1.Short
title; table of contents
(a)This Act may be cited
as the Comprehensive Derivatives
Regulation Act of 2009
.
(b)The table of contents for this Act is as follows:
Sec. 1. Short title; table of
contents.
Sec. 2. Findings.
TITLE I—Regulation of security-based derivatives
Sec. 101. Definitions.
Sec. 102. Rationalization of financial product
oversight.
Sec. 103. Required clearing of standardized derivative through
central counterparties and the use of trade repositories.
Sec. 104. Prudential supervision and regulation of significant
security-based derivatives market participants and incentives for trading on
regulated exchanges.
Sec. 105. Recordkeeping and reporting requirements for
derivatives market participants.
Sec. 106. Prohibition of market manipulation, fraud, and other
market abuses.
Sec. 107. Protections for marketing security-based swaps to
certain persons.
Sec. 108. Enforcement.
Sec. 109. Enforceability of security-based swaps.
Sec. 110. Transfer and rights of certain CFTC
employees.
TITLE II—Regulation of commodity-based
derivatives
Sec. 201. Definitions.
Sec. 202. Rationalization of financial
product oversight.
Sec. 203. Required clearing of
standardized derivatives through central counterparties and use of trade
repositories.
Sec. 204. Prudential supervision and
regulation of significant commodity-based derivatives market participants and
incentives for trading on regulated exchanges.
Sec. 205. Recordkeeping and reporting
requirements for derivatives market participants.
Sec. 206. Prohibition of market
manipulation, fraud, and other market abuses.
Sec. 207. Protections for marketing
commodity-based swaps to certain persons.
Sec. 208. Commodity-based swap execution
facilities.
Sec. 209. Enforcement.
Sec. 210. Enforceability of
commodity-based swaps.
TITLE III—Other provisions
Sec. 301. Margining and other risk management standards for
central counterparties.
Sec. 302. Determining the status of swaps.
Sec. 303. Study and report on implementation.
Sec. 304.
Rulemaking.
Sec. 305. Effective date.
2.Congress finds that—
(1)in recent years,
the over-the-counter derivatives market has grown rapidly, but regulators have
lacked key information and adequate authority to address systemic and other
risks posed by unregulated derivatives trading;
(2)excessive risk
taking among market participants, combined with limited regulatory oversight of
such products, was a significant cause of the recent financial crisis;
(3)lack of
transparency in the markets has contributed to market instability and
uncertainty, and has resulted in a less efficient marketplace;
(4)customized
derivative products provide key benefits to certain market participants and
should be permitted under comprehensive regulation, but all derivatives
activities should be accompanied by appropriate risk management and prudential
standards; and
(5)the trading of
derivatives on regulated exchanges should be encouraged because of the
significant associated market efficiencies.
<enum>I</enum><header>Regulation of
security-based derivatives</header>
<section id="ID71b6294e9e534437a3707a77a1970949"><enum>101.</enum><header>Definitions</header>
<subsection id="ID6ef3b6bbcf6348cdbd7cdc7d647238f6"><enum>(a)</enum><header>Definitions
under the Securities Exchange Act of 1934</header><text>Section 3(a) of the
Securities Exchange Act of 1934 (15 U.S.C. 78c(a)) is amended—</text>
<paragraph id="ID379afd8f75fb4de48089e172b9437183"><enum>(1)</enum><text>in paragraph
(10), by inserting <quote>security-based swap,</quote> after <quote>security
future,</quote>;</text>
</paragraph><paragraph id="IDabee556f7d5c4dce84e593d2040e6362"><enum>(2)</enum><text>in paragraph
(13), by adding at the end the following: “For any security-based swap, such
terms include the execution, termination (prior to its scheduled maturity
date), assignment, exchange, or similar transfer or conveyance of, or
extinguishing of rights or obligations under, a security-based swap, as the
context may require.”;</text>
</paragraph><paragraph id="IDb102c96c9d6e48cfadadec91232dac5f"><enum>(3)</enum><text>in paragraph
(14), by adding at the end the following: “For any security-based swap, such
terms include the execution, termination (prior to its scheduled maturity
date), assignment, exchange, or similar transfer or conveyance of, or
extinguishing of rights or obligations under, a security-based swap, as the
context may require.”; and</text>
</paragraph><paragraph id="ID199e12d43d3d409d8d59cae9a1fb3244"><enum>(4)</enum><text>by adding at the
end the following:</text>
<quoted-block display-inline="no-display-inline" id="idF8B05727331344948B47C165E6F7917A" style="OLC">
<paragraph id="IDb1f958d2f9d74729affa11081d7e550a"><enum>(65)</enum><header>Derivative</header><text>The
term <term>derivative</term> means—</text>
<subparagraph id="IDec2273d97b634fd5997ba9084b91f909"><enum>(A)</enum><text>any future,
forward, swap, warrant, put, call, straddle, option, or privilege on or related
to—</text>
<clause id="ID42ed9f34d11d45c3861ad0a572c0a3bb"><enum>(i)</enum><text>any security, or
group or index of securities (including any interest therein or based on the
value thereof); or</text>
</clause><clause id="ID214a5758534d4dc18316a56f19d46c55"><enum>(ii)</enum><text>any issuer of
securities or group or index of issuers of securities (including any interest
therein or based on the value thereof); and</text>
</clause></subparagraph><subparagraph id="ID15423026be1d40ceb5c76fc4ecbb6c4e"><enum>(B)</enum><text>any contract of
sale for future delivery of any commodity (or option on such contract).</text>
</subparagraph></paragraph><paragraph id="ID48067707beef4ab0ae0b5aeaa68ea2c9"><enum>(66)</enum><header>Swap</header>
<subparagraph id="id7020BFF010434D96A12658274D155CF1"><enum>(A)</enum><header>In
general</header><text>Except as provided in subparagraph (B), the term
<term>swap</term> means any agreement, contract, or transaction that—</text>
<clause id="id48095AE9A34849BAA7722D94A0C8B9E6"><enum>(i)</enum><text>is a put, call,
cap, floor, collar, or similar option of any kind for the purchase or sale of,
or based on the value of, 1 or more interest or other rates, currencies,
commodities, indices, quantitative measures, or other financial or economic
interests or property of any kind;</text>
</clause><clause id="id46B77483613543F3870927D35158B7F1"><enum>(ii)</enum><text>provides for any
purchase, sale, payment, or delivery (other than a dividend on an equity
security) that is dependent on the occurrence, nonoccurrence, or the extent of
the occurrence of an event or contingency associated with a potential
financial, economic, or commercial consequence;</text>
</clause><clause id="id293C292CC9C54441BEDC04F905BCD736"><enum>(iii)</enum><text>provides on an
executory basis for the exchange, on a fixed or contingent basis, of 1 or more
payments based on the value or level of 1 or more interest or other rates,
currencies, commodities, securities, instruments of indebtedness, indices,
quantitative measures, or other financial or economic interests or property of
any kind, or any interest therein or based on the value thereof, and that
transfers, as between the parties to the transaction, in whole or in part, the
financial risk associated with a future change in any such value or level
without also conveying a current or future direct or indirect ownership
interest in an asset (including any enterprise or investment pool) or liability
that incorporates the financial risk so transferred, any such agreement,
contract, or transaction commonly known as an interest rate swap, including a
rate floor, rate cap, rate collar, cross-currency rate swap, basis swap,
currency swap, equity index swap, equity swap, debt index swap, debt swap,
credit spread, credit default swap, credit swap, weather swap, energy swap,
metal swap, agricultural swap, emissions swap, or commodity swap;</text>
</clause><clause id="idD30C639831D44C3E852F2089A3FF0849"><enum>(iv)</enum><text>is an agreement,
contract, or transaction that is, or in the future becomes, commonly known to
the trade as a swap; or</text>
</clause><clause id="idD687F2D8F55745CD855E1FBD56482737"><enum>(v)</enum><text>is any
combination or permutation of, or option on, any agreement, contract, or
transaction described in any of clauses (i) through (iv).</text>
</clause></subparagraph><subparagraph id="id8CD2B77A902344E88A00FB77A7091DFA"><enum>(B)</enum><header>Exclusions</header><text display-inline="yes-display-inline">The term <term>swap</term> does not
include—</text>
<clause id="idDCF5013D61F34A139FA01B1039E65C80"><enum>(i)</enum><text>any contract of
sale for future delivery traded on or subject to the rules of any board of
trade designated as a contract market under section 5 of the Commodity Exchange
Act (7 U.S.C. 7)—</text>
<subclause id="id70F8FD89850F46E49591ACEC93F4126D"><enum>(I)</enum><text>on a commodity
other than a security; or</text>
</subclause><subclause id="idF00D06AA0CCD4A8C86C1F8201982C73F"><enum>(II)</enum><text>that is not
based on or subject to the occurrence of a bona fide contingency that might
reasonably be expected to affect or be affected by the creditworthiness of a
party other than a party to such contract;</text>
</subclause></clause><clause id="id63D11D1CB4234C86B9576844CD77E5EB"><enum>(ii)</enum><text>any sale of any
cash commodity or security for deferred or delayed shipment or delivery;</text>
</clause><clause id="id0A8ECAF2D39047D59F8EB3063DF0AB10"><enum>(iii)</enum><text>any put, call,
straddle, option, or privilege on any security, certificate of deposit, or
group or index of securities, including any interest therein or based, in whole
or in part, on the value thereof, whether physically or cash settled;</text>
</clause><clause id="id65B593C3484B4B3D883A08F5CA560F60"><enum>(iv)</enum><text>any put, call,
straddle, option, or privilege entered into on a national securities exchange
registered pursuant to section 6(a) relating to foreign currency;</text>
</clause><clause id="idCE5A76A151EC4410A00D502F51E6150F"><enum>(v)</enum><text>any agreement,
contract, or transaction providing for the purchase or sale of 1 or more
securities on a fixed basis, whether physically or cash settled;</text>
</clause><clause id="id3CB3449BBEC3469B8A0CB81CC1BFE01C"><enum>(vi)</enum><text>any agreement,
contract, or transaction providing for the purchase or sale of 1 or more
securities on a contingent basis, unless such agreement, contract, or
transaction predicates such purchase or sale on the occurrence of a bona fide
contingency that might reasonably be expected to affect or be affected by the
creditworthiness of a party other than a party to the agreement, contract, or
transaction;</text>
</clause><clause id="idC96E63C700F44859A77273C66FC4B2FB"><enum>(vii)</enum><text>any note, bond,
or evidence of indebtedness that is a security (as defined in section 2(a)(1)
of the Securities Act of 1933 (15 U.S.C. 77b(a)(1)) or paragraph (10) of this
subsection);</text>
</clause><clause id="id53CBDCEC71EE4749AA58913E35E66DCD"><enum>(viii)</enum><text>any agreement,
contract, or transaction that is—</text>
<subclause id="id9ECDC5EC4D784633941EEAF922D83C0D"><enum>(I)</enum><text>based on, or
references, a security; and</text>
</subclause><subclause id="id68102C9329184ADA9BD1CF23A09A47BD"><enum>(II)</enum><text>entered into
directly or through an underwriter (as defined in section 2(a)(11) of the
Securities Act of 1933 (15 U.S.C. 77b(a)(11))) by the issuer of such
security;</text>
</subclause></clause><clause id="id26BCFA65E9CD44AEA989F1A6058EF701"><enum>(ix)</enum><text>any security
future product (as defined in paragraph (56));</text>
</clause><clause id="id5EAC5783B74D487FAF63AD07B5CD14D1"><enum>(x)</enum><text>any hybrid
instrument that is predominantly a banking product, as provided in section 405
of the Commodity Futures Modernization Act of 2000 (Public Law 106–554; 114
Stat. 2763A–455), or any hybrid instrument that is predominantly a security, as
provided in section 2(f) of the Commodity Exchange Act (as in effect on the day
before the date of enactment of the <short-title>Comprehensive Derivatives Regulation Act of
2009</short-title>);</text>
</clause><clause id="idAD1517B0B3CD4F149FBC0AC30659701A"><enum>(xi)</enum><text>any agreement,
contract, or transaction that is an insurance or endowment policy or annuity
contract or optional annuity contract issued by a corporation that is subject
to the supervision of the insurance commissioner, bank commissioner, or any
agency or officer performing like functions, of any State; or</text>
</clause><clause id="id0028866A2176453B8EEC4CA9F37049AD"><enum>(xii)</enum><text>any identified
banking product specified in paragraphs (1) through (5) of section 206(a) of
the Gramm-Leach-Bliley Act (15 U.S.C. 78c note), mortgage or mortgage purchase
commitment, or any sale of installment loan contracts or receivables, if any
such product or instrument is not marketed or sold as an alternative to a
swap.</text>
</clause></subparagraph></paragraph><paragraph id="ID01813031c18a483f8c9c878c30d3433a"><enum>(67)</enum><header>Eligible
contract participant</header><text>The term <term>eligible contract
participant</term> means—</text>
<subparagraph id="ID78a58ee0614f41c68a4c3dc03a6c0aae"><enum>(A)</enum><text>acting for its
own account—</text>
<clause commented="no" id="ID1fe4860f5dc64e388be65b3dd7f6388d"><enum>(i)</enum><text>a financial
institution (as defined in section 1a(15) of the Commodity Exchange Act (7
U.S.C. 1(a)(15)), as in effect on the day before the date of enactment of the
<short-title>Comprehensive Derivatives Regulation Act of
2009</short-title>);</text>
</clause><clause id="IDe96f7644dd2c4184937c21874623028d"><enum>(ii)</enum><text>an insurance
company that is regulated by a State, or that is regulated by a foreign
government and is subject to comparable regulation, as determined by the
Commission, including a regulated subsidiary or affiliate of such an insurance
company;</text>
</clause><clause id="ID31eb22a5399742cd9b9baae2eefab91e"><enum>(iii)</enum><text>an investment
company that is subject to regulation under the Investment Company Act of 1940
(15 U.S.C. 80a–1 et seq.) or a foreign person performing a similar role or
function subject as such to foreign regulation (regardless of whether each
investor in the investment company or the foreign person is itself an eligible
contract participant);</text>
</clause><clause id="IDce3b0d7b9fbf471eaff5beaff829b263"><enum>(iv)</enum><text>a commodity pool
that—</text>
<subclause id="ID599cdf5b446c42a8aaec1054b142be88"><enum>(I)</enum><text>has total net
assets exceeding $5,000,000; and</text>
</subclause><subclause id="ID90bce939c4e14bd08caabe23c104866b"><enum>(II)</enum><text>is formed and
operated by a person that is subject to regulation under the Commodity Exchange
Act (7 U.S.C. 1 et seq.) or a foreign person performing a similar role or
function subject as such to foreign regulation (regardless of whether each
investor in the commodity pool or the foreign person is itself an eligible
contract participant);</text>
</subclause></clause><clause id="ID7b8b9de69c794ebb87bfdb336e0449b5"><enum>(v)</enum><text>a
corporation, partnership, proprietorship, organization, trust, or other
entity—</text>
<subclause id="ID21af412838fa4de288eb10d25602031b"><enum>(I)</enum><text>that has total
net assets exceeding $10,000,000; or</text>
</subclause><subclause id="ID52eedb3b14f642ca931e9e166f591f05"><enum>(II)</enum><text>that—</text>
<item id="IDd0f523b92fd74cdb9c81887af4576e54"><enum>(aa)</enum><text>has total net
assets exceeding $5,000,000; and</text>
</item><item id="ID83557d4a1aca4570a0c14583c16738a1"><enum>(bb)</enum><text>enters into an
agreement, contract, or transaction in connection with the conduct of the
business of the entity or to manage the risk associated with an asset or
liability owned or incurred or reasonably likely to be owned or incurred by the
entity in the conduct of the business of the entity;</text>
</item></subclause></clause><clause id="ID6c147e45a8bb49f5b87638f03c19ec7d"><enum>(vi)</enum><text>an employee
benefit plan that is subject to the Employee Retirement Income Security Act of
1974 (29 U.S.C. 1001 et seq.), a governmental employee benefit plan, or a
foreign person performing a similar role or function that is subject as such to
foreign regulation—</text>
<subclause id="IDcec94f1c645d4400a38a22c46407904c"><enum>(I)</enum><text>that has total
assets exceeding $5,000,000; or</text>
</subclause><subclause id="ID2102920af9d641b382cc9a2f66f646a1"><enum>(II)</enum><text>the investment
decisions of which are made by—</text>
<item id="ID831f0a0141724787897553874f712359"><enum>(aa)</enum><text>an
investment adviser or commodity trading advisor that is subject to regulation
under the Investment Advisers Act of 1940 (15 U.S.C. 80b–1 et seq.) or the
Commodity Exchange Act (7 U.S.C. 1 et seq.);</text>
</item><item id="ID460944a01c4f47238385d5332801d719"><enum>(bb)</enum><text>a
foreign person performing a similar role or function that is subject as such to
foreign regulation;</text>
</item><item commented="no" id="IDe4612e22a89f408e9189df054ad4e626"><enum>(cc)</enum><text>a financial
institution (as defined in section 1a(15) of the Commodity Exchange Act (7
U.S.C. 1(a)(15)), as in effect on the day before the date of enactment of the
<short-title>Comprehensive Derivatives Regulation Act of
2009</short-title>); or</text>
</item><item id="IDce64a04ddc1046a39b89293dc7c8b8c9"><enum>(dd)</enum><text>an
insurance company described in clause (ii), or a regulated subsidiary or
affiliate of such an insurance company;</text>
</item></subclause></clause><clause id="IDd7d375ea15e849c1bd0657bade262d6d"><enum>(vii)</enum><subclause commented="no" display-inline="yes-display-inline" id="id17A4D7687B34412788585A669291C23B"><enum>(I)</enum><text>a governmental entity
(including the United States, a State, or a foreign government) or political
subdivision of a governmental entity;</text>
</subclause><subclause id="id11F34FEC69354AF296DB092ECB36D55C" indent="up1"><enum>(II)</enum><text>a multinational or supranational
government entity; or</text>
</subclause><subclause id="id0C8E271959324817BD6C442642F97FEE" indent="up1"><enum>(III)</enum><text>an instrumentality, agency, or
department of an entity described in subclause (I) or (II),</text>
</subclause><continuation-text continuation-text-level="clause">except that
such term does not include an entity, political subdivision, instrumentality,
agency, or department referred to in subclause (I) or (III), unless the entity,
political subdivision, instrumentality, agency, or department owns and invests
on a discretionary basis $50,000,000 or more in investments, provided that,
with respect to any State or entity, political subdivision, agency, or
department of a State, such amount is exclusive of any proceeds from any
offering of municipal securities;</continuation-text></clause><clause id="ID25b3578238c947d4bc015c826184cb75"><enum>(viii)</enum><subclause commented="no" display-inline="yes-display-inline" id="idB7E0F4CCB4064A85A561E126D8E1A8E1"><enum>(I)</enum><text>a broker or dealer that
is subject to regulation under this title or a foreign person performing a
similar role or function that is subject as such to foreign regulation, except
that, if the broker or dealer or foreign person is a natural person or
proprietorship, the broker or dealer or foreign person shall not be considered
to be an eligible contract participant, unless the broker or dealer or foreign
person also meets the requirements of clause (v) or (xi);</text>
</subclause><subclause id="idC1C8EC3CB287401185A6E9A326F50CA7" indent="up1"><enum>(II)</enum><text>an associated person of a registered
broker or dealer concerning the financial or securities activities, of which,
the registered person makes and keeps records under section 15C(b) or 17(h);
and</text>
</subclause><subclause id="id48E1B567D2B54453A28F6DBEFA6E150C" indent="up1"><enum>(III)</enum><text>an investment bank holding company (as
defined in section 17(i));</text>
</subclause></clause><clause id="IDab3cec5f08534d3599cd5a9f21a734fd"><enum>(ix)</enum><text>a futures
commission merchant that is subject to regulation under the Commodity Exchange
Act or a foreign person performing a similar role or function that is subject
as such to foreign regulation, except that, if the futures commission merchant
or foreign person is a natural person or proprietorship, the futures commission
merchant or foreign person shall not be considered to be an eligible contract
participant, unless the futures commission merchant or foreign person also
meets the requirements of clause (v) or (xi);</text>
</clause><clause commented="no" id="ID824aceadfaed40ee9e98cbafb71cd3d4"><enum>(x)</enum><text>a floor broker or
floor trader that is subject to regulation under the Commodity Exchange Act in
connection with any transaction that takes place on or through the facilities
of a registered entity (as defined in section 1a(29) of the Commodity Exchange
Act (7 U.S.C. 1(a)(29)), as in effect on the day before the date of enactment
of the <short-title>Comprehensive Derivatives Regulation
Act of 2009</short-title>, other than an electronic trading facility with
respect to a significant price discovery contract), or an exempt board of trade
operating under section 5d of the Commodity Exchange Act (7 U.S.C. 7a–3), or
any affiliate thereof, on which such person regularly trades; or</text>
</clause><clause id="ID460afe0cfb2648b7b7bd1bf929933dea"><enum>(xi)</enum><text>a natural person
who—</text>
<subclause id="ID154fff941dfb4fc3a5e1c015aa501ac2"><enum>(I)</enum><text>owns and invests
on a discretionary basis not less than $10,000,000;</text>
</subclause><subclause id="IDdd29d7562aea4872a008d0b88842fad0"><enum>(II)</enum><text>owns and invests
on a discretionary basis not less than $5,000,000 and who enters into the
agreement, contract, or transaction in order to manage the risk associated with
an asset owned or liability incurred, or reasonably likely to be owned or
incurred, by the individual; or</text>
</subclause><subclause id="ID3cb022c744d94c33bbd7965e2add4bd3"><enum>(III)</enum><text>is an officer
or director of an entity (or a person performing similar functions) and who
enters into the agreement, contract, or transaction in order to manage the risk
associated with the securities of such entity owned by the individual at the
time of entering into the agreement, contract, or transaction;</text>
</subclause></clause></subparagraph><subparagraph id="IDa25c52a7ff164f44a0285830d6415c48"><enum>(B)</enum><clause commented="no" display-inline="yes-display-inline" id="id12B2D0B4CE294D908FB658F5492606E3"><enum>(i)</enum><text>a person described in
clause (i), (ii), (iv), (v), (viii), (ix), or (x) of subparagraph (A) or in
subparagraph (C), acting as broker or performing an equivalent agency function
on behalf of another person described in subparagraph (A) or (C); or</text>
</clause><clause id="id8190AC791B5847D785654A45D4726CF6" indent="up1"><enum>(ii)</enum><text>an investment adviser that is
subject to regulation under the Investment Advisers Act of 1940 (15 U.S.C.
80b–1 et seq.), a commodity trading advisor that is subject to regulation under
the Commodity Exchange Act (7 U.S.C. 1 et seq.), a foreign person performing a
similar role or function that is subject as such to foreign regulation, or a
person described in clause (i), (ii), (iv), (v), (viii), (ix), or (x) of
subparagraph (A) or in subparagraph (C), in any such case acting as investment
manager or fiduciary (but excluding a person acting as broker or performing an
equivalent agency function) for another person described in subparagraph (A) or
(C) and who is authorized by such person to commit such person to the
transaction; or</text>
</clause></subparagraph><subparagraph id="ID368d1399c3204d139e514f1f8046592e"><enum>(C)</enum><text>any other person
that the Commission determines by rule, jointly with the Commodity Futures
Trading Commission, to be an eligible contract participant, in light of the
financial or other qualifications of the person.</text>
</subparagraph></paragraph><paragraph commented="no" id="IDe464b7bea0ec4dd5942294d4741a1be1"><enum>(68)</enum><header>Person
associated with a significant security-based derivatives market
participant</header>
<subparagraph id="IDc9762cd4109b4e8881c1d004bca8b9fe"><enum>(A)</enum><header>In
general</header><text>The term <term>person associated with a significant
security-based derivatives market participant</term> or <term>associated person
of a significant security-based derivatives market participant</term>
means—</text>
<clause id="ID17eb4551f8b94289a3aa85f7cf6ea91f"><enum>(i)</enum><text>any partner,
officer, director, or branch manager of a significant security-based
derivatives market participant (including any individual who holds a similar
status or performs a similar function with respect to any partner, officer,
director, or branch manager of a significant security-based derivatives market
participant);</text>
</clause><clause id="IDdadab53a74d44046b37e33845d9869b1"><enum>(ii)</enum><text>any person that
directly or indirectly controls, is controlled by, or is under common control
with a significant security-based derivatives market participant; and</text>
</clause><clause id="ID93345ace32a946d39dd40b0a9d0330f5"><enum>(iii)</enum><text>any employee of
a significant security-based derivatives market participant.</text>
</clause></subparagraph><subparagraph id="ID4755a2d5cf38409ead42acfa0958d7ae"><enum>(B)</enum><header>Exclusion</header><text>Other
than for purposes of section 15F(e)(2), the term <term>person associated with a
significant commodity-based derivatives market participant</term> or
<term>associated person of a significant security-based derivatives market
participant</term> does not include any person associated with a significant
security-based derivatives market participant, the functions of which are
solely clerical or ministerial.</text>
</subparagraph></paragraph><paragraph id="ID77f6f2247ebe463fb56e586cd1f68689"><enum>(69)</enum><header>Security
derivative</header><text>The term <term>security derivative</term>
means—</text>
<subparagraph id="IDeb80a764cdf4412da591a9683916a2d9"><enum>(A)</enum><text>any derivative,
other than a derivative instrument swap, on or related to—</text>
<clause id="ID34bbe4b97bed4af593dbf1034815abad"><enum>(i)</enum><text>any security, or
group or index of securities (including any interest therein or based on the
value thereof); or</text>
</clause><clause id="ID33b6b47bbfaa453783191e157c14de3c"><enum>(ii)</enum><text>any issuer of
securities or group or index of issuers of securities (including any interest
therein or based on the value thereof); and</text>
</clause></subparagraph><subparagraph id="ID2aace3508d4c42efbbb43a21ad7c058b"><enum>(B)</enum><text>any security that
the Commission by rule, regulation, or order determines is a security
derivative.</text>
</subparagraph></paragraph><paragraph id="IDe4ff0fbc705a4bdeb93d5e9165ea7ee5"><enum>(70)</enum><header>Security-based
swap</header><text>The term <term>security-based swap</term> means a swap, of
which a material term—</text>
<subparagraph id="IDedb0963311334f75b7bcdb6637c10efc"><enum>(A)</enum><text>is based on the
price, yield, value, or volatility of any security or any group or index of
securities, or any interest therein, other than interest rate or
currency;</text>
</subparagraph><subparagraph id="ID191d40c59fac4d95932f855ed8d62b4c"><enum>(B)</enum><text>is dependent on
the occurrence, nonoccurrence, or the extent of the occurrence of an event or
contingency associated with a potential financial, economic, or commercial
consequence that is related to or based on a security, an interest in a
security, an issuer of a security, or group or index of securities, or
interests in securities or issuers of securities, or based on the value of any
of the foregoing;</text>
</subparagraph><subparagraph id="ID25082ebc0b1e4705bc8710a467528b57"><enum>(C)</enum><text>provides for the
purchase or sale of 1 or more securities on a contingent basis, whether
physically or cash settled, if such agreement, contract, or transaction
predicates such purchase or sale on the occurrence of a bona fide contingency
that might reasonably be expected to affect or be affected by the
creditworthiness of a party other than a party to the agreement, contract, or
transaction; or</text>
</subparagraph><subparagraph id="ID65088ec90db4407ba8cc0319e2375aea"><enum>(D)</enum><text>allows for
settlement of the swap by delivery of, or by reference to, any security.</text>
</subparagraph></paragraph><paragraph commented="no" id="IDe81175fa51c246538fbf9b6b3b916bab"><enum>(71)</enum><header>Significant
security-based derivatives market participant</header><text>The term
<term>significant security-based derivatives market participant</term>
means—</text>
<subparagraph commented="no" id="ID62c1f29f263e41e4be2e1fe19c470f57"><enum>(A)</enum><text>any person (other
than an investment company registered under the Investment Company Act of 1940)
that is engaged in the business of purchasing or selling one or more
security-based swaps (or security derivatives, as the Commission determines by
rule, regulation, or order) for such person’s own account or for others, or
making a market in security-based swaps (or security derivatives, as the
Commission determines by rule, regulation, or order), the purchases or sales of
which are not solely for the purpose of managing the risk associated
with—</text>
<clause commented="no" id="id9AF82AE1B5B547158A54AB7B9A9976AB"><enum>(i)</enum><text>an asset that is
or is anticipated to be owned, produced, manufactured, processed, or
merchandised;</text>
</clause><clause commented="no" id="idE6A517B874BB4951802A5D17FCC2A14B"><enum>(ii)</enum><text>potential
changes in the value of services to be purchased or provided, or anticipated to
be purchased or provided; or</text>
</clause><clause commented="no" id="id360D6342039D4F528027585DE05FF54D"><enum>(iii)</enum><text>a liability
incurred or anticipated to be incurred by such person that is not, or is not
related to, a security-based swap; or</text>
</clause></subparagraph><subparagraph commented="no" id="IDcffd205141bb4916b79279e9a46cbdad"><enum>(B)</enum><text>any other person
designated by the Commission, by rule, regulation, or order, after consultation
with the Commodity Futures Trading Commission, as necessary or appropriate in
the public interest, the protection of investors, or in furtherance of the
purposes of this title.</text>
</subparagraph></paragraph><paragraph id="ID96841ba30d08467a86fbd113421d5f49"><enum>(72)</enum><header>Trade
repository</header><text>The term <term>trade repository</term> means any
person that collects, calculates, processes, or prepares information with
respect to transactions or positions in security-based swaps or security
derivatives by the Commission under section
17C(d)(1)(A)(ii).</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="ID5a0f6670ebfa4f258301e1a7d9a54440"><enum>(b)</enum><header>Definitions
under the Securities Act of 1933</header><text>Section 2(a) of the Securities
Act of 1933 (15 U.S.C. 77b(a)) is amended—</text>
<paragraph id="IDcd2f6e0a753d4c2b9e587a5d20ea9138"><enum>(1)</enum><text>in paragraph (1),
by inserting <quote>security-based swap,</quote> after <quote>security
future,</quote>;</text>
</paragraph><paragraph id="ID6a6dfa636b7f4825bbfe55fb619ecfd4"><enum>(2)</enum><text>in paragraph (3),
by adding at the end the following: “Any offer or sale of a security-based swap
(or other security derivative as the Commission determines by rule or
regulation) by or on behalf of the issuer of the securities upon which such
security-based swap or security derivative is based or is referenced, an
affiliate of the issuer, or an underwriter, shall constitute a contract for
sale of, sale of, offer for sale, or offer to sell such securities.”;
and</text>
</paragraph><paragraph id="ID785262ccb405457ebd665cd46cec9083"><enum>(3)</enum><text>by adding at the
end the following:</text>
<quoted-block display-inline="no-display-inline" id="id8054B874E464460487D9A417F1FF1C8A" style="OLC">
<paragraph id="ID0bd1a5158554464dbf5d19c1ce36bdfa"><enum>(17)</enum><text>The terms
<term>derivative</term>, <term>swap</term>, <term>security derivative</term>
and <term>security-based swap</term> have the same meanings as in paragraphs
(65), (66), (69), and (70), respectively, of section 3(a) of the Securities
Exchange Act of 1934.</text>
</paragraph><paragraph id="ID092e245c1ad14b80b31d47bc96b30a1c"><enum>(18)</enum><text>The terms
<term>purchase</term> or <term>sale</term> of a security-based swap, shall be
deemed to mean the execution, termination (prior to its scheduled maturity
date), assignment, exchange, or similar transfer or conveyance of, or
extinguishing of rights or obligations under, a security-based swap, as the
context may
require.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection></section><section id="IDa359252fab2a43c5bf3f5db39d8e0c11"><enum>102.</enum><header>Rationalization
of financial product oversight</header>
<subsection id="IDc51c381bb277430b86c9c312912a4e38"><enum>(a)</enum><header>Repeal of swap
agreement exclusion</header>
<paragraph id="ID3f74d22ba7ec4519bc28f1767724c71c"><enum>(1)</enum><header>Repeal of
laws</header><text>The following provisions of law are repealed:</text>
<subparagraph id="ID0e1de57e60ff478c8e1ed23277b209ed"><enum>(A)</enum><text>Sections 206A,
206B, and 206C of the Gramm-Leach-Bliley Act (15 U.S.C. 78c note).</text>
</subparagraph><subparagraph id="ID785d4e72ca074e339c9f748a094e3833"><enum>(B)</enum><text>Section 2A of the
Securities Act of 1933 (15 U.S.C. 77b–1).</text>
</subparagraph><subparagraph id="ID29bfd0d3804f453291b833ce3c87ade8"><enum>(C)</enum><text>Section 17(d) of
the Securities Act of 1933 (15 U.S.C. 77q(d)).</text>
</subparagraph><subparagraph id="ID0dc3dbdac36544aa897721ff2df48fea"><enum>(D)</enum><text>Section 3A of the
Securities Exchange Act of 1934 (15 U.S.C. 78c–1).</text>
</subparagraph><subparagraph id="ID970c04d81ea840418e554a3366fd2157"><enum>(E)</enum><text>Section 9(i) of
the Securities Exchange Act of 1934 (15 U.S.C. 78i(i)).</text>
</subparagraph><subparagraph id="ID4014234dcb014f63babe618b3c3098cb"><enum>(F)</enum><text>Section 15(i) of
the Securities Exchange Act of 1934 (15 U.S.C. 78o(i)), as added by section
303(f) of the Commodity Futures Modernization Act of 2000 (Public Law 106–554;
114 Stat. 2763A–455).</text>
</subparagraph><subparagraph id="IDd7c33f45939b430aac60e2cc49ab2e3a"><enum>(G)</enum><text>Section 16(g) of
the Securities Exchange Act of 1934 (15 U.S.C. 78p(g)).</text>
</subparagraph><subparagraph id="IDb5e4bef4ad7a490493e55852efe340c2"><enum>(H)</enum><text>Section 20(f) of
the Securities Exchange Act of 1934 (15 U.S.C. 78t(f)).</text>
</subparagraph><subparagraph id="IDecd6ffac7d9e49dca9616528a1703ea9"><enum>(I)</enum><text>Section 21A(g) of
the Securities Exchange Act of 1934 (15 U.S.C. 78u–1(g)).</text>
</subparagraph></paragraph><paragraph id="ID3938b334e3534fcbbc784aa570c7fad0"><enum>(2)</enum><header>Conforming
amendment to the securities Act of 1933</header><text>Section 17(a) of the
Securities Act of 1933 (15 U.S.C. 77q(a)) is amended by striking <quote>or any
security-based swap agreement (as defined in section 206B of the
Gramm-Leach-Bliley Act)</quote>.</text>
</paragraph><paragraph id="IDf6bc5d6c0b644a75857739a748711638"><enum>(3)</enum><header>Conforming
amendments to the Securities Exchange Act of 1934</header><text>The Securities
Exchange Act of 1934 (15 U.S.C. 78a et seq.) is amended—</text>
<subparagraph id="idBDC3278F334543EFBCBBD47CA8989767"><enum>(A)</enum><text>in section 9(a)
(15 U.S.C. 78i(a))—</text>
<clause id="id438125B103EC46DE89AB5ADAD31046E4"><enum>(i)</enum><text>in
paragraph (1)—</text>
<subclause id="id59B9A9F5384844F8BAEE46BE840977E9"><enum>(I)</enum><text>by striking
<quote>For the</quote> and inserting <quote>for the</quote>; and</text>
</subclause><subclause id="idE173D2EB9D3C415C8709619698515E72"><enum>(II)</enum><text>by striking the
period at the end an inserting a semicolon; and</text>
</subclause></clause><clause id="id008AA8F19D8941D4BE8A8F150BA6BA55"><enum>(ii)</enum><text>by
striking paragraphs (2) through (5) and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="idB84FC303851740AE87CC4E8848F9B56A" style="OLC">
<paragraph id="ID7bdc16d826e847c9867f7fa88e9d9bbd"><enum>(2)</enum><text>to effect, alone
or with 1 or more other persons, a series of transactions in any security
registered on a national securities exchange or in connection with any
security-based swap (or security derivative, as the Commission determines by
rule, regulation, or order) with respect to such security creating actual or
apparent active trading in such security, or raising or depressing the price of
