Market Transparency Reporting of United States Transactions Act of 2007 - Amends the Commodity Exchange Act to define "included natural gas transaction" as a contract, agreement, or transaction in natural gas that is entered into: (1) in reliance on the provisions regarding either excluded swap transactions or the legal certainty for certain transaction in exempt commodities; or (2) by use of a domestic technology or software providing direct access to a foreign board of trade. (Thus places natural gas transactions within the jurisdiction of the Commodity Futures Trading Commission (CFTC).)
Prescribes recordkeeping and disclosure requirements governing natural gas in swap transactions, positions, inventories and commitments otherwise excluded from CFTC jurisdiction ("over-the-counter transactions").
Requires the CFTC to: (1) establish a reporting system regarding large positions in included natural gas transactions; (2) publish on a regular basis the information reported to it regarding such transactions; and (3) promulgate rules or regulations to implement this Act.
Requires the CFTC reporting system to include aggregate reportable positions held by commercial and noncommercial persons.
Increases civil money penalties for violations of this Act. Revises criminal penalties.
[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3009 Introduced in House (IH)]
110th CONGRESS
1st Session
H. R. 3009
To enhance transparency of trading in over-the-counter derivatives in
natural gas.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
July 12, 2007
Mr. Barrow (for himself and Mr. Graves) introduced the following bill;
which was referred to the Committee on Agriculture
_______________________________________________________________________
A BILL
To enhance transparency of trading in over-the-counter derivatives in
natural gas.
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 ``Market Transparency Reporting of
United States Transactions Act of 2007''.
SEC. 2. OVER-THE-COUNTER TRANSACTIONS IN NATURAL GAS.
(a) Definitions.--Section 1a of the Commodity Exchange Act (7
U.S.C. 1a) is amended by adding at the end the following:
``(34) Included natural gas transaction.--The term
`included natural gas transaction' means a contract, agreement,
or transaction in natural gas that is entered into--
``(A) in reliance on the provisions of subsection
(g) or (h) of section 2; or
``(B) by use of a domestic technology or software
providing direct access to a foreign board of trade.''.
(b) Reporting of Excluded Transactions in Natural Gas.--Section
2(g) of such Act (7 U.S.C. 2(g)) is amended--
(1) by striking ``or'' after ``5d,'';
(2) by inserting ``, or paragraphs (4) and (5) of this
subsection (with respect to any contract, agreement, or
transaction in natural gas))'' after ``12(e)(2)''; and
(3) by adding at the end the following:
``(4) It shall be a violation of this subsection for any
person to enter into any contract, agreement, or transaction in
natural gas relying on the exemption provided in this
subsection if the person, directly or indirectly, has, obtains,
owns, controls, or maintains a position in a contract,
agreement, or transaction in natural gas equal to or in excess
of such amount as the Commission from time to time shall fix,
unless the person files or causes to be filed with the properly
designated officer of the Commission such reports as the
Commission may require by rule, regulation, or order with
respect to any position in any contract, agreement, or
transaction in natural gas described in this section.
``(5) Any person entering into any contract, agreement, or
transaction relying on the exemption provided in this
subsection shall maintain books and records relating to each
such transaction, showing complete details of the transactions,
positions, inventories, and commitments, including the names
and addresses of all persons having any interest therein, for a
period of 5 years, in such form as the Commission shall require
by rule, regulation, or order. The books and records shall be
open for inspection by any representative of the Commission or
of the Department of Justice.''.
