[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2779 Reported in House (RH)]

                                                 Union Calendar No. 268
112th CONGRESS
   2d Session
                                H. R. 2779

                  [Report No. 112-344, Parts I and II]

 To exempt inter-affiliate swaps from certain regulatory requirements 
    put in place by the Dodd-Frank Wall Street Reform and Consumer 
                            Protection Act.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             August 1, 2011

Mr. Stivers (for himself and Ms. Fudge) 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

                           December 23, 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]

                           December 23, 2011

  Referral to the Committee on Agriculture extended for a period not 
                   ending later than February 1, 2012

                            February 1, 2012

  Referral to the Committee on Agriculture extended for a period not 
                   ending later than February 8, 2012


                            February 8, 2012

        Additional sponsors: Ms. Moore, Mr. Dold, and Mr. Gibson

                            February 8, 2012

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]

_______________________________________________________________________

                                 A BILL


 
 To exempt inter-affiliate swaps from certain regulatory requirements 
    put in place by the Dodd-Frank Wall Street Reform and Consumer 
                            Protection Act.


 


    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

<DELETED>SECTION 1. TREATMENT OF AFFILIATE TRANSACTIONS.</DELETED>

<DELETED>    (a) Commodity Exchange Act Amendments.--Section 1a(47) of 
the Commodity Exchange Act (7 U.S.C. 1(a)(47)), as added by section 
721(a)(21) of the Dodd-Frank Wall Street Reform and Consumer Protection 
Act, is amended by adding at the end the following:</DELETED>
                <DELETED>    ``(G) Treatment of affiliate 
                transactions.--</DELETED>
                        <DELETED>    ``(i) In general.--The term `swap' 
                        does not include any agreement, contract, or 
                        transaction that--</DELETED>
                                <DELETED>    ``(I) would otherwise be 
                                included as a `swap' under subparagraph 
                                (A); and</DELETED>
                                <DELETED>    ``(II) is entered into by 
                                a party that is controlling, controlled 
                                by, or under common control with its 
                                counterparty.</DELETED>
                        <DELETED>    ``(ii) Reporting.--All agreements, 
                        contracts, or transactions described in clause 
                        (i) shall be reported to either a swap data 
                        repository, or, if there is no swap data 
                        repository that would accept such swaps, to the 
                        Commission pursuant to section 4r within such 
                        time period as the Commission may by rule or 
                        regulation prescribe.''.</DELETED>
<DELETED>    (b) Securities Exchange Act of 1934 Amendments.--Section 
3(a)(68) of the Securities Exchange Act of 1934 (15 U.S.C. 
78c(3)(a)(68)), as added by section 761(a)(6) of the Dodd-Frank Wall 
Street Reform and Consumer Protection Act, is amended by adding at the 
end the following:</DELETED>
                <DELETED>    ``(F) Treatment of affiliate 
                transactions.--</DELETED>
                        <DELETED>    ``(i) In general.--The term 
                        `security-based swap' does not include any 
                        agreement, contract, or transaction that--
                        </DELETED>
                                <DELETED>    ``(I) would otherwise be 
                                included as a `security-based swap' 
                                under subparagraph (A); and</DELETED>
                                <DELETED>    ``(II) is entered into by 
                                a party that is controlling, controlled 
                                by, or under common control with its 
                                counterparty.</DELETED>
                        <DELETED>    ``(ii) Reporting.--All agreements, 
                        contracts, or transactions described in clause 
                        (i) shall be reported to either a security-
                        based swap data repository, or, if there is no 
                        security-based swap data repository that would 
                        accept such security-based swaps, to the 
                        Commission pursuant to section 13A within such 
                        time period as the Commission may by rule or 
                        regulation prescribe.''.</DELETED>

SECTION 1. TREATMENT OF AFFILIATE TRANSACTIONS.