such security, for the purpose of inducing the purchase or sale of such
security by others;</text>
</paragraph><paragraph id="ID758546ef9e9e4dc9a718409458c2e2cb"><enum>(3)</enum><text>if a broker or
dealer, or other person selling or offering for sale or purchasing or offering
to purchase the security to induce the purchase or sale of any security
registered on a national securities exchange or any security-based swap (or
security derivative, as the Commission determines by rule, regulation, or
order) with respect to such security by the circulation or dissemination in the
ordinary course of business of information to the effect that the price of any
such security will or is likely to rise or fall because of market operations of
any 1 or more persons conducted for the purpose of raising or depressing the
price of such security;</text>
</paragraph><paragraph id="IDe98526ab9b51408a8bfcb3e1aa63b77a"><enum>(4)</enum><text>if a broker or
dealer, or the person selling or offering for sale or purchasing or offering to
purchase the security, to make, regarding any security registered on a national
securities exchange or any security-based swap (or security derivative, as the
Commission determines by rule, regulation, or order) with respect to such
security, for the purpose of inducing the purchase or sale of such security or
such security-based swap (or security derivative, as the Commission determines
by rule, regulation, or order), any statement which was, at the time and in the
light of the circumstances under which it was made, false or misleading with
respect to any material fact, and which the broker, dealer, or such person knew
or had reasonable grounds to believe was false or misleading;</text>
</paragraph><paragraph id="ID816bc24d557547df8de8e4bde639a80c"><enum>(5)</enum><text>for a
consideration, received directly or indirectly from a broker or dealer, or
other person selling or offering for sale or purchasing or offering to purchase
the security, to induce the purchase of any security registered on a national
securities exchange or any security-based swap (or security derivative, as the
Commission determines by rule, regulation, or order) with respect to such
security by the circulation or dissemination of information to the effect that
the price of any such security will or is likely to rise or fall because of the
market operations of any one or more persons conducted for the purpose of
raising or depressing the price of such security;
or</text>
</paragraph><after-quoted-block>; </after-quoted-block></quoted-block>
</clause></subparagraph><subparagraph id="IDee792cba6225427abb23bb4b68e774dd"><enum>(B)</enum><text>in section 10(b)
(15 U.S.C. 78j(b))—</text>
<clause id="IDacc0c9cc4403407794929b16f00958af"><enum>(i)</enum><text>by
striking <quote>or any securities-based swap agreement (as defined in section
206B of the Gramm-Leach-Bliley Act),</quote>; and</text>
</clause><clause id="IDfc0a4ea9ed6f4a8f9503d0dbee0534a4"><enum>(ii)</enum><text>by
striking <quote>Rules promulgated under subsection (b)</quote> and all that
follows through <quote>as they apply to securities</quote>;</text>
</clause></subparagraph><subparagraph id="ID42d55a43d35c4715aad689efc197f517"><enum>(C)</enum><text>in section
15(c)(1) (15 U.S.C. 78o(c)(1))—</text>
<clause id="idA1B41287A63D49F4B04E97AF6C704C71"><enum>(i)</enum><text>in
subparagraph (A) by striking <quote>, or any security-based swap agreement (as
defined in section 206B of the Gramm-Leach-Bliley Act),</quote>; and</text>
</clause><clause id="IDee34293ad6c04a8684b9b20b04b7f928"><enum>(ii)</enum><text>in
each of subparagraphs (B) and (C), by striking <quote>swap agreement (as
defined in section 206B of the Gramm-Leach-Bliley Act)</quote> each place that
term appears and inserting <quote>swap</quote>;</text>
</clause></subparagraph><subparagraph id="ID0df005e4989340f488638c4111701523"><enum>(D)</enum><text>in section
16(a)(2)(C) (15 U.S.C. 78p(a)(2)(C)), by striking <quote>swap agreement (as
defined in section 206(b) of the Gramm-Leach-Bliley Act)</quote> and inserting
<quote>swap (or security derivative, as the Commission determines by rule,
regulation, or order)</quote>;</text>
</subparagraph><subparagraph id="IDb5b46e7a12cd4f6db262f8f51ca06734"><enum>(E)</enum><text>in section
16(a)(3)(B) (15 U.S.C. 78p(a)(3)(B)), by striking <quote>security-based swap
agreement</quote> and inserting <quote>swap (or security derivative, as the
Commission determines by rule, regulation, or order)</quote>;</text>
</subparagraph><subparagraph id="idEF5A1A6109DF47F88206BA908B33BE05"><enum>(F)</enum><text>in section 16(b)
(15 U.S.C. 78p(b))—</text>
<clause id="id7AAF71AB91BF4E0D93A89437939CF077"><enum>(i)</enum><text>by
striking <quote>(as defined in section 206B of the Gramm-Leach-Bliley
Act)</quote> each place that term appears and inserting <quote>; (or security
derivative, as the Commission determines by rule, regulation, or
order)</quote>; and</text>
</clause><clause id="id93BF77EA34DB4F75816E0514E766A5A5"><enum>(ii)</enum><text>by
striking <quote>swap agreement</quote> each place that term appears and
inserting <quote>swap (or security derivative, as the Commission determines by
rule, regulation, or order)</quote>;</text>
</clause></subparagraph><subparagraph id="IDa32ca5b84c6648aaa20435fbe4f79c1d"><enum>(G)</enum><text>in section 20(d)
(15 U.S.C. 78t(d)), by striking <quote>or security-based swap agreement (as
defined in section 206B of the Gramm-Leach-Bliley Act) with respect to such
security</quote> and inserting <quote>, security futures product or
swap</quote>; and</text>
</subparagraph><subparagraph id="IDcaebbb563ea5409b974649c8fc0fe1d1"><enum>(H)</enum><text>in section
21A(a)(1) (15 U.S.C. 78u–1(a)(1)), by striking <quote>or security-based swap
agreement (as defined in section 206B of the Gramm-Leach-Bliley
Act)</quote>.</text>
</subparagraph></paragraph></subsection><subsection id="ID4eb14fe8687c4396b6cfd930c05d8ef0"><enum>(b)</enum><header>Rationalization
of security futures oversight</header>
<paragraph id="ID2ab830fda28244098c47c940a1fd6392"><enum>(1)</enum><header>Amendments to
the Securities Exchange Act of 1934</header><text>The Securities Exchange Act
of 1934 (15 U.S.C. 78a et seq.) is amended—</text>
<subparagraph id="ID6919b90a4a3846c18d9dd7bacf462c5f"><enum>(A)</enum><text>in section 3(a)
of (15 U.S.C. 78c(a)), by striking paragraph (55) and inserting the
following:</text>
<quoted-block display-inline="no-display-inline" id="id2664A46F1EC249D0900C04E71FC0DF28" style="OLC">
<paragraph id="id996EA57EC41246DB8388F0F8FBF0CAA2"><enum>(55)</enum><text>The term
<term>security future</term>—</text>
<subparagraph id="id9587A991DF4249D5AB01F2BF451C393C"><enum>(A)</enum><text>means a contract
of sale for future delivery of a security or an index of securities, including
any interest therein or based on the value thereof, or based on any financial,
economic, or commercial occurrence, extent of an occurrence, contingency, or
consequence that is related to or based on a security, an interest in a
security, an issuer of a security, or group or index of securities, or
interests in securities or issuers of securities, or based on the value of any
of the foregoing, other than an exempted security under paragraph (12), as in
effect on the date of enactment of the Futures Trading Act of 1982 (other than
a municipal security, under paragraph (29), as in effect on the date of
enactment of the Futures Trading Act of 1982); and</text>
</subparagraph><subparagraph id="id80EA013630A64B508468BE042D36EFF4"><enum>(B)</enum><text>does not include
any security-based
swap.</text>
</subparagraph></paragraph><after-quoted-block>;</after-quoted-block></quoted-block>
</subparagraph><subparagraph commented="no" id="idBB06211D8B39462D93D9219A85F27A71"><enum>(B)</enum><text>in section 6 (15
U.S.C. 78f)—</text>
<clause commented="no" id="id3AC1E74FC23B42B18E92A81D14E36B27"><enum>(i)</enum><text>by striking
subsections (g), (i), and (k);</text>
</clause><clause commented="no" id="idE720DB5EA9A44A05B07A568B0B64E734"><enum>(ii)</enum><text>by redesignating
subsections (h) and (j) as subsections (g) and (h), respectively; and</text>
</clause><clause id="IDad255909d3be4af18458dd3869442ddf"><enum>(iii)</enum><text>in subsection
(g), as so redesignated—</text>
<subclause id="IDea9ae1677cae4ee186a2365cd5dfd779"><enum>(I)</enum><text>in paragraph
(2)—</text>
<item id="id816541A902C744BC93EAE39007D588C1"><enum>(aa)</enum><text>by
striking <quote>(A)</quote>; and</text>
</item><item id="IDccd4f4befb32466bb39be7ec6e7a5981"><enum>(bb)</enum><text>by
striking <quote>and (B) meet the criteria specified in section 2(a)(1)(D)(i) of
the Commodity Exchange Act</quote>;</text>
</item></subclause><subclause id="IDe27706891d3441409dff2eb64e9ae89d"><enum>(II)</enum><text>in paragraph
(3)(A), by striking <quote>security of a narrow-based security</quote> and
inserting <quote>of an</quote>;</text>
</subclause><subclause id="ID86e062d859404b44b21a9234a47b4fc9"><enum>(III)</enum><text>in paragraph
(3)(D), by striking <quote>and the Commodity Futures Trading Commission jointly
determine</quote> and inserting <quote>determines</quote>;</text>
</subclause><subclause id="ID1e0864d853ea464ab6844d1405159496"><enum>(IV)</enum><text>in paragraph
(3)(G), by striking <quote>the prohibition against dual trading in section 4j
of the Commodity Exchange Act (7 U.S.C. 6j) and the rules and regulations
thereunder or</quote>;</text>
</subclause><subclause id="ID17aa37e3b41c4266baf520546ec82db4"><enum>(V)</enum><text>in paragraph
(4)(A), by striking <quote>and the Commodity Futures Trading Commission, by
rule, regulation, or order, may jointly</quote> and inserting <quote>may, by
rule, regulation, or order,</quote>;</text>
</subclause><subclause id="ID872572be81c64fe48977a26ffe6b062e"><enum>(VI)</enum><text>in paragraph
(4)(B), by striking <quote>and the Commodity Futures Trading Commission, by
order, may jointly</quote> and inserting <quote>may, by order,</quote>;</text>
</subclause><subclause id="ID75e411f3ea4f49efb6a8bea7092c2323"><enum>(VII)</enum><text>in paragraph
(6)—</text>
<item id="id863BDC2A18D141D282DB54E90F07E223"><enum>(aa)</enum><text>by
striking <quote>and the Commodity Futures Trading Commission</quote>;</text>
</item><item id="id9BF2E33DC7C1450F951810893C292611"><enum>(bb)</enum><text>by
striking <quote>jointly</quote>; and</text>
</item><item id="id7824EB6647AD44AE85A03E6ACF034C5F"><enum>(cc)</enum><text>by
striking <quote>and the Commodity Exchange Act</quote>; and</text>
</item></subclause><subclause id="id496C313DC3EA469F9E705349FBC4F2A1"><enum>(VIII)</enum><text>in paragraph
(7)—</text>
<item id="id310F71F0B8474F11B37684BACE1A31E4"><enum>(aa)</enum><text>by
striking subparagraph (A) and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="id6438BA15C8174B3786C746BCDA5BDBCE" style="OLC">
<subparagraph id="id9C78D32FA14947F28EBA013A2DA34F2B"><enum>(A)</enum><text>Notwithstanding
paragraph (2), until the compliance date, a national securities exchange or
national securities association that is registered pursuant to section 15A(a)
may trade a security futures product that does not conform with any listing
standard promulgated to meet the requirement specified in subparagraph (E) of
paragraph (3).</text>
</subparagraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</item><item id="ID0d9301c0092545a59f577e3125653db9"><enum>(bb)</enum><text>in
subparagraph (B), by striking <quote>and the Commodity Futures Trading
Commission shall jointly</quote> and inserting <quote>shall</quote>;</text>
</item></subclause></clause></subparagraph><subparagraph id="ID6b7b942b7274497b9287e4a02d1fd397"><enum>(C)</enum><text>in section 7 (15
U.S.C. 78g)—</text>
<clause id="IDeb60e840e7274778920cdb247ad39ef6"><enum>(i)</enum><text>in
subsection (c)(2)(A)(ii), by striking <quote>and the Commodity Futures Trading
Commission shall jointly</quote> and inserting <quote>shall</quote>;</text>
</clause><clause id="ID2d2fd120244640f8b8115cba727b3ffe"><enum>(ii)</enum><text>in
subsection (c)(2)(A), by striking <quote>and the Commodity Futures Trading
Commission have not jointly</quote> and inserting <quote>has not</quote>;
and</text>
</clause><clause id="IDeba1bae157474038ac5d749285ee0bfe"><enum>(iii)</enum><text>in subsection
(c)(2)(B)—</text>
<subclause id="id5B4ACA3EA0B549BF9A6B7F6AF85E36AB"><enum>(I)</enum><text>by striking
<quote>and the Commodity Futures Trading Commission shall jointly</quote> and
inserting <quote>shall</quote>; and</text>
</subclause><subclause id="idC2F834E003A3492B979281E0CACCBFAD"><enum>(II)</enum><text>by striking
<quote>and the Commodity Futures Trading Commission jointly deem</quote> and
inserting <quote>deems</quote>;</text>
</subclause></clause></subparagraph><subparagraph commented="no" id="id095A3987CD96498FB3674A11A9701385"><enum>(D)</enum><text>in section 11A
(15 U.S.C. 78k–1), by striking subsection (e);</text>
</subparagraph><subparagraph commented="no" id="id71C0DE59923445FAA4C45B8C9BDF27FE"><enum>(E)</enum><text>in section 12(k)
(15 U.S.C. 78l(k))—</text>
<clause id="IDea6dffbc60d5437ab79e9b5f617dae67"><enum>(i)</enum><text>in
paragraph (1), by striking <quote>If the actions described in subparagraph (A)
or (B) involve a security futures product, the Commission shall consult with
and consider the views of the Commodity Futures Trading Commission.</quote>;
and</text>
</clause><clause id="ID5685a2a677ca4cb4b1b10f687c0f6d29"><enum>(ii)</enum><text>in
paragraph (2)(B), by striking <quote>If the actions described in subparagraph
(A) involve a security futures product, the Commission shall consult with and
consider the views of the Commodity Futures Trading Commission.</quote>;</text>
</clause></subparagraph><subparagraph id="idFDE1FC01CAFD4F60A987BF922374F143"><enum>(F)</enum><text>in section 15 (15
U.S.C. 78o)—</text>
<clause id="id521D416DD789450CB7AAD35D1D800521"><enum>(i)</enum><text>in
subsection (b), by striking paragraphs (11) and (12); and</text>
</clause><clause id="id8FC76076791342E8B88F57CDEFE074AE"><enum>(ii)</enum><text>in
subsection (c)(3)—</text>
<subclause id="id887DEB6091A54E8CA6FC46F3529E4F2E"><enum>(I)</enum><text>by striking
<quote>(A) No</quote> and inserting <quote>No</quote>; and</text>
</subclause><subclause id="idC92DDE8AA4C14B67A436BC2834731708"><enum>(II)</enum><text>by striking
subparagraph (B);</text>
</subclause></clause></subparagraph><subparagraph id="id5E3B6FA5E2E14E5C825BC2EB7A847532"><enum>(G)</enum><text>in section 15A
(15 U.S.C. 78o–3), by striking subsections (k), (l), and (m);</text>
</subparagraph><subparagraph id="id3B521DF1F9DC46E3961D5E505132C0E0"><enum>(H)</enum><text>in section 17(b)
(15 U.S.C. 78q(b))—</text>
<clause id="id27F0CAC6C3194844B077DFA8A6966E6E"><enum>(i)</enum><text>in
paragraph (1)—</text>
<subclause id="idD7A9529CDDAD4B778545E94FC9148123"><enum>(I)</enum><text>by striking
<quote>(1)</quote> and all that follows through <quote>All records</quote> and
inserting <quote>All records</quote>;</text>
</subclause><subclause id="id9E7FA5324C714CE48E277735FB4700D6"><enum>(II)</enum><text>by striking
<quote>of a—</quote> and all that follows through <quote>(A) registered</quote>
and inserting <quote>of a registered</quote>; and</text>
</subclause><subclause id="id8E8A07BF719C40B49F352FE4470D8A8C"><enum>(III)</enum><text>by striking
<quote>; or</quote> and all that follows through the end of subparagraph (B)
and inserting a period; and</text>
</subclause></clause><clause id="id46273BD06E9B4A338B9AEAB8B40D7565"><enum>(ii)</enum><text>by
striking paragraphs (2) through (4);</text>
</clause></subparagraph><subparagraph id="idC605209B4EEC48698F19D0A424C1EFA8"><enum>(I)</enum><text>in section 17A(b)
(15 U.S.C. 78q–1(b))—</text>
<clause id="id04D67BF38A4D4404A62B277759156832"><enum>(i)</enum><text>by
striking paragraph (7); and</text>
</clause><clause id="id8362D6E1A77A43FBAB39A0C6C76C6D62"><enum>(ii)</enum><text>by
redesignating paragraph (8) as paragraph (7);</text>
</clause></subparagraph><subparagraph id="id1ECF57EF832847D7ACE703428FE83F25"><enum>(J)</enum><text>in section 19 (15
U.S.C. 78s)—</text>
<clause id="id0421D68134FD48279C0795E88361DDA9"><enum>(i)</enum><text>in
subsection (b)—</text>
<subclause id="idD3E66042CB274B36BB8345A7893C5316"><enum>(I)</enum><text>by striking
paragraphs (7) and (9); and</text>
</subclause><subclause id="idA116AB93E68945099897F830F5787825"><enum>(II)</enum><text>by redesignating
paragraph (8) as paragraph (7); and</text>
</subclause></clause><clause id="idF1A37D98B7CB4379A57B748F25710B2E"><enum>(ii)</enum><text>in
subsection (d), by striking paragraph (3);</text>
</clause></subparagraph><subparagraph id="idAB819241F807455E8B58F0271DD06C54"><enum>(K)</enum><text>in section 21 (15
U.S.C. 78u), by striking subsection (i); and</text>
</subparagraph><subparagraph id="idF4CC2157C1A8448BB345429BCECEE570"><enum>(L)</enum><text>in section 28(e)
(15 U.S.C. 78bb(e)), by striking paragraph (4).</text>
</subparagraph></paragraph><paragraph id="IDc74123dd94f644cd9400a388f091b5ad"><enum>(2)</enum><header>Conforming
amendments to the Securities Act of 1933</header><text>The Securities Act of
1933 (15 U.S.C. 77 et seq.) is amended—</text>
<subparagraph id="ID75b0c3d38c1d416cbd6e213909609e17"><enum>(A)</enum><text>in section 2(a)
(15 U.S.C. 77b(a)), by striking paragraph (16) and inserting the
following:</text>
<quoted-block display-inline="no-display-inline" id="id71136AECB01044B28A8276D8D1A66B1D" style="OLC">
<paragraph id="idE2B863A6A3BB4C9999EB7224E43A7D19"><enum>(16)</enum><text>The terms
<term>security future</term> and <term>security futures product</term> have the
same meanings as in sections 3(a)(55) and 3(a)(56), respectively, of the
Securities Exchange Act of 1934.</text>
</paragraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</subparagraph><subparagraph id="ID9847a788a52740a6a0c7ab9c44e62108"><enum>(B)</enum><text>in section
3(a)(14)(A) (15 U.S.C. 77c(a)(14)(A)), by striking <quote>or exempt from
registration under subsection (b)(7) of such section 17A</quote>.</text>
</subparagraph></paragraph><paragraph id="ID0a305ff5b8564959bc58e6e4453105ad"><enum>(3)</enum><header>Conforming
amendment to the Investment Company Act of 1940</header><text>Section 2(a)(52)
of the Investment Company Act of 1940 (15 U.S.C. 80a–2(a)(52)) is amended to
read as follows:</text>
<quoted-block display-inline="no-display-inline" id="id64DC8B235817461B95378624FC31F4A4" style="OLC">
<paragraph id="id05B03372F25F441F9EB3191F0684992B"><enum>(52)</enum><text>The term
<term>security future</term> has the same meaning as in section 3(a)(55) of the
Securities Exchange Act of
1934.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="ID3ce7e8746034448e8d607dac4d762b3b"><enum>(4)</enum><header>Conforming
amendment to the Investment Advisers Act of 1940</header><text>Section
202(a)(27) of the Investment Advisers Act of 1940 (15 U.S.C. 80b–2(a)(27)) is
amended to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="id903A64E37A8A4EC8B3AD94DB05AF124B" style="OLC">
<paragraph id="idDB067226799143D784F149D6B5A3B483"><enum>(27)</enum><text>The term
<term>security future</term> has the same meaning as in section 3(a)(55) of the
Securities Exchange Act of
1934.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="ID2b898991fbdd432f97634f7f140db63a"><enum>(5)</enum><header>Conforming
amendments to the Securities Investor Protection Act of 1970</header><text>The
Securities Investor Protection Act of 1970 (15 U.S.C. 78aaa et seq.) is
amended—</text>
<subparagraph id="id711CE975DD70424581F14C4F8D12A4F2"><enum>(A)</enum><text display-inline="yes-display-inline">in section 3(a)(2)(A) (15 U.S.C.
78ccc(a)(2)(A))—</text>
<clause id="id2BE518A223A443978C13E89BC8A6AA0C"><enum>(i)</enum><text>in
clause (i), by inserting <quote>and</quote> after the semicolon at the
end;</text>
</clause><clause id="id0954F0126D9A4B0F981BBD35B0877CCA"><enum>(ii)</enum><text>in
clause (ii), by striking <quote>; and</quote> and inserting a period;
and</text>
</clause><clause id="idAD8585EEF44D40C285F5A47476F0AF5A"><enum>(iii)</enum><text display-inline="yes-display-inline">by striking clause (iii); and</text>
</clause></subparagraph><subparagraph id="idAFA82104FB9642428CA7EC9B5A07A89E"><enum>(B)</enum><text>in section 16(14)
(15 U.S.C. 78lll(14)), by striking <quote>section 3(a)(55)(A)</quote> and
inserting <quote>section 3(a)(55)</quote>.</text>
</subparagraph></paragraph></subsection><subsection id="ID51095e6d5d6840c8ae3f5ab867aca904"><enum>(c)</enum><header>Clarification
of the status of event contracts</header>
<paragraph id="ID67666a3f5fcf4c8f8b17ba5e804f7834"><enum>(1)</enum><header>Amendments to
the Securities Exchange Act of 1934</header><text>Section (3)(a)(10) of the
Securities Exchange Act of 1934 (15 U.S.C. 78c(a)(10) is amended—</text>
<subparagraph id="id03CCCC1631A44EE49F8FC7893C801A11"><enum>(A)</enum><text>by striking
<quote>term <term>security</term> means any note</quote> and inserting the
following: “term ‘security’—</text>
<quoted-block display-inline="no-display-inline" id="idB3D5A5DBBA2F48A4A5E1A9B990BEC61A" style="OLC">
<subparagraph id="id1CCC6C3580F5460FA1D46E8A6AB8DE03"><enum>(A)</enum><text>means—</text>
<clause id="idF7A504D2ED8A426EADB76C6299C2BADE"><enum>(i)</enum><text>any
note</text>
</clause></subparagraph><after-quoted-block>;</after-quoted-block></quoted-block>
</subparagraph><subparagraph id="id4F5DAC8D05B04B768A8A425829F676F3"><enum>(B)</enum><text>by striking
<quote>or any certificate</quote> and inserting the following: “; or</text>
<quoted-block display-inline="no-display-inline" id="id9599E1E3A43B4DB5BBDB6F412E92AE88" style="OLC">
<clause id="idE2A5A1376583461585B75566A245E2B4"><enum>(ii)</enum><text>any
certificate</text>
</clause><after-quoted-block>;
and</after-quoted-block></quoted-block>
</subparagraph><subparagraph id="id516DE50187FE4D6F8605157070952E07"><enum>(C)</enum><text>by striking
<quote>any of the foregoing, but shall not</quote> and inserting the following:
“any security described in clause (i); or</text>
<quoted-block display-inline="no-display-inline" id="id1C4563A7E9944817B37CAA3C6881DEFA" style="OLC">
<clause id="idFC6686F4000447D6BDAA5C18F1148149"><enum>(iii)</enum><text>any agreement,
contract, or transaction that is associated with a financial, economic, or
commercial occurrence, extent of an occurrence, contingency, or consequence
that is related to or based on a security, an interest in a security, an issuer
of a security, or group or index of securities, or interests in securities or
issuers of securities, or based on the value of any of the foregoing or any
security described in clause (i) or (ii); and</text>
</clause><subparagraph id="id0C1E1A89F28846C88F396BD200873963"><enum>(B)</enum><text>does
not</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="IDe3b892f7f7f94aa5ae0be1ca7b3dd28e"><enum>(2)</enum><header>Amendments to
the Securities Act of 1933</header><text>Section (2)(a)(1) of the Securities
Act of 1933 (15 U.S.C. 77b(a)(1)) is amended—</text>
<subparagraph id="idAAE237459477497B9E74860D94BF9992"><enum>(A)</enum><text>by striking
<quote>means any note</quote> and inserting the following: “means—</text>
<quoted-block display-inline="no-display-inline" id="idB818ADB832CE44CB815CA3B97FA0B8ED" style="OLC">
<subparagraph id="id94865C786DB14D51B35705DFA591FA2F"><enum>(A)</enum><text>any
note</text>
</subparagraph><after-quoted-block>;</after-quoted-block></quoted-block>
</subparagraph><subparagraph id="idEEAED2B5C4344C7499395B98383FFCE0"><enum>(B)</enum><text>by striking
<quote>, or any certificate</quote> and inserting the following: “; or</text>
<quoted-block display-inline="no-display-inline" id="id7613DE70C7E74B96A175690D109EAFB5" style="OLC">
<subparagraph id="id962AFAA285314EEA8E8ADE8C7FC514ED"><enum>(B)</enum><text>any
certificate</text>
</subparagraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</subparagraph><subparagraph id="id3F845560374A4B8491B9313943653F00"><enum>(C)</enum><text>by striking
<quote>any of the foregoing.</quote> and inserting the following: “any security
described in subparagraph (A); or</text>
<quoted-block display-inline="no-display-inline" id="idB5613EF8A71544B0A85F6A07DB945D30" style="OLC">
<subparagraph id="idAF049B8C7D014717865121412795BE55"><enum>(C)</enum><text>any agreement,
contract, or transaction that is associated with a financial, economic, or
commercial occurrence, extent of an occurrence, contingency, or consequence
that is related to or based on a security, an interest in a security, an issuer
of a security, or group or index of securities, or interests in securities or
issuers of securities, or based on the value of any of the foregoing or any
security described in subparagraph (A) or
(B).</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph></paragraph></subsection></section><section id="ID37f5e1518a9545a58f1ad53b779b01eb"><enum>103.</enum><header>Required
clearing of standardized derivatives through central counterparties and the use
of trade repositories</header><text display-inline="no-display-inline">The
Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.) is amended by inserting
after section 17B (15 U.S.C. 78q–2) the following new section:</text>
<quoted-block display-inline="no-display-inline" id="id19C32946CC1E40AE9ECC0107EFC52295" style="OLC">
<section id="ID80e9093409a34f249f9ed11910d2be3d"><enum>17C.</enum><header>Use of
clearing agencies and trade repositories for derivatives transactions</header>
<subsection commented="no" id="ID6248fd1c9ee34276942a8168a4ce4993"><enum>(a)</enum><header>Findings</header><text>Congress
finds that—</text>
<paragraph commented="no" id="ID6dbb9b99fcf34b1f96a53759b84592ca"><enum>(1)</enum><text>the proliferation
of over-the-counter security-based swaps poses unacceptable risks to the
financial system;</text>
</paragraph><paragraph commented="no" id="ID1ffd8fa8ae744dd5a81d1df1942731d4"><enum>(2)</enum><text>clearing
standardized security-based swaps through well-regulated central counterparties
would reduce systemic risk in the financial system;</text>
</paragraph><paragraph commented="no" id="ID252b6c3823ed49fd83dbf77d096510ad"><enum>(3)</enum><text>the markets for
standardized security-based swaps suffer from a lack of reliable and accurate
transaction information that is available to the public, investors, and
regulators; and</text>
</paragraph><paragraph commented="no" id="IDc42507ccbc194bc6b7bf385077c44eae"><enum>(4)</enum><text>weaknesses in the
regulation of markets for standardized security-based swaps have detracted from
the efficiency and transparency of trading in such markets and hampered the
surveillance and oversight of such markets.</text>
</paragraph></subsection><subsection commented="no" id="id3184B8A2D0E14808B9A6FFC2AD8B8101"><enum>(b)</enum><header>Purposes</header><text>The
purposes of this section are—</text>
<paragraph commented="no" id="ID09520724358943db8656458a07fc8a29"><enum>(1)</enum><text>to establish
well-regulated markets for standardized security-based swaps to promote
efficiency and transparency of trading and enhance the surveillance and
oversight of such markets; and</text>
</paragraph><paragraph commented="no" id="ID86ab9035aea6491f9b05abacd5a80623"><enum>(2)</enum><text>to promote the
public interest, the protection of investors, and the maintenance of fair and
orderly markets to assure—</text>
<subparagraph commented="no" id="IDa954721bb0d843b6a38e243a058cb0e0"><enum>(A)</enum><text>the prompt and
accurate clearance and settlement of transactions in standardized
security-based swaps;</text>
</subparagraph><subparagraph commented="no" id="ID883fc1f3cbde4566b4cbf79c3bafe4ae"><enum>(B)</enum><text>the prompt and
accurate reporting of transactions in security-based swaps to a trade
repository or a registered clearing agency;</text>
</subparagraph><subparagraph commented="no" id="ID39abea060afe416395b27efbc66da65d"><enum>(C)</enum><text>the establishment
of linked or coordinated facilities for clearance and settlement of
transactions in securities, securities options, contracts of sale for future
delivery and options thereon, commodity options, and derivatives;</text>
</subparagraph><subparagraph commented="no" id="ID597911e7cf024e3a80a457fcf846c589"><enum>(D)</enum><text>availability to
the public, investors, and regulators of reliable and accurate quotation and
transaction information in security-based swaps;</text>
</subparagraph><subparagraph commented="no" id="ID6b4aa37b6af74069a9fd536138621069"><enum>(E)</enum><text>economically
efficient execution of transactions in security-based swaps; and</text>
</subparagraph><subparagraph commented="no" id="IDef860ad781704848a14137556d4870fc"><enum>(F)</enum><text>fair competition
among markets in the trading of security-based swaps.</text>
</subparagraph></paragraph></subsection><subsection id="IDd47be4cf1bb34102a2eb95608bb3a8e4"><enum>(c)</enum><header>Use of
derivatives clearing agencies</header>
<paragraph id="id63B8AAC857CB474A9E8EDF4FAD3062A7"><enum>(1)</enum><header>In
general</header><text>Any person that is a party to a security-based swap (or
security derivative, as the Commission determines by rule, regulation, or
order) that the Commission determines is <quote>standardized</quote> shall
submit such instrument for clearing to a registered clearing agency within the
period specified by rule of the Commission.</text>
</paragraph><paragraph id="id7CA5B2D58C52445C96E78F719ACFDC68"><enum>(2)</enum><header>Definition of
<quote>standardized</quote></header>
<subparagraph id="id785897CC43CB40299ACC5C5985916175"><enum>(A)</enum><header>In
general</header><text>The Commission shall, by rule, define the term
<term>standardized</term> for purposes of this section.</text>
</subparagraph><subparagraph id="id3F3F6F11739E43B7B017BDDFB4F4FA68"><enum>(B)</enum><header>Factors</header><text>In
defining the term <term>standardized</term>, the Commission shall—</text>
<clause id="ID36d5486efbdd45caa700b79aa90da529"><enum>(i)</enum><text>be consistent
with the public interest, the protection of investors, the safeguarding of
securities and funds, the maintenance of fair competition among market
participants and among clearing agencies, and the purposes of this
section;</text>
</clause><clause id="ID9df4d8f306b443788644fa3674ba281c"><enum>(ii)</enum><subclause commented="no" display-inline="yes-display-inline" id="idABDF447999AA49CE9872D9A9522CB360"><enum>(I)</enum><text>consult with, and
consider the views of, the Commodity Futures Trading Commission and the Board
of Governors of the Federal Reserve System; and</text>
</subclause><subclause id="id0DEEA20B49394E07B172996B12B7FFC3" indent="up1"><enum>(II)</enum><text>seek to maintain comparability, to the
maximum extent practicable, with the definition of the Commodity Futures
Trading Commission of the term <quote>standardized</quote> for purposes of
section 4r of the Commodity Exchange Act; and</text>
</subclause></clause><clause id="IDd23aa000e2424f2b94a931416fcf608a"><enum>(iii)</enum><text>to the extent
applicable to a particular security-based swap or security derivative or class
of security-based swaps or security derivatives, consider—</text>
<subclause id="IDffbac3fe92ca4ad68bc4d48f61f7f794"><enum>(I)</enum><text>whether a
clearing agency is prepared to clear the security-based swap or security
derivative, and such clearing agency has in place effective risk management
systems;</text>
</subclause><subclause id="ID414ae08629de433bac01319612a9acf1"><enum>(II)</enum><text>the availability
or ability to facilitate standard documentation of terms of the security-based
swap or security derivative;</text>
</subclause><subclause id="ID2dddf8e586e64d8c9db5d72737bf8b45"><enum>(III)</enum><text>the liquidity
of the security-based swap or security derivative and its underlying security,
security of a reference entity, or group or index thereof;</text>
</subclause><subclause id="ID15f435275071411b8a8851bfc49e0bcc"><enum>(IV)</enum><text>the ability to
value the security-based swap or security derivative, underlying security, or
security of a reference entity, or group or index thereof consistently with an
accepted pricing methodology, including the availability of intraday prices;
and</text>
</subclause><subclause id="IDeacc2385a96c4f4cb262bea517a4a8a5"><enum>(V)</enum><text>such other
factors as are consistent with the purposes of this section.</text>
</subclause></clause></subparagraph></paragraph><paragraph id="IDa41a0a22f5534b0198b7c088a4162143"><enum>(3)</enum><header>Exemption
authority</header>
<subparagraph id="id3BE36E42D7EA4F41BEABF3B729F6926E"><enum>(A)</enum><header>In
general</header><text>The Commission by rule or order, as the Commission deems
necessary or appropriate in the public interest or for the protection of
investors, may conditionally or unconditionally exempt from the requirements of
this subsection and the rules issued under this subsection, any person,
transaction, or security.</text>
</subparagraph><subparagraph id="idD73B0E961CA3492EBD7A01E5D8D74360"><enum>(B)</enum><header>Prior
consultation with the Commodity Futures Trading Commission and the Board of
Governors of the Federal Reserve System</header>
<clause id="idBBF399289CB748C4998D0B6858142B37"><enum>(i)</enum><header>Consultation</header><text>Before
acting by rule or order to exempt any person, transaction, or security from the
requirements of this subsection or the rules issued under this subsection, the
Commission shall consult with, and consider the views of, the Commodity Futures
Trading Commission and the Board of Governors of the Federal Reserve System
concerning whether such exemption is necessary and appropriate for the
reduction of risk and in the public interest.</text>
</clause><clause id="id92181A5C22FF4B7080443B45F6DAA9E6"><enum>(ii)</enum><header>Prohibition on
issuance</header><text>Not later than 45 days prior to issuing any exemption
under this subparagraph, the Commission shall send a notice to the Commodity
Futures Trading Commission and the Board of Governors describing such
exemption. If either the Commodity Futures Trading Commission or the Board of
Governors issues a finding under clause (i) that such an exemption does not
meet the standard described in clause (i), the Commission may not issue such
exemption.</text>
</clause><clause id="id6C1AD6E2B5944B4199FAD7076961F659"><enum>(iii)</enum><header>Deadline</header><text>Any
finding by the Commodity Futures Trading Commission or the Board of Governors
of the Federal Reserve System shall be made and provided in writing to the
Commission not later than 30 days after the date of receipt of notice of a
proposed exemption by the Commission.</text>
</clause><clause id="idBD10DACB87A54A38916F92B1A1359663"><enum>(iv)</enum><header>Nondelegation</header><text>Action
by the Commodity Futures Trading Commission or the Board of Governors under
this subparagraph may not be delegated.</text>
</clause></subparagraph></paragraph></subsection><subsection id="ID07c833444dfb49e9a234d637a7c5906b"><enum>(d)</enum><header>Trade
repositories</header>
<paragraph id="IDcb21306558ba4252b5ba8bccdc334bff"><enum>(1)</enum><header>Use of trade
repositories</header>
<subparagraph id="ID070771e515134890b92b77fccc7659db"><enum>(A)</enum><header>In
general</header><text>Any person that enters into or effects a transaction in a
security-based swap (or security derivative, as the Commission determines by
rule, regulation, or order) shall submit such transaction for clearing to a
registered clearing agency or report such transaction to a trade repository
registered in accordance with this subsection within the period specified by
rule of the Commission.</text>
</subparagraph><subparagraph id="ID3a32103cf5ea4adeaa0f101db5adb0c6"><enum>(B)</enum><header>Required
reporting authorized</header><text>The Commission may, by rule, require any
person to report to any registered clearing agency and registered trade
repository such transaction information as the Commission deems necessary or
appropriate, to permit such clearing agency or trade repository to meet the
purposes of this section.</text>
</subparagraph><subparagraph id="ID5ff52867ebff4df6965d36802be1d3e2"><enum>(C)</enum><header>Exemption
authority</header><text>The Commission by rule, regulation, or order, as the
Commission deems consistent with the public interest or the protection of
investors, may conditionally or unconditionally exempt from the requirements of
this paragraph and the rules issued under this paragraph any person,
transaction, or security that enters into or effects a transaction in a
security or class of securities.</text>
</subparagraph></paragraph><paragraph id="ID63383818e3c44526ad2b252c0555d007"><enum>(2)</enum><header>Registration</header><text>A
trade repository may register for purposes of this subsection by filing with
the Commission an application in such form as the Commission, by rule, may
