| S 509 IS
108th CONGRESS
1st Session
S. 509
To modify the authority
of the Federal Energy Regulatory Commission to conduct investigations,
to increase the penalties for violations of the Federal Power Act and the
Natural Gas Act, to authorize the Chairman of the Federal Energy Regulatory
Commission to contract for consultant services, and for other purposes.
IN THE SENATE OF THE UNITED
STATES
March 4, 2003
Mrs. FEINSTEIN (for herself,
Mr. FITZGERALD, Mr. LUGAR, Mr. HARKIN, Ms. CANTWELL, Mr. WYDEN, and Mr.
LEAHY) introduced the following bill; which was read twice and referred
to the Committee on Agriculture, Nutrition, and Forestry
A BILL
To modify the authority
of the Federal Energy Regulatory Commission to conduct investigations,
to increase the penalties for violations of the Federal Power Act and the
Natural Gas Act, to authorize the Chairman of the Federal Energy Regulatory
Commission to contract for consultant services, 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. SHORT TITLE.
This Act may be cited as
the `Energy Market Oversight Act'.
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 AND OTHER FINANCIAL TRANSACTIONS -
`(A) IN GENERAL- To the
extent that the Commission determines that any contract for a derivative
transaction or other financial transaction that comes before the Commission
is not under the jurisdiction of the Commission, the Commission shall refer
the contract to the appropriate Federal agency.
`(B) NO EFFECT ON AUTHORITY-
The authority of the Commission or any Federal agency shall not be limited
or otherwise affected based on whether the Commission has or has not referred
a contract described in subparagraph (A).
`(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, the Department of Justice, the Department of the Treasury,
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.'.
SEC. 3. INVESTIGATIONS BY THE
FEDERAL ENERGY REGULATORY COMMISSION UNDER THE NATURAL GAS ACT AND FEDERAL
POWER ACT.
(a) INVESTIGATIONS UNDER
THE NATURAL GAS ACT- Section 14(c) of the Natural Gas Act (15 U.S.C. 717m(c))
is amended--
(1) by striking `(c) For
the purpose of' and inserting the following:
`(1) IN GENERAL- For the
purpose of';
(2) by striking `Such attendance'
and inserting the following:
`(2) NO GEOGRAPHIC LIMITATION-
The attendance';
(3) by striking `Witnesses
summoned' and inserting the following:
`(3) EXPENSES- Any witness
summoned'; and
(4) by adding at the end
the following:
`(4) AUTHORITIES- Notwithstanding
any other provision of law, the exercise of the authorities of the Commission
under this subsection shall not be subject to the consent of the Office
of Management and Budget or any other Federal agency.'.
(b) INVESTIGATIONS UNDER
THE FEDERAL POWER ACT- Section 307(b) of the Federal Power Act (16 U.S.C.
825f(b)) is amended--
(1) by striking `(b) For
the purpose of' and inserting the following:
`(1) IN GENERAL- For the
purpose of';
(2) by striking `Such attendance'
and inserting the following:
`(2) NO GEOGRAPHIC LIMITATION-
The attendance';
(3) by striking `Witnesses
summoned' and inserting the following:
`(3) EXPENSES- Any witness
summoned'; and
(4) by adding at the end
the following:
`(4) AUTHORITIES- Notwithstanding
any other provision of law, the exercise of the authorities of the Commission
under this subsection shall not be subject to the consent of the Office
of Management and Budget or any other Federal agency.'.
SEC. 4. INCREASE IN CRIMINAL
PENALTIES UNDER THE NATURAL GAS ACT AND FEDERAL POWER ACT.
(a) CRIMINAL PENALTIES UNDER
THE NATURAL GAS ACT- Section 21 of the Natural Gas Act (15 U.S.C. 717t)
is amended--
(1) in subsection (a), by
striking `punished by a fine of not more than $5,000 or by imprisonment
for not more than two years, or both' and inserting `imprisoned not more
than 5 years, fined not more than $1,000,000, or both'; and
(2) in subsection (b), by
striking `$500 for each and every day during which such offense occurs'
and inserting `$50,000 for each day of each violation'.