    (a) Commodity Exchange Act Amendments.--Section 1a(47) of the 
Commodity Exchange Act (7 U.S.C. 1(a)(47)), as added by section 
721(a)(21) of the Dodd-Frank Wall Street Reform and Consumer Protection 
Act, is amended by adding at the end the following:
                    ``(G) Treatment of affiliate transactions.--
                            ``(i) In general.--The term `swap' does not 
                        include any agreement, contract, or transaction 
                        that--
                                    ``(I) would otherwise be included 
                                as a `swap' under subparagraph (A); and
                                    ``(II) is entered into by a party 
                                that is controlling, controlled by, or 
                                under common control with its 
                                counterparty.
                            ``(ii) Reporting.--All agreements, 
                        contracts, or transactions described in clause 
                        (i) shall be reported to either a swap data 
                        repository, or, if there is no swap data 
                        repository that would accept such swaps, to the 
                        Commission pursuant to section 4r within such 
                        time period as the Commission may by rule or 
                        regulation prescribe.''.
    (b) Securities Exchange Act of 1934 Amendments.--Section 3(a)(68) 
of the Securities Exchange Act of 1934 (15 U.S.C. 78c(3)(a)(68)), as 
added by section 761(a)(6) of the Dodd-Frank Wall Street Reform and 
Consumer Protection Act, is amended by adding at the end the following:
                    ``(F) Treatment of affiliate transactions.--
                            ``(i) In general.--For the purposes of any 
                        clearing and execution requirements under 
                        sections 3C and any applicable margin and 
                        capital requirements of section 15F(e), and for 
                        purposes of defining a security-based swap 
                        dealer or a major security-based swap 
                        participant, and reporting requirements other 
                        than those set forth in clause (ii), the term 
                        `security-based swap' does not include any 
                        agreement, contract, or transaction that--
                                    ``(I) would otherwise be included 
                                as a `security-based swap' under 
                                subparagraph (A); and
                                    ``(II) is entered into by parties 
                                that report information or prepare 
                                financial statements on a consolidated 
                                basis, or for which an affiliated 
                                company reports information or prepares 
                                financial statements on a consolidated 
                                basis for both parties.
                            ``(ii) Reporting.--All agreements, 
                        contracts, or transactions described in clause 
                        (i) shall be reported to either a security-
                        based swap data repository, or, if there is no 
                        security-based swap data repository that would 
                        accept such security-based swaps, to the 
                        Commission pursuant to section 13A within such 
                        time period as the Commission may by rule or 
                        regulation prescribe.
                            ``(iii) Preservation of federal reserve act 
                        authority.--Nothing in this subparagraph shall 
                        exempt a transaction described in this 
                        subparagraph from sections 23A or 23B of the 
                        Federal Reserve Act or implementing regulations 
                        thereunder.
                            ``(iv) Protection of insurance funds.--
                        Nothing in this subparagraph shall be construed 
                        to prevent the regulator of a Federal or State 
                        insurance fund or guaranty fund from exercising 
                        its other existing authority to protect the 
                        integrity of such a fund, except that such 
                        regulator shall not subject security-based swap 
                        transactions between affiliated companies to 
                        clearing and execution requirements under 
                        section 3C, to any applicable margin and 
                        capital requirements of section 15F(e), or to 
                        reporting requirements other than those set 
                        forth in clause (ii).
                            ``(v) Prevention of evasion.--The 
                        Commission may prescribe rules under this 
                        subparagraph (and issue interpretations of 
                        rules prescribed under this subparagraph) as 
                        determined by the Commission to be necessary to 
                        include in the definition of security-based 
                        swap under this paragraph any agreement, 
                        contract, or transaction that has been 
                        structured as an affiliate transaction to evade 
                        the requirements of this Act applicable to 
                        security-based swaps.''.

SECTION 1. TREATMENT OF AFFILIATE TRANSACTIONS.