prescribe, containing the rules of the trade repository and such other
information and documentation as the Commission, by rule, may prescribe as
necessary or appropriate in the public interest, for the protection of
investors, or for the prompt and accurate collection, calculation, processing,
and preparation of information regarding security-based swaps or security
derivatives.</text>
</paragraph><paragraph id="IDf45be54540f64e7fbd6cacec975ca40a"><enum>(3)</enum><header>Commission
procedures for applications</header>
<subparagraph id="idC15BFC69A4714BA7950154A86B11E029"><enum>(A)</enum><header>Notice</header><text>On
the filing of an application for registration pursuant to paragraph (2), the
Commission shall publish notice of the filing and afford interested persons an
opportunity to submit written data, views, and arguments concerning such
application.</text>
</subparagraph><subparagraph id="idB6A88B62D42A4C8A808A2F72651FB679"><enum>(B)</enum><header>Actions</header><text>Not
later than 90 days after the date of publication of a notice under subparagraph
(A) (or within such longer period as to which the applicant consents), the
Commission shall—</text>
<clause id="IDc8b012b141134aa695d515c725c340fc"><enum>(i)</enum><text>by order, grant
such registration; or</text>
</clause><clause id="IDb4f53f819f5f4384aede0d04ae189564"><enum>(ii)</enum><text>institute
proceedings to determine whether registration should be denied.</text>
</clause></subparagraph><subparagraph id="id0068D6F4AF4F4CE9BEF41D1148F3E1EE"><enum>(C)</enum><header>Procedure for
denials</header>
<clause id="idA447CD4EAC2B4357B99E1F6CABE085F0"><enum>(i)</enum><header>In
general</header><text>Proceedings instituted under subparagraph (B)(ii)
shall—</text>
<subclause id="idBB2CF2CC849D4EB9997D391E9B5FAE43"><enum>(I)</enum><text>include notice of
the grounds for denial under consideration and provide an opportunity for a
hearing; and</text>
</subclause><subclause id="id53CEB036C09E4FBBB6819047FBB2E690"><enum>(II)</enum><text>be concluded not
later than 180 days after the date of publication of notice of the filing of
the application for registration under subparagraph (A).</text>
</subclause></clause><clause id="id7D7BB034ADC3427684E8CAE03BE4F135"><enum>(ii)</enum><header>Actions</header><text>At
the conclusion of such proceedings, the Commission, by order, shall grant or
deny the subject registration.</text>
</clause><clause id="idB68BE4B4422E4B8AA53B5D5DBD94D425"><enum>(iii)</enum><header>Extensions</header><text>The
Commission may extend the time for conclusion of the proceedings under
subparagraph (C) for—</text>
<subclause id="idA6DB1E7DF70945898D86066115C6613A"><enum>(I)</enum><text>not longer than
an additional 60 days, if the Commission finds good cause for such extension
and publishes its reasons for so finding; or</text>
</subclause><subclause id="id23ACFA37879144998E3ED376705DCB43"><enum>(II)</enum><text>for such longer
period as to which the applicant consents.</text>
</subclause></clause></subparagraph><subparagraph id="idE3607EA882304D95941D9ACF004267BC"><enum>(D)</enum><header>Standards for
granting registration</header><text>The Commission shall grant the registration
of a trade repository for purposes of this section if the Commission finds that
the trade repository is so organized, and has the capacity to be able—</text>
<clause id="id617D59CFF70242B3838CBDD1935BC641"><enum>(i)</enum><text>to assure the
prompt, accurate, and reliable performance of its functions as a trade
repository;</text>
</clause><clause id="id8BDC943DA4084CE498AE0F98EF957F9E"><enum>(ii)</enum><text>to comply with
the provisions of this title (including rules and regulations issued under this
title); and</text>
</clause><clause id="idF99BED87C0244100A4B1E48DA3592987"><enum>(iii)</enum><text>to carry out
the functions of a trade repository in a manner consistent with the purposes of
this section.</text>
</clause></subparagraph><subparagraph id="id7682FD708C7948A39F96187D304CEDC6"><enum>(E)</enum><header>Standards for
denial</header><text>The Commission shall deny the registration of a trade
repository if the Commission does not make the findings described in
subparagraph (D).</text>
</subparagraph></paragraph><paragraph id="ID6da0b546fdc94ed4ab4efcce759d5a06"><enum>(4)</enum><header>Withdrawal of
registration</header>
<subparagraph id="idFDD704B4096D470390F0F2A99CDA7284"><enum>(A)</enum><header>In
general</header><text>A registered trade repository may, upon such terms and
conditions as the Commission deems necessary or appropriate in the public
interest or for the protection of investors, withdraw from registration under
this section by filing a written notice of withdrawal with the
Commission.</text>
</subparagraph><subparagraph id="id9F834EC3D592451C97E2A0E64B15FB8A"><enum>(B)</enum><header>Cancellation</header><text>If
the Commission finds that any trade repository is no longer in existence or has
ceased to do business in the capacity specified in its application for
registration under this section, the Commission, by order, shall cancel the
registration.</text>
</subparagraph></paragraph><paragraph id="ID9106cff0c2c24142ba76edd932ab2391"><enum>(5)</enum><header>Access to trade
repository services</header>
<subparagraph id="ID4fdd7df1298e4855aae6bd600d4f1057"><enum>(A)</enum><header>Notice of
prohibition or limitation</header>
<clause id="idE9738190F61A41F09A7DFA0CDCB1A2CA"><enum>(i)</enum><header>In
general</header><text>If any registered trade repository prohibits or limits
any person in respect of access to services offered, directly or indirectly, by
the trade repository, the registered trade repository shall promptly file
notice of the prohibition with the Commission, in such form and containing such
information as the Commission, by rule, may prescribe as necessary or
appropriate in the public interest or for the protection of investors.</text>
</clause><clause id="id6640A7A779844D87A9F37067BE122CE8"><enum>(ii)</enum><header>Review by
Commission</header><text>Any prohibition or limitation on access to services
with respect to which a registered trade repository is required by this
subparagraph to file notice shall be subject to review by the Commission, on
its own motion or upon application by any person aggrieved thereby, filed not
later than 30 days after such notice has been filed with the Commission and
received by such aggrieved person, or within such longer period as the
Commission may determine.</text>
</clause><clause id="id699A9BEF28594974800507E2DA2A2820"><enum>(iii)</enum><header>Stays</header><text>Application
to the Commission for review, or the institution of review by the Commission on
its own motion, shall not operate as a stay of a prohibition or limitation
described in clause (i), unless the Commission otherwise orders, summarily or
after notice and opportunity for hearing on the question of a stay (which
hearing may consist solely of the submission of affidavits or presentation of
oral arguments).</text>
</clause><clause id="idB14EB718A35F4977AC6A05A54B2B1BBD"><enum>(iv)</enum><header>Expedited
procedure</header><text>The Commission shall establish for appropriate cases an
expedited procedure for consideration and determination of the question of a
stay.</text>
</clause></subparagraph><subparagraph id="ID88f80675f1ec40e8bc728fc08949d2ab"><enum>(B)</enum><header>Standards of
review</header><text>In any proceeding to review the prohibition or limitation
of any person in respect of access to services offered by a registered trade
repository—</text>
<clause id="id625D8D7A03B149F0A172F5D81A525EEA"><enum>(i)</enum><text>if the Commission
finds after notice and opportunity for hearing, that such prohibition or
limitation is consistent with the provisions of this title and the rules and
regulations thereunder, and that such person has not been discriminated against
unfairly, the Commission, by order, shall dismiss the proceeding; and</text>
</clause><clause id="id2D7A14B1C77248F98ECBD981C06126C3"><enum>(ii)</enum><text>if the
Commission does not make any such finding, or if it finds that such prohibition
or limitation imposes any burden on competition that is not necessary or
appropriate in furtherance of the purposes of this title, the Commission, by
order, shall set aside the prohibition or limitation and require the registered
trade repository to permit such person access to the services offered by the
registered trade repository to which the prohibition or limitation
applied.</text>
</clause></subparagraph></paragraph><paragraph id="IDc99dfb61f725417d993edd11778ff002"><enum>(6)</enum><header>Administrative
proceeding authority</header><text>If the Commission finds, on the record after
notice and opportunity for hearing, that such action is necessary or
appropriate in the public interest, for the protection of investors, or
otherwise in furtherance of the purposes of this title and that a registered
trade repository has violated or is unable to comply with any provision of this
title or the rules or regulations thereunder, the Commission, by order,
may—</text>
<subparagraph id="id411E03D051534CCB85F3CC39F9531C1C"><enum>(A)</enum><text>censure or place
limitations upon the activities, functions, or operations of any registered
trade repository; or</text>
</subparagraph><subparagraph id="id5BC76D1DCCD746A697070F694EBDAE62"><enum>(B)</enum><text>suspend for a
period of not longer than 12 months or revoke the registration of any such
trade repository.</text>
</subparagraph></paragraph><paragraph id="ID79a939563c8847199624218fa239ca0c"><enum>(7)</enum><header>Rulemaking
authority</header><text>No registered trade repository shall, directly or
indirectly, engage in any activity as a trade repository in contravention of
such rules and regulations as the Commission may prescribe as appropriate in
the public interest, for the protection of investors, or otherwise in
furtherance of the purposes of this title, including to assure that all persons
may obtain on terms that are fair and reasonable and not unreasonably
discriminatory such transaction and position information for security-based
swaps and security derivatives as is disseminated by any clearing agency or
trade repository.</text>
</paragraph><paragraph id="IDe28cb8df701d484786737b917b4d23a5"><enum>(8)</enum><header>Consultation</header>
<subparagraph id="id7D9DFD355E8A493792F1652E5999EF70"><enum>(A)</enum><header>In
general</header><text>Prior to adopting any rules applicable to trade
repositories pursuant to section 17(a), the Commission shall consult with, and
shall consider the views of, the Commodity Futures Trading Commission.</text>
</subparagraph><subparagraph id="idF8AF3156584141C79486E6BFD0333C46"><enum>(B)</enum><header>Comparability</header><text>The
Commission and the Commodity Futures Trading Commission shall seek to maintain
comparability, to the maximum extent practicable, of their respective
recordkeeping and reporting requirements for trade repositories.</text>
</subparagraph></paragraph></subsection><subsection id="ID1565241b8c6e4a3db6ee464c1ec96e3c"><enum>(e)</enum><header>Timing</header><text>The
Commission may, by rule, specify the date by which persons are required—</text>
<paragraph id="ID9e9c9e43733a4535ba912d3014f71abf"><enum>(1)</enum><text>to submit
transactions in standardized security-based swaps and security derivatives for
clearing to a clearing agency pursuant to subsection (c); and</text>
</paragraph><paragraph id="ID7a0ea75c286f44e19aedadeb847fa4f5"><enum>(2)</enum><text>to submit
transactions in security-based swaps and security derivatives for clearing to a
clearing agency or report transactions in such instruments to a registered
trade repository pursuant to subsection (d).</text>
</paragraph></subsection><subsection id="IDce1f2f23b1a64aad9a640b28a90f1a6e"><enum>(f)</enum><header>Collection,
consolidation, and dissemination of information on transactions and positions
in security-Based swaps and security derivatives</header>
<paragraph id="IDacbd2c03e163427a85a2acba1fca4a5d"><enum>(1)</enum><header>Commission
action required</header><text>The Commission shall, consistent with the public
interest, the protection of investors, the maintenance of fair and orderly
markets, and the purposes of this section, use the authority of the Commission
under this title to facilitate—</text>
<subparagraph id="id47563D1FDE5744E7BDD1E04664D6D0C0"><enum>(A)</enum><text>the collection,
consolidation, and dissemination of information on transactions and positions
in security-based swaps and security derivatives; and</text>
</subparagraph><subparagraph id="id89A94C4BE837405C81DD135CB1C07E97"><enum>(B)</enum><text>the establishment
of coordinated facilities for the consolidation of information on transactions
and positions in security-based swaps and security derivatives.</text>
</subparagraph></paragraph><paragraph id="IDae4547ea20df49bea94fd69a1714e1af"><enum>(2)</enum><header>Actions
required of registered entities</header><text>The Commission, by rule,
regulation, or order is authorized to require each clearing agency that clears
or proposes to clear transactions in security-based swaps and security
derivatives, and each trade repository registered or applying to become
registered under this section, in such form and frequency as the Commission
shall prescribe as necessary or appropriate in the public interest, for the
protection of investors, or otherwise in furtherance of the purposes of this
title—</text>
<subparagraph id="id2AF30E7DCDC146CD97FEEAD4B579AFE0"><enum>(A)</enum><text>to disseminate
certain transaction or position information in security-based swaps and
security derivatives; and</text>
</subparagraph><subparagraph id="id8B89788C6626461EA41825571226BBAE"><enum>(B)</enum><text>to assure the
prompt, accurate, reliable, and fair collection, processing, distribution, and
publication of information with respect to transactions and positions, as
appropriate, cleared by such clearing agency or reported to such registered
trade
repository.</text>
</subparagraph></paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="IDe2fdf7a1e1c0426596af0207edcf25a9"><enum>104.</enum><header>Prudential
supervision and regulation of significant security-based derivatives market
participants and incentives for trading on regulated exchanges</header>
<subsection id="IDd69c9ac61a424d828604d6a4d19a9c89"><enum>(a)</enum><header>Regulation of
significant security-Based derivatives market participants</header><text>The
Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.) is amended by inserting
after section 15E (15 U.S.C. 78o–7) the following:</text>
<quoted-block display-inline="no-display-inline" id="id8BC3E5DAF41142E6BA5AE9B77D7FB038" style="OLC">
<section id="IDf4ecdd99bcc741f5b00ccec27cc93ba7"><enum>15F.</enum><header>Regulation of
significant security-based derivatives market participants</header>
<subsection id="ID6f1a1b8a85fb4961a96504fb8ec4bb97"><enum>(a)</enum><header>Registration by
significant security-Based derivatives market participants</header><text>It
shall be unlawful for any significant security-based derivatives market
participant to make use of the mails or any means or instrumentality of
interstate commerce to effect any transactions in, or to induce or attempt to
induce the purchase or sale of, any security-based swap (or security
derivative, as the Commission determines by rule, regulation, or order), unless
such significant security-based derivatives market participant has registered
in accordance with subsection (b).</text>
</subsection><subsection id="ID6cd795121316465392c417c85c06ca71"><enum>(b)</enum><header>Manner of
registration of significant security-Based derivatives market
participants</header>
<paragraph id="ID431f29e9ea6c4c9ebbae63301f3eb83c"><enum>(1)</enum><header>In
general</header><text>A significant security-based derivatives market
participant may register for purposes of this section by filing with the
Commission an application for registration, in such form and containing such
information and documentation concerning such significant security-based
derivatives market participant and any persons associated with such significant
security-based derivatives market participant as the Commission, by rule,
regulation, or order may prescribe as necessary or appropriate in the public
interest or for the protection of investors.</text>
</paragraph><paragraph id="id4BAE7123C0934BAA95B051816CD8AA10"><enum>(2)</enum><header>Commission
action</header>
<subparagraph id="id9D9C61197170410881CC4B61C99B2405"><enum>(A)</enum><header>Timing</header><text>Not
later than 45 days after the date of filing of an application under paragraph
(1) (or within such longer period as to which the applicant consents), the
Commission shall—</text>
<clause id="IDfd76f1394c354852914a71f3a51e9dca"><enum>(i)</enum><text>by order, grant
registration; or</text>
</clause><clause id="ID2371e1973210407bb5572a6c0eb9a641"><enum>(ii)</enum><text>institute
proceedings to determine whether registration should be denied.</text>
</clause></subparagraph><subparagraph id="idF793CC4579EC41F7B957D4AD1036193A"><enum>(B)</enum><header>Commission
proceedings</header><text>Proceedings described in subparagraph (A)(ii)
shall—</text>
<clause id="idBAB98E38D7634FEBB576E6926B543D13"><enum>(i)</enum><text>include notice of
the grounds for denial under consideration and opportunity for hearing;
and</text>
</clause><clause id="idEEE0E62B117F406DB614BCC1579AD7A5"><enum>(ii)</enum><text>be concluded
within 120 days of the date of the filing of the application for
registration.</text>
</clause></subparagraph><subparagraph id="id95411BA296CE44C38AEEFA5B4F110519"><enum>(C)</enum><header>Grant or
denial</header><text>At the conclusion of proceedings under this paragraph, the
Commission, by order, shall grant or deny any application for
registration.</text>
</subparagraph><subparagraph id="id21358405AA784122B3CC5B7B469002E5"><enum>(D)</enum><header>Extension
authorized</header><text>The Commission may extend the time for the conclusion
of proceedings under this paragraph for not longer than an additional 90 days
if the Commission finds good cause for such extension and publishes its reasons
for so finding, or for such longer period as to which the applicant
consents.</text>
</subparagraph><subparagraph id="id88C551D02A434FD597CB2491316F2B19"><enum>(E)</enum><header>Conditions of
grant or denial of applications</header><text>The Commission shall—</text>
<clause id="idFC33DCF2D60F4612B04FE030FE976342"><enum>(i)</enum><text>grant an
application for registration of a significant security-based derivatives market
participant, if the Commission finds that the requirements of this section are
satisfied; and</text>
</clause><clause id="id351C71EC49D84E6E90F33DA84C04D484"><enum>(ii)</enum><text>deny such
registration, if the Commission does not make a finding described in clause
(i), or finds that if the applicant were so registered, its registration would
be subject to suspension or revocation under subsection (e).</text>
</clause></subparagraph></paragraph><paragraph id="ID57b250900a17466eae17b99ea1e8dd3a"><enum>(3)</enum><header>Withdrawal
authorized</header><text>Any person that has filed an application pursuant to
paragraph (1) may, upon such terms and conditions as the Commission deems
necessary or appropriate in the public interest, for the protection of
investors, or otherwise in furtherance of the purposes of this title, withdraw
such application by filing a written withdrawal with the Commission.</text>
</paragraph></subsection><subsection id="ID2819551f564a407aa4edba5eb1e0ef71"><enum>(c)</enum><header>Business
conduct requirements</header>
<paragraph id="id5C4B87A5ADC14F8995893066C18A9C27"><enum>(1)</enum><header>Prohibition</header><text>It
shall be unlawful for any significant security-based derivatives market
participant and such other persons as the Commission may determine, by rule,
regulation, or order, to make use of the mails or any means or instrumentality
of interstate commerce to effect any transaction in, or to induce or attempt to
induce the purchase or sale of, any security-based swap (or security
derivative, as the Commission determines by rule, regulation, or order), unless
such person complies with such business conduct requirements as the Commission
and the Commodity Futures Trading Commission, in consultation with the
appropriate regulatory authorities, may jointly prescribe, by rule, regulation,
or order, as necessary or appropriate in the public interest, for the
protection of investors, and otherwise in furtherance of the purposes of this
title.</text>
</paragraph><paragraph id="idB284C172C42746FA9F447F562FDBADBC"><enum>(2)</enum><header>Content</header><text>Business
conduct requirements under paragraph (1) shall—</text>
<subparagraph id="ID63d81b1ff4c141548b1bc66d39e78a80"><enum>(A)</enum><text>establish the
standard of care required for a significant security-based derivatives market
participant and such other persons to verify that any counterparty meets the
eligibility standards for an eligible contract participant or qualified
institutional buyer;</text>
</subparagraph><subparagraph id="IDe7157bce93b6493bb96ae49d2f666ef4"><enum>(B)</enum><text>require
disclosure by the significant security-based derivatives market participant and
such other persons to any counterparty to the transaction of—</text>
<clause id="ID2f5b0fc881284cf49af0a0ef5a1880c3"><enum>(i)</enum><text>material
product-specific information about the risks and characteristics of the
security-based swap (or security derivative, as the Commission determines by
rule, regulation, or order);</text>
</clause><clause id="IDb052f3a9592645f5a924f935bbae7774"><enum>(ii)</enum><text>the source and
amount of any fees or other material remuneration that the significant
security-based derivatives market participant and such other persons would
directly or indirectly expect to receive in connection with the security-based
swap (or security derivative, as the Commission determines by rule, regulation,
or order); and</text>
</clause><clause id="ID1eb9559c0cc74d69a7efa6961256e577"><enum>(iii)</enum><text>any other
material incentives or conflicts of interest that the significant
security-based derivatives market participant and such other persons may have
in connection with the security-based swap (or security derivative, as the
Commission determines by rule, regulation, or order);</text>
</clause></subparagraph><subparagraph id="IDe4f134b7c501476a994faffc87766433"><enum>(C)</enum><text>establish a
minimum standard of conduct for a significant security-based derivatives market
participant and such other persons with respect to any counterparty, other than
a qualified institutional buyer, for—</text>
<clause id="IDec59c3750e79475f97b3771ea31b0a28"><enum>(i)</enum><text>providing
disclosure of the general risks and characteristics of any security-based swap
(or security derivative, as the Commission determines by rule, regulation, or
order);</text>
</clause><clause id="ID8a170e888b514eabad59e6d15b31c6bf"><enum>(ii)</enum><text>communicating in
a fair and balanced manner based on principles of fair dealing and good
faith;</text>
</clause><clause id="IDabef6af7e6194bbf97958fb0a0824607"><enum>(iii)</enum><text>assessing the
appropriateness of any security-based swap (or security derivative, as the
Commission determines by rule, regulation, or order) for the counterparty,
except that, if the counterparty is an eligible contract participant, the
significant security-based derivatives market participant may rely on a
representation described in clause (iv)(VI) that the transaction is appropriate
for such counterparty; and</text>
</clause><clause id="ID6f1e4ecf5b8e4c31bea5fbb8c5152a87"><enum>(iv)</enum><text>with respect to
a counterparty that is an eligible contract participant within the meaning of
subclause (I) or (II) of section 3(a)(67)(A)(vii), having a reasonable basis to
believe that the counterparty has an independent representative that—</text>
<subclause id="IDc17a2f4261174eb9a2b9e8224befc9d5"><enum>(I)</enum><text>has sufficient
knowledge to evaluate the transaction and risks;</text>
</subclause><subclause id="IDff54c4b54e234e6d8c9cb5b986628823"><enum>(II)</enum><text>is not subject
to a statutory disqualification;</text>
</subclause><subclause id="IDa1c3f92f04a34c0da16e267cf73f7120"><enum>(III)</enum><text>is independent
of the significant security-based derivatives market participant;</text>
</subclause><subclause id="IDd928965d63f04b459973e02285b6a100"><enum>(IV)</enum><text>undertakes a
duty to act in the best interests of the counterparty it represents;</text>
</subclause><subclause id="ID24eacc20434e42e0aafe8961488485eb"><enum>(V)</enum><text>makes appropriate
disclosures; and</text>
</subclause><subclause id="ID9c14a526dcda40e1a76f103b1bf2131a"><enum>(VI)</enum><text>will provide
written representations to the eligible contract participant regarding fair
pricing and the appropriateness of the transaction;</text>
</subclause></clause></subparagraph><subparagraph id="ID40e22996aa354ff086ee8eb58e19f2b4"><enum>(D)</enum><text>require the
availability of information about any security or the issuer of any security
referenced in a security-based swap (or security derivative, as the Commission
determines by rule, regulation, or order), or upon which such security-based
swap (or security derivative, as the Commission determines by rule, regulation,
or order) is based; and</text>
</subparagraph><subparagraph id="ID838a36a7ae8240c6aa910c8e730c6293"><enum>(E)</enum><text>establish such
other standards and requirements as the Commission, acting jointly with the
Commodity Futures Trading Commission and in consultation with the appropriate
regulatory authorities, may determine are necessary or appropriate in the
public interest, for the protection of investors, or otherwise in furtherance
of the purposes of this title.</text>
</subparagraph></paragraph></subsection><subsection id="ID1a1a637b26ed42c98c2440f1a0ee1b2d"><enum>(d)</enum><header>Statutory
disqualification</header><text>Except to the extent otherwise specifically
provided by rule, regulation, or order of the Commission, it shall be unlawful
for a significant derivatives market participant to permit any associated
person of such significant derivatives market participant who is subject to a
statutory disqualification to effect or be involved in effecting transactions
in security-based swaps (or security derivatives, as the Commission determines
by rule, regulation, or order) on behalf of such significant derivatives market
participant, if such significant derivatives market participant knew, or in the
exercise of reasonable care should have known, of such statutory
disqualification.</text>
</subsection><subsection id="IDa6f40138ec07454f875c3a7a139d71bb"><enum>(e)</enum><header>Administrative
proceeding authority</header>
<paragraph id="id15F251C92AF144D28CC70B10284C00F3"><enum>(1)</enum><header>In
general</header><text>The Commission, by order, shall censure, place
limitations on the activities, functions, or operations of, or reject the
filing of any significant security-based derivatives market participant that
has registered with the Commission pursuant to subsection (b) if it finds, on
the record after notice and opportunity for hearing, that such action is in the
public interest and that such significant security-based derivatives market
participant, or any person associated with such significant security-based
derivatives market participant effecting or involved in effecting transactions
in security-based swaps (or security derivatives, as the Commission determines
by rule, regulation, or order) on behalf of such significant security-based
derivatives market participant, whether prior or subsequent to becoming so
associated—</text>
<subparagraph id="id5402275629044BE99D4FE1249A0E0079"><enum>(A)</enum><text>has committed or
omitted any act, or is subject to an order or finding, enumerated in
subparagraph (A), (D), or (E) of section 15(b)(4);</text>
</subparagraph><subparagraph id="id1F73D565C933449CA2614C2C22EE04D4"><enum>(B)</enum><text>has been
convicted of any offense specified in subparagraph (B) of section 15(b)(4)
during the 10-year period preceding the date of commencement of the proceedings
under this paragraph;</text>
</subparagraph><subparagraph id="idAB7DE6D90EEA4FE9BE5878955C44F4B5"><enum>(C)</enum><text>is enjoined from
any action, conduct, or practice specified in section 15(b)(4)(C);</text>
</subparagraph><subparagraph id="id39A00C6FC0CF43A49CBEA915F234A259"><enum>(D)</enum><text>is subject to an
order or a final order specified in subparagraph (F) or (H), respectively, of
section 15(b)(4); or</text>
</subparagraph><subparagraph id="id5860EE5DC37C42ECA096BBF5436A3B20"><enum>(E)</enum><text>has been found by
a foreign financial regulatory authority to have committed or omitted any act,
or violated any foreign statute or regulation, enumerated in section
15(b)(4)(G).</text>
</subparagraph></paragraph><paragraph id="idE9D63E8D3C4D4812B3EDB9E586212766"><enum>(2)</enum><header>Associated
persons</header><text>With respect to any person who is associated, who is
seeking to become associated, or at the time of the alleged misconduct, who was
associated or was seeking to become associated, with a significant
security-based derivatives market participant for the purpose of effecting or
being involved in effecting any security-based swaps (or security derivatives,
as the Commission determines by rule, regulation, or order) on behalf of such
significant security-based derivatives market participant, the Commission, by
order, shall censure, place limitations on the activities or functions of such
person, or suspend for a period of not longer than 12 months, or bar such
person from being associated with a significant security-based derivatives
market participant, if the Commission finds, on the record after notice and
opportunity for a hearing, that such action is in the public interest, and that
such person—</text>
<subparagraph id="id7C33F4F141524EF9B8826C90134F8E5B"><enum>(A)</enum><text>has committed or
omitted any act, or is subject to an order or finding, enumerated in
subparagraph (A), (D), or (E) of section 15(b)(4);</text>
</subparagraph><subparagraph id="idB90FB894AD2B4DEDB222F100CC475191"><enum>(B)</enum><text>has been
convicted of any offense specified in section 15(b)(4)(B) during the 10-year
period preceding the date of commencement of the proceedings under this
paragraph;</text>
</subparagraph><subparagraph id="id67182562D9A84033B9FB5353B528138C"><enum>(C)</enum><text>is enjoined from
any action, conduct, or practice specified in section 15(b)(4)(C);</text>
</subparagraph><subparagraph id="id87D6E630BED644C6A327A2914BA6C015"><enum>(D)</enum><text>is subject to an
order or a final order specified in subparagraph (F) or (H), respectively, of
section 15(b)(4); or</text>
</subparagraph><subparagraph id="idEF67F528AE6B4FCF9B2D4CEB00C09C0B"><enum>(E)</enum><text>has been found by
a foreign financial regulatory authority to have committed or omitted any act,
or violated any foreign statute or regulation, enumerated in section
15(b)(4)(G).</text>
</subparagraph></paragraph><paragraph id="id5FF8901E717A4B0FB55DFEC5AC287AE6"><enum>(3)</enum><header>Additional
prohibitions</header><text display-inline="yes-display-inline">It shall be
unlawful—</text>
<subparagraph id="ID9f55c36959194708b98871b0a2071b52"><enum>(A)</enum><text>for any person as
to whom an order under paragraph (2) is in effect, without the consent of the
Commission, willfully to become, or to be, associated with a significant
security-based derivatives market participant in contravention of such order;
or</text>
</subparagraph><subparagraph id="ID95844192e853440d8b80991700e4c5d4"><enum>(B)</enum><text>for any
significant security-based derivatives market participant to permit such a
person, without the consent of the Commission, to become or remain, a person
associated with the significant security-based derivatives market participant
in contravention of an order under paragraph (2), if such significant
security-based derivatives market participant knew, or in the exercise of
reasonable care should have known, of the order.</text>
</subparagraph></paragraph></subsection><subsection id="IDad72e27635e24812880ef5549f070b0a"><enum>(f)</enum><header>Capital and
margin requirements</header>
<paragraph id="IDcad4b4174a0343e282c9f7c5141f9da0"><enum>(1)</enum><header>In
general</header><text>It shall be unlawful for any person to conduct business
as a significant security-based derivatives market participant, unless such
person meets at all times such minimum capital and margin requirements as the
appropriate regulatory authorities shall jointly prescribe, by rule or
regulation, as necessary or appropriate in the public interest or for the
protection of investors and consistent with the purposes of this title to
provide safeguards with respect to the financial responsibility and related
practices of the significant security-based derivatives market
participant.</text>
</paragraph><paragraph id="IDcf691be355a54c909547b4ed54ec7c67"><enum>(2)</enum><header>Capital
considerations</header><text>In setting capital requirements for significant
security-based derivatives market participants, the appropriate regulatory
authorities shall consider, among other things—</text>
<subparagraph id="idC04056A7438E430098057BDCB6B1B0D3"><enum>(A)</enum><text>the liquidity of
each security-based swap (or security derivative, as the Commission determines
by rule, regulation, or order), including whether such instrument is traded on
a liquid market, and whether it is centrally cleared; and</text>
</subparagraph><subparagraph commented="no" id="idBD7EE85EB8804859B811E7210BCC81DD"><enum>(B)</enum><text>whether the
security-based swap (or security derivative, as the Commission determines by
rule, regulation, or order) is used to offset or hedge another instrument or
asset owned by such significant security-based derivative market
participant.</text>
</subparagraph></paragraph><paragraph id="ID8f61aeb2d19c47cfa40fdbe5bf34a5b0"><enum>(3)</enum><header>Margin
requirements</header><text>The appropriate regulatory authorities shall jointly
prescribe margin requirements, which may permit the use of non-cash collateral,
that apply to security-based swaps (or security derivatives, as the Commission
determines by rule, regulation, or order) entered into by a significant
security-based derivatives market participant, as the appropriate regulatory
authorities jointly deem necessary or appropriate for the purpose of, among
other things—</text>
<subparagraph id="ID94477108b30c425c9af11fda3c01b957"><enum>(A)</enum><text>preserving the
financial integrity of markets trading security-based swaps (or security
derivatives); and</text>
</subparagraph><subparagraph id="IDbf87789d9c284ee8b7d7c58689ece612"><enum>(B)</enum><text>preventing
systemic risk.</text>
</subparagraph></paragraph><paragraph id="IDa4debb9eda43454489779fe14b412ca5"><enum>(4)</enum><header>Commission
rules</header><text>Nothing in this section prevents the Commission from
prescribing capital and margin requirements that are higher or more restrictive
than the joint rules adopted under this subsection for significant
security-based derivatives market participants for which it is the appropriate
regulatory authority.</text>
</paragraph></subsection><subsection id="ID29727b4cdd68479c9fc7dabc6bd3ac46"><enum>(g)</enum><header>Appropriate
regulatory authority defined</header><text>For purposes of this section, the
term <term>appropriate regulatory authority</term> means—</text>
<paragraph id="IDd58ff4e700654a56ad1a6de2141eef35"><enum>(1)</enum><text>the appropriate
Federal banking agency (as defined in section 3 of the Federal Deposit
Insurance Act (12 U.S.C. 1813)) with respect to a significant security-based
derivatives market participant that is an insured depository institution (as
defined in section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813)),
other than an affiliate of an insured depository institution;</text>
</paragraph><paragraph id="ID2068296873ea4eae8436bdf89c667816"><enum>(2)</enum><text>the Federal
Housing Finance Agency, with respect to a significant security-based
derivatives market participant that is a regulated entity (as defined in
section 1301 of the Federal Housing Enterprises Financial Safety and Soundness
Act of 1992 (12 U.S.C. 4502));</text>
</paragraph><paragraph id="ID7aa6220ce1064f1e9f0edfc2a64a080e"><enum>(3)</enum><text>the Commodity
Futures Trading Commission, with respect to a significant security-based
derivatives market participant that is—</text>
<subparagraph id="idC5D756E515BE4C51A91D06CDCA08E004"><enum>(A)</enum><text>a futures
commission merchant or an introducing broker (as defined in paragraphs (20) and
(23) of section 1a of the Commodity Exchange Act, respectively), other than a
