IB Union Calendar No. 63 112th CONGRESS 1st Session H. R. 1573 [Report No. 112–109, Parts I and II] IN THE HOUSE OF REPRESENTATIVES April 15, 2011 Mr. Lucas (for himself, Mr. Bachus, Mr. Conaway, and Mr. Garrett) introduced the following bill; which was referred to the Committee on Financial Services, and in addition to the Committee on Agriculture, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned June 16, 2011 Additional sponsors: Mr. Johnson of Illinois, Mr. Neugebauer, Mrs. Schmidt, Mr. Thompson of Pennsylvania, Mr. Crawford, Mrs. Ellmers, Mr. Gibbs, Mr. Gibson, Mr. Hultgren, Mr. Ribble, Mr. Austin Scott of Georgia, Mr. Kingston, Mr. Hensarling, Mr. Hanna, Ms. Jenkins, Mrs. Hartzler, Mr. Coffman of Colorado, Mr. Yoder, and Mr. Goodlatte June 16, 2011 Reported from the Committee on Financial Services with an amendment Strike out all after the enacting clause and insert the part printed in italic June 16, 2011 Reported from the Committee on Agriculture with an amendment, committed to the Committee of the Whole House on the State of the Union, and ordered to be printed Strike out all after the enacting clause and insert the part printed in boldface roman For text of introduced bill, see copy of bill as introduced on April 15, 2011 A BILL To facilitate implementation of title VII of the Dodd-Frank Wall Street Reform and Consumer Protection Act, promote regulatory coordination, and avoid market disruption.
1.
Effective dates
Section 712(f) of the Dodd-Frank Wall Street Reform and Consumer Protection Act (Public Law 111–203; 15 U.S.C. 8302(f)) is amended to read as follows: (f)
Rules and registration before final effective dates
(1)
In general
Beginning on the date of enactment of this Act and notwithstanding the effective date of any provision of this Act, the Commodity Futures Trading Commission and the Securities and Exchange Commission may, in order to prepare for the effective dates of the provisions of this Act— (A)promulgate rules, regulations, or orders permitted or required by this Act; (B)conduct studies and prepare reports and recommendations required by this Act; (C)register persons under the provisions of this Act; and (D)exempt persons, agreements, contracts, or transactions from provisions of this Act, under the terms contained in this Act. (2)
Effective date
(A)Notwithstanding paragraph (1), an action by the Commodity Futures Trading Commission or the Securities and Exchange Commission described in paragraph (1) shall not become effective before the effective date applicable to the action under this Act, except as provided in paragraph (3). (B)Notwithstanding any provision of this Act (other than paragraph (3)), this title and the regulations under this title shall become effective on the latest of— (i)September 30, 2012; (ii)90 days after the publication of the relevant final rule or regulation in the Federal Register or such later date as may be specified in the final rule or regulation; or (iii)the effective date otherwise applicable to this title. (3)
Exceptions
(A)
Certain definitions
Notwithstanding any other provision of this Act, in order to assist persons subject to this title in coming into compliance with the provisions of this title on a timely basis, the Commodity Futures Trading Commission and the Securities and Exchange Commission, in consultation with the Board of Governors, shall adopt definitions further defining the terms specified in subsection (d)(1) not later than 360 days after the date of the enactment of this Act. Such definitions shall become effective 90 days after their publication in the Federal Register. (B)
Regulatory reporting
(i)
Swap data reporting
Sections 2(h)(5) and 4r of the Commodity Exchange Act and the rules and regulations of the Commodity Futures Trading Commission issued under such sections shall become effective on the later of— (I)90 days after the publication of the relevant final rule or regulation in the Federal Register, or such later date as may be specified in the final rule or regulation; or (II)the effective date otherwise applicable to such sections. (ii)
Security-based swap data reporting
Sections 3C(e) and 13A(a) of the Securities Exchange Act of 1934 and the rules and regulations of the Securities and Exchange Commission issued under such sections shall become effective on the later of— (I)90 days after the publication of the relevant final rule or regulation in the Federal Register, or such later date as may be specified in the rule or regulation; or (II)the effective date otherwise applicable to such sections. (iii)
Swap data repositories
To facilitate compliance, before September 30, 2012, with the regulatory reporting provisions of this section, the Commodity Futures Trading Commission and the Securities and Exchange Commission may authorize the reporting of swap data and security-based swap data to any person then conducting the business described in section 1a(48) of the Commodity Exchange Act (7 U.S.C. 1a(48)) or section 3(a)(75) of the Securities Exchange Act of 1934 (15 U.S.C. 78m), respectively, who has— (I)provided notice to the relevant Commission of its intention to register as a swap data repository or security-based swap data repository, as applicable; and (II)made such undertakings to the relevant Commission as such Commission has determined to be appropriate and in the public interest, consistent with this title. (C)
Certain clearing provisions
Section 3C of the Securities Exchange Act of 1934 (15 U.S.C. 78c–3) (except for subsections (e) and (h) of such section) and the rules and regulations of the Securities and Exchange Commission under such section shall take effect on the date otherwise applicable to such section. (D)
Authority relating to speculative trading
Notwithstanding any other provision of this Act, this subsection shall not delay the use of any authority granted to the Securities and Exchange Commission and the Commodity Futures Trading Commission to address speculative trading, including the impact of such trading on the markets, users, or investors and consumers. The Commissions shall report to the appropriate committees of Congress on the use of such authority. (E)
Prohibition on Federal bailouts
Notwithstanding paragraph (2), section 716 of this Act shall take effect on the date provided for in such section. .
