Bill > HR785

This bill, known as the Halt Index Trading of Energy Commodities (HITEC) Act, aims to curb excessive speculation in energy markets by preventing certain types of investment funds from trading energy commodities. Specifically, it would make it illegal for a "commodity index fund" – a fund that invests in multiple commodities and transfers financial risk associated with their price changes – to engage in transactions involving energy commodities like crude oil and natural gas if any investor in that fund is an "excluded investor." An excluded investor is defined as someone who doesn't hold a position in at least one energy commodity that would be considered a legitimate hedge against price fluctuations. The bill also prohibits these funds from accepting investments from excluded investors and, after a two-year grace period, from holding investments in energy commodities if any investor is an excluded investor. The context for this legislation is Congress's finding that speculative trading, particularly through commodity index funds, has dramatically increased in recent years, reversing the traditional balance between hedgers and speculators and leading to artificially inflated energy prices, which in turn negatively impacts economic growth and consumers.