broker or dealer registered pursuant to section 15(b) of this title (other than
paragraph (11) thereof) or an affiliate of an insured depository institution;
or</text>
</subparagraph><subparagraph id="id05D2CA225ED14BA3927A2C5EBB3416F0"><enum>(B)</enum><text>a commodity pool
operator or commodity trading advisor (as defined in paragraphs (5) and (6) of
section 1a of the Commodity Exchange Act, respectively), other than an
affiliate of an insured depository institution; and</text>
</subparagraph></paragraph><paragraph id="IDc4b4d535fbd0478885e4ca231c33cce2"><enum>(4)</enum><text>the Commission,
with respect to any other significant security-based derivatives market
participant for which there is not another appropriate regulatory authority
otherwise specified in this subsection.</text>
</paragraph></subsection><subsection id="ID0ace3b4675c24e0b806651dd564e6da2"><enum>(h)</enum><header>Enforcement
authority</header><text>Each appropriate regulatory authority shall have sole
authority to enforce compliance with the rules adopted under subsection (f) in
the case of each significant security-based derivatives market participant for
which it is the appropriate regulatory authority, as defined in subsection
(g).</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="ID98cd32b8878a4594a120ec3710bbdd46"><enum>(b)</enum><header>Exemption from
broker or dealer registration</header><text>Section 15(b) of the Securities
Exchange Act of 1934 (15 U.S.C. 78o(b)) is amended by adding at the end the
following:</text>
<quoted-block display-inline="no-display-inline" id="idE50993510F1947CC933AEFBC1B530F33" style="OLC">
<paragraph id="ID631b550fc2974dc58f85408de059fc1f"><enum>(13)</enum><header>Exemption for
significant security-based derivatives market participants</header><text>A
person shall be exempt from the registration requirements of this section, to
the extent that such person engages in transactions in security-based swaps, if
such person would otherwise be required to register under this section only
because such person effects transactions in security-based swaps with eligible
contract participants and is a significant security-based derivatives market
participant that has registered in accordance with section
15F(b).</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection></section><section id="IDac1b49c4aa7d4f89a4a025a7c1e0348b"><enum>105.</enum><header>Recordkeeping
and reporting requirements for derivatives market participants</header>
<subsection id="ID2648bd77752b454eb71f7b2bb986d092"><enum>(a)</enum><header>Recordkeeping
and examination requirements for security-Based derivative market
participants</header><text>Section 17 of the Securities Exchange Act of 1934
(15 U.S.C. 78q) is amended by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="id6C06FAD6D9F34E9CA0957BA9ABB71887" style="OLC">
<subsection id="ID3ae3b170872244dba290d8d12c3ac811"><enum>(l)</enum><header>Recordkeeping
by market participants in security-Based swaps or security derivatives;
examinations</header>
<paragraph id="ID9b96c0d1eacb4f8182c282240da711df"><enum>(1)</enum><header>Recordkeeping</header>
<subparagraph id="id34702D6EE76745809E971780A95B7EBD"><enum>(A)</enum><header>In
general</header><text>Effective not later than 180 days after the date of
enactment of this subsection, the Commission shall, by rule, regulation, or
order, require each significant security-based derivatives market participant,
and such other persons as the Commission, by rule, regulation, or order,
determines, to create, keep current, and maintain for prescribed periods such
records, furnish such copies thereof (and make and disseminate such reports)
relating to security-based swaps (or security derivatives, as the Commission
determines by rule, regulation, or order) to the Commission, as necessary or
appropriate in the public interest, for the protection of investors, or
otherwise in furtherance of the purposes of this title.</text>
</subparagraph><subparagraph id="idB40584F7E0D244C983BB87418F08EAC1"><enum>(B)</enum><header>Minimum
requirements</header><text>At a minimum, the actions of the Commission under
subparagraph (A) shall require, as applicable, the creation and maintenance of
client information records, agreements, client ledger information, trade
blotters, memoranda of agreements to enter into confirmations, position
records, and communications relating to transactions in security-based swaps
(or security derivatives, as the Commission determines by rule, regulation, or
order) and the reporting of transactions and position data.</text>
</subparagraph></paragraph><paragraph id="ID990e1bc5084e4235ba67d24f426f0fd3"><enum>(2)</enum><header>Examinations</header><text>All
records of significant security-based derivatives market participants and such
other persons described in paragraph (1) are subject at any time, or from time
to time, to such reasonable periodic, special, or other examinations by
representatives of the Commission, as the Commission deems necessary or
appropriate in the public interest, for the protection of investors, or
otherwise in furtherance of the purposes of this
title.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="ID800e277270954ee29c4082848d9527f8"><enum>(b)</enum><header>Reporting by
significant security-Based derivatives market
participants</header><text>Section 13 of the Securities Exchange Act of 1934
(15 U.S.C. 78m) is amended by adding at the end the following new
subsection:</text>
<quoted-block display-inline="no-display-inline" id="id0589DC11CB604E12B15A74A6F126D013" style="OLC">
<subsection id="IDeafc317ea8884c3997d6b869e3ecab4f"><enum>(m)</enum><header>Reporting by
significant security-Based derivatives market participants</header>
<paragraph id="ID2d591b7f87f94442b512487dd0ec8889"><enum>(1)</enum><header>In
general</header><text>For the purpose of monitoring the impact of transactions
in security-based swaps and, as appropriate, security derivatives, and for the
purpose of otherwise assisting the Commission in the enforcement of this title,
any significant security-based derivatives market participant that purchases or
sells security-based swaps (or security derivatives, as the Commission
determines by rule, regulation, or order) shall report such information as the
Commission may, by rule, regulation, or order, prescribe as necessary or
appropriate in the public interest, for the protection of investors, or
otherwise in furtherance of the purposes of this title.</text>
</paragraph><paragraph id="IDf182c87159164eac8633df80c3f1e9e9"><enum>(2)</enum><header>Considerations</header><text>In
exercising its authority under this subsection, the Commission shall take into
account—</text>
<subparagraph id="IDb244b899268648e29f10100ac848b9f7"><enum>(A)</enum><text>existing
reporting systems;</text>
</subparagraph><subparagraph id="IDcfdc1ba0ba8c49dfaf1fd8b25dd4974e"><enum>(B)</enum><text>the costs
associated with reporting such information; and</text>
</subparagraph><subparagraph id="IDbc7290e0f68d466abd4eac4d3e6a3787"><enum>(C)</enum><text>the relationship
between the United States and international securities and derivatives
markets.</text>
</subparagraph></paragraph><paragraph id="IDd770ba3941b44bfeaae02693b8201374"><enum>(3)</enum><header>Limitation on
disclosure</header>
<subparagraph id="idC22168E6F03F466FB9620D39ADD9B3F5"><enum>(A)</enum><header>In
general</header><text>Notwithstanding any other provision of law, the
Commission may not be compelled to disclose any information required by
Commission rule, regulation, or order to be reported to the Commission under
this subsection.</text>
</subparagraph><subparagraph id="idB803AAC450A0413388F49BDBB867489D"><enum>(B)</enum><header>Exception</header><text>Nothing
in this subsection shall—</text>
<clause id="idEB84EDA7F1F34A6DB4751AE1BB5EB33F"><enum>(i)</enum><text>authorize the
Commission to withhold information from Congress; or</text>
</clause><clause id="id7A41CD19B37045518723C9B14B95ED1B"><enum>(ii)</enum><text>prevent the
Commission from complying with—</text>
<subclause id="id3625722227F54C0A835D8C7078A102A0"><enum>(I)</enum><text>a request for
information from any other Federal department or agency requesting information
for purposes within the scope of its jurisdiction; or</text>
</subclause><subclause id="idA7C00BADDB144789A913C1044830E6DA"><enum>(II)</enum><text>an order of a
court of the United States in an action brought by the United States or the
Commission.</text>
</subclause></clause></subparagraph><subparagraph commented="no" id="idA92D0A0D459A46EDB814C5A1C45CDD9C"><enum>(C)</enum><header>Treatment for
title 5 purposes</header><text>For purposes of section 552 of title 5, United
States Code, this subsection shall be considered a statute described in
subsection (b)(3)(B) of such section
552.</text>
</subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="ID68a15d2f381846a088b29383d1ce4ca5"><enum>(c)</enum><header>Beneficial
ownership reporting</header><text>Section 13 of the Securities Exchange Act of
1934 (15 U.S.C. 78m) is amended—</text>
<paragraph id="id78F2F4944D0546BAB2FD4B80F0AAB9DB"><enum>(1)</enum><text>in subsection
(d)(1), by inserting after <quote>Alaska Native Claims Settlement Act,</quote>
the following: <quote>or otherwise becomes or is deemed to become a beneficial
owner of any of the foregoing, upon the purchase or sale of a security-based
swap or security derivative that the Commission may define, by rule,
and</quote>;</text>
</paragraph><paragraph id="IDf63ff462eaf540759937875e12d4b740"><enum>(2)</enum><text>in subsection
(g)(1), by inserting after <quote>subsection (d)(1) of this section</quote> the
following: <quote>or otherwise becomes or is deemed to become a beneficial
owner of any security of a class described in subsection (d)(1) upon the
purchase or sale of a security-based swap or security derivative that the
Commission may define, by rule</quote>; and</text>
</paragraph><paragraph id="ID488082ced194448f940ad59aee19fa33"><enum>(3)</enum><text>in subsection
(f)(1), by inserting after <quote>section (13)(d)(1) of this title</quote> the
following: <quote>, or otherwise becomes or is deemed to become a beneficial
owner of any security of a class described in subsection (d)(1) upon the
purchase or sale of a security-based swap or security derivative that the
Commission may define, by rule,</quote>.</text>
</paragraph></subsection><subsection id="id2E70FFFAF40B473DA876DBDAE71A0E25"><enum>(d)</enum><header>Institutional
investment manager reporting</header><text>Section 13 of the Securities
Exchange Act of 1934 (15 U.S.C. 78m) is amended—</text>
<paragraph id="idC2F22FA4265A40C3A3E581068282A022"><enum>(1)</enum><text>in subsection
(f)(1), by inserting before <quote>shall file reports</quote> the following:
<quote>or security-based swaps or security derivatives that the Commission may
define by rule, having such values as the Commission may determine, by
rule</quote>; and</text>
</paragraph><paragraph id="id89D8A03DD6F148EB9BF8389976D5447D"><enum>(2)</enum><text>in subsection
(f)(3), by inserting before <quote>updated as</quote> the following: <quote>and
security-based swaps or security derivatives that the Commission may define, by
rule</quote>.</text>
</paragraph></subsection><subsection id="IDec167716ce67457abd9b7bc505baee77"><enum>(e)</enum><header>Reporting by
corporate insiders</header><text display-inline="yes-display-inline">Section
16(f) of the Securities Exchange Act of 1934 (15 U.S.C. 78p(f)) is amended by
inserting <quote>or security-based swaps</quote> after <quote>security futures
products</quote>.</text>
</subsection><subsection id="IDee1032d9ff404786b8b917a61242ea4e"><enum>(f)</enum><header>Recordkeeping
by trade repositories</header><text>Section 17(a)(1) of the Securities Exchange
Act of 1934 (15 U.S.C. 78q(a)(1)) is amended by inserting <quote>registered
trade repository,</quote> after <quote>registered securities information
processor,</quote>.</text>
</subsection></section><section id="ID767eb746b8544201bc5185ecda3fec74"><enum>106.</enum><header>Prohibition of
market manipulation, fraud, and other market abuses</header>
<subsection id="ID84a4c1606a4c4fbdbf93c35bd5ab6806"><enum>(a)</enum><header>Rulemaking
authority To prevent fraud, manipulation, and deceptive conduct in
security-Based swaps and security derivatives</header><text>Section 9 of the
Securities Exchange Act of 1934 (15 U.S.C. 78i), as amended by this Act, is
amended by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="idB9216A07F6CA414DB760B5AEF0442AD9" style="OLC">
<subsection id="IDd2c4109745a84f32806aae313ee4c9fc"><enum>(j)</enum><header>Deceptive
conduct in security-Based swaps and security derivatives</header>
<paragraph id="id07348CE8032345BFBF8BBFD0ED5E8324"><enum>(1)</enum><header>In
general</header><text>It shall be unlawful for any person, directly or
indirectly, by the use of any means or instrumentality of interstate commerce
or of the mails, or of any facility of any national securities exchange, to
effect any transaction in, or to induce or attempt to induce the purchase or
sale of, any security-based swap or security derivative, in connection with
which such person engages in any fraudulent, deceptive, or manipulative act or
practice, makes any fictitious quotation, or engages in any transaction,
practice, or course of business which operates as a fraud or deceit upon any
person.</text>
</paragraph><paragraph id="idF73B340AE217457BA24B39DD82CB2E32"><enum>(2)</enum><header>Rulemaking
required</header><text>The Commission shall, for purposes of this subsection,
by rule, regulation, or order, define and prescribe means reasonably designed
to prevent transactions, acts, practices, and courses of business that are
fraudulent, deceptive, or manipulative, and fictitious quotations.</text>
</paragraph><paragraph id="idB727D7F9BFA2484F9B8BF5C891F16A97"><enum>(3)</enum><header>Consultation</header><text>In
adopting rules under this subsection, the Commission shall consult with the
Commodity Futures Trading Commission and seek to maintain comparability of such
rules with similar rules of the Commodity Futures Trading
Commission.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="ID7086c7a9cb5f48bda5bddf7484fc9af3"><enum>(b)</enum><header>Additions of
security-Based swaps to certain antimanipulation
provisions</header><text>Section 9(b) of the Securities Exchange Act of 1934
(15 U.S.C. 78i(b)) is amended by striking paragraphs (1) through (3) and
inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="idA7998A1DD9014D1EA8C8B815FF55B172" style="OLC">
<paragraph id="IDb6542df9f710495587550938a6ff3abd"><enum>(1)</enum><text>any transaction
in connection with any security whereby any party to such transaction
acquires—</text>
<subparagraph id="id16D102DC131D4729BBED4A6D23DF2157"><enum>(A)</enum><text>any put, call,
straddle, or other option or privilege of buying the security from or selling
the security to another without being bound to do so;</text>
</subparagraph><subparagraph id="id96062E3AF20448E794C491FC0BFBD2BB"><enum>(B)</enum><text>any security
futures product on or related to the security; or</text>
</subparagraph><subparagraph id="idDA4CD5E56B314F539385FBC3A768E05B"><enum>(C)</enum><text>any
security-based swap involving the security or the issuer of the
security;</text>
</subparagraph></paragraph><paragraph id="ID59b506de61914ba4940a05fa781eea77"><enum>(2)</enum><text>any transaction
in connection with any security with relation to which that person has,
directly or indirectly, any interest in any—</text>
<subparagraph id="idCA781870B850403C86F885A7A25F0BD9"><enum>(A)</enum><text>put, call,
straddle, option, or privilege described in paragraph (1);</text>
</subparagraph><subparagraph id="idEA4B24C23D5B424284E55885D992A9C8"><enum>(B)</enum><text>security futures
product described in paragraph (1); or</text>
</subparagraph><subparagraph id="id277FBEE74C7543BBABA31C180BB9A46F"><enum>(C)</enum><text>security-based
swap described in paragraph (1); or</text>
</subparagraph></paragraph><paragraph id="ID147dfb17bea349aba2816d7c5d308214"><enum>(3)</enum><text>any transaction
in any security for the account of any person who that person has reason to
believe has, and who actually has, directly or indirectly, any interest in
any—</text>
<subparagraph id="id20DED6B140D2473DB4D667CA31263B18"><enum>(A)</enum><text>put, call,
straddle, option, or privilege described in paragraph (1);</text>
</subparagraph><subparagraph id="id62C2A89316BC41388B88EB1492CF3B90"><enum>(B)</enum><text>security futures
product with relation to such security described in paragraph (1); or</text>
</subparagraph><subparagraph id="id4D073AEE794C45C6BB4B006069B3CC2B"><enum>(C)</enum><text>any
security-based swap involving such security or the issuer of such
security.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="ID4d70a50fcfe445d3b09e2e6a9758c67c"><enum>(c)</enum><header>Position limits
and position accountability for security-Based swaps or security
derivatives</header><text>The Securities Exchange Act of 1934 (15 U.S.C. 78a et
seq.) is amended by inserting after section 10A the following new
section:</text>
<quoted-block display-inline="no-display-inline" id="idC4A8EC6DBE2E4716AD7A280CF32EE0BE" style="OLC">
<section id="ID87a3a28551184971918b780b939789d7"><enum>10B.</enum><header>Position
limits and position accountability for security-based swaps or security
derivatives</header>
<subsection id="ID1865b3ddeff343e2a5f773c02035203a"><enum>(a)</enum><header>Rulemaking
authority</header>
<paragraph id="idF5883F0DFD424CB9B3D31FAB76485306"><enum>(1)</enum><header>In
general</header><text>As a means reasonably designed to prevent fraud or
manipulation, the Commission, by rule, regulation, or order, as necessary or
appropriate in the public interest, for the protection of investors, or
otherwise in furtherance of the purposes of this title, may—</text>
<subparagraph id="IDf8bcb0c6fcb748a8ac964b17dfc19256"><enum>(A)</enum><text>prescribe
requirements regarding the size of positions that may be held by or on behalf
of any person or persons in any security-based swap (or security derivative, as
the Commission determines by rule, regulation, or order) and any security on
which such security-based swap (or security derivative) is based or referenced,
or as to which the issuer of such security is referenced; and</text>
</subparagraph><subparagraph id="ID1b0f286580a345589ded93098650c4bb"><enum>(B)</enum><text>require any
person that effects transactions for his own account or the account of others
in any security-based swap (or security derivative, as the Commission
determines by rule, regulation, or order) and any security on which such
security-based swap (or security derivative) is based or referenced, or the
issuer of such security is referenced, to report such information as the
Commission may prescribe regarding any position or positions in security-based
swaps (or security derivatives) and any security on which such security-based
swap (or security derivative) is based or referenced, or as to which the issuer
of such security is referenced.</text>
</subparagraph></paragraph><paragraph id="ID04a387b4eb6547ef8a1de687ce21d38d"><enum>(2)</enum><header>Exemptions
authorized</header><text>The Commission, by rule, regulation, or order, may
conditionally or unconditionally exempt any person or class of persons, any
security-based swap (or security derivative) or class of security-based swaps
(or security derivatives), or any transaction or class of transactions from any
requirement that the Commission may establish under this subsection.</text>
</paragraph></subsection><subsection id="IDcce9918cf5c24a4a9cdec2a69152d918"><enum>(b)</enum><header>Self-Regulatory
organizations</header><text>As a means reasonably designed to prevent fraud or
manipulation, the Commission, by rule, regulation, or order, as necessary or
appropriate in the public interest, for the protection of investors, or
otherwise in furtherance of the purposes of this title, may direct a
self-regulatory organization—</text>
<paragraph id="IDb157ac4f7eb649c68015e3814dd062e8"><enum>(1)</enum><text>to adopt rules
regarding the size of positions in any security-based swap (or security
derivative) and any security on which such security-based swap (or security
derivative) is based or referenced, or as to which the issuer of such security
is referenced that may be held by—</text>
<subparagraph id="id48C10404A58145C9998560DFBF365DC9"><enum>(A)</enum><text>any member of
such self-regulatory organization; or</text>
</subparagraph><subparagraph id="id3692941F2CC74B28BAD72EA061246E39"><enum>(B)</enum><text>any person for
whom a member of such self-regulatory organization effects transactions in such
security-based swap, security derivative, or other security; and</text>
</subparagraph></paragraph><paragraph id="ID847290ea175b43ecb9569b3da018f341"><enum>(2)</enum><text>to adopt rules
reasonably designed to assure compliance with requirements prescribed by the
Commission under subsection
(a).</text>
</paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="ID2d6733882fee423ca9238e1296680f31"><enum>(d)</enum><header>State gaming
and bucket shop laws</header><text>Section 28(a) of the Securities Exchange Act
of 1934 (15 U.S.C. 78bb(a)) is amended to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="idAD9D625FA967425BBFE7905E362467A5" style="OLC">
<subsection id="IDc94e007b97fe44a29d72ea4847adddb8"><enum>(a)</enum><header>State gaming
and bucket shop laws</header>
<paragraph id="id2E744ECF66A74B1E9A580E63ABADD9EB"><enum>(1)</enum><header>In
general</header><text>Except as provided in subsection (f), the rights and
remedies provided by this title shall be in addition to any and all other
rights and remedies that may exist at law or in equity, but no person permitted
to maintain a suit for damages under the provisions of this title shall
recover, through satisfaction of judgment in 1 or more actions, a total amount
in excess of the actual damages of that person due to the act that is the
subject of the action.</text>
</paragraph><paragraph id="idF8A191A5898B451BA8AD62298BBF1483"><enum>(2)</enum><header>Rule of
construction</header><text>Except as otherwise specifically provided in this
title, nothing in this title shall affect the jurisdiction of the securities
commission (or any agency or officer performing like functions) of any State
over any security or any person, to the extent that the exercise thereof does
not conflict with the provisions of this title or the rules and regulations
thereunder.</text>
</paragraph><paragraph id="id96A00182CA1D47F6BFA31AC96CF2FFF4"><enum>(3)</enum><header>Gaming
laws</header><text>No provision of State law which prohibits or regulates the
making or promoting of wagering or gaming contracts, or the operation of
<quote>bucket shops</quote> or other similar or related activities, shall
invalidate—</text>
<subparagraph id="idAFE2A20B0A4748EC9D7F125A5A0D1001"><enum>(A)</enum><text>any put, call,
straddle, option, privilege, or other security that is subject to regulation
under this title (except a security-based swap and any security that has a
pari-mutual payout or otherwise is determined by the Commission, acting by
rule, regulation, or order, to be appropriately subject to such laws), or apply
to any activity which is incidental or related to the offer, purchase, sale,
exercise, settlement, or closeout of any such security;</text>
</subparagraph><subparagraph id="idF62875F674094AEB9A55CEC97C2B0EC1"><enum>(B)</enum><text>any
security-based swap between eligible contract participants; or</text>
</subparagraph><subparagraph id="id0DCFF3819007459F87178E1546E5E34D"><enum>(C)</enum><text>any
security-based swap effected on a national securities exchange that is
registered pursuant to section 6(b).</text>
</subparagraph></paragraph><paragraph id="idE68CD4CE8DDA4048B90C22D9D0D49E07"><enum>(4)</enum><header>Security
futures product</header><text>No provision of State law regarding the offer,
sale, or distribution of securities shall apply to any transaction in a
security futures product, except that this paragraph may not be construed as
limiting any State antifraud law of general
applicability.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection></section><section id="ID3bf9459efdb145cf8114db9df2cda51f"><enum>107.</enum><header>Protections
for marketing security-based swaps to certain persons</header>
<subsection id="IDd0bb21f91dee4e0dbd17c4dadf19a20a"><enum>(a)</enum><header>Trading in
security-Based swaps</header><text>Section 6 of the Securities Exchange Act of
1934 (15 U.S.C. 78f), as amended by this Act, is amended by adding at the end
the following:</text>
<quoted-block display-inline="no-display-inline" id="id321004587DEB435CB9460465E7A2DE9B" style="OLC">
<subsection id="IDb291a3ec573646e1841fc0486dff8087"><enum>(i)</enum><header>Eligible
contract participants</header><text>It shall be unlawful for any person to
effect a transaction in a security-based swap with or for a person that is not
an eligible contract participant, unless such transaction is effected on a
national securities exchange registered pursuant to subsection
(b).</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="ID658538476f034a2eb894e3d8ca048998"><enum>(b)</enum><header>Registration of
security-Based swaps</header><text>Section 5 of the Securities Act of 1933 (15
U.S.C. 77e) is amended by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="id156AF802E5B3472D86A1B80B4106950B" style="OLC">
<subsection id="IDbeba00808dbb4b30896d46a9ff960c01"><enum>(d)</enum><header>Registration of
security-Based swaps</header><text>Notwithstanding the provisions of section 3
or 4, unless a registration statement meeting the requirements of section 10(a)
is in effect with respect to a security-based swap, it shall be unlawful for
any person, directly or indirectly, to make use of any means or instruments of
transportation or communication in interstate commerce or of the mails to offer
to sell, offer to buy, or purchase, sell, or buy a security-based swap to any
person who is not an eligible contract participant, as defined in section
3(a)(66) of the Securities Exchange Act of
1934.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection></section><section id="IDfd8c7a5b7a0e40f2b0139599e0c57b2e"><enum>108.</enum><header>Enforcement</header><text display-inline="no-display-inline">Section 21 of the Securities Exchange Act of
1934 (15 U.S.C. 78u) is amended by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="id95E334C0171C498F935F1C7AE573EFF9" style="OLC">
<subsection id="IDbf5f4cddc81d41fdbcccb494a1cab8df"><enum>(j)</enum><header>Enforcement of
provisions applicable to derivatives market participants</header>
<paragraph id="ID3ce45719fc4f48eba23441c43a4a36b2"><enum>(1)</enum><header>In
general</header><text>In addition to enforcement by the Commission under the
securities laws of compliance with sections 6(l), 13(m), 15F(a), 15F(c),
15F(d), 17(l), 17C(b)(1), and 17C(c)(1), compliance with such sections shall be
enforced under—</text>
<subparagraph id="ID39f3335cfaec4b0a9da2f7d9c02a4980"><enum>(A)</enum><text>section 8 of the
Federal Deposit Insurance Act (12 U.S.C. 1818), by the appropriate Federal
banking agency, in the case of an insured depository institution, as those
terms are defined in section 3 of that Act (12 U.S.C. 1813), other than an
affiliate of an insured depository institution, as defined in section 3 of that
Act (12 U.S.C. 1813);</text>
</subparagraph><subparagraph id="ID2b1ec5ee6ed04c43a33d2bbcc3bd4dbb"><enum>(B)</enum><text>the Commodity
Exchange Act (7 U.S.C. 1 et seq.), by the Commodity Futures Trading Commission,
in the case of a futures commission merchant, introducing broker, commodity
pool operator, or commodity trading advisor, as those terms are defined in
sections 1a of the Commodity Exchange Act, other than an affiliate of an
insured depository institution, as defined in section 3 of the Federal Deposit
Insurance Act (12 U.S.C. 1813); and</text>
</subparagraph><subparagraph id="IDb46aab2190a942bc9d97bba09df079b0"><enum>(C)</enum><text>the Federal
Housing Enterprises Financial Safety and Soundness Act of 1992 (12 U.S.C. 4501
et seq.), by the Federal Housing Finance Agency, in the case of a regulated
entity, as defined in section 1303 of the Federal Housing Enterprises Financial
Safety and Soundness Act of 1992 (12 U.S.C. 4502).</text>
</subparagraph></paragraph><paragraph id="ID2a7970eb046a4957b62bc3ace5ea9646"><enum>(2)</enum><header>Violations
treated as violations of other laws</header><text>For purposes of the exercise
by any agency referred to in paragraph (1), a violation of sections 6(l),
13(m), 15F(a), 15F(c), 15F(d), 17(l), 17C(b)(1), and 17C(c)(1) of this title
shall be deemed to be a violation of a requirement imposed under that provision
of law. In addition to its powers under any provision of law specifically
referred to in paragraph (1), each of the agencies referred to in that
paragraph may exercise, for the purpose of enforcing compliance with sections
6(l), 13(m), 15F(a), 15F(c), 15F(d), 17(l), 17C(b)(1), and 17C(c)(1) of this
title, any other authority conferred on such agency by
law.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="IDfdbb017110b947828bbb576b4fc444c9"><enum>109.</enum><header>Enforceability
of security-based swaps</header><text display-inline="no-display-inline">Section 29(b)(2) of the Securities Exchange
Act of 1934 (15 U.S.C. 78cc(b)(2)) is amended by striking <quote>and
(B)</quote> and inserting the following: <quote>, (B) that no agreement,
contract, or transaction that is a security-based swap shall be void, voidable,
or unenforceable by either party to such security-based swap, and no party
thereto shall be entitled to rescind, or recover any payment made with respect
to, such security-based swap under this section or any other provision of
securities laws based solely on the failure of either party to the agreement,
contract, or transaction to satisfy its respective obligations under sections
6(l), 10B, 13, 15(b), 15F, 17, and 17C of this title with respect to such
security-based swap, and (C)</quote>.</text>
</section><section commented="no" id="IDc59d4ae29f5f44878f133c89216d398d"><enum>110.</enum><header>Transfer and
rights of certain CFTC employees</header>
<subsection commented="no" id="IDcae729d08a5c4e1687ee544238e3aff4"><enum>(a)</enum><header>Transfer</header><text>Each
employee of the Commodity Futures Trading Commission (in this section referred
to as the <quote>CFTC</quote>) whose position and responsibilities would be
more effectively utilized at the Securities and Exchange Commission (in this
section referred to as the <quote>SEC</quote>), based on this Act and the
amendments made by this Act, as determined by the Secretary of the Treasury,
shall be transferred to the SEC for employment, not later than 60 days after
the date of enactment of this Act. Such transfer shall be deemed a transfer of
function for purposes of section 3503 of title 5, United States Code.</text>
</subsection><subsection commented="no" id="ID592fcc4c567d4e6983d5fed0c77dccf4"><enum>(b)</enum><header>Guaranteed
positions</header>
<paragraph commented="no" id="IDdbbab672efe94d599088c9361e0f8fc1"><enum>(1)</enum><header>In
general</header><text>Each employee transferred under subsection (a) shall be
guaranteed a position with equivalent status, tenure, pay and benefits as that
held on the day immediately preceding the transfer, subject to paragraph
(2).</text>
</paragraph><paragraph commented="no" id="ID624fe6fd5727451b958dbaa555b927e2"><enum>(2)</enum><header>No involuntary
separation or reduction</header><text>An employee transferred under subsection
(a) holding a permanent position on the day immediately preceding the transfer
may not be involuntarily separated or reduced in grade or compensation during
the 12-month period beginning on the date of transfer, except for cause, or, in
the case of a temporary employee, separated in accordance with the terms of the
appointment of the employee.</text>
</paragraph></subsection><subsection commented="no" id="ID77356dc6e02940359f0622b6ec3fdc48"><enum>(c)</enum><header>Appointment
authority for excepted and Senior Executive Service employees</header>
<paragraph commented="no" id="ID9c022f16facc45679b43384139ee89cf"><enum>(1)</enum><header>In
general</header><text>In the case of an employee of the CFTC occupying a
position in the excepted service or the Senior Executive Service, such employee
shall, on and after the date of transfer to the SEC, be deemed to be appointed
under the appointment authority of the SEC for filling an equivalent position
at the SEC, subject to paragraph (2).</text>
</paragraph><paragraph commented="no" id="ID5e04d82eb9e94df996dcb2bbc0df4944"><enum>(2)</enum><header>Declining
application of equivalent appointment authority</header><text>The Chairman of
the SEC may decline the application of the equivalent appointment authority of
the SEC to an employee of the CFTC occupying a position in the excepted service
or the Senior Executive Service under paragraph (1) to the extent that the
authority by which the employee was appointed by the CFTC relates to—</text>
<subparagraph commented="no" id="ID5b7d6774b3a54a8e81c5b492444d2993"><enum>(A)</enum><text>a position
excepted from the competitive service because of its confidential,
policymaking, policy-determining, or policy-advocating character; or</text>
</subparagraph><subparagraph commented="no" id="IDfe7f708a9d664dcdbe29387b57e1adf2"><enum>(B)</enum><text>a noncareer
position in the Senior Executive Service (within the meaning of section
3132(a)(7) of title 5, United States Code).</text>
</subparagraph></paragraph></subsection><subsection commented="no" id="ID3617aaf015cb4f09bf6480d355a466d9"><enum>(d)</enum><header>Reorganization</header><text>If
the Chairman of the SEC determines, after the end of the 1-year period
beginning on the date of enactment of this Act, that a reorganization of the
combined workforce is required, that reorganization shall be deemed a major
reorganization for purposes of affording affected employee retirement under
section 8336(d)(2) or 8414(b)(1)(B) of title 5, United States Code.</text>
</subsection></section><enum>II</enum><header>Regulation of
commodity-based derivatives</header>
<section id="id42EEB69A715F4229A56C86A3AFC867A9"><enum>201.</enum><header>Definitions</header><text display-inline="no-display-inline">Section 1a of the Commodity Exchange Act (7
U.S.C. 1a) is amended—</text>
<paragraph id="idC71F88F513F648109B0B6D7E2A1F58B5"><enum>(1)</enum><text>by striking
paragraphs (1), (25), (31), and (32);</text>
</paragraph><paragraph id="id0B6332FD9D52486898BDD644E85BC631"><enum>(2)</enum><text>by redesignating
paragraphs (2) through (4), (5) through (8), (9) through (24), (26) through
(28), (29), (30), (33), and (34) as paragraphs (1) through (3), (7) through
(10), (12) through (27), (28) through (30), (32), (33), (35), and (37),
respectively;</text>
</paragraph><paragraph id="idBEDA44D3549B4A889F64A6514DCF7147"><enum>(3)</enum><text>by inserting
after paragraph (3) (as redesignated by paragraph (2) of this section) the
following:</text>
<quoted-block display-inline="no-display-inline" id="id348EA0B3876140C988CE1769906BCF46" style="OLC">
<paragraph id="idE5923B2B79004AD3B4275DF3C6F058F0"><enum>(4)</enum><header>Commodity-based
swap</header><text>The term <term>commodity-based swap</term> means a swap that
is not a security-based swap, as defined in section 3(a) of the Securities
Exchange Act of 1934 (15 U.S.C. 78c(a)).</text>
</paragraph><paragraph id="idA5F26AC7C0354576B91E9DD89D2C1384"><enum>(5)</enum><header>Commodity-based
swap execution facility</header><text>The term <term>commodity-based swap
execution facility</term> means a trading facility registered under section
5h.</text>
</paragraph><paragraph id="id046B60D28D834CA18D510E4BC6F55380"><enum>(6)</enum><header>Commodity
derivative</header><text>The term <term>commodity derivative</term> means any
derivative that is a contract of sale for future delivery of any commodity (or
option on a contract of sale for future delivery of any commodity) subject to
the exclusive jurisdiction of the Commission under this Act, other than a
swap.</text>
</paragraph><after-quoted-block>;</after-quoted-block></quoted-block>
</paragraph><paragraph id="id6776806D57BD4410AD55FB61E056E1DC"><enum>(4)</enum><text>by inserting
after paragraph (10) (as redesignated by paragraph (2) of this section) the
following:</text>
<quoted-block display-inline="no-display-inline" id="id5B32E7A32EAC4A68B00149900E6B27E5" style="OLC">
<paragraph id="id115BFD10E9024079861B93EA13ED1FF3"><enum>(11)</enum><header>Derivative</header><text>The
term <term>derivative</term> has the meaning given the term in section 3(a) of
the Securities Exchange Act of 1934 (15 U.S.C.