(b) CRIMINAL PENALTIES UNDER
THE FEDERAL POWER ACT-
(1) GENERAL PENALTIES- Section
316 of the Federal Power Act (16 U.S.C. 825o) is amended--
(A) in subsection (a), by
striking `punished by a fine of not more than $5,000 or by imprisonment
for not more than two years or both' and inserting `imprisoned not more
than 5 years, fined not more than $1,000,000, or both'; and
(B) in subsection (b), by
striking `$500 for each and every day during which such offense occurs'
and inserting `$50,000 for each day of each violation'.
(2) ENFORCEMENT OF CERTAIN
PROVISIONS- Section 316A of the Federal Power Act (16 U.S.C. 825o-1) is
amended--
(A) by striking subsection
(a) and inserting the following:
`(a) VIOLATIONS- It shall
be unlawful for any person--
`(1) to violate any provision
of part II (including any rule or order issued under a provision of that
part); or
`(2) to fail to comply,
within a time period specified by the Commission, with--
`(A) any written request
by the Commission or a member of the staff of the Commission for information;
or
`(B) a formal investigation
or proceeding under this part.'; and
(i) by striking `section
211, 212, 213 or 214 or any provision of any rule or order thereunder'
and inserting the following: `part II (including any rule or order issued
under a provision of that part) or fails to comply in a timely manner with
any written request for information by the Commission or a member of the
staff of the Commission or in a formal investigation or proceeding under
this part'; and
(ii) by striking `$10,000
for each day that such violation continues' and inserting `$50,000 for
each day of each violation'.
SEC. 5. REFUND EFFECTIVE DATE.
Section 206(b) of the Federal
Power Act (16 U.S.C. 824e(b)) is amended--
(1) in the second sentence,
by striking `the date 60 days' and all that follows and inserting `the
date of filing of the complaint nor later than the date that is 150 days
after the date of filing of the complaint, unless the Commission determines
that the complaint could not have been brought earlier because of fraud,
intentional misrepresentation, or any similar act by the public utility
named in the complaint, in which case the refund effective date shall be
the date on which the rate, charge, classification, rule, regulation, practice,
or contract that is found to be unjust, unreasonable, unduly discriminatory,
or preferential came into effect.'; and
(2) in the third sentence--
(A) by striking `date 60
days after the publication' and inserting `date of publication'; and
(B) by striking `expiration
of such 60-day period' and inserting `the publication date, unless the
Commission determines that the motion could not have been made earlier
because of fraud, intentional misrepresentation, or any similar act by
the public utility named in the motion, in which case the refund effective
date shall be the date on which the rate, charge, classification, rule,
regulation, practice, or contract that is found to be unjust, unreasonable,
unduly discriminatory, or preferential came into effect'.
SEC. 6. CONSULTING SERVICES.
Title IV of the Department
of Energy Organization Act (42 U.S.C. 7171 et seq.) is amended by adding
at the end the following:
`SEC. 408. CONSULTING SERVICES.
`(a) IN GENERAL- The Chairman
may contract for the services of consultants to assist the Commission in
carrying out any responsibilities of the Commission under this Act, the
Federal Power Act (16 U.S.C. 791a et seq.), or the Natural Gas Act (15
U.S.C. 717 et seq.).
`(b) APPLICABLE LAW- In
contracting for consultant services under subsection (a), if the Chairman
determines that the contract is in the public interest, the Chairman, in
entering into a contract, shall not be subject to--
`(1) section 5, 253, 253a,
or 253b of title 41, United States Code; or
`(2) any law (including
a regulation) relating to conflicts of interest.'.
SEC. 7. LEGAL CERTAINTY FOR
TRANSACTIONS IN EXEMPT COMMODITIES.
Section 2 of the Commodity
Exchange Act (7 U.S.C. 2) is amended by striking subsections (g) and (h)
and inserting the following:
`(g) OFF-EXCHANGE TRANSACTIONS
IN EXEMPT COMMODITIES-
`(1) DEFINITIONS- In this
subsection:
`(A) COVERED ENTITY- The
term `covered entity' means--
`(i) an electronic trading
facility; and
`(i) IN GENERAL- The term
`dealer market' has the meaning given the term by the Commission.
`(ii) INCLUSIONS- The term
`dealer market' includes each bilateral or multilateral agreement, contract,
or transaction determined by the Commission, regardless of the means of
execution of the agreement, contract, or transaction.