2.
Implementation analysis
Section 712 of the Dodd-Frank Wall Street Reform and Consumer Protection Act (Public Law 111–203; 15 U.S.C. 8302), as amended by section 1 of this Act, is amended by adding at the end the following: (g)
Implementation analysis
Notwithstanding any other provision of this title, the Commodity Futures Trading Commission and the Securities and Exchange Commission shall, before prescribing final rules and regulations under this title— (1)conduct public hearings and roundtables and take testimony of affected market participants, experts and other interested parties, and solicit public comment, regarding— (A)the time and resources that would be required of affected parties in order to develop systems and infrastructure necessary to comply with any rules and regulations proposed or then contemplated by the relevant Commission; (B)any alternative approaches capable of accomplishing the relevant Commission’s rulemaking objectives; and (C)the time and resources that would be required of affected parties in order to develop policies and procedures designed to comply with any rules and regulations proposed or then contemplated by the relevant Commission, and (2)take such testimony and comment into account in— (A)performing the cost-benefit analysis required under Federal law in connection with its adoption of the relevant final rules and regulations; and (B)determining the effective date of the relevant final rules and regulations. .
3.
Regulatory coordination
(a)
Commodity futures trading commission
Section 2(a)(1) of the Commodity Exchange Act (7 U.S.C. 2(a)(1)) is amended by adding at the end the following: (J)(i)Notwithstanding any other provision of this Act, the Commission may exempt, in whole or in part, a person from the registration and related regulatory requirements of this Act that were added by title VII of the Dodd-Frank Wall Street Reform and Consumer Protection Act if and to the extent that the Commission determines that— (I)the person is subject to comprehensive supervision and regulation under a regulatory scheme administered by another regulatory authority or the appropriate governmental authorities in the person’s home country that is comparable to the relevant provisions of this Act, (II)adequate information-sharing arrangements are in effect between the Commission and the other regulatory authority, and (III)the exemption would be consistent with the public interest. (ii)The Commission may condition any such exemption on compliance with all or any part of the alternate regulatory scheme, and on such other terms as the Commission determines appropriate, and may deem any noncompliance with the alternate regulatory scheme or other terms a violation of the corresponding provisions of this Act. . (b)
Securities and exchange commission
The Securities Exchange Act of 1934 (15 U.S.C. 78m) is amended by inserting after section 4E the following:
4F.
Exemptive authority
(a)
In general
Notwithstanding any other provision of this Act, the Commission may exempt, in whole or in part, a person from the registration and related regulatory requirements of this Act that were added by title VII of the Dodd-Frank Wall Street Reform and Consumer Protection Act if and to the extent that the Commission determines that— (1)the person is subject to comprehensive supervision and regulation under a regulatory scheme administered by another regulatory authority or the appropriate governmental authorities in the person’s home country that is comparable to the relevant provisions of this Act; (2)adequate information-sharing arrangements are in effect with the other regulatory authority; and (3)the exemption would be consistent with the protection of investors. (b)
Condition on Compliance
The Commission may condition any such exemption on compliance with all or any part of the alternate regulatory scheme, and such other terms as the Commission determines appropriate, and may deem any noncompliance with the alternate regulatory scheme or other terms a violation of the corresponding provisions of this Act.
.
1.