78c(a)).</text>
</paragraph><after-quoted-block>;</after-quoted-block></quoted-block>
</paragraph><paragraph id="id4C02E6E70DA842F682859EC863BF7478"><enum>(5)</enum><text>by inserting
after paragraph (30) (as redesignated by paragraph (2) of this section) the
following:</text>
<quoted-block display-inline="no-display-inline" id="id0728FC28627F4D71BC48161E54E654BF" style="OLC">
<paragraph id="idC4C180FA6D364A0CABC2736DF7C07AB4"><enum>(31)</enum><header>Person
associated with a significant commodity-based derivatives market
participant</header>
<subparagraph id="id1E0E28981096425F8713C09748FEB335"><enum>(A)</enum><header>In
general</header><text>The term <term>person associated with a significant
commodity-based derivatives market participant</term> means—</text>
<clause id="idAAC599154453428A9A03894D90D895E6"><enum>(i)</enum><text>any partner,
officer, director, or branch manager of a significant commodity-based
derivatives market participant (including any individual who holds a similar
status or performs a similar function with respect to any partner, officer,
director, or branch manager of a significant commodity-based derivatives market
participant);</text>
</clause><clause id="idA4060B51CB244CC7A6EA75E450F9F8E4"><enum>(ii)</enum><text>any person that
directly or indirectly controls, is controlled by, or is under common control
with a significant commodity-based derivatives market participant; and</text>
</clause><clause id="id1979DCD72A9146DBA327A192500D7A1C"><enum>(iii)</enum><text>any employee of
a significant commodity-based derivatives market participant.</text>
</clause></subparagraph><subparagraph id="id18EB6201B9FF4BCBA62288590B67D895"><enum>(B)</enum><header>Exclusion</header><text>Other
than for purposes of section 4s, the term <term>person associated with a
significant commodity-based derivatives market participant</term> does not
include any person associated with a significant commodity-based derivatives
market participant the functions of which are solely clerical or
ministerial.</text>
</subparagraph></paragraph><after-quoted-block>;
</after-quoted-block></quoted-block>
</paragraph><paragraph id="idB48B228373FB4FCEB2B41F0F7A9468FF"><enum>(6)</enum><text>in paragraph (32)
(as redesignated by paragraph (2) of this section)—</text>
<subparagraph id="id846D6AE698F04EACADC36D5DB86E46C4"><enum>(A)</enum><text>by striking
subparagraph (D) and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="id7256482A67E6423FBA5659B8EB66F4C5" style="OLC">
<subparagraph id="id0F30194A9223497483275659482485EC"><enum>(D)</enum><text>a commodity-based
swap execution facility registered under section
5h;</text>
</subparagraph><after-quoted-block>;</after-quoted-block></quoted-block>
</subparagraph><subparagraph id="id0B3108CFB29549AFB4F1B1AA766F2195"><enum>(B)</enum><text>in subparagraph
(E), by striking the period and inserting a semicolon; and</text>
</subparagraph><subparagraph id="id62D93118AFE44326B0B7F22CBD4AB973"><enum>(C)</enum><text>by adding at the
end the following:</text>
<quoted-block display-inline="no-display-inline" id="id30F4A91657A14D5F90E54763E3330008" style="OLC">
<subparagraph id="idFE21441E0CFC44DE825664FF0A4EC4D8"><enum>(F)</enum><text>a significant
commodity-based derivatives market participant; and</text>
</subparagraph><subparagraph id="idACBA66DA7F4A4DEB875EFC7BD5497D7D"><enum>(G)</enum><text>a trade
repository under section 4r.</text>
</subparagraph><after-quoted-block>;
</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="id5F547276F55F448CAFE22B5529330ED9"><enum>(7)</enum><text>by inserting
after paragraph (33) (as redesignated by paragraph (2) of this section) the
following:</text>
<quoted-block display-inline="no-display-inline" id="id63E74BE1AD814106B46643AC8A762814" style="OLC">
<paragraph id="id0D330ECF92E2480596B9AA8C52916FE2"><enum>(34)</enum><header>Significant
commodity-based derivatives market participant</header>
<subparagraph id="id30312E8187ED481697119B3BEC3D3AB8"><enum>(A)</enum><header>In
general</header><text>The term <term>significant commodity-based derivatives
market participant</term> means—</text>
<clause id="id1B33DC22ACFE4B2EB58E2DB98D8EA052"><enum>(i)</enum><text>any person that
is engaged in the business of purchasing or selling 1 or more commodity-based
swaps for the account of the person or for any other individual or entity, or
making a market in commodity-based swaps, and the 1 or more purchases or sales
of which are not solely for the purpose of managing the risk associated
with—</text>
<subclause id="idAAC98D8A8A514537A7CBB2CB86100698"><enum>(I)</enum><text>an asset that is,
or is anticipated to be, owned, produced, manufactured, processed, or
merchandised;</text>
</subclause><subclause id="idCF12820D841D469AA8D89B2907CEF653"><enum>(II)</enum><text>potential
changes in the value of services to be purchased or provided, or anticipated to
be purchased or provided; or</text>
</subclause><subclause id="idAA628B3CEA234F88AFA5D85FB792762F"><enum>(III)</enum><text>a liability
incurred or anticipated to be incurred by a person that is not, or is not
related to, a commodity-based swap; or</text>
</subclause></clause><clause id="idFFC8E13ECDBD42CBA970B8DBB974117F"><enum>(ii)</enum><text>any other person
designated by the Commission, after consultation with the Securities and
Exchange Commission, by rule, regulation, or order as is appropriate to
further—</text>
<subclause id="id6A7915D5C3AB4ECFA9EEC408D065BAA5"><enum>(I)</enum><text>the interests of
the public;</text>
</subclause><subclause id="idDE3CD2E34366437ABD7360DDEB01B7B3"><enum>(II)</enum><text>the protection
of market participants; or</text>
</subclause><subclause id="idC1CDFD3B01BC49998EF84B93EBFCD1DF"><enum>(III)</enum><text>the purposes of
this Act.</text>
</subclause></clause></subparagraph><subparagraph id="id9AADFF5E04B64ADAABEDD47AFB419723"><enum>(B)</enum><header>Exclusion</header><text>The
term <term>significant commodity-based derivatives market participant</term>
does not include an investment company registered under the Investment Company
Act of 1940 (15 U.S.C. 80a–1 et seq.).</text>
</subparagraph></paragraph><after-quoted-block>;
</after-quoted-block></quoted-block>
</paragraph><paragraph id="idBB7E2752E0E44880A0A33899E2C965FE"><enum>(8)</enum><text>by inserting
after paragraph (35) (as redesignated by paragraph (2) of this section) the
following:</text>
<quoted-block display-inline="no-display-inline" id="idF8458C88A981465484D99147452A55F7" style="OLC">
<paragraph id="idBA57EC81542D435AA673A60A0777F289"><enum>(36)</enum><header>Swap</header><text>The
term <term>swap</term> has the meaning given the term in section 3(a) of the
Securities Exchange Act of 1934 (15 U.S.C.
78c(a)).</text>
</paragraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</paragraph><paragraph id="id75A55354DDE7485DAEE00EDA933E9D96"><enum>(9)</enum><text>by adding at the
end the following:</text>
<quoted-block display-inline="no-display-inline" id="id934677F780C540DAA5CE61D0740F25F2" style="OLC">
<paragraph id="id9B253B8AE5894958B9F6F89F41AC643F"><enum>(38)</enum><header>Trade
repository</header><text>The term <term>trade repository</term> means any
person that collects, calculates, processes, or prepares information with
respect to 1 or more transactions or positions in 1 or more commodity-based
swaps.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></section><section id="id1B703618708F4876A1F23715B669A238"><enum>202.</enum><header>Rationalization
of financial product oversight</header>
<subsection id="id9384F605CCE8491EAE7F7D82409085E2"><enum>(a)</enum><header>CFTC authority
over commodity-Based swaps</header>
<paragraph id="id457A249770A049018249F6D0E4E62B23"><enum>(1)</enum><header>Amendments to
Commodity Futures Modernization Act of 2000</header>
<subparagraph id="id3CD427D6A54D453BBDBB18CFBDE597E3"><enum>(A)</enum><header>Definitions</header><text>Section
402 of the Commodity Futures Modernization Act of 2000 (7 U.S.C. 27) is amended
by striking subsection (d).</text>
</subparagraph><subparagraph id="id56655ED38D464D78B491A58A0E0D7E51"><enum>(B)</enum><header>Exclusion of
covered swap agreements</header><text>Section 407 of the Commodity Futures
Modernization Act of 2000 (7 U.S.C. 27e) is repealed.</text>
</subparagraph><subparagraph id="idFB1FCBBBF69D40FEB949F8DC163B716C"><enum>(C)</enum><header>Contract
enforcement</header><text>Section 408 of the Commodity Futures Modernization
Act of 2000 (7 U.S.C. 27f) is amended by striking subsections (b) and (c) and
inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="idB344B6BE736D4C9D85DDC7B304AB1394" style="OLC">
<subsection id="idAFA93E21095B43AD814B568609FBC8C4"><enum>(b)</enum><header>Preemption</header><text>This
title shall supersede and preempt the application of any State or local law
that prohibits or regulates gaming or the operation of bucket shops (other than
antifraud provisions of general applicability) in the case of a hybrid
instrument that is predominantly a banking
product.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="id6CC2A75118EA4CF0974190BEA6B4D827"><enum>(2)</enum><header>Amendments to
Commodity Exchange Act</header>
<subparagraph id="id045F55BA6D67480F8C35672700EEBD44"><enum>(A)</enum><header>In
general</header><text>Section 2 of the Commodity Exchange Act (7 U.S.C. 2) is
amended—</text>
<clause id="idA6657325A1A743658406DB1CAE3EAE37"><enum>(i)</enum><text>in
subsection (a)(1)—</text>
<subclause id="idFB5B6527B9B64CB79D30C7761ABCA128"><enum>(I)</enum><text>in the first
sentence of subparagraph (A), by striking <quote>subparagraphs (C) and (D) of
this paragraph and subsections (c) through (i) of this section</quote> and
inserting <quote>subparagraph (C) and subsections (c) through
(e)</quote>;</text>
</subclause><subclause id="idF661F7BF766246C19CEBE73287B5EC12"><enum>(II)</enum><text>in subparagraph
(C), by striking clauses (ii) through (v) and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="id1FAB4E0130C149E9AB538B2C4057618D" style="OLC">
<clause id="id4375322C37DB4E04842ED68224991B77"><enum>(ii)</enum><header>Contracts of
sale for future delivery</header><text>This Act shall not apply to, and the
Commission shall have no jurisdiction to designate a board of trade as a
contract market for any contract of sale (or option on such contract) for
future delivery—</text>
<subclause commented="no" id="id47E511DC12AB43CABE691E58250BB78A"><enum>(I)</enum><text>of any security,
or interest in a security or based on the value of a security (other than an
exempted security under section 3(a) of the Securities Exchange Act of 1934 (15
U.S.C. 78c(a)), as in effect on the date of enactment of the Futures Trading
Act of 1982 (other than any municipal security, as defined in that section
3(a), as in effect on the date of enactment of the Futures Trading Act of
1982), or any group or index of such securities or any interest in a security
or based on the value of a security; or</text>
</subclause><subclause commented="no" id="idE316E400CCAA4D36A89F2E5229177D5A"><enum>(II)</enum><text>based on any
financial, economic, or commercial occurrence, extent of an occurrence,
contingency, or consequence that is related to or based on a security, an
interest in a security, or an issuer of a security, or based on the value of
any of the foregoing (other than an exempted security under section 3(a) of the
Securities Exchange Act of 1934 (15 U.S.C. 78c(a)), as in effect on the date of
enactment of the Futures Trading Act of 1982 (other than any municipal
security, as defined in that section 3(a), as in effect on the date of
enactment of the Futures Trading Act of 1982), or any group or index of such
securities, or interests in such securities or issuers of such securities, or
based on the value of any of the
foregoing.</text>
</subclause></clause><after-quoted-block>;
and</after-quoted-block></quoted-block>
</subclause><subclause id="idEBB462A664634BD1BF43327AE5985FEE"><enum>(III)</enum><text>by striking
subparagraphs (D), (E), and (F);</text>
</subclause></clause><clause id="id4416E377FAB04834B296E41F68CCEC6B"><enum>(ii)</enum><text>by
striking subsections (d), (e), (g), (h), and (i);</text>
</clause><clause id="id3E53B13DA874458BA567849FFEAF9DD3"><enum>(iii)</enum><text>by inserting
after subsection (c) the following:</text>
<quoted-block display-inline="no-display-inline" id="id0952FDC69C104B41B9857408F8325203" style="OLC">
<subsection id="id1C2362127DB84095863C8FB63FDCBDA2"><enum>(d)</enum><header>Commodity-Based
swaps</header><text>Nothing in this Act (other than subsections (a)(1)(B),
(a)(1)(C), (e) and (f), sections 4a, 4b, 4b–1, 4c(a), 4c(b), 4o, 4r, 4s, 4t,
5b, 5c, 5h, 6(c), 6(d), 6c, 6d, 8, 8a, 9, 12(e)(2), 12(f), 13(a), 13(b), 21,
and 22(a)(4) and such other provisions of this Act as are applicable by the
terms of the provisions to registered entities and Commission registrants)
governs or applies to a commodity-based
swap.</text>
</subsection><after-quoted-block>;
and</after-quoted-block></quoted-block>
</clause><clause id="id2A7C027CD9CE4F6087CBCD14B88BDD93"><enum>(iv)</enum><text>by
redesignating subsection (f) as subsection (e).</text>
</clause></subparagraph><subparagraph id="idA90A321A6AA2456791F8E9045784CE70"><enum>(B)</enum><header>Conforming
amendments</header>
<clause id="id3EFD0B454AB54C068A36829DAA391626"><enum>(i)</enum><text>Section 1a of the
Commodity Exchange Act (7 U.S.C. 1a) (as amended by section 201(2)) is amended
in paragraph (35) by inserting before the period at the end the following:
<quote>(as in effect on the day before the date of enactment of the
<short-title>Comprehensive Derivatives Regulation Act of
2009</short-title>)</quote>.</text>
</clause><clause commented="no" id="id9C8B5EC34D4D4F0FAE80457DD96DD292"><enum>(ii)</enum><text>Section 5c(a)(1)
of the Commodity Exchange Act (7 U.S.C. 7a–2(a)(1)) is amended by striking
<quote>, and section 2(h)(7) with respect to significant price discovery
contracts,</quote>.</text>
</clause><clause id="idC238CCC943204170AC8988050E418267"><enum>(iii)</enum><text>Section 5d(a)
of the Commodity Exchange Act (7 U.S.C. 7a–3(a)) is amended in the second
sentence by striking <quote>subparagraphs (C) and (D) of section
2(a)(1)</quote> and inserting <quote>section 2(a)(1)(C)</quote>.</text>
</clause><clause id="id1E62EB99292D4DDB8C12087270CCD4DA"><enum>(iv)</enum><text>Section 5e of
the Commodity Exchange Act (7 U.S.C. 7b) is amended by striking <quote>, or
revocation of the right</quote> and all that follows through <quote>significant
price discovery contract,</quote>.</text>
</clause><clause id="id08ADA2734CF24AB7A76DB38FF4FA1EE8"><enum>(v)</enum><text>Section 6(b) of
the Commodity Exchange Act (7 U.S.C. 8(b)) is amended in the first sentence by
striking <quote>, or to revoke the right</quote> and all that follows through
<quote>significant price discovery contract,</quote>.</text>
</clause><clause id="id1747D1A2FEFB447EB2A0D6DE4148AED9"><enum>(vi)</enum><text>Section
22(b)(1)(A) of the Commodity Exchange Act (7 U.S.C. 25(b)(1)(A)) is amended by
striking <quote>section 2(h)(7) or</quote>.</text>
</clause><clause id="idC197FFD5B30246E78E15FF2AC448206C"><enum>(vii)</enum><text>Section
408(2)(C) of the Federal Deposit Insurance Corporation Improvement Act of 1991
(12 U.S.C. 4421(2)(C)) is amended—</text>
<subclause id="id7B3F99C6FF4542FC8FCA568F0DF8F605"><enum>(I)</enum><text>by striking
<quote>, 2(d), 2(f), or 2(g)</quote>; and</text>
</subclause><subclause id="idBF9DA960CB464860AE5FEE83F8E9DD1B"><enum>(II)</enum><text>by striking
<quote>2(h) or</quote>.</text>
</subclause></clause></subparagraph></paragraph><paragraph commented="no" id="idF12163BDBDDA47C3B3CFE727093D03BD"><enum>(3)</enum><header>Amendments to
the Gramm-Leach-Bliley Act</header><text>Section 206 of the Gramm-Leach-Bliley
Act (15 U.S.C. 78c note) is amended—</text>
<subparagraph commented="no" id="id609E2741FB824F529ED3EF6DDD337AB3"><enum>(A)</enum><text>in subsection
(a)—</text>
<clause commented="no" id="id780F6E0FCC5D448AAF64A542A17FD113"><enum>(i)</enum><text>in paragraph (4),
by inserting <quote>or</quote> after the semicolon at the end;</text>
</clause><clause commented="no" id="id6D01F06720CA4976A311F8DFA254186F"><enum>(ii)</enum><text>in paragraph (5)
by striking <quote>; or</quote> at the end and inserting a period; and</text>
</clause><clause commented="no" id="id8ACCE77F8FD64F2992B9C7CC1FAA4C6D"><enum>(iii)</enum><text>by striking
paragraph (6);</text>
</clause></subparagraph><subparagraph commented="no" id="id7A318F835470465E9A3B6C18CDA6085E"><enum>(B)</enum><text>by striking
subsection (b); and</text>
</subparagraph><subparagraph commented="no" id="id58416379C95141FC86010E6AB07ECC36"><enum>(C)</enum><text>by redesignating
subsections (c) and (d) as subsections (b) and (c), respectively.</text>
</subparagraph></paragraph></subsection><subsection id="idD24970523893473EAC8EC11046B1764D"><enum>(b)</enum><header>Rationalization
of security futures oversight</header>
<paragraph id="id56D101FBD1984865AC2870B3554D3A1F"><enum>(1)</enum><header>In
general</header>
<subparagraph id="id5733FDC1C8534CE8A7C3BBECA1A0E020"><enum>(A)</enum><header>Rulemaking
authority to address duplicative regulations of dual
registrants</header><text>Section 4d of the Commodity Exchange Act (7 U.S.C.
6d) is amended by striking subsection (c).</text>
</subparagraph><subparagraph id="idB6BC65993CD94C709D658A9ECE647833"><enum>(B)</enum><header>Registration of
futures commission merchants, introducing brokers, and floor
brokers</header><text>Section 4f(a) of the Commodity Exchange Act (7 U.S.C.
6f(a)) is amended—</text>
<clause id="idF53284E0CE894AF688BB6860D1B96A4E"><enum>(i)</enum><text>in
paragraph (1), by striking <quote>(1)</quote>; and</text>
</clause><clause id="id7C3D8C5515EA4451B349C3376AF95047"><enum>(ii)</enum><text>by
striking paragraphs (2) through (4).</text>
</clause></subparagraph><subparagraph id="idA0D46EFDC28A4191B31FB1E738FE8BF8"><enum>(C)</enum><header>Dual
trading</header><text>Section 4j of the Commodity Exchange Act (7 U.S.C. 6j) is
repealed.</text>
</subparagraph><subparagraph id="id79AF4AF66D2A466597C3F3B33CD09182"><enum>(D)</enum><header>Exemptions for
associated persons or securities broker-dealers</header><text>Section 4k of the
Commodity Exchange Act (7 U.S.C. 6k) is amended by striking paragraph (5) (as
added by section 252(d) of the Commodity Futures Modernization Act of 2000 (114
Stat. 2763A–448)).</text>
</subparagraph><subparagraph id="idD5B39B2F4EA94CAD8B50CA1644442C17"><enum>(E)</enum><header>Election to
trade excluded and exempt commodities</header><text>Section 5a of the Commodity
Exchange Act (7 U.S.C. 7a) is amended by striking subsection (g).</text>
</subparagraph><subparagraph id="id4C752E2935404AE9A6DFA5178695D3D9"><enum>(F)</enum><header>Obligation to
address duplicative regulation of dual registrants</header><text>Section 5c of
the Commodity Exchange Act (7 U.S.C. 7a–2) is amended by striking subsection
(f).</text>
</subparagraph><subparagraph id="idFEB540F5EB5D48768D619D547175AFC8"><enum>(G)</enum><header>Designation of
securities exchanges and associations as contract markets</header><text>Section
5f of the Commodity Exchange Act (7 U.S.C. 7b–1) is repealed.</text>
</subparagraph><subparagraph id="id268A4CD0068647D388CE0C065F7C6A35"><enum>(H)</enum><header>Notification of
investigations and enforcement actions</header><text>Section 6 of the Commodity
Exchange Act is amended by striking subsection (g) (7 U.S.C. 9c).</text>
</subparagraph><subparagraph id="id0042D9076FF74CF5910FF995A9974CA6"><enum>(I)</enum><header>Action to
enjoin or restrain violations</header><text>Section 6c of the Commodity
Exchange Act (7 U.S.C. 13a–1) is amended by striking subsection (h).</text>
</subparagraph><subparagraph id="idBFA74BA0663A4210AA259AC13A14361B"><enum>(J)</enum><header>Public
disclosure</header><text>Section 8(a) of the Commodity Exchange Act (7 U.S.C.