`(2) EXEMPTION FOR TRANSACTIONS
NOT ON TRADING FACILITIES- Except as provided in paragraph (4), nothing
in this Act shall apply to an
agreement, contract, or transaction
in an exempt commodity that--
`(A) is entered into solely
between persons that are eligible contract participants at the time the
persons enter into the agreement, contract, or transaction; and
`(B) is not entered into
on a trading facility.
`(3) EXEMPTION FOR TRANSACTIONS
ON COVERED ENTITIES- Except as provided in paragraphs (4), (5), and (7),
nothing in this Act shall apply to an agreement, contract, or transaction
in an exempt commodity that is--
`(A) entered into on a principal-to-principal
basis solely between persons that are eligible contract participants at
the time at which the persons enter into the agreement, contract, or transaction;
and
`(B) executed or traded
on a covered entity.
`(4) REGULATORY AND OVERSIGHT
REQUIREMENTS-
`(A) IN GENERAL- An agreement,
contract, or transaction described in paragraph (2) or (3) (and the covered
entity on which the agreement, contract, or transaction is executed) shall
be subject to--
`(i) sections 5b, 12(e)(2)(B),
and 22(a)(4);
`(ii) the provisions relating
to manipulation and misleading transactions under sections 4b, 4c(a), 4c(b),
4o, 6(c), 6(d), 6c, 6d, 8a, and 9(a)(2); and
`(iii) the provisions relating
to fraud and misleading transactions under sections 4b, 4c(a), 4c(b), 4o,
and 8a.
`(B) TRANSACTIONS EXEMPTED
BY COMMISSION ACTION- Notwithstanding any exemption by the Commission under
section 4(c), an agreement, contract, or transaction described in paragraph
(2) or (3) shall be subject to the authorities in clauses (i), (ii), and
(iii) of subparagraph (A).
`(5) COVERED ENTITIES- An
agreement, contract, or transaction described in paragraph (3) and the
covered entity on which the agreement, contract, or transaction is executed,
shall be subject to (to the extent the Commission determines appropriate)--
`(A) section 5a, to the
extent provided in section 5a(g)) and 5d;
`(B) consistent with section
4i, a requirement that books and records relating to the business of the
covered entity on which the agreement, contract, or transaction is executed
be made available to representatives of the Commission and the Department
of Justice for inspection for a period of at least 5 years after the date
of each transaction, including--
`(i) information relating
to data entry and transaction details sufficient to enable the Commission
to reconstruct trading activity on the covered entity; and
`(ii) the name and address
of each participant on the covered entity authorized to enter into transactions;
and
`(C) in the case of a transaction
or covered entity performing a significant price discovery function for
transactions in the cash market for the underlying commodity, subject to
paragraph (6), the requirements (to the extent the Commission determines
appropriate by regulation) that--
`(i) information on trading
volume, settlement price, open interest, and opening and closing ranges
be made available to the public on a daily basis;
`(ii) notice be provided
to the Commission in such form as the Commission may require;
`(iii) reports be filed
with the Commission (such as large trader position reports); and
`(iv) consistent with section
4i, books and records be maintained relating to each transaction in such
form as the Commission may require for a period of at least 5 years after
the date of the transaction.
`(6) PROPRIETARY INFORMATION-
In carrying out paragraph (5)(C), the Commission shall not--
`(A) require the real-time
publication of proprietary information;
`(B) prohibit the commercial
sale or licensing of real-time proprietary information; and
`(C) publicly disclose information
regarding market positions, business transactions, trade secrets, or names
of customers, except as provided in section 8.
