,i  #aac? ,,congress  #a/ ,session  ,h4 
,r4 #bbib  ,,9 ,,! ,,h\se ,,(           
,,repres5tatives  ,june #f1 #bjac ,mr4  
,m>key introduc$ ! foll[+ bill2 :i* 0   
ref]r$ to ! ,committee on ,agriculture  
,a ,,bill  ,to provide = great]         
regulation ( high frequ5cy trad+ (      
commodities futures & options & great]  
protection = d]ivatives trad]s & trad+  
facilities1 & = o!r purposes4  #a4 ,%ort
 title ,?is ,act may be cit$ z !        
,protection f ,rogue ,oil ,trad]s       
,engag+ 9 ,comput]iz$ ,trad+ ,act or !  
,,protect ,act4  #b4 ,requirem5ts       
applicable to high frequ5cy trad]s (    
commodity futures & options  7a7 ,9     
g5]al ,! ,commodity ,ex*ange ,act 7#g   
,u4,s4,c4 #a et seq47 is am5d$ by ins]t+
 aft] section #dt ! foll[+3  #du4       
,requirem5ts applicable to high frequ5cy
 trad]s  7a7 ,regi/ration ,x %all be    
unlawful = any p]son to engage 9 an     
activity t ! ,commission has def9$ 9    
regulations z high frequ5cy trad+1      
unless ! p]son has regi/]$ ) !          

,commission 79 su* =m1 9 su* mann]1 &   
provid+ su* in=mation z ! ,commission   
%all prescribe7 z a high frequ5cy trad]1
 & ! regi/ration has n expir$ or be5    
susp5d$ or revok$4  7b7 ,o!r requirem5ts
 ,a regi/]$ high frequ5cy trad] %all--  
7#a7 te/ all comput] programs &         
algori?ms us$ by ! trad] 9 any high     
frequ5cy trad+ activity & det]m9e :e!r !
 programs & algori?ms are function+     
prop]ly1 9 su* mann] & ) su* frequ5cy z 
! ,commission %all prescribe 9          
regulations2  7#b7 e/abli% & docum5t    
high frequ5cy trad+ sy/em safegu>ds     
reasonably design$ to ensure ! prop]    
function ( all programs & algori?ms us$ 
by ! high frequ5cy trad] includ+        
conditions & p>amet]s relat+ to !       
automatic t]m9ation1 paus+1 or          
cancellation ( ! trad]'s messag+ or     
trad+ activity1 maximum message & trade 
execution rates & ord] sizes1 intra-day 
risk position limits1 & m>ket & trade   
monitor+ sy/ems t are appropriate =     
ensur+ compliance ) ! sy/em safegu>ds1  

includ+ sy/ems design$ to monitor m>ket 
volatility & ! trad]'s risk position on 
an intra-day basis2  7#c7 %all n        
simultane\sly pur*ase & sell ?r\gh !    
same or diff]5t acc\nts ! same commodity
 contract1 agreem5t1 or transaction1    
unless ! simultane\s pur*ases & sales   
are ( a de m9imis quantity & are report$
 to ! ,commission p]iodically1 9 a =m & 
mann] to be det]m9$ by ! ,commission2   
7#d7 submit to ! ,commission semiannual 
reports on ! high frequ5cy trad+        
activities ( ! trad] dur+ ! p]iod cov]$ 
by ! report1 9 su* =m1 9 su* mann]1 &   
conta9+ su* in=mation z ! ,commission   
may require1 sign$ by ! *ief executive  
(fic] 7or equival5t (fic]7 ( ! trad]2 & 
7#e7 con=m ) su* bus9ess conduct /&>ds z
 may be prescrib$ by ! ,commission by   
rule or regulation t relate to--  7,a7  
fraud1 manipulation1 & o!r abusive or   
disruptive practices1 & o!r practices t 
may affect m>ket integrity involv+ high 
frequ5cy trad]s 7includ+ high frequ5cy  
trades t are (f]$ b n ent]$ into72 &    

7,b7 su* o!r matt]s z ! ,commission may 
det]m9e are appropriate 9 ! public      
int]e/ or o!rwise 9 fur!rance ( !       
purposes ( ?is ,act1 includ+ in=mation  
necess>y to develop a classification    
s*eme & public reports relat+ to high   
frequ5cy trad]s & trad+ activity &      
sub-categories !reto4  4  7b7 ,deadl9e =
 issuance ( rules def9+ high frequ5cy   
trad+ ,)9 #i mon?s aft] ! date ( !      
enactm5t ( ?is ,act1 ! ,commodity       
,futures ,trad+ ,commission %all        
prescribe f9al regulations def9+ !      
activities t %all be consid]$ to be high
 frequ5cy trad+ = purposes ( section #du
 ( ! ,commodities ,ex*ange ,act4  #c4   
,f9e = high frequ5cy trad+ violation    
requir$ to be bas$ on ! duration ( !    
violation ,section #i ( ! ,commodity    
,ex*ange ,act 7#g ,u4,s4,c4 #ac7 is     
am5d$ by add+ at ! end ! foll[+3  7f7   
,f9e = high frequ5cy trad+ violation    
requir$ ,to be bas$ on ! duration ( !   
violation ,! am\nt ( a f9e impos$ "u ?is
 ,act ) respect to a violation ( a high 