Effective dates
Section 712(f) of the Dodd-Frank Wall Street Reform and Consumer Protection Act (Public Law 111–203) is amended to read as follows: (f)
Rules and registration before final effective dates
(1)
In general
Beginning on the date of enactment of this Act and notwithstanding the effective date of any provision of this Act, the Commodity Futures Trading Commission and the Securities and Exchange Commission may, in order to prepare for the effective dates of the provisions of this Act— (A)promulgate rules, regulations, or orders permitted or required by this Act; (B)conduct studies and prepare reports and recommendations required by this Act; (C)register persons under the provisions of this Act; and (D)exempt persons, agreements, contracts, or transactions from provisions of this Act, under the terms contained in this Act. (2)
Effective date
(A)Notwithstanding paragraph (1), an action by the Commodity Futures Trading Commission or the Securities and Exchange Commission described in paragraph (1) shall not become effective before the effective date applicable to the action under this Act, except as provided in paragraph (3). (B)Notwithstanding any provision of this Act (other than paragraph (3) and sections 721(a)(4) and 721(f)), this title and the regulations under this title shall become effective on the latest of— (i)December 31, 2012; (ii)90 days after the publication of the relevant final rule or regulation in the Federal Register or such later date as may be specified in the final rule or regulation; or (iii)the effective date otherwise applicable to this title. (3)
Exceptions
(A)
Certain definitions
Notwithstanding any other provision of this Act, in order to assist persons subject to this title in coming into compliance with the provisions of this title on a timely basis, the Commodity Futures Trading Commission and the Securities and Exchange Commission, in consultation with the Board of Governors, shall adopt definitions further defining the terms specified in subsection (d)(1) not later than 360 days after the date of the enactment of this Act. Such definitions shall become effective 90 days after their publication in the Federal Register. (B)
Regulatory reporting
(i)
Swap data reporting
Notwithstanding any other provision of this Act, sections 2(h)(5) and 4r of the Commodity Exchange Act and the rules and regulations of the Commodity Futures Trading Commission issued under such sections shall become effective on the later of— (I)90 days after the publication of the relevant final rule or regulation in the Federal Register, or such later date as may be specified in the final rule or regulation; or (II)the effective date otherwise applicable to such sections. (ii)
Security-based swap data reporting
Sections 3C(e) and 13A(a) of the Securities Exchange Act of 1934 and the rules and regulations of the Securities and Exchange Commission issued under such sections shall become effective on the later of— (I)90 days after the publication of the relevant final rule or regulation in the Federal Register, or such later date as may be specified in the rule or regulation; or (II)the effective date otherwise applicable to such sections. (iii)
Swap data repositories
To facilitate compliance, before December 31, 2012, with the regulatory reporting provisions of this section, the Commodity Futures Trading Commission and the Securities and Exchange Commission may authorize the reporting of swap data and security-based swap data to any person then conducting the business described in section 1a(48) of the Commodity Exchange Act (7 U.S.C. 1a(48)) or section 3(a)(75) of the Securities Exchange Act of 1934 (15 U.S.C. 78m), respectively, who has— (I)provided notice to the relevant Commission of its intention to register as a swap data repository or security-based swap data repository, as applicable; and (II)made such undertakings to the relevant Commission as such Commission has determined to be appropriate and in the public interest, consistent with this title. .
2.
Implementation analysis
Section 712 of the Dodd-Frank Wall Street Reform and Consumer Protection Act (Public Law 111–203), as amended by section 1 of this Act, is amended by adding at the end the following: (g)
Implementation analysis
Notwithstanding any other provision of this title, the Commodity Futures Trading Commission and the Securities and Exchange Commission shall, before prescribing final rules and regulations under this title— (1)conduct public hearings and roundtables and take testimony of affected market participants, experts and other interested parties, and solicit public comment, regarding— (A)the time and resources that would be required of affected parties in order to develop systems and infrastructure necessary to comply with any rules and regulations proposed or then contemplated by the relevant Commission; (B)any alternative approaches capable of accomplishing the relevant Commission’s rulemaking objectives; and (C)the time and resources that would be required of affected parties in order to develop policies and procedures designed to comply with any rules and regulations proposed or then contemplated by the relevant Commission, and (2)take such testimony and comment into account in— (A)performing the cost-benefit analysis required under Federal law in connection with its adoption of the relevant final rules and regulations; and (B)determining the effective date of the relevant final rules and regulations. .
3.
Regulatory coordination
(a)
Commodity futures trading commission
Section 2(a)(1) of the Commodity Exchange Act (7 U.S.C. 2(a)(1)) is amended by adding at the end the following: (J)(i)Notwithstanding any other provision of this Act, the Commission may exempt, in whole or in part, a person from the registration and related regulatory requirements of this Act if and to the extent that the Commission determines that— (I)the person is subject to comprehensive supervision and regulation under a regulatory scheme administered by another domestic regulatory authority or the appropriate governmental authorities in the person’s home country that is comparable to the relevant provisions of this Act, (II)adequate information-sharing arrangements are in effect between the Commission and the other regulatory authority, and (III)the exemption would be consistent with the public interest. (ii)The Commission may condition any such exemption on compliance with all or any part of the alternate regulatory scheme, and on such other terms as the Commission determines appropriate, and may deem any noncompliance with the altrernate regulatory scheme or other terms a violation of the corresponding provisions of this Act. . (b)
Securities and exchange commission
The Securities Exchange Act of 1934 (15 U.S.C. 78m) is amended by inserting after section 4E the following:
4F.
Exemptive authority
(a)
In general
Notwithstanding any other provision of this Act, the Commission may exempt, in whole or in part, a person from the registration and related regulatory requirements of this Act if and to the extent that the Commission determines that— (1)the person is subject to comprehensive supervision and regulation under a regulatory scheme administered by another regulatory authority or the appropriate governmental authorities in the person’s home country that is comparable to the relevant provisions of this Act; (2)adequate information-sharing arrangements are in effect with the other regulatory authority; and (3)the exemption would be consistent with the protection of investors. (b)
Condition on Compliance
The Commission may condition any such exemption on compliance with all or any part of the alternate regulatory scheme, and such other terms as the Commission determines appropriate, and may deem any noncompliance with the alternate regulatory scheme or other terms a violation of the corresponding provisions of this Act.
.
June 16, 2011 Reported from the Committee on Financial Services with an amendment June 16, 2011 Reported from the Committee on Agriculture with an amendment, committed to the Committee of the Whole House on the State of the Union, and ordered to be printed