(c) Reporting of Exempt Transactions in Natural Gas.--Section 2(h)
of such Act (7 U.S.C. 2(h)) is amended--
(1) in paragraph (2)--
(A) by inserting ``and the persons that enter into
such a contract, agreement, or transaction'' after
``subsection'';
(B) by striking ``and'' at the end of subparagraph
(B);
(C) by striking the period at the end of
subparagraph (C) and inserting ``; and''; and
(D) by adding at the end the following:
``(D) paragraphs (7) and (8) of this section.'';
(2) in paragraph (4)--
(A) by inserting ``and the persons that enter into
such a contract, agreement, or transaction'' after
``subsection'';
(B) by striking ``and'' at the end of subparagraph
(C);
(C) by redesignating subparagraph (D) as
subparagraph (E) and inserting after subparagraph (C)
the following:
``(D) paragraphs (7) and (8) of this section;
and''; and
(3) by adding at the end the following:
``(7) It shall be a violation of this subsection for any
person to enter into any contract, agreement, or transaction in
natural gas relying on the exemption provided in this
subsection if the person, directly or indirectly, has, obtains,
owns, controls, or maintains a position in a contract,
agreement, or transaction in natural gas equal to or in excess
of such amount as the Commission from time to time shall fix,
unless the person files or causes to be filed, or with respect
to a contract, agreement, or transaction entered into on an
electronic trading facility, the electronic trading facility
files or causes to be filed on such person's behalf, with the
properly designated officer of the Commission, such reports as
the Commission may require by rule, regulation, or order with
respect to any position in such contracts, agreements, or
transactions in natural gas described in this section.
``(8) Any person entering into any contract, agreement, or
transaction in natural gas relying on the exemption provided in
this subsection shall maintain books and records relating to
each such transaction and showing complete details of such
transactions, positions, inventories, and commitments,
including the names and addresses of all persons having any
interest therein, for a period of 5 years, in such form as the
Commission shall require by rule, regulation, or order. The
records shall be open for inspection by any representative of
the Commission or of the Department of Justice.''.
SEC. 3. AUTHORITY TO REQUIRE FILING OF REPORTS.
The Commodity Exchange Act (7 U.S.C. 1-25) is amended by inserting
after section 4p the following:
``SEC. 4Q. FILING OF REPORTS OF TRANSACTIONS IN NATURAL GAS.
``(a) In General.--The Commission shall establish a reporting
system with respect to large positions in included natural gas
transactions, as defined in section 1a(34), that a person may, directly
or indirectly, have, obtain, own, control, or maintain.
``(b) Required Information.--Such required reports with respect to
included natural gas transactions, as defined in section 1(a)(34),
shall be in sufficient detail and with sufficient frequency to enable
the Commission to assess the overall trading activities, potential
market power, and concentration of positions directly or indirectly
held, obtained, owned, controlled, or maintained by the largest traders
and to assess these factors in relation to the amount of potential
deliverable supplies in natural gas directly or indirectly held,
obtained, owned, controlled or maintained by the traders and shall
enable the Commission to aggregate the positions with respect to the
person's separately owned or controlled accounts.
``(c) Confidentiality of Information.--The reports with respect to
included natural gas transactions described in subsection (b) shall be
subject to section 8.
``(d) Market Transparency.--The Commission shall publish on a
regular basis a report or reports with respect to the information
reported to it with respect to included natural gas transactions. The
report or reports shall include on a summary basis information with
respect to aggregate reportable positions held by commercial persons
and noncommercial persons and may not reveal the specific identity or
size of positions of individual persons.
``(e) Required Rules.--The Commission shall issue rules,
regulations, or an order to implement this section within 270 days
after the date of the enactment of this section.''.
SEC. 4. CRIMINAL AND CIVIL PENALTIES.
(a) Civil Money Penalties.--Section 6(c) of the Commodity Exchange
Act (7 U.S.C. 9, 15) is amended in clause (3) of the 10th sentence, by
striking ``$100,000'' and inserting ``$500,000''.
(b) Increase in Penalties.--Section 6c(d)(1) of such Act (7 U.S.C.
13a-1(d)(1)) is amended by striking ``$100,000'' and inserting
``$500,000''.
(c) Criminal Penalties.--Section 9(a) of such Act (7 U.S.C. 13) is
amended in the matter preceding paragraph (1) by inserting after
``(or'' the following: ``for any violation other than manipulation or
attempted manipulation of the price of any commodity in interstate
commerce, or for future delivery on or subject to the rules of any
registered entity, or the cornering or attempt to corner any such
commodity or 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, misleading,
or knowingly inaccurate reports concerning crop or market information
or conditions that affect or tend to affect the price of any commodity
in interstate commerce''.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Agriculture.
Referred to the Subcommittee on General Farm Commodities and Risk Management.
Executive Comment Requested from Commodity Futures Trading Com.
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