frequ5cy trad+ regulation %all be       
det]m9$ on ! basis ( ! numb] ( seconds1 
includ+ fractions ( seconds1 dur+ :i* ! 
violation cont9u$4  4  #d4 ,civil       
p5alties "u ! ,commodity ,ex*ange ,act  
7a7 ,au?ority ( ! ,commodity ,futures   
,trad+ ,commission ,to def9e mean+ ( ea*
 violation ,section #i ( ! ,commodity   
,ex*ange ,act 7#g ,u4,s4,c4 #ac71 z     
am5d$ by section #c ( ?is ,act1 is am5d$
 by add+ at ! end ! foll[+3  7g7        
,au?ority ,to def9e scope ( violation ,!
 ,commission may def9e ! scope ( any    
violation = purposes ( det]m9+ ! numb] (
 violations involv$ 9 any case aris+ "u 
?is ,act4  4  7b7 ,en=cem5t p[]s ( !    
commission ,section #f ( su* ,act is    
am5d$--  7#a7 9 p>agraph 7#aj7 (        
subsection 7c7 7#g ,u4,s4,c4 #i71 by    
/rik+ subp>agraph 7,c7 & ins]t+ !       
foll[+3  7,c7 assess su* p]son--  7i7 a 
civil p5alty ( n m ?an an am\nt equal to
 ! great] (--  7,i7 #a1jjj1jjj1 9 ! case
 ( a p]son :o is an individual1 = ea*   
violation2  7,,ii7 #aj1jjj1jjj1 9 ! case

 ( any p]son o!r ?an an individual1 =   
ea* violation2  7,,iii7 triple ! monet>y
 ga9 to ! p]son & all o!r p]sons act+ 9 
conc]t ) ! p]son1 = ea* su* violation2  
or  7,,iv7 triple ! total am\nt ( losses
 to p]sons proximately caus$ by ea* su* 
violation2 or  7ii7 a civil p5alty (    
triple ! maximum am\nt o!rwise available
 "u clause 7i7 if ! p]son1 )9 #e ye>s   
prec$+ ! violation1 has be5--  7,i7 f\nd
 9 a proce$+ br\ght by ! ,commission1 or
 by agreem5t ( settlem5t to :i* !       
,commission is a p>ty1 to h recklessly  
or willfully violat$ any provision ( ?is
 ,act or ( ! rules1 regulations1 or     
ord]s ( ! ,commission !reund]2 or       
7,,ii7 convict$ ( any crim9al (f5se t   
involves a violation ( ?is ,act or ( !  
rules1 regulations1 or ord]s ( !        
,commission !reund]2 &  2  7#b7 9       
subsection 7d7 7#g ,u4,s4,c4 #ac;b7--   
7,a7 by ins]t+ 7#a7 aft] 7d72  7,b7 by  
/rik+ #adj1jjj or triple ! monet>y ga9  
to su* p]son1 & ins]t+ 7,a7 #a1jjj1jjj1 
9 ! case ( a p]son :o is an individual1 

= ea* violation1 7,b7 #aj1jjj1jjj1 9 !  
case ( any p]son o!r ?an an individual1 
= ea* violation1 7,c7 triple ! monet>y  
ga9 to ! p]son & all o!r p]sons act+ 9  
conc]t ) ! p]son1 = ea* su* violation1  
or 7,d7 triple ! total am\nt ( losses to
 p]sons proximately caus$ by ea* su*    
violation12 &  7,c7 by /rik+ ! p]iod &  
ins]t+ 2 &2 &  7,d7 by add+ aft] & bel[ 
! end ! foll[+3  7#b7 7,a7 ,a p]son %all
 be held liable = a civil p5alty 9      
triple ! am\nt o!rwise available = a    
violation "u ?is subsection if ! p]son1 
)9 #e ye>s prec$+ su* violation1 has    
be5--  7i7 f\nd 9 a proce$+ br\ght by ! 
,commission1 or by agreem5t ( settlem5t 
to :i* ! ,commission is a p>ty1 to h    
recklessly or willfully violat$ any     
provision ( ?is ,act or ! rules1        
regulations1 or ord]s ( ! ,commission   
!reund]2 or  7ii7 convict$ ( any crim9al
 (f5se t involves violation ( ?is ,act  
or ! rules1 regulations1 or ord]s ( !   
,commission !reund]4  4  7c7 ,non5=cem5t
 ( rules ( gov]nm5t or o!r violations   