12(a)) is amended by striking paragraph (3).</text>
</subparagraph><subparagraph id="idB4BBAE70C20C4CD6AA6B0CFA20B88DAC"><enum>(K)</enum><header>Market
reports</header><text>Section 16 of the Commodity Exchange Act (7 U.S.C. 20) is
amended by striking subsection (e).</text>
</subparagraph><subparagraph id="idB54B908726194F33ABDBC40CDEB9F261"><enum>(L)</enum><header>Obligation to
address duplicative regulation of dual registrants</header><text>Section 17 of
the Commodity Exchange Act (7 U.S.C. 21) is amended—</text>
<clause id="id7CC1D33737A74C61AE6DB55679430746"><enum>(i)</enum><text>by
striking subsection (r); and</text>
</clause><clause id="id8ABF0FBF866A4883AEC6DC70C1CEB53C"><enum>(ii)</enum><text>by
redesignating subsection (q) (as added by section 233(5) of Public Law 97–444
(96 Stat. 2320)) as subsection (r).</text>
</clause></subparagraph></paragraph><paragraph id="id93259A995B214FAA9FC35298C2CD0320"><enum>(2)</enum><header>Conforming
amendments to the Commodity Exchange Act</header>
<subparagraph id="id0052042F17FA486E902C9DEBE3BC6D3C"><enum>(A)</enum><text>Section 1a of the
Commodity Exchange Act (7 U.S.C. 1a) (as amended by section 201(2)) is amended
in paragraph (28), by striking the second sentence.</text>
</subparagraph><subparagraph id="idB4FCAF7345D744FDAC66DAB1DA24DD7A"><enum>(B)</enum><text>Section 4(c)(1)
of the Commodity Exchange Act (7 U.S.C. 6(c)(1)) is amended by striking
<quote>(except subparagraphs (C)(ii) and (D) of section 2(a)(1), except that
the Commission and the Securities and Exchange Commission may by rule,
regulation, or order jointly exclude any agreement, contract, or transaction
from section 2(a)(1)(D))</quote>.</text>
</subparagraph><subparagraph id="idBBB39B5790BA4289B3CE92675B142AE6"><enum>(C)</enum><text>Section 5a of the
Commodity Exchange Act (7 U.S.C. 7a) is amended—</text>
<clause id="id2BEA4994FF0B44738423D1532ECA3CD9"><enum>(i)</enum><text>in
subsection (b)—</text>
<subclause id="id755881C21FC849FC9FA2FEE53CAB8B93"><enum>(I)</enum><text>in paragraph
(2)—</text>
<item id="id0517F98342A64BF6977433A532A9E0F6"><enum>(aa)</enum><text>by
striking subparagraph (D); and</text>
</item><item id="idA4F4C33C1F054A6CA5D9C637FE8CF542"><enum>(bb)</enum><text>by
redesignating subparagraphs (E) and (F) as subparagraphs (D) and (E),
respectively; and</text>
</item></subclause><subclause id="id44B161767FBB444883F94D40330FE882"><enum>(II)</enum><text>in paragraph
(3)(B)(ii), by striking <quote>or, if the person trades only security futures
products on the facility, a national securities association registered under
section 15A(a) of the Securities Exchange Act of 1934</quote>; and</text>
</subclause></clause><clause id="idF47007B90AD44B6A9CC61A1850D32B93"><enum>(ii)</enum><text>in
subsection (e)(1), by striking <quote>With respect to transactions other than
transactions in security futures products, a</quote> and inserting
<quote>A</quote>.</text>
</clause></subparagraph><subparagraph id="id1A9E70E6E9E34924AFF84B98358FA9C9"><enum>(D)</enum><text>Section 6(b) of
the Commodity Exchange Act (7 U.S.C. 8(b)) is amended in the first sentence by
striking <quote>or section 5f</quote>.</text>
</subparagraph><subparagraph id="id55E2173413CA4090877EE6CC54B6BB9D"><enum>(E)</enum><text>Section 12(e)(2)
of the Commodity Exchange Act (7 U.S.C. 16(e)(2)) is amended—</text>
<clause id="id0B693A72DA2A4CBF8E2BCE9F781A69B0"><enum>(i)</enum><text>in
subparagraph (A), by striking <quote>an electronic trading facility excluded
under section 2(e) of this Act</quote> and inserting <quote>a commodity-based
swap execution facility</quote>;</text>
</clause><clause id="idC307DD823BDF45E7895B8E4133B17F7C"><enum>(ii)</enum><text>in
subparagraph (B)—</text>
<subclause id="id846FFB702B484D5B8556068EEC4C8928"><enum>(I)</enum><text>by striking
<quote>, 2(d), 2(f), or 2(g)</quote> and inserting <quote>or
2(e)</quote>;</text>
</subclause><subclause id="idCCB7EF936A8742379C1BA20EF90B0167"><enum>(II)</enum><text>by striking
<quote>2(h) or</quote>; and</text>
</subclause><subclause id="idD409F9A85CC64B41A7E7AC1AF513EA27"><enum>(III)</enum><text>by striking the
period at the end and inserting <quote>; and</quote>; and</text>
</subclause></clause><clause id="id7C8DC778A05C45169FB3560DCED34F6C"><enum>(iii)</enum><text>by inserting
after subparagraph (B) the following:</text>
<quoted-block display-inline="no-display-inline" id="idF81718886874482CA8A27EFE1E2EC032" style="OLC">
<subparagraph id="id457A70F57AA44BD5B47DC0AA290FFE5C"><enum>(C)</enum><text>a commodity-based
swap.</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</clause></subparagraph></paragraph></subsection></section><section id="id6DE9D5E45E3B44B28BE89609BFC34079"><enum>203.</enum><header>Required
clearing of standardized derivatives through central counterparties and use of
trade repositories</header>
<subsection id="idEF73299269594F00A3E9A7DBA4795F82"><enum>(a)</enum><header>In
general</header><text>The Commodity Exchange Act is amended by inserting after
section 4q (7 U.S.C. 6o–1) the following:</text>
<quoted-block display-inline="no-display-inline" id="id519B439247D44A708633F8297DA2C32F" style="OLC">
<section id="idCC0C50788D98450293533EE396897F3C"><enum>4r.<?LEXA-Enum 4r.?></enum><header>Required clearing of standardized derivatives
through central counterparties and use of trade repositories</header>
<subsection id="id1152D96315364431A61B43E9AFD72D20"><enum>(a)</enum><header>Findings</header><text>Congress
finds that—</text>
<paragraph id="id4117F5D5804F41CFA4DC4E7A71020742"><enum>(1)</enum><text>the proliferation
of over-the-counter commodity-based swaps poses unacceptable risks to the
financial system;</text>
</paragraph><paragraph id="id8ED1836B1FF3404DACAEA0C743571A50"><enum>(2)</enum><text>clearing
standardized commodity-based swaps through well-regulated central
counterparties would reduce systemic risk in the financial system;</text>
</paragraph><paragraph id="idC5E4A1109D2B4DB2ADC974E816BFCA6B"><enum>(3)</enum><text>the markets for
standardized commodity-based swaps suffer from a lack of reliable and accurate
transaction information that is available to the public, market participants,
producers, and regulators; and</text>
</paragraph><paragraph id="id67AECDF9637D4BEFAB6E9E900A894ECA"><enum>(4)</enum><text>weaknesses in the
regulation of markets for standardized commodity-based swaps have detracted
from the efficiency and transparency of trading in the markets and hampered the
surveillance and oversight of the markets.</text>
</paragraph></subsection><subsection id="idAF2F79B31DB240DD9A6AE2B12CEB1F2D"><enum>(b)</enum><header>Purposes</header><text>The
purposes of this section are—</text>
<paragraph id="id90DB825723E246B4B584BC1BB40E5874"><enum>(1)</enum><text>to establish
well-regulated markets for standardized commodity-based swaps that promote
efficiency and transparency of trading and enhance the surveillance and
oversight of the markets; and</text>
</paragraph><paragraph id="id6743E9B4E5904A3AB756E14A5F589B3D"><enum>(2)</enum><text>to promote the
public interest, the protection of market participants, and the maintenance of
fair and orderly markets by ensuring—</text>
<subparagraph id="id3AFEFBF150164A0EBC6B23EBE64ED239"><enum>(A)</enum><text>the prompt and
accurate clearance and settlement of transactions in standardized
commodity-based swaps;</text>
</subparagraph><subparagraph id="id1C419337335244E599578339572D7B1A"><enum>(B)</enum><text>the prompt and
accurate reporting of transactions in commodity-based derivative instruments to
a trade repository or a derivatives clearing organization;</text>
</subparagraph><subparagraph id="idB1C851CB7A7B43FB8CBB8AA9F1F56F29"><enum>(C)</enum><text>the establishment
of linked or coordinated facilities for clearance and settlement of
transactions in securities, securities options, contracts of sale for future
delivery and options on the contracts, commodity options, and
derivatives;</text>
</subparagraph><subparagraph id="idFD1DB27DA7CE444A87AC620745D27568"><enum>(D)</enum><text>the availability
to the public, market participants, producers, and regulators of reliable and
accurate quotation and transaction information in commodity-based swaps;</text>
</subparagraph><subparagraph id="id1FB41902DF6746018CB68C265B098041"><enum>(E)</enum><text>economically
efficient execution of transactions in commodity-based swaps; and</text>
</subparagraph><subparagraph id="id0F529992B12E4ED0B624C11340326FC8"><enum>(F)</enum><text>fair competition
among markets in the trading of commodity-based swaps.</text>
</subparagraph></paragraph></subsection><subsection id="id793463CB2376430CB9216F212DCB8FDE"><enum>(c)</enum><header>Use of
derivatives clearing organizations</header>
<paragraph id="idF470D146D9BB498B9C81BE147208564E"><enum>(1)</enum><header>In
general</header><text>Any person that is a party to a commodity-based swap that
the Commission determines is <quote>standardized</quote> shall submit such
instrument for clearing to a derivatives clearing organization within the
period specified by the rules of the Commission.</text>
</paragraph><paragraph id="id670345CB64584F77AA5CAE9A28D589EA"><enum>(2)</enum><header>Definition of
<quote>standardized</quote></header>
<subparagraph id="idE40EB15AFF8541358154A0D5A4092B7D"><enum>(A)</enum><header>In
general</header><text>The Commission shall by rule, define the term
<term>standardized</term> for purposes of this section.</text>
</subparagraph><subparagraph id="id1CDFE96ACAFB4421BA525547D6C4E33E"><enum>(B)</enum><header>Factors</header><text>In
defining the term <term>standardized</term>, the Commission shall—</text>
<clause id="idD2A882B9AEEC461BAF06E416A21B7817"><enum>(i)</enum><text>be consistent
with—</text>
<subclause id="id1DC1D2C4C13A4089AAE86AE6E5647358"><enum>(I)</enum><text>the public
interest;</text>
</subclause><subclause id="id2D566D4636A543008012B08B915E5223"><enum>(II)</enum><text>the protection
of market participants;</text>
</subclause><subclause id="idBDEC5F80D4E646068B21E1AFD5B720C4"><enum>(III)</enum><text>the
safeguarding of commodity-based swap transactions and funds;</text>
</subclause><subclause id="idBAA9BFF0E70C4F18A3C712474E163765"><enum>(IV)</enum><text>the maintenance
of fair competition among market participants and among derivatives clearing
organizations; and</text>
</subclause><subclause id="id385D11A8145B40F898933A8EF8D835B9"><enum>(V)</enum><text>the purposes of
this section;</text>
</subclause></clause><clause id="id282D1937E6DA4322870B26ABC8CCCF31"><enum>(ii)</enum><subclause commented="no" display-inline="yes-display-inline" id="id74D3C0C0A9E34176B337DDBBEE408CC9"><enum>(I)</enum><text>consult with, and
consider the views of, the Securities and Exchange Commission and the Board of
Governors of the Federal Reserve System; and</text>
</subclause><subclause id="idFBFC041A7E91458A9F80B02265971D04" indent="up1"><enum>(II)</enum><text>seek to maintain comparability, to the
maximum extent practicable, with the Securities and Exchange Commission
definition of <quote>standardized</quote> for purposes of section 17C of the
Securities Exchange Act of 1934; and</text>
</subclause></clause><clause id="idF3519EAA12EE4A89A1117AD7125DE791"><enum>(iii)</enum><text>to the extent
it is applicable to a particular commodity-based swap or class of
commodity-based derivative swaps, consider—</text>
<subclause id="id8D14333ED4A9486A8F9E465D108FC8C9"><enum>(I)</enum><text>whether a
derivatives clearing organization is prepared to clear the commodity-based swap
and the derivatives clearing organization has effective risk management
systems;</text>
</subclause><subclause id="idEF73B28B16744EDAAABBEED517832581"><enum>(II)</enum><text>the availability
or ability to facilitate standard documentation of the terms of the
commodity-based swap;</text>
</subclause><subclause id="idE0648A51BA204218AE1DEF0A993947D6"><enum>(III)</enum><text>the liquidity
of the commodity-based swap and the underlying commodity or group or index of
the commodity-based swap;</text>
</subclause><subclause id="id4C55FAA81F7E4E379BC06603FBBE5840"><enum>(IV)</enum><text>the ability to
value the commodity-based swap, or underlying commodity, consistently with an
accepted pricing methodology, including the availability of intraday prices;
and</text>
</subclause><subclause id="idF73CE31AB5B24E4D986A197671195A14"><enum>(V)</enum><text>such other
factors as are consistent with the purposes of this section.</text>
</subclause></clause></subparagraph></paragraph><paragraph id="idFC71C77992EA483697F81BBF49AE6A7F"><enum>(3)</enum><header>Exemptions</header>
<subparagraph id="id0B062DEECCED4CAABF3301A08BE31B0C"><enum>(A)</enum><header>In
general</header><text>The Commission, by rule or order, as the Commission
considers appropriate in the public interest or the protection of market
participants, may conditionally or unconditionally exempt from the requirements
of this subsection and the rules issued under this subsection any person,
transaction, or standardized commodity-based swap.</text>
</subparagraph><subparagraph id="idDBB6316D351D4FD482B8EC3B15ADD5E2"><enum>(B)</enum><header>Prior
consultation with Securities and Exchange Commission and Board of Governors of
the Federal Reserve System</header>
<clause id="id699507B07C9847FC82DD5C5B420399BF"><enum>(i)</enum><header>Consultation</header><text>Before
acting by rule or order to exempt any person, transaction, or standardized
commodity-based swap from this subsection, the Commission shall consult with,
and consider the views of, the Securities and Exchange Commission and the Board
of Governors of the Federal Reserve System concerning whether the exemption is
appropriate for the reduction of risk and in the public interest.</text>
</clause><clause id="idBB899EAABBBB473CA2641117FBBDA4A6"><enum>(ii)</enum><header>Notice
required</header><text>Forty-five days prior to issuing any exemption, the
Commission shall send a notice to the Securities and Exchange Commission and
the Board of Governors of the Federal Reserve System describing such
exemption.</text>
</clause><clause id="idADAC5F2D59C54E4288F929F6B485FBBB"><enum>(iii)</enum><header>Prohibition
on issuance</header><text>If either the Securities and Exchange Commission or
the Board of Governors of the Federal Reserve System issues a finding that such
an exemption does not meet the standard in clause (i), the Commission shall not
grant the exemption.</text>
</clause><clause id="id4C67F3AAF7954C31BD6102DDBAEEB1EA"><enum>(iv)</enum><header>Deadline</header><text>Any
finding by the Securities and Exchange Commission or the Board of Governors of
the Federal Reserve System shall be made and received in writing by the
Commission not later than 30 days after the date of receipt of a notice of a
proposed exemption by the Commission.</text>
</clause><clause id="id3058BFC1AF3F416786B7D4CD24D6D8F2"><enum>(v)</enum><header>Nondelegation</header><text>Action
by the Securities and Exchange Commission or the Board of Governors under this
subparagraph may not be delegated.</text>
</clause></subparagraph></paragraph></subsection><subsection id="id7C8CC82BF892448182420BBE247F4DFA"><enum>(d)</enum><header>Trade
repositories</header>
<paragraph id="id8BA48B48D4AE4C579E30DAD73CADC9E3"><enum>(1)</enum><header>Use of trade
repositories</header>
<subparagraph id="id66990009391143CF9F55B290665F5A03"><enum>(A)</enum><header>In
general</header><text>Any person that enters into or effects a transaction in a
commodity-based swap shall submit the transaction for clearing to a derivatives
clearing organization or report the transaction to a trade repository
registered in accordance with this subsection within the period specified by
any rule adopted under subsection (e).</text>
</subparagraph><subparagraph id="id3C3460B53CC348F39B294547EB822EC0"><enum>(B)</enum><header>Information</header><text>The
Commission may, by rule, require any person to report to derivatives clearing
organizations and registered trade repositories such transaction information as
the Commission considers appropriate to permit the derivatives clearing
organizations and trade repositories to meet the purposes of this
section.</text>
</subparagraph></paragraph><paragraph id="id9EE73F906C67453CBA66919BEADE4C20"><enum>(2)</enum><header>Registration</header><text>A
trade repository may register for purposes of this subsection by filing with
the Commission an application in such form as the Commission, by rule, may
prescribe containing the rules of the trade repository and such other
information and documents as the Commission, by rule, may prescribe as
appropriate in the public interest, for the protection of market participants,
or for the prompt and accurate collection, calculation, processing, and
preparation of information regarding transactions and positions in
commodity-based swap.</text>
</paragraph><paragraph id="id77B4D51A82B14B058A0A2AF26D58D066"><enum>(3)</enum><header>Commission
procedures for applications</header>
<subparagraph id="idCA63DB9FBFA542EEB9835B64C11600E2"><enum>(A)</enum><header>In
general</header><text>On the filing of an application for registration pursuant
to paragraph (2), the Commission shall publish notice of the filing and afford
interested persons an opportunity to submit written data, views, and arguments
concerning the application.</text>
</subparagraph><subparagraph id="id7E124631EB7C400785944E25241F6FC3"><enum>(B)</enum><header>Actions</header><text>Not
later than 90 days after the date of the publication of the notice (or, with
the consent of the applicant, a longer period), the Commission shall—</text>
<clause id="id9726BA2E0C5E445FA30EB0E4E515A429"><enum>(i)</enum><text>by order grant
the registration; or</text>
</clause><clause id="idA52E143E615F4C3F990DBE640E84B800"><enum>(ii)</enum><text>institute
proceedings to determine whether the registration should be denied.</text>
</clause></subparagraph><subparagraph id="id420286D3362D4E6EA4B6E85BAA31A3E3"><enum>(C)</enum><header>Procedure for
denials</header>
<clause id="id79D3ED88805644D5B7E5CD42141A3440"><enum>(i)</enum><header>In
general</header><text>The proceedings described in subparagraph (B)(ii)
shall—</text>
<subclause id="idCD4CFBE742A54C2BA1368A1C69F6C6BC"><enum>(I)</enum><text>include notice of
the grounds for denial under consideration and an opportunity for a hearing;
and</text>
</subclause><subclause id="id117F32BC4FF14B62B0975824CDC7B303"><enum>(II)</enum><text>be concluded not
later than 180 days after the date of publication of notice of the filing of
the application for registration.</text>
</subclause></clause><clause id="idD6919B5B25714B9AA13971FF10EAF9EA"><enum>(ii)</enum><header>Actions</header><text>At
the conclusion of the proceedings the Commission, by order, shall grant or deny
the registration.</text>
</clause><clause id="idB4D43B3ECB894CB9A068FB0FDE58B69F"><enum>(iii)</enum><header>Extensions</header><text>The
Commission may extend the time for the conclusion of the proceedings
for—</text>
<subclause id="id5DA29609FC264C5F92A5AC76C8CC4511"><enum>(I)</enum><text>not more than 60
days if the Commission—</text>
<item id="id7893C6EF3970408F9C9439A3CBE685F9"><enum>(aa)</enum><text>finds good cause
for the extension; and</text>
</item><item id="id1351A24D455A488F8E800DA2329EB863"><enum>(bb)</enum><text>publishes a
description of the reasons of the Commission for the finding; or</text>
</item></subclause><subclause id="idEB3353A1485B4F7EAA43DA683A85288A"><enum>(II)</enum><text>with the consent
of the applicant, a longer period.</text>
</subclause></clause></subparagraph><subparagraph id="id83FA377B80F6426B9E369631AD7B4AA7"><enum>(D)</enum><header>Standards for
granting registration</header><text>The Commission shall grant the registration
of a trade repository for purposes of this section if the Commission finds that
the trade repository is so organized, and has the capacity—</text>
<clause id="id32EF3A7833924EEEB318C9DDE5EEC417"><enum>(i)</enum><text>to assure the
prompt, accurate, and reliable performance of the functions of a trade
repository;</text>
</clause><clause id="id12B981C83DB54759BB892D7EFD56B27A"><enum>(ii)</enum><text>to comply with
this Act (including rules and regulations issued under this Act); and</text>
</clause><clause id="id9B6F189318804520B72DFE467E6017AB"><enum>(iii)</enum><text>to carry out
the functions of a trade repository in a manner consistent with the purposes of
this section.</text>
</clause></subparagraph><subparagraph id="id73E8F636ECAE4A79AAD110104893FECA"><enum>(E)</enum><header>Standard for
denial of registration</header><text>The Commission shall deny the registration
of a trade repository if the Commission does not make a finding described in
subparagraph (D).</text>
</subparagraph></paragraph><paragraph id="id68D2C000EA2B4CEC9FED2F47B24AF44F"><enum>(4)</enum><header>Withdrawal of
registration</header>
<subparagraph id="id4FCAF16F78CF4ABCB03E0D9E37821F8E"><enum>(A)</enum><header>In
general</header><text>A registered trade repository may, on such terms and
conditions as the Commission considers appropriate in the public interest or
for the protection of market participants, withdraw from registration by filing
a written notice of withdrawal with the Commission.</text>
</subparagraph><subparagraph id="id67264550A7694F59A48685CBE61CD23E"><enum>(B)</enum><header>Cancellation</header><text>If
the Commission finds that any trade repository is no longer in existence or has
ceased to do business in the capacity specified in the application of the trade
repository for registration, the Commission, by order, shall cancel the
registration.</text>
</subparagraph></paragraph><paragraph id="id0F40CF5125924A3197EDC087D8E561A4"><enum>(5)</enum><header>Access to trade
repository services</header>
<subparagraph id="idEDF2F9EC87B24FF7BF5C5E66F69565E8"><enum>(A)</enum><header>Notice of
prohibition or limitation on access</header>
<clause id="id5A084296B8434730A9364FE356986ED9"><enum>(i)</enum><header>In
general</header><text>If any registered trade repository prohibits or limits
any person access to services offered, directly or indirectly, by the trade
repository, the registered trade repository shall promptly file notice of the
prohibition or limitation with the Commission.</text>
</clause><clause id="id7753FD880856484085FE83545E066A2B"><enum>(ii)</enum><header>Content</header><text>A
notice under clause (i) shall be in such form and contain such information as
the Commission, by rule, may prescribe as appropriate in the public interest or
for the protection of investors.</text>
</clause></subparagraph><subparagraph id="idB0CEE8A482C24E40B95504A8C6A6F6B2"><enum>(B)</enum><header>Review by
Commission</header><text>Any prohibition or limitation on access to services
with respect to which a registered trade repository is required by subparagraph
(A) to file notice shall be subject to review by the Commission on—</text>
<clause id="id0EA2C2486A7648F2839C78104861D64B"><enum>(i)</enum><text>the motion of the
Commission; or</text>
</clause><clause id="idAA259FFE755F4E3F987FCA9806A7D923"><enum>(ii)</enum><text>application by
any person aggrieved by the prohibition or limitation filed—</text>
<subclause id="idC8F1F4788AC64F55BC6ACCC238DD9662"><enum>(I)</enum><text>not later than 30
days after the date on which the notice described in subparagraph (A) has been
filed with the Commission and received by the aggrieved person; or</text>
</subclause><subclause id="id575BC8E0EBE1487EA39667016D8AAA5E"><enum>(II)</enum><text>within such
longer period as the Commission may determine.</text>
</subclause></clause></subparagraph><subparagraph id="id48B2D3BC448B4D37911656F13A3A666D"><enum>(C)</enum><header>Stays</header>
<clause id="id91076575A47947BC920FDD068B0D82CF"><enum>(i)</enum><header>In
general</header><text>Application to the Commission for review, or the
institution of review by the Commission on the motion of the Commission, shall
not operate as a stay of the prohibition or limitation, unless the Commission
otherwise orders, summarily or after notice and opportunity for hearing on the
question of a stay.</text>
</clause><clause id="idFBAAA27D09444BB5AD2997DF2B2B801E"><enum>(ii)</enum><header>Hearing</header><text>A
hearing under clause (i) may consist solely of the submission of affidavits or
presentation of oral arguments.</text>
</clause><clause id="id9FDA41A5A84E4D5E8C7C9DE89296AB8D"><enum>(iii)</enum><header>Expedited
procedure</header><text>The Commission shall establish for appropriate cases an
expedited procedure for consideration and determination of the question of a
stay.</text>
</clause></subparagraph><subparagraph id="idDD538045E5BB4DC09538079B9D998822"><enum>(D)</enum><header>Standards of
review</header>
<clause id="id21684A60F62743CA882B2B8F93839CAB"><enum>(i)</enum><header>Dismissal of
proceedings</header><text>In any proceeding to review the prohibition or
limitation of any person to access to services offered by a registered trade
repository, the Commission, by order, shall dismiss the proceeding if the
Commission finds, after notice and opportunity for hearing, that—</text>
<subclause id="id6A4DB01F60224CBEBFF26EFF1D55427A"><enum>(I)</enum><text>the prohibition
or limitation is consistent with this Act (including rules and regulations);
and</text>
</subclause><subclause id="id5D2267B0902E411A8C67FA7028A04D23"><enum>(II)</enum><text>the person has
not been discriminated against unfairly.</text>
</subclause></clause><clause id="id68309B4356714E9180297AD12FBECBD3"><enum>(ii)</enum><header>Access to
services</header><text>If the Commission does not make a finding described in
clause (i) or the Commission finds that the prohibition or limitation imposes
any burden on competition that is not appropriate in furtherance of the
purposes of this Act, the Commission, by order, shall—</text>
<subclause id="id0F556201009C4EFB9B68F80C8E197338"><enum>(I)</enum><text>set aside the
prohibition or limitation; and</text>
</subclause><subclause id="id334B0B3878AC4A83A8DBD7DDD32CD4E1"><enum>(II)</enum><text>require the
registered trade repository to permit the person access to the services offered
by the registered trade repository to which the prohibition or limitation
applied.</text>
</subclause></clause></subparagraph></paragraph><paragraph id="idE29E4AF9DCD24151A86592647153249D"><enum>(6)</enum><header>Administrative
proceeding authority</header><text>The Commission, by order, may censure or
place limitations on the activities, functions, or operations of any registered
trade repository or suspend for a period not exceeding 12 months or revoke the
registration of any trade repository, if the Commission finds, on the record
after notice and opportunity for hearing, that—</text>
<subparagraph id="id856B044A738245D7891951742C3B9960"><enum>(A)</enum><text>the censure,
placing of limitations, suspension, or revocation is appropriate in the public
interest, for the protection of market participants, or otherwise in
furtherance of the purposes of this Act; and</text>
</subparagraph><subparagraph id="id7560D9E2D41B48D88D75A83B9CC12770"><enum>(B)</enum><text>the trade
repository has violated or is unable to comply with any provision of this Act
(including rules or regulations).</text>
</subparagraph></paragraph><paragraph id="id0DF19233DDB0415AB979A84ED9AD7E16"><enum>(7)</enum><header>Rulemaking
authority</header><text>No registered trade repository shall, directly or
indirectly, engage in any activity as a trade repository in contravention of
such rules and regulations as the Commission may prescribe—</text>
<subparagraph id="id5FD9C9EF01B5437DB7A0EE2F6954D135"><enum>(A)</enum><text>as appropriate in
the public interest;</text>
</subparagraph><subparagraph id="id17F51BC1E3614890B2B2C8105CA9470C"><enum>(B)</enum><text>for the
protection of market participants; or</text>
</subparagraph><subparagraph id="idB97F42B98F10494684B13913BD723CCF"><enum>(C)</enum><text>otherwise in
furtherance of the purposes of this Act, including to ensure that all persons
may obtain on terms that are fair and reasonable and not unreasonably
discriminatory such transaction and position information for commodity-based
swaps as is disseminated by any derivatives clearing organization or trade
repository.</text>
</subparagraph></paragraph><paragraph id="id9056046DC6134BA584447F1FF3CD9EE6"><enum>(8)</enum><header>Consultation</header>
<subparagraph id="id4DEB36550D054E96A60DA6BF77013558"><enum>(A)</enum><header>In
general</header><text>Prior to adopting any rules applicable to trade
repositories pursuant to subsection (g), the Commission shall consult with and
consider the views of the Securities and Exchange Commission.</text>
</subparagraph><subparagraph id="id60C97F114DC94078BFB6D6025910E5B3"><enum>(B)</enum><header>Comparability</header><text>The
Commission and the Securities and Exchange Commission shall seek to maintain
comparability, to the maximum extent practicable, of applicable respective
recordkeeping and reporting requirements for trade repositories.</text>
</subparagraph></paragraph></subsection><subsection id="id4B0FB24EB824483F9A7162FE96574118"><enum>(e)</enum><header>Timing</header><text>The
Commission may by rule specify the date by which persons are required—</text>
<paragraph id="id4C8BA19E99824C6898D671BC32301186"><enum>(1)</enum><text>to submit
transactions in standardized commodity-based swaps for clearing to a
derivatives clearing organization pursuant to subsection (c); and</text>
</paragraph><paragraph id="idC29DA6AFDD4C4994AA5E917DF1A9028F"><enum>(2)</enum><subparagraph commented="no" display-inline="yes-display-inline" id="idC5D643A0AE62481396140BAB08DE108A"><enum>(A)</enum><text>to submit transactions
in commodity-based swaps for clearing to a derivatives clearing organization;
or</text>
</subparagraph><subparagraph id="idE991A43B0A1E4599A238E26100346147" indent="up1"><enum>(B)</enum><text>to report transactions in the
commodity-based derivative instruments to a registered trade repository
pursuant to subsection (d).</text>
</subparagraph></paragraph></subsection><subsection id="id388FBD43ADB745079432A3AC1CA9927B"><enum>(f)</enum><header>Collection,
consolidation, and dissemination of information on transactions and positions
in commodity-Based swaps</header>
<paragraph id="idD532BCCDB9234164B39FBB8E17A0CA77"><enum>(1)</enum><header>Commission
action required</header><text>The Commission shall, consistent with the public
interest, the protection of market participants, the maintenance of fair and
orderly markets, and the purposes of this section, use the authority of the
Commission under this Act to facilitate—</text>
<subparagraph id="id153A2679BC3444CD8F53AFBD691BE7EF"><enum>(A)</enum><text>the collection,
consolidation, and dissemination of information on transactions and positions
in commodity-based swaps; and</text>
</subparagraph><subparagraph id="id9293C5F335FC44E9AB85DAF570A04B41"><enum>(B)</enum><text>the establishment
of coordinated facilities for the consolidation of information on transactions
and positions in commodity-based swaps.</text>
</subparagraph></paragraph><paragraph id="id4DAD63FCFAA647FDBCB35AE82E2A61AC"><enum>(2)</enum><header>Actions
required by registered entities</header><text>The Commission, by rule,
regulation, or order, may require each derivatives clearing organization that
clears transactions in commodity-based swaps, and each registered trade
repository registered or applying to become registered, in such form and
frequency as the Commission shall prescribe as appropriate in the public
interest, for the protection of market participants, or otherwise in
furtherance of the purposes of this Act—</text>
<subparagraph id="id64FC13A8B26C4A3FAE4C7FB30D93A4BE"><enum>(A)</enum><text>to disseminate
certain transaction or position information concerning commodity-based swaps;
and</text>
</subparagraph><subparagraph id="idCD3B6ECE21504AF28875EC01A514D590"><enum>(B)</enum><text>to ensure the
prompt, accurate, reliable, and fair collection, processing, distribution, and
publication of information with respect to transactions and positions, as
appropriate, cleared by or reported to the derivatives clearing organization or
the registered trade repository.</text>
</subparagraph></paragraph></subsection><subsection id="id6DE69C5B47104DAC9B822D4AF006E19A"><enum>(g)</enum><header>Records,
reports, and examinations</header>
<paragraph id="id01B9D712046C47CBAEEB7E4C7C092062"><enum>(1)</enum><header>In
general</header><text>Each registered trade repository shall make and keep for
prescribed periods such records, furnish such copies of the records, and make
and disseminate such reports as the Commission, by rule, prescribes as
appropriate in the public interest, or otherwise in furtherance of the purposes
of this Act.</text>
</paragraph><paragraph id="id827845581DC940C2A1B334ED67BCDBCE"><enum>(2)</enum><header>Examinations</header><text>All
records with regard to commodity-based swaps of a registered trade repository
shall be subject at any time to such reasonable periodic, special, or other
examinations by representatives of the Commission as the Commission considers
appropriate in the public interest, for the protection of market participants,
or otherwise in furtherance of the purposes of this
Act.</text>
</paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="id65977C6AAEC44933AFD59AA23B164BFF"><enum>(b)</enum><header>Derivatives
clearing organizations</header><text>Section 5b of the Commodity Exchange Act
(7 U.S.C. 7a–1) is amended—</text>
<paragraph id="id31AE8D18B33F46E8B9AAF4A5D3D60674"><enum>(1)</enum><text>by striking
subsections (a) and (b) and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="id188367E32D02409EB3A3D42DF85D1132" style="OLC">
<subsection id="id407F5BA4B5A04DEDB79B6C72BE8B084C"><enum>(a)</enum><header>Registration
Requirement</header><text>It shall be unlawful for a derivatives clearing
organization, unless registered with the Commission, directly or indirectly to
make use of the mails or any means or instrumentality of interstate commerce to
perform the functions of a derivatives clearing organization with respect to a
contract of sale of a commodity for future delivery (or option on such a
contract) or option on a commodity, or a commodity-based swap, in each case
unless the contract, option, or commodity-based swap is not required to be
cleared under this Act.</text>
</subsection><subsection id="id3D62F72EB37A4955BF5695AB2299C39B"><enum>(b)</enum><header>Voluntary
Registration</header><text>A derivatives clearing organization that clears
agreements, contracts, or transactions that are not required to be cleared
under this Act may register with the Commission as a derivatives clearing
organization.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="id676A54F21F5E47648F8C2CAA427DD878"><enum>(2)</enum><text>in subsection
(c)—</text>
<subparagraph id="id7DCEA3E94B4F408EBB410BE4978C6359"><enum>(A)</enum><text>by striking
paragraph (1) and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="id5F490E8E67BA46DBBA737AC4D7D130FA" style="OLC">
<paragraph id="id62C0BAFFD4BA4277BE7EB19C4068960D"><enum>(1)</enum><header>Application</header><text>A
person desiring to register as a derivatives clearing organization shall submit
to the Commission an application in such form and containing the rules of the
derivatives clearing organization and such other information and documents as
the Commission, by rule, may prescribe as appropriate in the public interest or
for the purpose of making the determinations required for approval under this
section.</text>
</paragraph><after-quoted-block>;</after-quoted-block></quoted-block>
</subparagraph><subparagraph id="id0409FDB52BCF4D96B83467B4C5DD93B4"><enum>(B)</enum><text>in paragraph
(2)—</text>
<clause id="idEA6C409C47594E41AE65933A53870A9A"><enum>(i)</enum><text>by
striking subparagraph (B) and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="id03AE1A6567754AB89F3BF3C08D3656BB" style="OLC">
<subparagraph id="id556475EE98A54FF8881EE88A9BFDE001"><enum>(B)</enum><header>Financial
Resources</header><text>The applicant shall demonstrate that the applicant has
adequate financial, operational, and managerial resources to discharge the
responsibilities of a derivatives clearing organization and to manage all
associated risks.</text>
</subparagraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</clause><clause id="id12A62ACE332A432B93C952DC8714978A"><enum>(ii)</enum><text>by
adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="idC3A0B99FDCB142699BC07BBFAC8FC846" style="OLC">
<subparagraph id="idC09372C3CE92409D898880AF89C8E082"><enum>(O)</enum><header>Market
Participant Access</header><text>The applicant shall establish appropriate
standards to ensure open and fair access to all persons that meet the ongoing
and continuing participant eligibility standards of the organization with
respect to commodity-based swaps and to accept for clearing from the
participants all commodity-based swaps that meet the product eligibility
standards of the organization, regardless of where the transactions are
executed.</text>
</subparagraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</clause></subparagraph><subparagraph id="id3BAE28D18D6E47BD899ED303136536C3"><enum>(C)</enum><text>by adding at the
end the following:</text>
<quoted-block display-inline="no-display-inline" id="id275A77336B7E436FA4331950672F8C0B" style="OLC">
<paragraph id="idAB31DE0637504BA3AEF39F17A3188EB3"><enum>(4)</enum><header>Commission
procedures for granting registration to derivatives clearing organizations for
clearing commodity-based swaps</header>
<subparagraph id="idDAD9A50BFFBB4ADA9E376DB9CC72A905"><enum>(A)</enum><header>In
general</header><text>The Commission shall, on the filing of an application for
registration pursuant to paragraph (2) for purposes of clearing commodity-based
swaps, publish notice of the filing and afford interested persons an
opportunity to submit written data, views, and arguments concerning the
application.</text>
</subparagraph><subparagraph id="idE5D4758176AD4F34859BF46FED990DB7"><enum>(B)</enum><header>Actions</header><text>Not
later than 90 days after the date of the publication of the notice (or, with
the consent of the applicant, a longer period), the Commission shall—</text>
<clause id="idDFFE331E1ED7488C84FF9BD84C8A59FE"><enum>(i)</enum><text>by order grant
the registration; or</text>
</clause><clause id="id674683DC30D34C7790217648ED7A431B"><enum>(ii)</enum><text>institute
proceedings to determine whether registration should be denied.</text>
</clause></subparagraph><subparagraph id="idD0C8547CB0E8482982C4C538E7B3F724"><enum>(C)</enum><header>Proceedings</header>
<clause id="id8A6726174508444DB40FD0552803ADEC"><enum>(i)</enum><header>In
general</header><text>The proceedings described in subparagraph (B)(ii)
shall—</text>
<subclause id="id9A6E7330B7A942B495A2C49320DEC1F4"><enum>(I)</enum><text>include notice of
the grounds for denial under consideration and opportunity for hearing;
and</text>
</subclause><subclause id="id7B6A4C96B9B84F5BBA5490E99754B449"><enum>(II)</enum><text>be concluded not
later than 180 days after the date of publication of notice of the filing of
the application for registration.</text>
</subclause></clause><clause id="id9FF5A608BE1E4CDA9D66E7AF80549E04"><enum>(ii)</enum><header>Actions</header><text>At
the conclusion of the proceedings the Commission, by order, shall grant or deny
the registration.</text>
</clause><clause id="id84418580C8124371AF46169279C6E7EB"><enum>(iii)</enum><header>Extensions</header><text>The
Commission may extend the time for the conclusion of the proceedings
for—</text>
<subclause id="id716F329337604CB7844574E398533980"><enum>(I)</enum><text>not more than 60
days if the Commission—</text>
<item id="idFDD9D6D9A826484D804134217E398A06"><enum>(aa)</enum><text>finds good cause
for the extension; and</text>
</item><item id="id3C06E57466E24F1A9EBEEB324FDB5BFC"><enum>(bb)</enum><text>publishes the
reasons of the Commission for the finding; or</text>
</item></subclause><subclause id="id016B81B30F944548B59EBC61787703E3"><enum>(II)</enum><text>with the consent
of the applicant, a longer period.</text>
</subclause></clause><clause id="id7F5A87D99C0A4C6EAED9834E7C1EBE1E"><enum>(iv)</enum><header>Standard for
registration</header>
<subclause id="id0D300366CC564230A30B96BD26412341"><enum>(I)</enum><header>In
general</header><text>The Commission shall grant the registration of a
derivatives clearing organization if the Commission finds that the derivatives
clearing organization is so organized, and has the capacity, to be able—</text>
<item id="idD4E09132A8254760AC1DB690271D3D48"><enum>(aa)</enum><text>to
