,i  #aacth ,,congress  #ast ,session    
,h4 ,r4 #bbib  ,,in ,,the ,,house ,,of  
,,representatives  ,june #f1 #bjac ,mr4 
,markey introduced the following bill2  
which was referred to the ,committee on 
,agriculture  ,a ,,bill  ,to provide for
 greater regulation of high frequency   
trading of commodities futures and      
options and greater protection for      
derivatives traders and trading         
facilities1 and for other purposes4  #a4
 ,short title ,this ,act may be cited as
 the ,protection from ,rogue ,oil       
,traders ,engaging in ,computerized     
,trading ,act or the ,,protect ,act4    
#b4 ,requirements applicable to high    
frequency traders of commodity futures  
and options  7a7 ,in general ,the       
,commodity ,exchange ,act 7#g ,u4,s4,c4 
#a et seq47 is amended by inserting     
after section #dt the following3  #du4  
,requirements applicable to high        
frequency traders  7a7 ,registration ,it
 shall be unlawful for any person to    
engage in an activity that the          

,commission has defined in regulations  
as high frequency trading1 unless the   
person has registered with the          
,commission 7in such form1 in such      
manner1 and providing such information  
as the ,commission shall prescribe7 as a
 high frequency trader1 and the         
registration has not expired or been    
suspended or revoked4  7b7 ,other       
requirements ,a registered high         
frequency trader shall--  7#a7 test all 
computer programs and algorithms used by
 the trader in any high frequency       
trading activity and determine whether  
the programs and algorithms are         
functioning properly1 in such manner and
 with such frequency as the ,commission 
shall prescribe in regulations2  7#b7   
establish and document high frequency   
trading system safeguards reasonably    
designed to ensure the proper function  
of all programs and algorithms used by  
the high frequency trader including     
conditions and parameters relating to   
the automatic termination1 pausing1 or  

cancellation of the trader's messaging  
or trading activity1 maximum message and
 trade execution rates and order sizes1 
intra-day risk position limits1 and     
market and trade monitoring systems that
 are appropriate for ensuring compliance
 with the system safeguards1 including  
systems designed to monitor market      
volatility and the trader's risk        
position on an intra-day basis2  7#c7   
shall not simultaneously purchase and   
sell through the same or different      
accounts the same commodity contract1   
agreement1 or transaction1 unless the   
simultaneous purchases and sales are of 
a de minimis quantity and are reported  
to the ,commission periodically1 in a   
form and manner to be determined by the 
,commission2  7#d7 submit to the        
,commission semiannual reports on the   
high frequency trading activities of the
 trader during the period covered by the
 report1 in such form1 in such manner1  
and containing such information as the  
,commission may require1 signed by the  

chief executive officer 7or equivalent  
officer7 of the trader2 and  7#e7       
conform with such business conduct      
standards as may be prescribed by the   
,commission by rule or regulation that  
relate to--  7,a7 fraud1 manipulation1  
and other abusive or disruptive         
practices1 and other practices that may 
affect market integrity involving high  
frequency traders 7including high       
frequency trades that are offered but   
not entered into72 and  7,b7 such other 
matters as the ,commission may determine
 are appropriate in the public interest 
or otherwise in furtherance of the      
purposes of this ,act1 including        
information necessary to develop a      
classification scheme and public reports
 relating to high frequency traders and 
trading activity and sub-categories     
thereto4  4  7b7 ,deadline for issuance 
of rules defining high frequency trading
 ,within #i months after the date of the
 enactment of this ,act1 the ,commodity 
,futures ,trading ,commission shall     

