12 2 STA T . 1 4 41 PUBLIC LA W 11 0– 2 3 4 —M A Y 22 , 200 8insert in g‘ ‘ co ntr a ct m ar k et ,d eri v atives transaction e x ec u tion f aci l it y , or electronic trading facility ’ ’ .( k )S ection 5 c(d)( 1 )ofsuc hA ct( 7U .S. C .7a –2 (d)(1)) is amended b y inserting ‘‘or 2(h)(7)(C) w ith res p ect to a significant price dis - covery contract traded or executed on an electronic trading facility,’’ after ‘‘5b(d)(2)’’. (l) Section 5e of such Act (7 U.S.C. 7b) is amended by inserting ‘‘, or revocation of the right of an electronic trading facility to rely on the exemption set forth in section 2(h)( 3 ) with respect to a significant price discovery contract,’’ after ‘‘revocation of des- ignation as a registered entity’’. (m) Section 6 (b) of the Commodity E xchange Act (7 U.S.C. 8 (b)) is amended by striking the first sentence and all that follows through ‘‘hearing on the record
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rovided,’’ and inserting the fol- lowing: ‘‘ T he Commission is authori z ed to suspend for a period not to exceed 6 months or to revoke the designation or registration of any contract market or derivatives transaction execution facility, or to revoke the right of an electronic trading facility to rely on the exemption set forth in section 2(h)(3) with respect to a signifi- cant price discovery contract, on a showing that the contract market or derivatives transaction execution facility is not enforcing or has not enforced its rules of government, made a condition of its designa- tion or registration as set forth in sections 5 through 5b or section 5f, or that the contract market or derivatives transaction execution facility or electronic trading facility, or any director, officer, agent, or employee thereof, otherwise is violating or has violated any of the provisions of this Act or any of the rules, regulations, or orders of the Commission thereunder. Such suspension or revocation shall only be made after a notice to the officers of the contract market or derivatives transaction execution facility or electronic trading facility affected and upon a hearing on the record: Pro- vided,’’. (n) Section 22(b)(1) of such Act (7 U.S.C. 25(b)(1)) is amended by inserting ‘‘section 2(h)(7) or’’ before ‘‘sections 5’’. SEC.13204 .E F FEC TIV E DA TE. (a) INGE NE RAL . — Except as provided in this section, this sub- title shall become effective on the date of enactment of this Act. (b) S IG NI F I C AN T PRICE D I S C OV ER Y STAN D ARDS RU LE M A K ING.— (1) The Commodity F utures Trading Commission shall— (A) not later than 18 0 days after the date of the enact- ment of this Act, issue a proposed rule regarding the implementation of section 2(h)(7) of the Commodity Exchange Act
and ( B ) not later than 270 days after the date of enactment of this Act, issue a final rule regarding the implementation. (2) In its rulemaking pursuant to paragraph (1) of this subsection, the Commission shall include the standards, terms, and conditions under which an electronic trading facility will have the responsibility to notify the Commission that an agree- ment, contract, or transaction conducted in reliance on the exemption provided in section 2(h)(3) of the Commodity Exchange Act may perform a price discovery function. (c) SIGNIFICANT PRICE DISCOVERY DETERMINATIONS.— W ith respect to any electronic trading facility operating on the effective date of the final rule issued pursuant to subsection (b)(1), the Revi e w.D e adl i n e. Deadline s . 7USC2 n ot e. N oti c e. Cont r acts.
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