    (a) Commodity Exchange Act Amendments.--Section 1a(47) of the 
Commodity Exchange Act (7 U.S.C. 1a(47)), as added by section 
721(a)(21) of the Dodd-Frank Wall Street Reform and Consumer Protection 
Act, is amended by adding at the end the following:
                    ``(G) Treatment of affiliate transactions.--
                            ``(i) In general.--For the purposes of any 
                        clearing and execution requirements under 
                        section 2(h) and any applicable margin and 
                        capital requirements of section 4s(e) and for 
                        purposes of defining a swap dealer or a major 
                        swap participant, and reporting requirements 
                        other than those set forth in clause (ii), the 
                        term `swap' does not include any agreement, 
                        contract, or transaction that--
                                    ``(I) would otherwise be included 
                                as a `swap' under subparagraph (A); and
                                    ``(II) is entered into by parties 
                                that report information or prepare 
                                financial statements on a consolidated 
                                basis, or for which an affiliated 
                                company reports information or prepares 
                                financial statements on a consolidated 
                                basis.
                            ``(ii) Reporting.--All agreements, 
                        contracts, or transactions described in clause 
                        (i) shall be reported to either a swap data 
                        repository, or, if there is no swap data 
                        repository that would accept such agreements, 
                        contracts or transactions, to the Commission 
                        pursuant to section 4r, or to a swap data 
                        repository or to the Commission pursuant to 
                        section 2(h)(5) within such time period as the 
                        Commission may by rule or regulation prescribe. 
                        Nothing in this subparagraph shall prohibit a 
                        swap data repository from publically reporting 
                        the information submitted pursuant to this 
                        clause.
                            ``(iii) Protection of insurance funds.--
                        Nothing in this subparagraph shall be construed 
                        to prevent the regulator of a Federal or State 
                        insurance fund or guaranty fund from exercising 
                        its other existing authority to protect the 
                        integrity of such a fund, except that such 
                        regulator shall not subject agreements, 
                        contracts, or transactions between affiliated 
                        companies to clearing and execution 
                        requirements under section 2, to any applicable 
                        margin and capital requirements of section 
                        4s(e), or to reporting requirements of the Wall 
                        Street Transparency and Accountability Act of 
                        2010 other than those set forth in clause (ii).
                            ``(iv) Preservation of federal banking 
                        agencies' authority.--Nothing in this section 
                        shall affect the Federal banking agencies' 
                        safety-and-soundness authorities established in 
                        law other than title VII of P.L. 111-203, 
                        including with respect to the authority of the 
                        agencies to impose capital requirements on a 
                        bank with regard to swaps. For purposes of this 
                        clause, the term `bank' shall be defined 
                        pursuant to section 3(6) of the Securities 
                        Exchange Act of 1934, and the term `swap' shall 
                        be defined pursuant to title VII of P.L. 111-
                        203.''.
    (b) Securities Exchange Act of 1934 Amendments.--Section 3(a)(68) 
of the Securities Exchange Act of 1934 (15 U.S.C. 78c(a)(68)), as added 
by section 761(a)(6) of the Dodd-Frank Wall Street Reform and Consumer 
Protection Act, is amended by adding at the end the following:
                    ``(F) Treatment of affiliate transactions.--
                            ``(i) In general.--The term `security-based 
                        swap' does not include any agreement, contract, 
                        or transaction that--
                                    ``(I) would otherwise be included 
                                as a `security-based swap' under 
                                subparagraph (A); and
                                    ``(II) is entered into by a party 
                                that is controlling, controlled by, or 
                                under common control with its 
                                counterparty.
                            ``(ii) Reporting.--All agreements, 
                        contracts, or transactions described in clause 
                        (i) shall be reported to either a security-
                        based swap data repository, or, if there is no 
                        security-based swap data repository that would 
                        accept such security-based swaps, to the 
                        Commission pursuant to section 13A within such 
                        time period as the Commission may by rule or 
                        regulation prescribe.''.

SEC. 2. IMPLEMENTATION.

    The amendments made by this Act shall be implemented--
            (1) without regard to--
                    (A) chapter 35 of title 44, United States Code; and
                    (B) the notice and comment provisions of section 
                553 of title 5, United States Code; and
            (2) through the promulgation of an interim final rule.
                                                 Union Calendar No. 268

112th CONGRESS

   2d Session

                               H. R. 2779

                  [Report No. 112-344, Parts I and II]

_______________________________________________________________________

                                 A BILL

 To exempt inter-affiliate swaps from certain regulatory requirements 
    put in place by the Dodd-Frank Wall Street Reform and Consumer 
                            Protection Act.

_______________________________________________________________________

                            February 8, 2012

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