Page:United States Statutes at Large Volume 114 Part 5.djvu/427

 PUBLIC LAW 106-554—APPENDIX E 114 STAT. 2763A-387 "(B) imposing any material anticompetitive burden on trading on the contract market. "(e) CURRENT AGRICULTURAL COMMODITIES.— "(1) Subject to paragraph (2) of this subsection, a contract for purchase or sale for future delivery of an agricultural commodity enumerated in section la(4) that is available for trade on a contract market, as of the date of the enactment of this subsection, may be traded only on a contract market designated under this section. "(2) In order to promote responsible economic or financial innovation and fair competition, the Commission, on application by any person, after notice and public comment and opportunity for hearing, may prescribe rules and regulations to provide for the offer and sale of contracts for future delivery or options on such contracts to be conducted on a derivatives transaction execution facility.". SEC. 111. DERIVATIVES TRANSACTION EXECUTION FACILITIES. The Commodity Exchange Act (7 U.S.C. 1 et seq.) is amended by inserting after section 5 (as amended by section 110(2)) the following: "SEC. 5a. DERIVATIVES TRANSACTION EXECUTION FACILITIES. "(a) IN GENERAL.— In lieu of compliance with the contract market designation requirements of sections 4(a) and 5, a board of trade may elect to operate as a registered derivatives transaction execution facility if the facility is— "(1) designated as a contract market and meets the requirements of this section; or "(2) registered as a derivatives transaction execution facility under subsection (c) of this section. " (b) REQUIREMENTS FOR TRADING. — "(1) IN GENERAL. — ^A registered derivatives trsmsaction execution facility under subsection (a) may trade any contract of sale of a commodity for future delivery (or option on such a contract) on or through the facility only by satisfying the requirements of this section. "(2) REQUIREMENTS FOR UNDERLYING COMMODITIES. — A registered derivatives transaction execution facility may trade any contract of sale of a commodity for future delivery (or option on such a contract) only if— "(A) the underlying commodity has a nearly inexhaustible deliverable supply; "(B) the underlying commodity has a deliverable supply that is sufficiently large that the contract is highly unlikely to be susceptible to the threat of manipulation; "(C) the underlying commodity has no cash market; "(D)(i) the contract is a security futures product, and (ii) the registered derivatives transaction execution facility is a national securities exchange registered under the Securities Exchange Act of 1934; "(E) the Commission determines, based on the market characteristics, surveillance history, self-regulatory record, and capacity of the facility that trading in the contract (or option) is highly unlikely to be susceptible to the threat of manipulation; or "(F) except as provided in section 5(e)(2), the underly- ing commodity is a commodity other than an agricultural

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