prescribe final regulations defining the
 activities that shall be considered to 
be high frequency trading for purposes  
of section #du of the ,commodities      
,exchange ,act4  #c4 ,fine for high     
frequency trading violation required to 
be based on the duration of the         
violation ,section #i of the ,commodity 
,exchange ,act 7#g ,u4,s4,c4 #ac7 is    
amended by adding at the end the        
following3  7f7 ,fine for high frequency
 trading violation required ,to be based
 on the duration of the violation ,the  
amount of a fine imposed under this ,act
 with respect to a violation of a high  
frequency trading regulation shall be   
determined on the basis of the number of
 seconds1 including fractions of        
seconds1 during which the violation     
continued4  4  #d4 ,civil penalties     
under the ,commodity ,exchange ,act  7a7
 ,authority of the ,commodity ,futures  
,trading ,commission ,to define meaning 
of each violation ,section #i of the    
,commodity ,exchange ,act 7#g ,u4,s4,c4 

#ac71 as amended by section #c of this  
,act1 is amended by adding at the end   
the following3  7g7 ,authority ,to      
define scope of violation ,the          
,commission may define the scope of any 
violation for purposes of determining   
the number of violations involved in any
 case arising under this ,act4  4  7b7  
,enforcement powers of the commission   
,section #f of such ,act is amended--   
7#a7 in paragraph 7#aj7 of subsection   
7c7 7#g ,u4,s4,c4 #i71 by striking      
subparagraph 7,c7 and inserting the     
following3  7,c7 assess such person--   
7i7 a civil penalty of not more than an 
amount equal to the greater of--  7,i7  
#a1jjj1jjj1 in the case of a person who 
is an individual1 for each violation2   
7,,ii7 #aj1jjj1jjj1 in the case of any  
person other than an individual1 for    
each violation2  7,,iii7 triple the     
monetary gain to the person and all     
other persons acting in concert with the
 person1 for each such violation2 or    
7,,iv7 triple the total amount of losses

 to persons proximately caused by each  
such violation2 or  7ii7 a civil penalty
 of triple the maximum amount otherwise 
available under clause 7i7 if the       
person1 within #e years preceding the   
violation1 has been--  7,i7 found in a  
proceeding brought by the ,commission1  
or by agreement of settlement to which  
the ,commission is a party1 to have     
recklessly or willfully violated any    
provision of this ,act or of the rules1 
regulations1 or orders of the           
,commission thereunder2 or  7,,ii7      
convicted of any criminal offense that  
involves a violation of this ,act or of 
the rules1 regulations1 or orders of the
 ,commission thereunder2 and  2  7#b7 in
 subsection 7d7 7#g ,u4,s4,c4 #ac;b7--  
7,a7 by inserting 7#a7 after 7d72  7,b7 
by striking #adj1jjj or triple the      
monetary gain to such person1 and       
inserting 7,a7 #a1jjj1jjj1 in the case  
of a person who is an individual1 for   
each violation1 7,b7 #aj1jjj1jjj1 in the
 case of any person other than an       

individual1 for each violation1 7,c7    
triple the monetary gain to the person  
and all other persons acting in concert 
with the person1 for each such          
violation1 or 7,d7 triple the total     
amount of losses to persons proximately 
caused by each such violation12 and     
7,c7 by striking the period and         
inserting 2 and2 and  7,d7 by adding    
after and below the end the following3  
7#b7 7,a7 ,a person shall be held liable
 for a civil penalty in triple the      
amount otherwise available for a        
violation under this subsection if the  
person1 within #e years preceding such  
violation1 has been--  7i7 found in a   
proceeding brought by the ,commission1  
or by agreement of settlement to which  
the ,commission is a party1 to have     
recklessly or willfully violated any    
provision of this ,act or the rules1    
regulations1 or orders of the           
,commission thereunder2 or  7ii7        
convicted of any criminal offense that  
involves violation of this ,act or the  