`(7) NOTIFICATION, DISCLOSURES,
AND OTHER REQUIREMENTS FOR COVERED ENTITIES- A covered entity subject to
the exemption under paragraph (3) shall (to the extent the Commission determines
appropriate)--
`(A) notify the Commission
of the intention of the covered entity to operate as a covered entity subject
to the exemption under paragraph (3), which notice shall include--
`(i) the name and address
of the covered entity and a person designated to receive communications
from the Commission;
`(ii) the commodity categories
that the covered entity intends to list or otherwise make available for
trading on the covered entity in reliance on the exemption under paragraph
(3);
`(iii) certifications that--
`(I) no executive officer
or member of the governing board of, or any holder of a 10 percent or greater
equity interest in, the covered entity is a person described in any of
subparagraphs (A) through (H) of section 8a(2);
`(II) the covered entity
will comply with the conditions for exemption under this subsection; and
`(III) the covered entity
will notify the Commission of any material change in the information previously
provided by the covered entity to the Commission under this paragraph;
and
`(iv) the identity of any
derivatives clearing organization to which the covered entity transmits
or intends to transmit transaction data for the purpose of facilitating
the clearance and settlement of transactions conducted on the covered entity
subject to the exemption under paragraph (3);
`(B)(i) provide the Commission
with access to the trading protocols of the covered entity and electronic
access to the covered entity with respect to transactions conducted in
reliance on the exemption under paragraph (3); and
`(ii) on special call by
the Commission, provide to the Commission, in a form and manner and within
the period specified in the special call, such information relating to
the business of the covered entity as a covered entity exempt under paragraph
(3), including information relating to data entry and transaction details
with respect to transactions entered into in reliance on the exemption
under paragraph (3), as the Commission may determine appropriate--
`(I) to enforce the provisions
specified in paragraph (4);
`(II) to evaluate a systemic
market event; or
`(III) to obtain information
requested by a Federal financial regulatory authority to enable the authority
to fulfill the regulatory or supervisory responsibilities of the authority;
`(C)(i) on receipt of any
subpoena issued by or on behalf of the Commission to any foreign person
that the Commission believes is conducting or has conducted transactions
in reliance on the exemption under paragraph (3) on or through the covered
entity relating to the transactions, promptly notify the foreign person
of, and transmit to the foreign person, the subpoena in a manner that is
reasonable under the circumstances, or as specified by the Commission;
and
`(ii) if the Commission
has reason to believe that a person has not timely complied with a subpoena
issued by or on behalf of the Commission under clause (i), and the Commission
in writing directs that a covered entity relying on the exemption under
paragraph (3) deny or limit further transactions by the person, deny that
person further trading access to the covered entity or, as applicable,
limit that access of the person to the covered entity for liquidation trading
only;
`(D) comply with the requirements
of this subsection applicable to the covered entity and require that each
participant, as a condition of trading on the covered entity in reliance
on the exemption under paragraph (3), agree to comply with all applicable
law;
`(E) certify to the Commission
that the covered entity has a reasonable basis for believing that participants
authorized to conduct transactions on the covered entity in reliance on
the exemption under paragraph (3) are eligible contract participants;
`(F) maintain sufficient
capital, commensurate with the risk associated with transactions conducted
on the covered entity; and
`(G) not represent to any
person that the covered entity is registered with, or designated, recognized,
licensed, or approved by the Commission.
`(8) HEARING- A person named
in a subpoena referred to in paragraph (7)(C) that believes the person
is or may be adversely affected or aggrieved by action taken by the Commission
under this subsection, shall have the opportunity for a prompt hearing
after the Commission acts under procedures that the Commission shall establish
by rule, regulation, or order.
`(9) PRIVATE REGULATORY
ORGANIZATIONS-
`(A) DELEGATION OF FUNCTIONS
UNDER CORE PRINCIPLES- A covered entity may comply with any core principle
under subparagraph (B) that is applicable to the covered entity
through delegation of any relevant
function to--
`(i) a registered futures
association under section 17; or
`(ii) another registered
entity.
`(B) CORE PRINCIPLES- The
Commission may establish core principles requiring a covered entity to
monitor trading to--
`(i) prevent fraud and manipulation;
`(ii) prevent price distortion
and disruptions of the delivery or cash settlement process;
`(iii) ensure that the covered
entity has adequate financial, operational, and managerial resources to
discharge the responsibilities of the covered entity; and
`(iv) ensure that all reporting,
recordkeeping, notice, and registration requirements under this subsection
are discharged in a timely manner.
`(C) RESPONSIBILITY- A covered
entity that delegates a function under subparagraph (A) shall remain responsible
for carrying out the function.
`(D) NONCOMPLIANCE- If a
covered entity that delegates a function under subparagraph (A) becomes
aware that a delegated function is not being performed as required under
this Act, the covered entity shall promptly take action to address the
noncompliance.