,section #f;b ( su* ,act 7#g ,u4,s4,c4  
#ac;a7 is am5d$ 9 ! #a/ s5t5ce--  7#a7  
by /rik+ #ejj1jjj = ea* su* violation1  
or1 9 any case ( manipulation or        
attempt$ manipulation 9 violation (     
section #f7;c71 #f7;d71 or #i7;a77#b71 a
 civil p5alty ( n m ?an #a1jjj1jjj = ea*
 su* violation & ins]t+ 7,a7 #a1jjj1jjj1
 9 ! case ( a p]son :o is an individual1
 = ea* violation1 7,b7 #aj1jjj1jjj1 9 ! 
case ( any p]son o!r ?an an individual1 
= ea* violation1 7,c7 triple ! monet>y  
ga9 to ! p]son & all o!r p]sons act+ 9  
conc]t ) ! p]son1 = ea* su* violation1  
or 7,d7 triple ! total am\nt ( losses to
 p]sons proximately caus$ by ea* su*    
violation1 & su* civil p5alty %all be   
assess$ = ea* violation on :i* a failure
 to en=ce or o!r violation occurs or has
 occurr$2 provid$ t a regi/]$ entity1   
director1 (fic]1 ag5t1 or employee %all 
be assess$ a civil p5alty ( triple !    
am\nt o!rwise available if ! p]son1 )9  
#e ye>s ( su* violation1 has be5 f\nd 9 
a proce$+ br\ght by ! ,commission1 or by

 agreem5t ( settlem5t to :i* !          
,commission is a p>ty1 to h recklessly  
or willfully violat$ any provision ( ?is
 ,act or ! rules1 regulations1 or ord]s 
( ! ,commission !reund]1 or convict$ (  
any crim9al (f5se t involves a violation
 ( ?is ,act or ! rules1 regulations1 or 
ord]s ( ! ,commission !reund]4  7d7     
,action ,to enjo9 or re/ra9 violations  
,section #f;c7d7 ( su* ,act 7#g         
,u4,s4,c4 #ac;a-#a7;d77 is am5d$--  7#a7
 9 p>agraph 7#a71 by ins]t+ a civil     
p5alty 9 ! am\nt ( aft] violation2 &    
7#b7 by /rik+ subp>agraphs 7,a7 & 7,b7 (
 p>agraph 7#a7 & ins]t+ ! foll[+3  7,a7 
n m ?an ! great] (--  7i7 8#a1jjj1jjj1 9
 ! case ( a p]son :o is an individual1 =
 ea* violation2  7ii7 #aj1jjj1jjj1 9 !  
case ( any p]son o!r ?an an individual1 
= ea* violation2  7iii7 triple ! monet>y
 ga9 to ! p]son & all o!r p]sons act+ 9 
conc]t ) ! p]son1 = ea* su* violation2  
or  7iv7 triple ! total am\nt ( losses  
by p]sons proximately caus$ by ea* su*  
violation2 or  7,b7 triple ! maximum    

am\nt o!rwise available "u subp>agraph  
7,a7 if ! p]son1 )9 #e ye>s prec$+ !    
violation1 has be5--  7i7 f\nd 9 a      
proce$+ br\ght by ! ,commission1 or by  
agreem5t ( settlem5t to :i* !           
,commission is a p>ty1 to h recklessly  
or willfully violat$ any provision ( ?is
 ,act or ( ! rules1 regulations1 or     
ord]s ( ! ,commission !reund]2 or  7ii7 
convict$ ( any crim9al (f5se t involves 
a violation ( ?is ,act or ( ! rules1    
regulations1 or ord]s ( ! ,commission   
!reund]4  4  7e7 ,crim9al p5alties      
,section #i7;a7 ( su* ,act 7#g ,u4,s4,c4
 #ac7;a77 is am5d$ by ins]t+ 9 ! case ( 
an individual or #aj1jjj1jjj 9 ! case ( 
any p]son o!r ?an an individual1 = ea*  
violation1 aft] #a1jjj1jjj4  7f7 ,/atute
 ( limitations ,section #i ( su* ,act   
7#g ,u4,s4,c4 #ac7 is am5d$ by add+ at !
 end ! foll[+3  7f7 ,/atute (           
limitations ,an action1 suit or proce$+ 
= ! en=cem5t ( any civil f9e1 p5alty1 or
 =feiture1 pecuni>y or o!rwise1 %all n  
be ent]ta9$ unless comm5c$ )9 #aj ye>s  

aft] ! date :5 ! claim fir/ accru$ if1  
)9 ! same p]iod1 ! (f5d] or ! prop]ty is
 f\nd )9 ! ,unit$ ,/ates 9 ord] t prop] 
s]vice may be made !reon4  4  #e4       
,effective dates  7a7 ,requirem5ts      
applicable to high frequ5cy trad]s ,!   
am5dm5t made by section #b7;a7 %all take
 effect on ! date t is #i mon?s aft] !  
date ( ! enactm5t ( ?is ,act4  7b7      
,p5alties provisions ,! am5dm5ts made by
 sections #c & #d %all take effect on ! 
date t is #ae days aft] ! date ( !      
enactm5t ( ?is ,act4