ensure the prompt, accurate, and reliable performance of the functions of a
derivatives clearing organization;</text>
</item><item id="id631BFF7F8E394FDA8D325DDCE909808A"><enum>(bb)</enum><text>to
comply with this Act (including rules and regulations); and</text>
</item><item id="idA3B1666BB7CC438F9C36D0F2BFB1BF91"><enum>(cc)</enum><text>to
carry out the functions of a derivatives clearing organization in a manner
consistent with the purposes and core principles of this section.</text>
</item></subclause><subclause id="id67E13247869849BB9311776162DD638F"><enum>(II)</enum><header>Denial</header><text>The
Commission shall deny the registration of a derivatives clearing organization
if the Commission does not make a finding described in subclause (I).</text>
</subclause></clause></subparagraph></paragraph><paragraph id="id8F94807B165D49F8B61E1FEC6939CEE2"><enum>(5)</enum><header>Withdrawal of
registration</header><text>For purposes of clearing commodity-based swaps, a
derivatives clearing organization may, on such terms and conditions as the
Commission considers appropriate in the public interest or for the protection
of market participants, withdraw from registration by filing a written notice
of withdrawal with the Commission.</text>
</paragraph><paragraph id="id45BCDE2A20B24F338E8CAED1BF2F7EF7"><enum>(6)</enum><header>Access to
derivatives clearing organization to clear commodity-based swaps</header>
<subparagraph id="idE1E12A8C77DC4A81B2E7B4B1CF5E4119"><enum>(A)</enum><header>Notice of
prohibition or limitation</header>
<clause id="id6F04BA78AEB64CC1BF9534C5FC4BB087"><enum>(i)</enum><header>In
general</header><text>For purposes of clearing commodity-based swaps, if any
derivatives clearing organization prohibits or limits any person access to
services offered, directly or indirectly, by the derivatives clearing
organization, the derivatives clearing organization shall promptly file notice
of the prohibition or denial with the Commission.</text>
</clause><clause id="id74131021235A471E91DD9EABF6745219"><enum>(ii)</enum><header>Contents</header><text>The
notice shall be in such form and contain such information as the Commission, by
rule, may prescribe as appropriate in the public interest.</text>
</clause></subparagraph><subparagraph id="id3DCC1609E1C245B68B5AF712DEB70F86"><enum>(B)</enum><header>Review by
Commission</header><text>Any prohibition or limitation on access to services
with respect to which a derivatives clearing organization is required by
subparagraph (A) to file notice shall be subject to review by the Commission
on—</text>
<clause id="idE2457A6F4FC44CDEB14D44B813D3283D"><enum>(i)</enum><text>the motion of the
Commission; or</text>
</clause><clause id="id9422051890BE4B0287F32593DA90DE65"><enum>(ii)</enum><text>application by
any person aggrieved by the prohibition or limitation filed—</text>
<subclause id="idEC9B2722CD2041099D4A108BDFE54045"><enum>(I)</enum><text>not later than 30
days after the date the notice described in subparagraph (A) has been filed
with the Commission and received by the aggrieved person; or</text>
</subclause><subclause id="idF71DBB1A8CB24F268D9062B7211ECBBC"><enum>(II)</enum><text>within such
longer period as the Commission may determine.</text>
</subclause></clause></subparagraph><subparagraph id="id1C8D9CF2B40E4E4590860CBFE47C458C"><enum>(C)</enum><header>Stays</header>
<clause id="idE8AD0D0E1BAA4D13ADEB9CBDE6944DCB"><enum>(i)</enum><header>In
general</header><text>Application to the Commission for review, or the
institution of review by the Commission on the motion of the Commission, shall
not operate as a stay of the prohibition or limitation, unless the Commission
otherwise orders, summarily or after notice and opportunity for hearing on the
question of a stay.</text>
</clause><clause id="id7E5CA967920D488097FEF123451FE507"><enum>(ii)</enum><header>Hearing</header><text>A
hearing under clause (i) may consist solely of the submission of affidavits or
presentation of oral arguments.</text>
</clause><clause id="id4F92173785C44C9EBDF63A2646B916FC"><enum>(iii)</enum><header>Expedited
procedure</header><text>The Commission shall establish for appropriate cases an
expedited procedure for consideration and determination of the question of a
stay.</text>
</clause></subparagraph><subparagraph id="id10024641F77D4DE698B7499F7823272B"><enum>(D)</enum><header>Actions</header>
<clause id="id2D13832570344C1EBE80BBFB8CE33F22"><enum>(i)</enum><header>Dismissal of
proceedings</header><text>For purposes of clearing commodity-based swaps, in
any proceeding to review the prohibition or limitation of any person in respect
of access to services offered by a derivatives clearing organization, the
Commission, by order, shall dismiss the proceeding if the Commission finds,
after notice and opportunity for hearing, that—</text>
<subclause id="idD82899D296BB43A2B07CB59BCB80F551"><enum>(I)</enum><text>the prohibition
or limitation is consistent with this Act (including rules and regulations);
and</text>
</subclause><subclause id="id73DD0D2E74294D2BAB4A0AD274F0385D"><enum>(II)</enum><text>the person has
not been discriminated against unfairly.</text>
</subclause></clause><clause id="id7AEEE82D71064CA2A5BF4396F37BCA09"><enum>(ii)</enum><header>Access to
services</header><text>If the Commission does not make a finding described in
clause (i), or if the Commission finds that the prohibition or limitation
imposes any burden on competition not appropriate in furtherance of the
purposes of this Act, the Commission, by order, shall—</text>
<subclause id="id534CAAC2BF2A4B7CA58A5B5F2404DD78"><enum>(I)</enum><text>set aside the
prohibition or limitation; and</text>
</subclause><subclause id="id5C4A41C60D3546909201B3CC10C3454A"><enum>(II)</enum><text>require the
registered trade repository to permit the person access to the services offered
by the derivatives clearing organization to which the prohibition or limitation
applied.</text>
</subclause></clause></subparagraph></paragraph><paragraph id="id67A5FB5D4EA442A7971C1E6454BE4A8E"><enum>(7)</enum><header>Administrative
proceeding authority</header><text>The Commission, by order, may censure or
place limitations on the activities, functions, or operations of any
derivatives clearing organization that is clearing commodity-based swaps, or
suspend for a period not exceeding 12 months or revoke the registration of any
derivatives clearing organization, if the Commission finds, on the record after
notice and opportunity for hearing, that—</text>
<subparagraph id="id442754A61B07424386AAE4ACE877218F"><enum>(A)</enum><text>the censure,
placing of limitations, suspension, or revocation is appropriate in the public
interest and for the protection of market participants or otherwise in
furtherance of the purposes of this Act; and</text>
</subparagraph><subparagraph id="idE53FBC1F57B641609F9C8EB6349E07F5"><enum>(B)</enum><text>the derivatives
clearing organization has violated or is unable to comply with any provision of
this Act (including rules or regulations).</text>
</subparagraph></paragraph><paragraph id="id86DCDA50F9174C47901AB91DE8BD59C5"><enum>(8)</enum><header>Rulemaking
authorization</header><text>For purposes of clearing commodity-based swaps, no
derivatives clearing organization shall, directly or indirectly, engage in any
activity as a derivatives clearing organization in contravention of such rules
and regulations as the Commission may prescribe—</text>
<subparagraph id="idA06EB0D7B8A84BAF8050E79251FADA42"><enum>(A)</enum><text>as appropriate in
the public interest;</text>
</subparagraph><subparagraph id="idC9F34F34C7B54BB7B299AF631B84DD15"><enum>(B)</enum><text>for the
protection of market participants; or</text>
</subparagraph><subparagraph id="id5BB3CABC74AB42479A68FDDD17CD6565"><enum>(C)</enum><text>otherwise in
furtherance of the purposes of this Act.</text>
</subparagraph></paragraph><paragraph id="idB0A9EC18086D4CFAB08CDD7E101A7571"><enum>(9)</enum><header>Records,
reports, and examinations</header>
<subparagraph id="idEE9CE91923314E659051F65CF9DBFDD6"><enum>(A)</enum><header>In
general</header><text>Each derivatives clearing organization shall, for
purposes of clearing commodity-based swaps, make and keep for prescribed
periods such records, furnish such copies of the records, and make and
disseminate such reports as the Commission, by rule, prescribes as appropriate
in the public interest, or otherwise in furtherance of the purposes of this
Act.</text>
</subparagraph><subparagraph id="idB76016B72F2E4E7C827DFFD90D98E9E8"><enum>(B)</enum><header>Examinations</header><text>For
purposes of clearing commodity-based derivative instruments, all records of a
derivatives clearing organization shall be subject at any time to such
reasonable periodic, special, or other examinations by representatives of the
Commission as the Commission considers appropriate in the public interest, for
the protection of market participants, or otherwise in furtherance of the
purposes of this
Act.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph></paragraph></subsection></section><section id="id4B28C5C0C27449FF8AED00D5A7FAAF1D"><enum>204.</enum><header>Prudential
supervision and regulation of significant commodity-based derivatives market
participants and incentives for trading on regulated exchanges</header><text display-inline="no-display-inline">The Commodity Exchange Act (7 U.S.C. 1 et
seq.) is amended by inserting after section 4r (as added by section 203(a)) the
following:</text>
<quoted-block display-inline="no-display-inline" id="id5C4FE9E4C1894CA0BA99F3E094903ECF" style="OLC">
<section id="idA3A8B29E1F4942AF9993B69A3E74DF78"><enum>4s.<?LEXA-Enum 4s.?></enum><header>Regulation of significant commodity-based
derivatives market participants</header>
<subsection id="id0D45B16F0B9543E4B7E20F23DF9047EB"><enum>(a)</enum><header>Definition of
appropriate regulatory authority</header><text>In this section, the term
<term>appropriate regulatory authority</term> means—</text>
<paragraph id="idFC2A8F7113AA436795CDB5ECD2916C6A"><enum>(1)</enum><text>the appropriate
Federal banking agency (as defined in section 1813(q) of title 12, United
States Code), with respect to a significant commodity-based derivatives market
participant that is an insured depository institution (as defined in section
1813(c) of title 12, United States Code), but not an affiliate of an insured
depository institution;</text>
</paragraph><paragraph id="id55F000971A664F0595F8562758966984"><enum>(2)</enum><text>the Federal
Housing Finance Agency, with respect to a significant commodity-based
derivatives market participant that is a regulated entity (as defined in
section 4502 of title 12, United States Code);</text>
</paragraph><paragraph id="id3D437123838A4E709825338497170F4A"><enum>(3)</enum><text>the Commission,
with respect to a significant commodity-based derivatives market participant
that is—</text>
<subparagraph id="idE3BB0BFD5D2C4356AD3F2E7AFDC3691E"><enum>(A)</enum><text>a futures
commission merchant or an introducing broker, other than a futures commission
merchant or an introducing broker registered pursuant to section 4f(a) or an
affiliate of an insured depository institution; or</text>
</subparagraph><subparagraph id="idF8D01E61C27249F3A96D493D15ED7F6A"><enum>(B)</enum><text>a commodity pool
operator or commodity trading advisor, other than an affiliate of an insured
depository institution; and</text>
</subparagraph></paragraph><paragraph id="id0914DF64B7E649F09A18E9B1E9B54AC7"><enum>(4)</enum><text>the Securities
and Exchange Commission, with respect to a significant commodity-based
derivatives market participant—</text>
<subparagraph id="idD10DABAB7C0C47D1A0309230D095D583"><enum>(A)</enum><text>that is a broker
or dealer, as those terms are defined in section 3(a) of the Securities
Exchange Act of 1934 (15 U.S.C. 78c(a)) (other than a broker or dealer
registered under section 15(b)(11) of that Act (15 U.S.C. 78o(b)(11)) that is
not an affiliate of an insured depository institution); or</text>
</subparagraph><subparagraph id="idE6B9233B8EB840088F59994C5A86742D"><enum>(B)</enum><text>for which there
is not another appropriate regulatory authority otherwise specified in this
subsection.</text>
</subparagraph></paragraph></subsection><subsection id="id2955916B08B64A12A74C027EAB4B953F"><enum>(b)</enum><header>Registration by
significant commodity-Based derivatives market participants</header><text>It
shall be unlawful for any significant commodity-based derivatives market
participant to make use of the mails or any means or instrumentality of
interstate commerce to effect any transactions in, or to induce or attempt to
induce a transaction in, any commodity-based swap unless the significant
commodity-based derivatives market participant has registered in accordance
with subsection (c).</text>
</subsection><subsection id="id502A3E60B56340C28FB816D7C7C001E5"><enum>(c)</enum><header>Manner of
registration of significant commodity-Based derivatives market
participants</header>
<paragraph id="id45AD92B969FE443DADB826A25A399834"><enum>(1)</enum><header>In
general</header><text>A significant commodity-based derivatives market
participant subject to the registration requirement of subsection (b) may
register by filing with the Commission an application for registration in such
form and containing such information and documents concerning the significant
commodity-based derivatives market participant and any persons associated with
the significant commodity-based derivatives market participant as the
Commission, by rule, regulation, or order, may prescribe as appropriate in the
public interest or for the protection of market participants.</text>
</paragraph><paragraph id="idA836A963A0384AD7851E2442156ED18E"><enum>(2)</enum><header>Action by the
Commission</header>
<subparagraph id="idDDAB9D81AF8D488F92490DBAEF906D94"><enum>(A)</enum><header>In
general</header><text>Not later than 45 days after the date of filing of an
application under paragraph (1) (or, with the consent of the applicant, a
longer period), the Commission shall—</text>
<clause id="idF266896F678B43219EE432B5A0A7B17E"><enum>(i)</enum><text>by order grant
registration; or</text>
</clause><clause id="idE8D58F80750B488B987CBE89F84FF3F4"><enum>(ii)</enum><text>institute
proceedings in accordance with subparagraph (B) to determine whether the
registration should be denied.</text>
</clause></subparagraph><subparagraph id="idABCE5B22AD394A6F8C7DB7978F933AA7"><enum>(B)</enum><header>Proceedings</header>
<clause id="idFDFC106F0B1848DCB86093C3CA8BD892"><enum>(i)</enum><header>In
general</header><text>Proceedings initiated under subparagraph (B)(ii) shall
include notice of the grounds for denial under consideration and opportunity
for hearing.</text>
</clause><clause id="id39FD868511444AAB9CE98DF9A881E830"><enum>(ii)</enum><header>Conclusion</header><text>Not
later than 120 days after the date of the filing of the application for
registration, the Commission shall conclude the proceedings and, by order,
grant or deny the registration.</text>
</clause><clause id="id1821390FA3F74BD297AC60BCDB366E11"><enum>(iii)</enum><header>Extension</header><text>The
Commission may extend the time for the conclusion of a proceedings for up to 90
days (or, with the consent of the applicant, a longer period) if the Commission
finds good cause for the extension and publishes the reasons for the
extension.</text>
</clause></subparagraph><subparagraph id="idC6C005F399324D1A8D45829CE8FA32E1"><enum>(C)</enum><header>Basis for
determination</header>
<clause id="id77897F6E331D4B869CFF70227BD3D7C8"><enum>(i)</enum><header>In
general</header><text>The Commission shall grant the registration of a
significant commodity-based derivatives market participant if the Commission
finds that the requirements of this section are satisfied.</text>
</clause><clause id="id017A32A819994506BA5035C57CBE4960"><enum>(ii)</enum><header>Denial</header><text>The
Commission shall deny the registration if the Commission does not make a
finding under clause (i) or if the Commission finds that if the applicant were
registered, the registration of the applicant would be subject to suspension or
revocation under subsection (f).</text>
</clause></subparagraph></paragraph><paragraph id="id09C6C473E17D477D99C71607CB0350BF"><enum>(3)</enum><header>Withdrawal</header><text>Any
person that has filed an application pursuant to paragraph (1) may, on such
terms and conditions as the Commission determines appropriate in the public
interest, for the protection of market participants, or otherwise in
furtherance of the purposes of this Act, withdraw the application by filing a
written withdrawal with the Commission.</text>
</paragraph></subsection><subsection id="idDD76AA22A937466BAAD019F48BEB24FD"><enum>(d)</enum><header>Business
conduct requirements</header>
<paragraph id="id8088B459374A4365BF2314D0424A21EE"><enum>(1)</enum><header>Definition of
regulated person</header><text>In this subsection, the term <term>regulated
person</term> means—</text>
<subparagraph id="idE9D59871283847FDB178627AC677E54B"><enum>(A)</enum><text>a significant
commodity-based derivatives market participant; and</text>
</subparagraph><subparagraph id="idEFC5B743EE384E98A14B071677FCEB57"><enum>(B)</enum><text>any other class
of persons that the Commission may determine by rule, regulation, or order to
be subject to this subsection.</text>
</subparagraph></paragraph><paragraph id="idDEFE4E340250435388AA2FA6C6817574"><enum>(2)</enum><header>Prohibition</header><text>It
shall be unlawful for any regulated person to make use of the mails or any
means or instrumentality of interstate commerce to effect any transaction in,
or to induce or attempt to induce a transaction in, any commodity-based swap,
unless the regulated person complies with such business conduct requirements as
the Commission and the Securities and Exchange Commission, in consultation with
the appropriate regulatory authorities, may jointly prescribe by rule,
regulation, or order, as appropriate in the public interest, for the protection
of market participants, and otherwise in furtherance of the purposes of this
Act.</text>
</paragraph><paragraph id="id7A220DE5D3AF4517AB6A1CD103EA129C"><enum>(3)</enum><header>Requirements</header><text>Business
conduct requirements prescribed under this subsection shall—</text>
<subparagraph id="idCD9CE91844CA4AAD8AD97392473BC9FC"><enum>(A)</enum><text>establish the
standard of care required for a regulated person to verify that any
counterparty meets the eligibility standards for an eligible contract
participant or qualified institutional buyer (as defined in section 3(a) of the
Securities Exchange Act of 1934 (15 U.S.C. 78c(a)));</text>
</subparagraph><subparagraph id="id70DDE941917743EE8F9FCF1EF1758C99"><enum>(B)</enum><text>require
disclosure by the regulated person to any counterparty to the transaction
of—</text>
<clause id="id3428AA704D544BEEB5AE53700999D044"><enum>(i)</enum><text>material
product-specific information about the risks and characteristics of the
commodity-based swap;</text>
</clause><clause id="id84211EFDB19045E8B973AEA3CF08093A"><enum>(ii)</enum><text>the source and
amount of any fees or other material remuneration that the regulated person
would directly or indirectly expect to receive in connection with the
commodity-based swap; and</text>
</clause><clause id="id103058C8C21649E9AF39FA18A3DA30EA"><enum>(iii)</enum><text>any other
material incentives or conflicts of interest that the regulated person may have
in connection with the commodity-based swap;</text>
</clause></subparagraph><subparagraph id="id16926244AA7F4817B88B20140808EF84"><enum>(C)</enum><text>establish a
minimum standard of conduct for a regulated person with respect to any
counterparty, other than a qualified institutional buyer (as defined in section
3(a) of the Securities Exchange Act of 1934 (15 U.S.C. 78c(a))), for—</text>
<clause id="id7D2EE78076A24FED90DB329FE22E2887"><enum>(i)</enum><text>providing
disclosure of the general risks and characteristics of any commodity-based
swap;</text>
</clause><clause id="idE82B25D3F765454A939156DB1116E677"><enum>(ii)</enum><text>communicating in
a fair and balanced manner based on principles of fair dealing and good
faith;</text>
</clause><clause id="idFDC751E94F844EEB9E0A22522890BF33"><enum>(iii)</enum><text>assessing the
appropriateness of any commodity-based swap for the counterparty, except that
in the case of a counterparty that is an eligible contract participant
specified in clause (iv), the regulated person may rely on the representations
described in clause (iv)(VI) that the transaction is appropriate for the
counterparty; and</text>
</clause><clause commented="no" id="id78C978D5108B4035924EED8D6BD180CF"><enum>(iv)</enum><text>with respect to
a counterparty that is an eligible contract participant (within the meaning of
subclause (I) or (II) of section 1a(15)(A)(vii)), having a reasonable basis to
believe that the counterparty has an independent representative that—</text>
<subclause id="id74FB7F5BBC174B9695EBD3F1A6B78416"><enum>(I)</enum><text>has sufficient
knowledge to evaluate the transaction and risks;</text>
</subclause><subclause id="id6BECBE5E1E7142E1BDD8622468FA8300"><enum>(II)</enum><text>is not subject
to a statutory disqualification;</text>
</subclause><subclause id="id0E2707FF174248B59EFA4AE4F7CDFDE5"><enum>(III)</enum><text>is independent
of the regulated person;</text>
</subclause><subclause id="id9589D277643E4331834A5286846B698D"><enum>(IV)</enum><text>undertakes a
duty to act in the best interests of the counterparty that the independent
representative represents;</text>
</subclause><subclause id="idA83A162849B041EABB46743F16EF881E"><enum>(V)</enum><text>makes appropriate
disclosures; and</text>
</subclause><subclause id="id16F382D0F86948A79E723ABC2A3536A2"><enum>(VI)</enum><text>will provide
written representations to the eligible contract participant regarding fair
pricing and the appropriateness of the transaction;</text>
</subclause></clause></subparagraph><subparagraph id="id0422928D347C461DBCDC1F20B28029F4"><enum>(D)</enum><text>require the
availability of information about any commodity referenced in a commodity-based
swap or on which the commodity-based swap is based; and</text>
</subparagraph><subparagraph id="id8A2510D42BE144A5880DDBE17B665C4F"><enum>(E)</enum><text>establish such
other standards and requirements as the Commission, acting jointly with the
Securities and Exchange Commission and in consultation with the appropriate
regulatory authorities, may determine are appropriate in the public interest,
for the protection of market participants, or otherwise in furtherance of the
purposes of this Act.</text>
</subparagraph></paragraph></subsection><subsection id="idBA2ACC15ED664F148EE63CF943FE1F81"><enum>(e)</enum><header>Statutory
disqualification</header><text>Except to the extent otherwise specifically
provided by rule, regulation, or order of the Commission, it shall be unlawful
for a significant commodity-based derivatives market participant to permit any
associated person of the significant commodity-based derivatives market
participant who is subject to a statutory disqualification to effect or be
involved in effecting transactions in commodity-based swaps on behalf of the
significant commodity-based derivatives market participant, if the significant
commodity-based derivatives market participant knew, or in the exercise of
reasonable care should have known, of the statutory disqualification.</text>
</subsection><subsection id="id3E81FDD1AB1D4863936E4D41E32B953A"><enum>(f)</enum><header>Administrative
proceeding authority</header>
<paragraph id="id9F857CAB317845BFBB2EDE4A49C58113"><enum>(1)</enum><header>In
general</header><text>The Commission, by order, shall censure, place
limitations on the activities, functions, or operations of, or reject the
filing of any significant commodity-based derivatives market participant that
has registered with the Commission pursuant to subsection (d) if the Commission
finds, on the record after notice and opportunity for hearing, that—</text>
<subparagraph id="id30E7E0BCFC224D96A49C8AB1CC11D74A"><enum>(A)</enum><text>the censure,
placing of limitations, or rejection is in the public interest; and</text>
</subparagraph><subparagraph id="idD792B5DC552F47B088EB5737D6F78F5F"><enum>(B)</enum><text>the significant
commodity-based derivatives market participant, or any person associated with
the significant commodity-based derivatives market participant effecting or
involved in effecting transactions in commodity-based swaps on behalf of the
significant commodity-based derivatives market participant, whether prior or
subsequent to becoming so associated, has committed or omitted any act, or is
subject to an order or finding, described in paragraphs (2) and (3) of section
8a.</text>
</subparagraph></paragraph><paragraph id="id03EC6FB3AFF14F72972476936AE4AAD5"><enum>(2)</enum><header>Associated
persons</header><text>With respect to any person who is associated, who is
seeking to become associated, or who, at the time of the alleged misconduct,
was associated or was seeking to become associated with a significant
commodity-based derivatives market participant for the purpose of effecting or
being involved in effecting commodity-based swaps on behalf of the significant
commodity-based derivatives market participant, the Commission, by order, shall
censure, place limitations on the activities or functions of the person, or
suspend for a period not exceeding 12 months, or bar the person from being
associated with a significant commodity-based derivatives market participant,
if the Commission finds, on the record after notice and opportunity for a
hearing, that—</text>
<subparagraph id="idC08E7A7CD6834774B87DC538228F894F"><enum>(A)</enum><text>the censure,
placing of limitations, suspension, or bar is in the public interest;
and</text>
</subparagraph><subparagraph id="id23410E1802AC476E88406E4CD1C8C10D"><enum>(B)</enum><text>the person has
committed or omitted any act, or is subject to an order or finding, described
in paragraphs (2) and (3) of section 8a.</text>
</subparagraph></paragraph><paragraph id="idFD1F30FBF7814427A4CB03CE22C7005D"><enum>(3)</enum><header>Prohibition</header><text>It
shall be unlawful—</text>
<subparagraph id="id08D69216612C4DEABDE4CEC25659B779"><enum>(A)</enum><text>for any person
with respect to whom an order under paragraph (2) is in effect, without the
consent of the Commission, willfully to become, or to be, associated with a
significant commodity-based derivatives market participant in contravention of
the order; or</text>
</subparagraph><subparagraph id="idD25979CC96A54F5C937E4EEF1E3181FC"><enum>(B)</enum><text>for any
significant commodity-based derivatives market participant to permit a person
described in subparagraph (A), without the consent of the Commission, to become
or remain, a person associated with the significant commodity-based derivatives
market participant in contravention of an order under paragraph (2), if the
significant commodity-based derivatives market participant knew, or in the
exercise of reasonable care should have known, of the order.</text>
</subparagraph></paragraph></subsection><subsection id="id6D08A8FA0EC64EDD8B6D948185B4AD2E"><enum>(g)</enum><header>Capital and
margin requirements</header>
<paragraph id="idE7E0DFBD819A4E75A0AD4F86EB105A18"><enum>(1)</enum><header>In
general</header><text>It shall be unlawful for any person to conduct business
as a significant commodity-based derivatives market participant unless the
person meets at all times such minimum capital and margin requirements as the
appropriate regulatory authorities shall jointly prescribe, not later than 180
days after the enactment of this section, by rule or regulation as appropriate
in the public interest or for the maintenance of fair and orderly markets and
consistent with the purposes of this Act to provide safeguards with respect to
the financial responsibility and related practices of the significant
commodity-based derivatives market participant.</text>
</paragraph><paragraph id="idB96D7EC442B040BFAA8BF61BEF080531"><enum>(2)</enum><header>Capital
requirements</header><text>In setting capital requirements for significant
commodity-based derivatives market participants, the appropriate regulatory
authorities shall consider among other things—</text>
<subparagraph id="idF8C219945750482CA9FF599C80F78405"><enum>(A)</enum><text>the liquidity of
each commodity-based swap, including whether the commodity-based swap—</text>
<clause id="idBCC716102C1B44B6B0606DDBE72B329E"><enum>(i)</enum><text>is traded on a
liquid market; and</text>
</clause><clause id="id85BF8798BB92467AB2F3DFDB50D10425"><enum>(ii)</enum><text>is centrally
cleared; and</text>
</clause></subparagraph><subparagraph id="idBF41B5E8273A4DEFABFA8B040CE3CE98"><enum>(B)</enum><text>whether the
commodity-based swap is used to offset or hedge another instrument or asset
owned by such significant commodity-based derivatives market
participant.</text>
</subparagraph></paragraph><paragraph id="id5C7217300E7247B19C2DD4EC2AFA324B"><enum>(3)</enum><header>Margin
requirements</header><text>The appropriate regulatory authorities shall jointly
prescribe margin requirements, which may permit the use of noncash collateral,
that apply to commodity-based swaps entered into by a significant
commodity-based derivatives market participant, as the appropriate regulatory
authorities jointly determine to be appropriate for the purpose of, at a
minimum—</text>
<subparagraph id="id38812C7CDF204FB98050D00A090FE91C"><enum>(A)</enum><text>preserving the
financial integrity of markets trading commodity-based swaps; and</text>
</subparagraph><subparagraph id="id4FE5028776B341CA90E8ECB6F99A05F6"><enum>(B)</enum><text>preventing
systemic risk.</text>
</subparagraph></paragraph><paragraph id="id4E9CA901B4C54CDDA48FC3D27FDC245D"><enum>(4)</enum><header>Commission
rules</header><text>Nothing in this Act prevents the Commission from
prescribing capital and margin requirements that are higher or more restrictive
than the joint rules adopted under this subsection for significant
commodity-based derivatives market participants for which the Commission is the
appropriate regulatory authority.</text>
</paragraph></subsection><subsection id="idB624E09158764339BE711F3645188A00"><enum>(h)</enum><header>Enforcement
authority</header><text>Each appropriate regulatory authority shall have sole
authority to enforce compliance with the rules adopted under subsection (g) in
the case of each significant derivatives market participant for which the
regulatory authority is the appropriate regulatory authority, as defined in
subsection
(a).</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="idF44C5D023A864BA9BEDF2D03F53E602A"><enum>205.</enum><header>Recordkeeping
and reporting requirements for derivatives market participants</header>
<subsection id="id427F3F3E4BCB401CBECE21408E03551D"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">Section 4g of the
Commodity Exchange Act (7 U.S.C. 6g) is amended by striking
<quote><header-in-text level="section" style="traditional">Sec.</header-in-text> 4g.</quote> and all that follows
through the end of subsection (a) and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="id9FD59E9E5F0B4A04B3B9AC4B4A1920E5" style="OLC">
<section id="id8FC42D9671E540F9AB9425F1D8269045"><enum>4g.<?LEXA-Enum 4g.?></enum><header>Recordkeeping and reporting requirements for
commodity-based derivatives market participants</header>
<subsection commented="no" id="idCE171E4FC25145FEB8155B1A29254389"><enum>(a)</enum><header>In
general</header><text>Each person registered under this Act as a futures
commission merchant, introducing broker, floor broker, floor trader, or
significant commodity-based derivatives market participant (or any other person
that engages in transactions in commodity-based swaps as the Commission, by
rule, regulation or order, designates) shall—</text>
<paragraph commented="no" id="idC3427A86288947CB8AF10B5A49AB3952"><enum>(1)</enum><text>make such reports
as are required by the Commission regarding the transactions and positions of
the person, and the transactions and positions of the customers of the person,
in commodities for future delivery on any board of trade in the United States
or elsewhere, in any significant price discovery contract traded or executed on
an electronic trading facility, in any agreement, contract, or transaction that
is treated by a derivatives clearing organization, whether registered or not
registered, as fungible with a significant price discovery contract, and in any
commodity-based swap;</text>
</paragraph><paragraph commented="no" id="id6EF713A1DF9542A1A3885EED5E8BC13F"><enum>(2)</enum><text>keep books and
records pertaining to those transactions and positions in such form and manner
and for such period as may be required by the Commission; and</text>
</paragraph><paragraph commented="no" id="idA285ABAC1B1B4B8284755E33A63A372F"><enum>(3)</enum><text>make those books
and records available for inspection by any representative of the Commission or
the Department of
Justice.</text>
</paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" id="idFEFC95DB7D704202826E40725D428E0C"><enum>(b)</enum><header>Daily trading
record</header><text>Section 4g of the Commodity Exchange Act (7 U.S.C. 6g) is
amended—</text>
<paragraph commented="no" id="id51A40ADC2DA748C582914C7DA9A2D630"><enum>(1)</enum><text>by striking
subsections (c) and (d) and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="idC6B39590B23743849944F970D19AE328" style="OLC">
<subsection commented="no" id="id1B495D3A5C25408499057F0A08A20C27"><enum>(c)</enum><header>Daily trading
records</header>
<paragraph commented="no" id="idE4884602B41949CF9B2740F0040DDEB9"><enum>(1)</enum><header>In
general</header><text>Each floor broker, introducing broker, futures commission
merchant, significant commodity-based derivatives market participant, and any
other person designated by the Commission pursuant to subsection (a) shall
maintain daily trading records for each customer in such manner and form as to
be identifiable with the trades referred to in subsection (b).</text>
</paragraph><paragraph commented="no" id="idDF21AD84BA0A467DA453BD26114A0341"><enum>(2)</enum><header>Form and
reports</header>
<subparagraph commented="no" id="idF6160F6A35BC4885B55681588F71CE69"><enum>(A)</enum><header>In
general</header><text>Daily trading records shall be maintained in a form
suitable to the Commission for such period as may be required by the
Commission.</text>
</subparagraph><subparagraph commented="no" id="id489341356BA74D58B4B8C37897A2E56B"><enum>(B)</enum><header>Reports</header><text>Reports
shall be made from the records maintained at such time, in such manner, and at
such places as the Commission may prescribe by rule, order, or regulation in
order to protect the public interest and the interest of persons trading in
commodity futures or commodity-based
swaps.</text>
</subparagraph></paragraph></subsection><after-quoted-block>;
and</after-quoted-block></quoted-block>
</paragraph><paragraph commented="no" id="id5EB31CEA69BA4C0193246E0758BDB1A8"><enum>(2)</enum><text>by redesignating
subsections (e) and (f) as subsections (d) and (e), respectively.</text>
</paragraph></subsection></section><section id="idFEF3B2EE2A4648D0A4D7EA5537C345A3"><enum>206.</enum><header>Prohibition of
market manipulation, fraud, and other market abuses</header>
<subsection id="id0E058BF7AD114B58A3B5B82525278AB0"><enum>(a)</enum><header>Position
limits</header>
<paragraph id="id6F0002C14921426B88104A09A29F1AC9"><enum>(1)</enum><header>In
general</header><text>Section 4a(a) of the Commodity Exchange Act (7 U.S.C.
6a(a)) is amended—</text>
<subparagraph id="id8A5555A286194D85BBD4F0FCCB898377"><enum>(A)</enum><text>by striking
<quote><header-in-text level="section" style="traditional">Sec.</header-in-text> 4a. (a) Excessive</quote> and
inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="idABE8A1F775CC487CA601DCFB9C442CB0" style="OLC">
<section id="id7FD246C574BC41FDACD0EE8B003C2BF1"><enum>4a.<?LEXA-Enum 4a.?></enum><header>Excessive speculation as burden on interstate
commerce</header>
<subsection id="id8B2AD0A69B3B4EA09E263A95CC5ADA75"><enum>(a)</enum><header>Excessive
speculation</header>
<paragraph id="id74EAB0A6A474426297C1020446421DE2"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">Excessive</text>
</paragraph></subsection></section><after-quoted-block>;</after-quoted-block></quoted-block>
</subparagraph><subparagraph id="id2CBB8F958F0F4D399541D95545279E96"><enum>(B)</enum><text>by designating
the first through sixth sentences as paragraphs (1) through (6),
respectively;</text>
</subparagraph><subparagraph id="id7B38CDCDBA864C90A730F7F1FAB6EA3F"><enum>(C)</enum><text>in paragraph (1)
(as so designated), by striking <quote>on electronic trading facilities with
respect to a significant price discovery contract</quote> and inserting
<quote>commodity-based swaps that perform or affect a significant price
discovery function</quote>;</text>
</subparagraph><subparagraph id="id60A1AD376F674EBBA5CA0CECFF6BFD54"><enum>(D)</enum><text>in paragraph (2)
(as so designated)—</text>
<clause id="id217B409E9BB54C0EBD2BE2260B545BD6"><enum>(i)</enum><text>by
inserting <quote>, including any group or class of traders,</quote> after
<quote>held by any person</quote>; and</text>
</clause><clause id="id7820DFEA6EE040A2A796170CED6DEAD9"><enum>(ii)</enum><text>by
striking <quote>on an electronic trading facility with respect to a significant
price discovery contract,</quote> and inserting <quote>commodity-based swaps
that perform or affect a significant price discovery function,</quote>;
and</text>
</clause></subparagraph><subparagraph id="idB9E0F665C8174B34BDE68AFBF9FF7ECE"><enum>(E)</enum><text>by adding at the
end the following:</text>
<quoted-block display-inline="no-display-inline" id="idD3492475BF2142438A32D7E8A7D5BE5D" style="OLC">
<paragraph id="id57EE0802B6CC49898DB96568AC387BE8"><enum>(7)</enum><header>Aggregate
position limits and position reporting for commodity-based
swaps</header><text>The Commission may, by rule or regulation, establish limits
(including related hedge exemption provisions) on, or otherwise prescribe
requirements regarding, the aggregate number of positions in commodity-based
swaps based on the same underlying commodity that may be held by any person,
including any group or class of traders, for each month across—</text>
<subparagraph id="id34A4CA5C64BD4E6792AE1F65F9397B3E"><enum>(A)</enum><text>contracts listed
by designated contract markets;</text>
</subparagraph><subparagraph id="id1E0BF38C31AC4C66A0A5D339506E13F2"><enum>(B)</enum><text>contracts traded
on a foreign board of trade; and</text>
</subparagraph><subparagraph id="idDC24B00AAAD64021A8B6A8951C1EA940"><enum>(C)</enum><text>commodity-based
swaps that perform or affect a significant price discovery function.</text>
</subparagraph></paragraph><paragraph id="id3D64467D01E6413DA0ED1F2CB7C11815"><enum>(8)</enum><header>Considerations</header><text>In
making a determination whether a commodity-based swap performs or affects a
significant price discovery function, the Commission shall consider the extent
to which the commodity-based swap has a significant price linkage, price
discovery relationship, or other significant price relationship with 1 or more
contracts listed by designated contract markets.</text>
</paragraph><paragraph id="id31A369C5C822452890F84526D64D5F5A"><enum>(9)</enum><header>Reports</header><text>The
Commission may, by rule or regulation, require any person that effects
transactions for the account of the person or the account of others in any
commodity-based swap to report such information as the Commission may prescribe
regarding any position or positions in the commodity-based swaps.</text>
</paragraph><paragraph id="idF765C8593DB54E5685CCA7C7582A9DB5"><enum>(10)</enum><header>Exemptions</header><text>The
Commission, by rule or regulation, may conditionally or unconditionally exempt
any person or class of persons, any commodity-based swap or class of
commodity-based swaps, or any transaction or class of transactions from any
requirement the Commission establishes under this section with respect to
position limits for commodity-based
swaps.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="idF38DF777BF8C4C33824AB8FF5A35D5C4"><enum>(2)</enum><header>Conforming
amendments</header><text>Section 4a(b) of the Commodity Exchange Act (7 U.S.C.