`(E) VIOLATION OF CORE PRINCIPLES-
`(i) IN GENERAL- If the
Commission determines, on the basis of substantial evidence, that a covered
entity is violating any applicable core principle specified in subparagraph
(B), the Commission shall--
`(I) notify the covered
entity in writing of the determination; and
`(II) afford the covered
entity an opportunity to make appropriate changes to bring the covered
entity into compliance with the core principles.
`(ii) FAILURE TO MAKE CHANGES-
If, not later than 30 days after receiving a notification under clause
(i)(I), a covered entity fails to make changes that, as determined by the
Commission, are necessary to comply with the core principles, the Commission
may take further action in accordance with this Act.
`(F) RESERVATION OF EMERGENCY
AUTHORITY- Nothing in this paragraph limits or affects the emergency powers
of the Commission provided under section 8a(9).
`(10) NO EFFECT ON OTHER
AUTHORITY- This subsection shall not affect the authority of the Federal
Energy Regulatory Commission under the Federal Power Act (16 U.S.C. 791a
et seq.) or the Natural Gas Act (15 U.S.C 717 et seq.).'.
SEC. 8. PROHIBITION OF FRAUDULENT
TRANSACTIONS.
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 person, directly or indirectly, in or in connection
with any account, or any offer to enter into, the entry into, or the confirmation
of the execution of, any agreement, contract, or transaction subject to
this Act--
`(1) to cheat or defraud
or attempt to cheat or defraud any person (but this paragraph does not
impose on parties to transactions executed on or subject to the rules of
designated contract markets or registered derivative transaction execution
facilities a legal duty to provide counterparties or any other market participants
with any material market information);
`(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 for any person any false record (but this
paragraph does not impose on parties to transactions executed on or subject
to the rules of designated contract markets or registered derivative transaction
execution facilities a legal duty to provide counterparties or any other
market participants with any material market information);
`(3) willfully to deceive
or attempt to deceive any person by any means whatsoever (but this paragraph
does not impose on parties to transactions executed on or subject to the
rules of designated contract markets or registered derivative transaction
execution facilities a legal duty to provide counterparties or any other
market participants with any material market information); or
`(4) except as permitted
in written rules of a board of trade designated as a contract market or
derivatives transaction execution facility on which the agreement, contract,
or transaction is traded and executed--
`(B) to fill an order by
offset against 1 or more orders of another person; or
`(C) willfully and knowingly,
for or on behalf of any other person and without the prior consent of the
person, to become--
`(i) the buyer with respect
to any selling order of the person; or
`(ii) the seller with respect
to any buying order of the person.'.
SEC. 9. FERC LIAISON.
Section 2(a)(9) of the Commodity
Exchange Act (7 U.S.C. 2(a)(9)) is amended by adding at the end the following:
`(C) LIAISON WITH FEDERAL
ENERGY REGULATORY COMMISSION- The Commission shall, in cooperation with
the Federal Energy Regulatory Commission, maintain a liaison between the
Commission and the Federal Energy Regulatory Commission.'.
SEC. 10. CRIMINAL AND CIVIL
PENALTIES.
(a) ENFORCEMENT POWERS OF
COMMISSION- Section 6(c) of the Commodity Exchange Act (7 U.S.C. 9, 15)
is amended in paragraph (3) of the tenth sentence--
(1) by inserting `(A)' after
`assess such person'; and
(2) by inserting after `each
such violation' the following: `, or (B) in any case of manipulation of,
or attempt to manipulate, the price of any commodity, a civil penalty of
not more than the greater of $1,000,000 or triple the monetary gain to
such person for each such violation,'.
(b) MANIPULATIONS AND OTHER
VIOLATIONS- Section 6(d) of the Commodity Exchange Act (7 U.S.C. 13b) is
amended in the first sentence--
(1) by striking `paragraph
(a) or (b) of section 9 of this Act' and inserting `subsection (a), (b),
or (f) of section 9'; and
(2) by striking `said paragraph
9(a) or 9(b)' and inserting `subsection (a), (b), or (f) of section 9'.