rules1 regulations1 or orders of the    
,commission thereunder4  4  7c7         
,nonenforcement of rules of government  
or other violations ,section #f;b of    
such ,act 7#g ,u4,s4,c4 #ac;a7 is       
amended in the #ast sentence--  7#a7 by 
striking #ejj1jjj for each such         
violation1 or1 in any case of           
manipulation or attempted manipulation  
in violation of section #f7;c71 #f7;d71 
or #i7;a77#b71 a civil penalty of not   
more than #a1jjj1jjj for each such      
violation and inserting 7,a7 #a1jjj1jjj1
 in the case of a person who is an      
individual1 for each violation1 7,b7    
#aj1jjj1jjj1 in the case of any person  
other than an individual1 for each      
violation1 7,c7 triple the monetary gain
 to the person and all other persons    
acting in concert with the person1 for  
each such violation1 or 7,d7 triple the 
total amount of losses to persons       
proximately caused by each such         
violation1 and such civil penalty shall 
be assessed for each violation on which 

a failure to enforce or other violation 
occurs or has occurred2 provided that a 
registered entity1 director1 officer1   
agent1 or employee shall be assessed a  
civil penalty of triple the amount      
otherwise available if the person1      
within #e years of such violation1 has  
been found in a proceeding brought by   
the ,commission1 or by agreement of     
settlement to which the ,commission is a
 party1 to have recklessly or willfully 
violated any provision of this ,act or  
the rules1 regulations1 or orders of the
 ,commission thereunder1 or convicted of
 any criminal offense that involves a   
violation of this ,act or the rules1    
regulations1 or orders of the           
,commission thereunder4  7d7 ,action ,to
 enjoin or restrain violations ,section 
#f;c7d7 of such ,act 7#g ,u4,s4,c4      
#ac;a-#a7;d77 is amended--  7#a7 in     
paragraph 7#a71 by inserting a civil    
penalty in the amount of after          
violation2 and  7#b7 by striking        
subparagraphs 7,a7 and 7,b7 of paragraph

 7#a7 and inserting the following3  7,a7
 not more than the greater of--  7i7    
8#a1jjj1jjj1 in the case of a person who
 is an individual1 for each violation2  
7ii7 #aj1jjj1jjj1 in the case of any    
person other than an individual1 for    
each violation2  7iii7 triple the       
monetary gain to the person and all     
other persons acting in concert with the
 person1 for each such violation2 or    
7iv7 triple the total amount of losses  
by persons proximately caused by each   
such violation2 or  7,b7 triple the     
maximum amount otherwise available under
 subparagraph 7,a7 if the person1 within
 #e years preceding the violation1 has  
been--  7i7 found in a proceeding       
brought by the ,commission1 or by       
agreement of settlement to which the    
,commission is a party1 to have         
recklessly or willfully violated any    
provision of this ,act or of the rules1 
regulations1 or orders of the           
,commission thereunder2 or  7ii7        
convicted of any criminal offense that  

involves a violation of this ,act or of 
the rules1 regulations1 or orders of the
 ,commission thereunder4  4  7e7        
,criminal penalties ,section #i7;a7 of  
such ,act 7#g ,u4,s4,c4 #ac7;a77 is     
amended by inserting in the case of an  
individual or #aj1jjj1jjj in the case of
 any person other than an individual1   
for each violation1 after #a1jjj1jjj4   
7f7 ,statute of limitations ,section #i 
of such ,act 7#g ,u4,s4,c4 #ac7 is      
amended by adding at the end the        
following3  7f7 ,statute of limitations 
,an action1 suit or proceeding for the  
enforcement of any civil fine1 penalty1 
or forfeiture1 pecuniary or otherwise1  
shall not be entertained unless         
commenced within #aj years after the    
date when the claim first accrued if1   
within the same period1 the offender or 
the property is found within the ,united
 ,states in order that proper service   
may be made thereon4  4  #e4 ,effective 
dates  7a7 ,requirements applicable to  
high frequency traders ,the amendment   

made by section #b7;a7 shall take effect
 on the date that is #i months after the
 date of the enactment of this ,act4    
7b7 ,penalties provisions ,the          
amendments made by sections #c and #d   
shall take effect on the date that is   
#ae days after the date of the enactment
 of this ,act4