Page:United States Statutes at Large Volume 122.djvu/1460

 12 2 STA T . 1 437PUBLIC LA W 11 0– 234 —M A Y 22, 200 8ort r ans a c t i ons e r v esasi g ni f icant p rice d iscover y f u nc - tion .‘ ‘ (C) C OREP R INC IP L E SA PPLICA B LE T OSI G NI F ICANT PRICE D ISCO V ER Y CONTRACTS. — ‘‘(i) I N GENERAL.— A ne l ectronic trading facility on wh ich significant price discovery contracts are traded ore x ecuted shall , with respect to those contracts, co m ply with the core principles specified in this su b paragraph. ‘‘(ii) CORE PRINCIPLES.— T he electronic trading facility shall have reasonable discretion (including discretion to account for differences between cleared and uncleared significant price discovery contracts) in establishing the manner in which it complies with the following core principles

‘‘(I) CONTRACTS NOT READILY S U SCEPTIBLE TO M ANIPULATION.—The electronic trading facility shall list only significant price discovery contracts that are not readily susceptible to manipulation. ‘‘(II) M ONITORING OF TRADING.—The electronic trading facility shall monitor trading in significant price discovery contracts to prevent mar k et manipulation, price distortion, and disruptions of the delivery or cash-settlement process through market surveillance, compliance, and disciplinary practices and procedures, including methods for conducting real-time monitoring of trading and comprehensive and accurate trade reconstructions. ‘‘(III) ABILITY TO OBTAIN INFORMATION.—The electronic trading facility shall— ‘‘(aa) establish and enforce rules that will allow the electronic trading facility to obtain any necessary information to perform any of the functions described in this subparagraph ‘‘(bb) provide the information to the Commission upon re q uest; and ‘‘(cc) have the capacity to carry out such international information-sharing agreements as the Commission may require. ‘‘(I V ) P OSITION LIMITATIONS OR ACCOUNT- ABILITY.—The electronic trading facility shall adopt, where necessary and appropriate, position limitations or position accountability for specu- lators in significant price discovery contracts, taking into account positions in other agreements, contracts, and transactions that are treated by a derivatives clearing organi z ation, whether reg- istered or not registered, as fungible with such significant price discovery contracts to reduce the potential threat of market manipulation or conges- tion, especially during trading in the delivery month. ‘‘(V) E MERGENCY AUT H ORITY.—The electronic trading facility shall adopt rules to provide for the exercise of emergency authority, in consulta- tion or cooperation with the Commission, where Regulations. Regulations.

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