(c) NONENFORCEMENT OF RULES
OF GOVERNMENT OR OTHER VIOLATIONS- Section 6b of the Commodity Exchange
Act (7 U.S.C. 13a) is amended--
(1) in the first sentence--
(A) by inserting `section
2(g)(9),' after `sections 5 through 5c,'; and
(B) by inserting before
the period at the end the following: `, or, in any case of manipulation
of, or an attempt to manipulate, the price of any commodity, a civil penalty
of not more than $1,000,000 for each such violation'; and
(2) in the second sentence,
by inserting before the period at the end the following: `, except that
if the failure or refusal to obey or comply with the order involved any
offense under section 9(f), the registered entity, director, officer, agent,
or employee shall be guilty of a felony and, on conviction, shall be subject
to penalties under section 9(f)'.
(d) ACTION TO ENJOIN OR
RESTRAIN VIOLATIONS- Section 6c(d) of the Commodity Exchange Act (7 U.S.C.
13a-1(d)) is amended by striking `(d)' and all that follows through the
end of paragraph (1) and inserting the following:
`(d) CIVIL PENALTIES- In
any action brought under this section, the Commission may seek and the
court shall have jurisdiction to impose, on a proper showing, on any person
found in the action to have committed any violation--
`(1) a civil penalty in
the amount of not more than the greater of $100,000 or triple the monetary
gain to the person for each violation; or
`(2) in any case of manipulation
of, or an attempt to manipulate, the price of any commodity, a civil penalty
in the amount of not more than the greater of $1,000,000 or triple the
monetary gain to the person for each violation.'.
(e) VIOLATIONS GENERALLY-
Section 9 of the Commodity Exchange Act (7 U.S.C. 13) is amended--
(1) by redesignating subsection
(f) as subsection (e); and
(2) by adding at the end
the following:
`(f) PRICE MANIPULATION-
It shall be a felony punishable by a fine of not more than $1,000,000 for
each violation or imprisonment for not more than 10 years, or both, together
with the costs of prosecution, for any person--
`(1) to manipulate or attempt
to manipulate the price of any commodity in interstate commerce, or for
future delivery on or subject to the rules of any registered entity;
`(2) to corner or attempt
to corner any such commodity;
`(3) knowingly to deliver
or cause to be delivered (for transmission through the mails or interstate
commerce by telegraph, telephone, wireless, or other means of communication)
false or misleading or knowingly inaccurate reports concerning market information
or conditions that affect or tend to affect the price of any commodity
in interstate commerce; or
`(4) knowingly to violate
section 4 or 4b, any of subsections (a) through (e) of subsection 4c, or
section 4h, 4o(1), or 19.'.
SEC. 11. CONFORMING AMENDMENTS.
(a) Section 2 of the Commodity
Exchange Act (7 U.S.C. 2) is amended--
(1) in subsection (d)(1),
by striking `section 5b' and inserting `section 5a(g), 5b,';
(A) in paragraph (1), by
striking `, 2(g), or 2(h)(3)'; and
(B) in paragraph (3), by
striking `2(h)(5)' and inserting `2(g)(7)';
(3) by redesignating subsection
(i) as subsection (h); and
(4) in subsection (h) (as
redesignated by subparagraph (C))--
(i) by striking `No provision'
and inserting `IN GENERAL- Subject to subsection (g), no provision'; and
(ii) in subparagraph (A)--
(I) by striking `section
2(c), 2(d), 2(e), 2(f), or 2(g) of this Act' and inserting `subsection
(c), (d), (e), or (f)'; and
(II) by striking `section
2(h)' and inserting `subsection (g)'; and
(B) in paragraph (2), by
striking `No provision' and inserting `IN GENERAL- Subject to subsection
(g), no provision'.
(b) Section 4i of the Commodity
Exchange Act (7 U.S.C. 6i) is amended in the first sentence by inserting
`, or pursuant to an exemption under section 4(c)' after `transaction execution
facility'.
(c) Section 8a(9) of the
Commodity Exchange Act (7 U.S.C. 12a(9)) is amended--
(1) by inserting `or covered
entity under section 2(g)' after `direct the contract market';
(2) by striking `on any
futures contract'; and
(3) by inserting `or covered
entity under section 2(g)' after `given by a contract market'.
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