)'; and

(B) in subsection (i)(1)(A), by striking `section 2(h) or 4(c)' and inserting `subsection (h) or (j) or section 4(c)';

(2) in section 4i (7 U.S.C. 6i)--

(A) by striking `any contract market or' and inserting `any contract market,'; and

(B) by inserting `, or pursuant to an exemption under section 4(c)' after `transaction execution facility';

(3) in section 5a(g)(1) (7 U.S.C. 7a(g)(1)), by striking `section 2(h)' and inserting `subsection (h) or (j) of section 2';

(4) in section 5b (7 U.S.C. 7a-1)--

(A) in subsection (a)(1), by striking `2(h) or' and inserting `2(h), 2(j), or'; and

(B) in subsection (b), by striking `2(h) or' and inserting `2(h), 2(j), or'; and

(5) in section 12(e)(2)(B) (7 U.S.C. 16(e)(2)(B)), by striking `section 2(h) or 4(c)' and inserting `subsection (h) or (j) of section 2 or section 4(c)'.

SEC. 2. JURISDICTION OF THE FEDERAL ENERGY REGULATORY COMMISSION OVER ENERGY TRADING MARKETS.

Section 402 of the Department of Energy Organization Act (42 U.S.C. 7172) is amended by adding at the end the following:

`(i) JURISDICTION OVER DERIVATIVES TRANSACTIONS-

`(1) IN GENERAL- To the extent that the Commission determines that any contract that comes before the Commission is not under the jurisdiction of the Commission, the Commission shall refer the contract to the appropriate Federal agency.

`(2) MEETINGS- A designee of the Commission shall meet quarterly with a designee of the Commodity Futures Trading Commission, the Securities Exchange Commission, the Federal Trade Commission, and the Federal Reserve Board to discuss--

`(A) conditions and events in energy trading markets; and

`(B) any changes in Federal law (including regulations) that may be appropriate to regulate energy trading markets.

`(3) LIAISON- The Commission shall, in cooperation with the Commodity Futures Trading Commission, maintain a liaison between the Commission and the Commodity Futures Trading Commission.'.