6a(b)) is amended—</text>
<subparagraph id="id4593A54BF1CB423BA673DABDD1469658"><enum>(A)</enum><text>in paragraph (1),
by striking <quote>or electronic trading facility</quote> and inserting
<quote>or 1 or more regulated electronic transparent trade execution
systems</quote>; and</text>
</subparagraph><subparagraph id="id944BA300FA7B4AFAB2AA2336CA8C8BBD"><enum>(B)</enum><text>in paragraph (2),
by striking <quote>or electronic trading facility</quote> and inserting
<quote>or regulated electronic transparent trade execution
system</quote>.</text>
</subparagraph></paragraph></subsection><subsection id="idEC56F4540BA548AA916335387D9AC94F"><enum>(b)</enum><header>Prohibitions</header><text>Section
4b of the Commodity Exchange Act (7 U.S.C. 6b) is amended—</text>
<paragraph id="idE01849F8E6C547A99C0947D6A9F5DD8B"><enum>(1)</enum><text>in subsection
(a)—</text>
<subparagraph id="idF9F5DAC5CAEF41B994B829D219E4D4DE"><enum>(A)</enum><text>in paragraph (1),
by striking <quote>or</quote> after the semicolon at the end;</text>
</subparagraph><subparagraph id="idFC6C4D0F92C44CE39F49DE8A21277ADE"><enum>(B)</enum><text>in paragraph
(2)(D)(ii), by striking the period at the end and inserting <quote>;
or</quote>; and</text>
</subparagraph><subparagraph id="idD9F0D7E742604ED4AC4F9DC952200B64"><enum>(C)</enum><text>by adding at the
end the following:</text>
<quoted-block display-inline="no-display-inline" id="id427ED29D26B642A0B498C6021D39A7F1" style="OLC">
<paragraph id="idD8E1DC3A5D764B4A9730609AA5291261"><enum>(3)</enum><text>for any person,
directly or indirectly, by the use of any means or instrumentality of
interstate commerce or of the mails, to effect any transaction in, or to induce
or attempt to induce a transaction in, any commodity-based swap, in connection
with which the person—</text>
<subparagraph id="idA83423525B3A460582C955D1DC123056"><enum>(A)</enum><text>engages in any
fraudulent, deceptive, or manipulative act or practice;</text>
</subparagraph><subparagraph id="id419E0399AAB24C1098998AA618FB7B7B"><enum>(B)</enum><text>makes any
fictitious quotation; or</text>
</subparagraph><subparagraph id="id6346EE9B1E0B4A6B9C37B1300884D342"><enum>(C)</enum><text>engages in any
transaction, practice, or course of business that operates as a fraud or deceit
on any person.</text>
</subparagraph></paragraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="idB309E5B53AE245B5AF934BA18E2E68D4"><enum>(2)</enum><text>in subsection
(b)—</text>
<subparagraph id="id2D375E4491B043A396E97DEBAE211141"><enum>(A)</enum><text>by striking
<quote>Subsection (a)(2) of this section</quote> and inserting the
following:</text>
<quoted-block display-inline="no-display-inline" id="id2CC6482A35AF4CE2A151055125321C6F" style="OLC">
<paragraph id="idABEB2C1435BF4DFEB3F2E91CE02F468A"><enum>(1)</enum><header>In
general</header><text>Subsection (a)(2)</text>
</paragraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</subparagraph><subparagraph id="id3DADDC6EFD3C434588188DFEA1E20681"><enum>(B)</enum><text>by adding at the
end the following:</text>
<quoted-block display-inline="no-display-inline" id="idAE7276C9263A4C73954CF7742F1171B7" style="OLC">
<paragraph id="id57B267552EDC49AFB1D5F65DFA3DC252"><enum>(2)</enum><header>Commodity-based
swaps</header>
<subparagraph id="id2B4DA65DC51D4D6FA046897459699FA3"><enum>(A)</enum><header>In
general</header><text>For the purposes of subsection (a)(3), the Commission
shall, by rule, regulation, or order, define and prescribe means reasonably
designed to prevent—</text>
<clause id="idAD7B071BE1514619A640B7560A44059D"><enum>(i)</enum><text>such
transactions, acts, practices, and courses of business as are fraudulent,
deceptive, or manipulative; and</text>
</clause><clause id="id927A50A99D9C487F9939979FB35581AD"><enum>(ii)</enum><text>such quotations
as are fictitious.</text>
</clause></subparagraph><subparagraph id="idE315E1835AA044BC9F88E85C4F7CF61F"><enum>(B)</enum><header>Requirements</header><text>In
adopting rules, regulations, or orders under subparagraph (A), the Commission
shall—</text>
<clause id="idF253F762D8DD445CA3592293DE7E7B2C"><enum>(i)</enum><text>consult with the
Securities and Exchange Commission; and</text>
</clause><clause id="id547FD64A24834FAFAF4DFE7BC6796D9D"><enum>(ii)</enum><text>seek to maintain
comparability of the rules, regulations, or orders with similar rules of the
Securities and Exchange
Commission.</text>
</clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph></paragraph></subsection></section><section id="id7F0959DF29EA4D0DBEDE4772C5EF8208"><enum>207.</enum><header>Protections
for marketing commodity-based swaps to certain persons</header>
<subsection id="id37FF6BC686144AA2AB4C9209C0DEE69A"><enum>(a)</enum><header>Definition of
eligible contract participant</header><text>Paragraph (15) of section 1a of the
Commodity Exchange Act (7 U.S.C. 1a) (as redesignated by section 201(2)) is
amended—</text>
<paragraph id="idC41291C343104ADB964792AE4BB23611"><enum>(1)</enum><text>in subparagraph
(A)—</text>
<subparagraph id="id41671DED374A4486AC39A7A442D0494E"><enum>(A)</enum><text>in clause (i), by
inserting <quote>(as defined in paragraph (18) as in effect on the date of
enactment of the <short-title>Comprehensive Derivatives
Regulation Act of 2009</short-title>)</quote> after <quote>financial
institution</quote>;</text>
</subparagraph><subparagraph id="idA42A00E5E77446F9BCE6F9F543FC4C39"><enum>(B)</enum><text>in clause
(iv)(I), by striking <quote>total assets</quote> and inserting <quote>total net
assets</quote>;</text>
</subparagraph><subparagraph id="id6404C0C5B8F3471DBC5C76FD9FE2D218"><enum>(C)</enum><text>in clause
(v)—</text>
<clause id="id8630A7FDECDE473683676A444062E043"><enum>(i)</enum><text>in
subclause (I), by striking <quote>total assets exceeding $10,000,000</quote>
and inserting <quote>total net assets exceeding $10,000,000; or</quote>;</text>
</clause><clause id="idD4ED05940C574353A376B560F003237F"><enum>(ii)</enum><text>by
striking subclause (II);</text>
</clause><clause id="id9B4D98BA538C42C484A1EECCA9AE8C39"><enum>(iii)</enum><text>by
redesignating subclause (III) as subclause (II); and</text>
</clause><clause id="idC3A3AF31FEDB42ACAF30EFC6280029CC"><enum>(iv)</enum><text>in
item (aa) of subclause (II) (as so designated), by striking <quote>a net worth
exceeding $1,000,000</quote> and inserting <quote>total net assets exceeding
$5,000,000</quote>;</text>
</clause></subparagraph><subparagraph id="id665F86D50A9047A2B8CEBDCD350B90C6"><enum>(D)</enum><text>in clause (vii),
by striking subclause (III) and the undesignated matter following that
subclause and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="id4583C3D4D2F74A308100CA5AD169D78A" style="OLC">
<subclause id="id95D6791976854635A5BAA8C3928D384F"><enum>(III)</enum><text>an
instrumentality, agency, or department of an entity described in subclause (I)
or (II);</text>
<continuation-text continuation-text-level="subclause">except
that the term does not include an entity, political subdivision,
instrumentality, agency, or department described in subclause (I) or (III)
unless the entity, political subdivision, instrumentality, agency, or
department owns and invests on a discretionary basis $50,000,000 or more in
investments, except that, with respect to any State or entity, political
subdivision, agency or department of a State, that amount is exclusive of any
proceeds from any offering of municipal
securities;</continuation-text></subclause><after-quoted-block>;
and</after-quoted-block></quoted-block>
</subparagraph><subparagraph id="id5C64CB4656484CB69E73EFCB4DBDDE07"><enum>(E)</enum><text>by striking
clause (xi) and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="id531537DBDEB1414BBB32ECCF8810D8FF" style="OLC">
<clause id="id4FB23A430DD64FEEA54B5AB1B34C2D6A"><enum>(xi)</enum><text>an individual
who—</text>
<subclause id="id46A7429BF3064D299E4A3789DE08943E"><enum>(I)</enum><text>owns and invests
on a discretionary basis not less than $10,000,000;</text>
</subclause><subclause id="id5920646D3A8B412BA08081B6E5CCE390"><enum>(II)</enum><text>owns and invests
on a discretionary basis not less than $5,000,000 and who enters into the
agreement, contract, or transaction in order to manage the risk associated with
an asset owned or liability incurred, or reasonably likely to be owned or
incurred, by the individual; or</text>
</subclause><subclause id="id9B466DFDF6D5456A8BDB0738D55429A6"><enum>(III)</enum><text>is an officer
or director of an entity (or a person performing similar functions) and who
enters into the agreement, contract, or transaction in order to manage the risk
associated with the securities of the entity owned by the individual at the
time of entering into the agreement, contract, or
transaction;</text>
</subclause></clause><after-quoted-block>;
and</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="id7A6FED547F4049139859D440B3E36C13"><enum>(2)</enum><text>in subparagraph
(C), by inserting <quote>by rule, jointly with the Securities and Exchange
Commission,</quote> after <quote>determines</quote>.</text>
</paragraph></subsection><subsection id="id34B76C75A65045CCA1F59362EF568BCE"><enum>(b)</enum><header>Limitation on
participation in commodity-Based swaps</header><text>Section 2 of the Commodity
Exchange Act (7 U.S.C. 2) (as amended by section 202(a)(2)(A)) is amended by
adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="id07ABED1496144C8CBC6DC8A5C3799C7C" style="OLC">
<subsection id="id1EC9017B5CBE435E83EA9A203A290E88"><enum>(f)</enum><header>Limitation on
participation in commodity-Based swaps</header><text>It shall be unlawful for
any person, other than an eligible contract participant, to enter into a
commodity-based
swap.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection></section><section id="id5AA0AE74C67742438B475492F56DF099"><enum>208.</enum><header>Commodity-based
swap execution facilities</header><text display-inline="no-display-inline">The
Commodity Exchange Act is amended by inserting after section 5g (7 U.S.C. 7b–2)
the following:</text>
<quoted-block display-inline="no-display-inline" id="id29690F875F0C48DB91146EE89D8DC538" style="OLC">
<section id="idE2A0DF95DF674BC9B866D98F20BED015"><enum>5h.<?LEXA-Enum 5h.?></enum><header>Commodity-based swap execution
facilities</header>
<subsection id="id461AEF2C4FF04CD3897B89AD6D664434"><enum>(a)</enum><header>Registration</header><text>No
person may operate a trading facility for commodity-based swaps, unless the
trading facility is registered as a commodity-based swap execution facility
under this section.</text>
</subsection><subsection id="idD1F2252EC77E41548FB09B56D3A41EBD"><enum>(b)</enum><header>Criteria for
registration</header>
<paragraph id="id60866C9836B5426091D82F3510409454"><enum>(1)</enum><header>In
general</header><text>To be registered as a commodity-based swap execution
facility, a facility shall demonstrate to the Commission that the facility
meets the criteria specified in this section.</text>
</paragraph><paragraph id="id2079AA72A13846F981821D278DCDFA67"><enum>(2)</enum><header>Trading and
participation rules</header><text>The commodity-based swap execution facility
shall—</text>
<subparagraph id="id3CA926BDA0004C22B1BC5E21E7B3062C"><enum>(A)</enum><text>establish and
enforce trading and participation rules that will deter abuses; and</text>
</subparagraph><subparagraph id="id047560FB2E4442218CF52D7FC74EFBD8"><enum>(B)</enum><text>have the capacity
to detect, investigate, and enforce the rules, including the capacity—</text>
<clause id="id9D89DBAFC0314B01A3050628B7A033AB"><enum>(i)</enum><text>to obtain
information necessary to perform the functions required under this
section;</text>
</clause><clause id="id16B307B488504FEE863385F0FD4C9116"><enum>(ii)</enum><text>to provide
market participants with impartial access to the market; and</text>
</clause><clause id="id362F5B635D904CD597E927EF408FD5CF"><enum>(iii)</enum><text>to obtain
information that may be used in establishing whether rule violations have
occurred.</text>
</clause></subparagraph></paragraph><paragraph id="idD19E09004194404EBE11FCE54F0C9702"><enum>(3)</enum><header>Trading
procedures</header><text>The commodity-based swap execution facility shall
establish and enforce rules or terms and conditions defining, or specifications
detailing, trading procedures to be used in entering and executing orders for
commodity-based swaps on the facilities of the commodity-based swap execution
facility.</text>
</paragraph><paragraph id="id1D5A698394CA4A37A15EC93F24FC7773"><enum>(4)</enum><header>Financial
integrity</header><text>The commodity-based swap execution facility shall
establish and enforce rules and procedures to ensure the financial integrity of
commodity-based swaps entered on or through the facilities of the
commodity-based swap execution facility, including the clearance and settlement
of commodity-based swaps pursuant to section 2(f).</text>
</paragraph></subsection><subsection id="id0707BB92E02D467AB54AA9B59B735105"><enum>(c)</enum><header>Principles for
commodity-Based swap execution facilities</header>
<paragraph id="idEE77F5F1E6524ADBA36276F20015ECF9"><enum>(1)</enum><header>Compliance</header>
<subparagraph id="id84B3795C00474AB397357C51165322BE"><enum>(A)</enum><header>In
general</header><text>To maintain registration as a commodity-based swap
execution facility, the facility shall comply with the principles specified in
this subsection.</text>
</subparagraph><subparagraph id="id058370B738F64D818994CE3A55D9A141"><enum>(B)</enum><header>Discretion</header><text>Except
in cases in which the Commission adopts rules or regulations pursuant to
section 8a(5), the commodity-based swap execution facility shall have
reasonable discretion in establishing the manner in which the facility complies
with this subsection.</text>
</subparagraph></paragraph><paragraph id="id6C846DDB100E4F2096E190181B50B4AB"><enum>(2)</enum><header>Rules</header><text>The
commodity-based swap execution facility shall monitor and enforce compliance
with any of the rules of the facility, including—</text>
<subparagraph id="idDD081167C2F14F8E8CECAFFC32CEF806"><enum>(A)</enum><text>the terms and
conditions of the commodity-based swaps traded on or through the facility;
and</text>
</subparagraph><subparagraph id="id7E747EF4DF61417ABB08A1052AA04C0B"><enum>(B)</enum><text>any limitations
on access to the facility.</text>
</subparagraph></paragraph><paragraph id="idAC7FF10F0F1349ADA0A5B7209386C049"><enum>(3)</enum><header>Prevention of
manipulation</header>
<subparagraph id="idC7417D8310A54FC6A03E73807BC0290D"><enum>(A)</enum><header>In
general</header><text>The commodity-based swap execution facility shall permit
trading only in commodity-based swaps that are not readily susceptible to
manipulation.</text>
</subparagraph><subparagraph id="id3127240E097A451CA922619729AD0510"><enum>(B)</enum><header>Monitoring</header><text>The
commodity-based swap execution facility shall monitor trading in
commodity-based swaps to prevent price manipulation, price distortion through
surveillance, compliance, and disciplinary practices and procedures, including
methods for conducting real-time monitoring of trading and comprehensive and
accurate trade reconstructions.</text>
</subparagraph></paragraph><paragraph id="id3C08C0B0D1614D9C8A114553853CC796"><enum>(4)</enum><header>Position
limitations and accountability</header>
<subparagraph id="idEE4B09BDF6CD405E853009E995C19101"><enum>(A)</enum><header>In
general</header><text>To reduce the potential threat of market manipulation or
congestion, and to eliminate or prevent excessive speculation (as described in
section 4a(a)), the commodity-based swap execution facility shall adopt for
each of the contracts of the facility, as appropriate, position limitations or
position accountability for speculators.</text>
</subparagraph><subparagraph id="id7645850F3D3A494E9DFAE407DBA8F3D0"><enum>(B)</enum><header>Limitation
level</header><text>For any contract that is subject to a position limitation
established by the Commission pursuant to section 4a(a), the commodity-based
derivative execution facility shall set the position limitations of the
facility at a level that is not higher than the Commission limitation.</text>
</subparagraph></paragraph><paragraph id="id03A3A2ADCFD94256A8575999B3A40C43"><enum>(5)</enum><header>Information
sharing</header><text>The commodity-based swap execution facility shall—</text>
<subparagraph id="id1BD62FFE228D42269CB77AA063E7600D"><enum>(A)</enum><text>establish and
enforce rules that will allow the facility to obtain any necessary information
to perform any of the functions described in this subsection;</text>
</subparagraph><subparagraph id="id84E3D3CB4DB4489683FCC9D2F8CC5F0C"><enum>(B)</enum><text>provide the
information to the Commission on request; and</text>
</subparagraph><subparagraph id="idC9B27D93A2F945EB9A4B7574EA614DC4"><enum>(C)</enum><text>have the capacity
to carry out such international information-sharing agreements as the
Commission may require.</text>
</subparagraph></paragraph><paragraph id="id41C9A67ECF9D4135BDEAF16232BE8D8B"><enum>(6)</enum><header>Accessibility</header><text>The
commodity-based swap trade execution facility shall make public timely
information on price, trading volume, and other trading data to the extent
appropriate for commodity-based swaps.</text>
</paragraph><paragraph id="id499F2F74CFE24083BC151C0D57F72642"><enum>(7)</enum><header>Maintenance of
records</header><text>The commodity-based derivative instrument execution
facility shall—</text>
<subparagraph id="id7C98FC247BAB4DF18487E796A02C516A"><enum>(A)</enum><text>maintain records
of all activities related to the business of the facility, including a complete
audit trail, in a form and manner acceptable to the Commission for a period of
at least 5 years; and</text>
</subparagraph><subparagraph id="id1354F649A01F4496BF6B58D1CC565717"><enum>(B)</enum><text>submit to the
Commission such reports as the Committee may require, at such time, in such
manner, and containing such information as is determined by the Commission to
be necessary for the Commission to perform the responsibilities of the
Commission.</text>
</subparagraph></paragraph><paragraph id="id2C1FB6E84CA241D690EDE1A3CD361FE0"><enum>(8)</enum><header>Emergency
authority</header><text>The commodity-based swap execution facility shall adopt
rules to provide for the exercise of emergency authority, in consultation or
cooperation with the Commission, as appropriate, including the authority to
suspend or curtail trading in a commodity-based swap.</text>
</paragraph><paragraph id="id816F2074C4304000AC1B407ADE5DE2B1"><enum>(9)</enum><header>Conflicts of
interest</header><text>The commodity-based derivative instrument execution
facility shall—</text>
<subparagraph id="idB741A7280A4449EF91985DB0E257D5A9"><enum>(A)</enum><text>establish and
enforce rules to minimize conflicts of interest in the decisionmaking process
of the facility; and</text>
</subparagraph><subparagraph id="id599B50D23BF04F27A1ADE477312094CC"><enum>(B)</enum><text>establish a
process for resolving the conflicts of interest.</text>
</subparagraph></paragraph></subsection><subsection id="idED1FC072F0874FEE87DEDEF09991869A"><enum>(d)</enum><header>Trading by
contract markets</header><text>A board of trade that operates a contract market
shall, to the extent that the board of trade also operates a commodity-based
swap execution facility and uses the same electronic trade execution system for
trading on the contract market and the commodity-based swap execution facility,
identify whether the electronic trading is taking place on the contract market
or the commodity-based swap execution
facility.</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="id5D7366F7B9E3417FBEEC467D0DC27FAD"><enum>209.</enum><header>Enforcement</header><text display-inline="no-display-inline">Section 6c of the Commodity Exchange Act (7
U.S.C. 13a–1) (as amended by section 202(b)(1)(I)) is amended by adding at the
end the following:</text>
<quoted-block display-inline="no-display-inline" id="id4711556A21A14761AD2C62FC8454C3E0" style="OLC">
<subsection id="idE6BDE0B3023141F7B6C87A6C13A7F183"><enum>(h)</enum><header>Enforcement of
provisions applicable to derivatives market participants</header>
<paragraph id="id19981EF6A6A1418D890162869E7EC571"><enum>(1)</enum><header>Definition of
applicable provision</header><text>In this subsection, the term
<term>applicable provision</term> means any of section 4a(a), subsections (a),
(c), and (d) of section 4g, sections 4r and 4s, and subsections (a) through
(c)(1), (2), and (4) of section 5b.</text>
</paragraph><paragraph commented="no" id="id874F6A97047D4449938C4DD9EBC21C81"><enum>(2)</enum><header>Enforcement by
other agencies</header><text>In addition to enforcement by the Commission under
this Act of compliance with applicable provisions, to the extent applicable to
commodity-based swaps, such compliance shall be enforced under—</text>
<subparagraph id="idF67F511849024F78A01A6F0069ED046F"><enum>(A)</enum><text>section 8 of the
Federal Deposit Insurance Act (12 U.S.C. 1818), by the appropriate Federal
banking agency, in the case of an insured depository institution, as those
terms are defined in section 3 of that Act (12 U.S.C. 1813), but not an
affiliate of such an insured depository institution;</text>
</subparagraph><subparagraph id="id5A505F2ACCCE40F4A31660A18B366C1D"><enum>(B)</enum><text>the securities
laws, as defined in section 3(a) of the Securities Exchange Act of 1934 (15
U.S.C. 78c(a)), by the Securities and Exchange Commission, in the case
of—</text>
<clause id="idBADC2C474DF0491A977D6DCEEAA974F7"><enum>(i)</enum><text>a
broker or dealer, as defined in section 3(a) of the Securities Exchange Act of
1934 (15 U.S.C. 78c(a)) (other than a broker or dealer registered under section
15(b)(11) of that Act (15 U.S.C. 78o(b)(11)) that is not an affiliate of an
insured depository institution, as defined in section 3 of the Federal Deposit
Insurance Act (12 U.S.C. 1813));</text>
</clause><clause id="id2FD868215C37487FA4134129E35C756D"><enum>(ii)</enum><text>an investment
adviser, as defined in section 202(a) of the Investment Advisers Act of 1940
(15 U.S.C. 80b–2(a));</text>
</clause><clause id="id0B28E5A0B14D4E2D9FC00DEA0C5863C8"><enum>(iii)</enum><text>an investment
company, as defined in section 3 of the Investment Company Act of 1940 (15
U.S.C. 80a–3);</text>
</clause><clause id="id2783743E54ED4F60AA44C70C9C19F421"><enum>(iv)</enum><text>any other entity
for which the Securities and Exchange Commission is a primary regulator;</text>
</clause><clause id="id556FADDD3E5C44F4B7602E624D4EF014"><enum>(v)</enum><text>any affiliate of
an insured depository institution; or</text>
</clause><clause id="idBD2A034F694245F297E208DEC35607A5"><enum>(vi)</enum><text>any other person
that is not—</text>
<subclause id="id0EDA77FFB5BF4698896C0B53F3022D32"><enum>(I)</enum><text>a futures
commission merchant or an introducing broker (except a futures commission
merchant or an introducing broker registered pursuant to section 4f(a) of this
Act or an affiliate of an insured depository institution);</text>
</subclause><subclause id="idFB61AABC67FA497F862B68D1C7A75DD5"><enum>(II)</enum><text>a commodity pool
operator or commodity trading advisor (except an affiliate of an insured
depository institution); or</text>
</subclause><subclause id="id7735D4E1D2264B108031218914AEB15B"><enum>(III)</enum><text>a person
specified in subparagraph (A) or (C); and</text>
</subclause></clause></subparagraph><subparagraph id="id9D8E6CB259F8453DBA8A0A2BE175322C"><enum>(C)</enum><text>the Federal
Housing Enterprises Financial Safety and Soundness Act of 1992 (12 U.S.C. 4501
et seq.), by the Federal Housing Finance Agency, in the case of a regulated
entity, as defined in section 1303 of the Federal Housing Enterprises Financial
Safety and Soundness Act of 1992 (12 U.S.C. 4502).</text>
</subparagraph></paragraph><paragraph id="id1FA063E0959A4065A118B9608E0EEB5E"><enum>(3)</enum><header>Violations
treated as violations of other laws</header>
<subparagraph id="id81FB6DBAAADA44B995EE08A648801893"><enum>(A)</enum><header>In
general</header><text>For purposes of the exercise by any agency referred to in
paragraph (2) of the powers of the agency under any provision of law referred
to in that paragraph, a violation of any applicable provision, as the provision
applies to commodity-based swaps, shall be considered to be a violation of a
requirement imposed under that provision of law.</text>
</subparagraph><subparagraph id="idF900CBEFC83B4117819F2A5423BCDD72"><enum>(B)</enum><header>Additional
authority</header><text>In addition to its powers under any provision of law
specifically referred to in paragraph (2), each of the agencies referred to in
that paragraph may exercise, for the purpose of enforcing compliance with
applicable provisions, as the applicable provisions apply to commodity-based
swaps, any other authority conferred on the agency by
law.</text>
</subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="idCB6514C288D34988AA699CD934842EDD"><enum>210.</enum><header>Enforceability
of commodity-based swaps</header><text display-inline="no-display-inline">Section 22(a) of the Commodity Exchange Act
(7 U.S.C. 25(a)) is amended by striking paragraph (4) and inserting the
following:</text>
<quoted-block display-inline="no-display-inline" id="id5D06DC00548349038D5B5E4FD219857F" style="OLC">
<paragraph id="idA44591E2836E47BA85C46B93728D96AF"><enum>(4)</enum><header>Contract
enforcement between eligible counterparties</header><text>No agreement,
contract, or transaction that is a commodity-based swap shall be void,
voidable, or unenforceable by either party to the commodity-based swap, and no
party to the commodity-based swap shall be entitled to rescind, or recover any
payment made with respect to, the commodity-based swap under this section or
any other provision of this Act based solely on the failure of either party to
the agreement, contract, or transaction to satisfy its respective obligations
under section 4a(a), subsections (a), (c), and (d) of section 4g, sections 4r
and 4s, and subsections (a) through (c)(1), (2), and (4) of section 5b with
respect to the commodity-based
swap.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</section><enum>III</enum><header>Other
provisions</header>
<section id="ID41f515a8b41243cbb41b5524365f4f4a"><enum>301.</enum><header>Margining and
other risk management standards for central counterparties</header>
<subsection id="IDcdcc2cd23dfb49a9b4702ab7789a4dca"><enum>(a)</enum><header>Agency
actions</header><text>The Securities and Exchange Commission and the Commodity
Futures Trading Commission shall each promulgate rules requiring each clearing
agency (as defined in section 3(a)(23) of the Securities Exchange Act of 1934
(15 U.S.C. 78c(a)(23))) and derivatives clearing organization (as defined in
section 1a(13) of the Commodity Exchange Act (7 U.S.C. 1a(13))) to have robust
risk management controls, including risk margin collateral requirements, to
assure the ability to meet their settlement obligations.</text>
</subsection><subsection id="ID40d0b3575e264da8831c2db66e0bc02f"><enum>(b)</enum><header>Consultation
required</header><text>To assure regulation of risk management controls, the
Securities and Exchange Commission and the Commodity Futures Trading Commission
shall consult with each other and the Board of Governors of the Federal Reserve
System, shall seek to maintain comparability of such rules, and shall give
consideration to the recommendations of the Board of Governors of the Federal
Reserve System before adopting rules under this section.</text>
</subsection></section><section id="IDed6b2086ac5b4df592ebc368ac046be9"><enum>302.</enum><header>Determining
the status of swaps</header>
<subsection id="IDaf612dd10eca4660b3fbae477ce39c1d"><enum>(a)</enum><header>Process for
determining the status of a swap</header>
<paragraph id="id31DB0213FECD450CAD89157897C58618"><enum>(1)</enum><header>Rulemaking</header><text>The
Securities and Exchange Commission and the Commodity Futures Trading Commission
shall jointly issue rules establishing a process for resolving any disagreement
between the agencies regarding the status of a derivative as a security-based
swap, a commodity-based swap, a security derivative, or a commodity
derivative.</text>
</paragraph><paragraph id="id1D0E0716CF0A4F32B5B667DC7686DB64"><enum>(2)</enum><header>Content</header><text>The
rules adopted under this section shall—</text>
<subparagraph id="ID774773c0f9cb49babf214efad1c818c3"><enum>(A)</enum><text>include a method
for determining the status of a derivative as a security-based swap, a
commodity-based swap, a security derivative, or a commodity derivative within
90 days after the date of the commencement of the determination process;
and</text>
</subparagraph><subparagraph id="IDf18c79a72efa4726a28cd21a831796ba"><enum>(B)</enum><text>require the
agencies to consider, in making such determination, the nature of the
derivative, the extent to which the derivative is economically similar to
instruments that are subject to regulation by the Securities and Exchange
Commission or the Commodity Futures Trading Commission, the appropriateness of
regulation of the derivative under either the securities laws or the Commodity
Exchange Act, and such other factors as the Securities and Exchange Commission
and the Commodity Futures Trading Commission may prescribe.</text>
</subparagraph></paragraph></subsection><subsection id="IDb250492f36664f7d872b2ede3b1ad3db"><enum>(b)</enum><header>Judicial
resolution</header>
<paragraph id="ID6de6a605aae64c84ad227b2e64a33c93"><enum>(1)</enum><header>In
general</header><text>If the Securities and Exchange Commission and the
Commodity Futures Trading Commission are unable to determine the status of a
derivative as a security-based swap, a commodity-based swap, a security
derivative, or a commodity derivative pursuant to the process established in
subsection (a), either agency may petition the United States Court of Appeals
for the District of Columbia Circuit for a determination of the status of the
derivative as a security-based swap, a commodity-based swap, a security
derivative, or a commodity derivative.</text>
</paragraph><paragraph id="ID1aab12cdc9ea45719992ae54fefd9192"><enum>(2)</enum><header>Expedited
review</header><text>The United States Court of Appeals for the District of
Columbia Circuit shall complete all action on a petition filed in accordance
with paragraph (1), including rendering a final determination of the status of
the derivative as a security-based swap, a commodity-based swap, a security
derivative, or a commodity derivative before the end of the 60-day period
beginning on the date on which such petition is filed, unless all parties to
such proceeding agree to any extension of such period.</text>
</paragraph><paragraph id="ID442e11a8925a4c7db16f535420ea4e00"><enum>(3)</enum><header>Standard of
review</header><text>The court shall determine the status of a new derivative
instrument as either a security-based derivative, a security-based swap, a
commodity-based swap, a security derivative, or a commodity derivative, based
upon the factors described in subsection (a)(2), giving deference neither to
the views of the Securities and Exchange Commission nor the Commodity Futures
Trading Commission.</text>
</paragraph><paragraph id="IDb1fe6b67d9c14b5a8c9546b0b20b0517"><enum>(4)</enum><header>Supreme court
review</header><text>Any request for certiorari to the Supreme Court of the
United States of any determination of the United States Court of Appeals for
the District of Columbia Circuit with respect to a petition for review under
this subsection shall be filed with the Supreme Court of the United States as
soon as practicable after such determination is made.</text>
</paragraph><paragraph id="ID666049da41fc4eb9824e8002289db2f3"><enum>(5)</enum><header>Judicial
stay</header><text>The filing of a petition pursuant to paragraph (1) shall
operate as a judicial stay of the identification of a derivative as a
security-based swap, a commodity-based swap, a security derivative, or a
commodity derivative until the date on which the determination of the court is
final, including any appeal of such determination.</text>
</paragraph></subsection></section><section id="IDed1042c9e11c4924ac99b1a832f00c96"><enum>303.</enum><header>Study and
report on implementation</header>
<subsection id="ID5fb8d29aaea445adbf8fa23e0b52b87a"><enum>(a)</enum><header>Study
required</header><text>The Comptroller General of the United States shall
conduct a study of—</text>
<paragraph id="IDa4e121c7a2114c2d88302891890cbd38"><enum>(1)</enum><text>how the Commodity
Futures Trading Commission and the Securities and Exchange Commission have
implemented this Act and the amendments made by this Act;</text>
</paragraph><paragraph id="ID78b081f453744f24ae9fdddf87b5465c"><enum>(2)</enum><text>the extent to
which jurisdictional disputes have created challenges in the process of
implementing this Act and the amendments made by this Act; and</text>
</paragraph><paragraph id="ID1e26e6bb232942698582ac555d364b7c"><enum>(3)</enum><text>the benefits and
drawbacks of harmonizing laws implemented by the Commodity Futures Trading
Commission and the Securities and Exchange Commission, and merging those
agencies.</text>
</paragraph></subsection><subsection id="ID00ddffd759cb4a41ab03c1d5cdd06834"><enum>(b)</enum><header>Report
required</header><text>Not later than 1 year after the date on which all rules
are issued under section 304, the Comptroller General shall submit a report on
the results of the study required by this section to Congress, the Commodity
Futures Trading Commission, and the Securities and Exchange Commission.</text>
</subsection></section><section id="id7BEB3DA27F1E4A1E8EC8DBA186A8F742"><enum>304.</enum><header>Rulemaking</header><text display-inline="no-display-inline">The Securities and Exchange Commission, the
Commodity Futures Trading Commission, and the appropriate regulatory
authorities (as that term is defined in section 15F(g) of the Securities
Exchange Act of 1934, as added by this Act, or section 4s(a) of the Commodity
Exchange Act, as added by this Act), as applicable, shall issue rules under
sections 15F(b), 15F(c), 15F(f), 17(l), 17C(c)(2), and 17C(d)(2) of the
Securities Exchange Act of 1934 (as added by this Act), sections 4r(c)(2),
4r(d)(2), 4s(c), 4s(d), and 4s(g) of the Commodity Exchange Act (as added by
this Act), and sections 301 and 302 of this Act, not later than 180 days after
the date of enactment of this Act.</text>
</section><section id="ID917450c4537a41cb8b8693275a317694"><enum>305.</enum><header>Effective
date</header>
<subsection id="IDa1698676e126452fb428f068592447dc"><enum>(a)</enum><header>In
general</header><text>Except as provided in subsection (b) or as specifically
provided in the amendments made by this Act, this Act and the amendments made
by this Act, shall become effective on the date of enactment of this
Act.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="IDc9fce7b122bf457f8b3ec8b2f1ae5102"><enum>(b)</enum><header>Other effective
dates</header><text>The amendments made by sections 102(b) and 202(b) of this
Act and the provisions of section 15F(a) of the Securities Exchange Act of 1934
(as added by this Act) and section 4s(b) of the Commodity Exchange Act (as
added by this Act) shall become effective 6 months after the date of enactment
of this Act.</text>
</subsection></section>