Instructs the Commodity Futures Trading Commission (CFTC) to use its authority (including emergency powers) to: (1) to curb immediately the role of excessive speculation in any contract market within its jurisdiction and control that is serving as a platform for the trading of energy futures or swaps; and (2) eliminate excessive speculation, price distortion, sudden or unreasonable fluctuations, unwarranted changes in prices, or other unlawful activity that is causing major market disturbances that prevent the market from accurately reflecting the forces of supply and demand for energy commodities; and (3) prioritize finalizing and enforcing a position limits regime designed to diminish, eliminate, or prevent excessive speculation in energy markets.
[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4391 Introduced in House (IH)]
112th CONGRESS
2d Session
H. R. 4391
To require the Commodity Futures Trading Commission to take certain
actions to reduce excessive speculation in energy markets.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
April 18, 2012
Ms. Hochul introduced the following bill; which was referred to the
Committee on Agriculture
_______________________________________________________________________
A BILL
To require the Commodity Futures Trading Commission to take certain
actions to reduce excessive speculation in energy markets.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. ENERGY MARKETS.
(a) Findings.--Congress finds that--
(1) the Commodity Futures Trading Commission was created as
an independent agency, in 1974, with a mandate--
(A) to enforce and administer the Commodity
Exchange Act (7 U.S.C. 1 et seq.);
(B) to ensure market integrity;
(C) to protect market users from fraud and abusive
trading practices; and
(D) to prevent and prosecute manipulation of the
price of any commodity in interstate commerce;
(2) Congress has given the Commodity Futures Trading
Commission authority under the Commodity Exchange Act (7 U.S.C.
1 et seq.) to take necessary actions to address market
emergencies;
(3) the Commodity Futures Trading Commission may use the
emergency authority of the Commission with respect to any major
market disturbance that prevents the market from accurately
reflecting the forces of supply and demand for a commodity;
(4) Congress declared in section 4a of the Commodity
Exchange Act (7 U.S.C. 6a) that excessive speculation imposes
an undue and unnecessary burden on interstate commerce;
(5) according to an article published in Forbes on February
27, 2012, excessive oil speculation ``translates out into a
premium for gasoline at the pump of $.56 a gallon'' based on a
recent report from Goldman Sachs;
(6) on March 30, 2012--
(A) the supply of crude oil and gasoline was higher
than the supply was on March 27, 2009, when the
national average price for a gallon of regular unleaded
gasoline was just $2.04; and
(B) demand for gasoline in the United States was
lower than demand was on April 3, 1998;
(7) on March 30, 2012, the national average price of
regular unleaded gasoline was over $3.94 a gallon, the highest
national average price ever recorded in the United States
during the month of March;
(8) during the last quarter of 2011, according to the
International Energy Agency--
(A) the world oil supply rose by 1,300,000 barrels
per day while demand only increased by 700,000 barrels
per day; but
(B) the price of Texas light sweet crude rose by
over 12 percent;
(9) on November 3, 2011, Gary Gensler, the Chairman of the
Commodity Futures Trading Commission testified before the
Senate Permanent Subcommittee on Investigations that ``80 to 87
percent of the [oil futures] market'' is dominated by
``financial participants, swap dealers, hedge funds, and other
financials,'' a figure that has more than doubled over the past
decade;
(10) excessive oil and gasoline speculation is creating
major market disturbances that prevent the market from
accurately reflecting the forces of supply and demand;
(11) the Commodity Futures Trading Commission has a
responsibility--
(A) to ensure that the price discovery for oil and
gasoline accurately reflects the fundamentals of supply
and demand; and
(B) to take immediate action to implement strong
and meaningful position limits to regulated exchange
markets to eliminate excessive oil speculation; and
(12) record high gasoline prices place a heavy economic
burden on farmers, businesses, and families across the United
States.
(b) Actions.--Not later than 14 days after the date of enactment of
this Act, the Commodity Futures Trading Commission shall use the
authority of the Commission (including emergency powers)--
(1) to curb immediately the role of excessive speculation
in any contract market within the jurisdiction and control of
the Commission, on or through which energy futures or swaps are
traded;
(2) to eliminate excessive speculation, price distortion,
sudden or unreasonable fluctuations, or unwarranted changes in
prices, or other unlawful activity that is causing major market
disturbances that prevent the market from accurately reflecting
the forces of supply and demand for energy commodities; and
(3) to prioritize finalizing and enforcing a position
limits regime designed to diminish, eliminate, or prevent
excessive speculation in energy markets.
<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.
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