[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3527 Reported in House (RH)]

                                                 Union Calendar No. 270
112th CONGRESS
  2d Session
                                H. R. 3527

                          [Report No. 112-391]

 To amend the Commodity Exchange Act to clarify the definition of swap 
                                dealer.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           November 30, 2011

   Mr. Hultgren (for himself, Mr. Boren, Mrs. Biggert, Mr. Dold, Mr. 
    Johnson of Illinois, Mr. Lance, Mr. Kinzinger of Illinois, Mr. 
  Manzullo, and Mr. Schock) introduced the following bill; which was 
                referred to the Committee on Agriculture

                            February 8, 2012

 Additional sponsors: Mr. Barrow, Mr. King of New York, Mr. Matheson, 
                        and Mr. Ross of Arkansas

                            February 8, 2012

  Reported 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 italic]


_______________________________________________________________________

                                 A BILL


 
 To amend the Commodity Exchange Act to clarify the definition of swap 
                                dealer.


 


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

<DELETED>SECTION 1. SHORT TITLE.</DELETED>

<DELETED>    This Act may be cited as the ``Protecting Main Street End-
Users From Excessive Regulation''.</DELETED>

<DELETED>SEC. 2. CLARIFICATION OF THE DEFINITION OF SWAP 
              DEALER.</DELETED>

<DELETED>    Section 1a(49) of the Commodity Exchange Act (7 U.S.C. 
1a(49)) is amended to read as follows:</DELETED>
        <DELETED>    ``(49) Swap dealer.--</DELETED>
                <DELETED>    ``(A) In general.--The term `swap dealer' 
                means any person who is engaged in the business of 
                entering into swaps, and--</DELETED>
                        <DELETED>    ``(i) holds itself out as a dealer 
                        in swaps;</DELETED>
                        <DELETED>    ``(ii) makes a market in swaps; 
                        or</DELETED>
                        <DELETED>    ``(iii) engages in any activity 
                        causing the person to be commonly known as a 
                        dealer or market maker in swaps,</DELETED>
                <DELETED>provided however, in no event shall an insured 
                depository institution be considered to be a swap 
                dealer to the extent it offers to enter into a swap 
                with a customer in connection with originating a loan 
                to the customer.</DELETED>
                <DELETED>    ``(B) Inclusion.--A person may be 
                designated as a swap dealer for a single type or single 
                class or category of swap or activities and considered 
                not to be a swap dealer for other types, classes, or 
                categories of swaps or activities.</DELETED>
                <DELETED>    ``(C) Exception.--In determining whether a 
                person is a `swap dealer' within the meaning of 
                subparagraph (A), no consideration shall be given to 
                any transaction entered into for the person's own 
                account for the purpose of--</DELETED>
                        <DELETED>    ``(i) hedging or mitigating 
                        commercial risk; or</DELETED>
                        <DELETED>    ``(ii) achieving the person's own 
                        trading or investment objectives.</DELETED>
                <DELETED>    ``(D) De minimis exception.--The 
                Commission shall exempt from designation as a swap 
                dealer an entity that enters into swap dealing 
                transactions with or on behalf of the person's 
                customers if the aggregate gross notional amount of the 
                outstanding swap dealing transactions entered into over 
                the course of the preceding calendar year does not 
                exceed $3,000,000,000 (or such greater amount as the 
                Commission may establish as market conditions warrant), 
                multiplied by the sum of 1 and the percentage (if any) 
                by which the Consumer Price Index for all Urban 
                Customers published by the Bureau of Labor Statistics 
                of the Department of Labor changed for the 12-month 
                period ending the preceding April 30.''.</DELETED>

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Protecting Main Street End-Users 
From Excessive Regulation''.

SEC. 2. CLARIFICATION OF THE DEFINITION OF SWAP DEALER.

    Section 1a(49) of the Commodity Exchange Act (7 U.S.C. 1a(49)) is 
amended to read as follows:
            ``(49) Swap dealer.--
                    ``(A) In general.--The term `swap dealer' means any 
                person who--
                            ``(i) holds itself out as a dealer in 
                        swaps;
                            ``(ii) makes a market in swaps;
                            ``(iii) regularly enters into swaps with 
                        counterparties as an ordinary course of 
                        business for its own account; or
                            ``(iv) engages in any activity causing the 
                        person to be commonly known as a dealer or 
                        market maker in swaps,
                provided however, in no event shall an insured 
                depository institution be considered to be a swap 
                dealer to the extent it offers to enter into a swap 
                with a customer in connection with originating a loan 
                to the customer.
                    ``(B) Inclusion.--A person may be designated as a 
                swap dealer for a single type or single class or 
                category of swap or activities and considered not to be 
                a swap dealer for other types, classes, or categories 
                of swaps or activities.
                    ``(C) Exceptions.--
                            ``(i) The term `swap dealer' does not 
                        include a person that enters into swaps for 
                        such person's own account, either individually 
                        or in a fiduciary capacity, but not as part of 
                        regular business activities as described in 
                        subparagraph (A).
                            ``(ii) In determining whether a person is a 
                        `swap dealer' within the meaning of 
                        subparagraph (A), any transaction entered into 
                        for a person's own account for the purpose of 
                        hedging or mitigating commercial risk shall not 
                        be considered as part of that determination.
                            ``(iii) The Commission shall by rule adopt 
                        standards distinguishing the activities 
                        described in subparagraph (A) and entering into 
                        swaps for a person's own account for the 
                        purpose of achieving one's own trading 
                        objectives as determined by the Commission.
                    ``(D) De minimis exception.--The Commission shall 
                exempt from designation as a swap dealer an entity that 
                enters into swap dealing transactions with or on behalf 
                of the person's customers if the aggregate gross 
                notional amount of the outstanding swap dealing 
                transactions entered into over the course of the 
                preceding calendar year does not exceed $3,000,000,000 
                (or such greater amount as the Commission may establish 
                as market conditions warrant), multiplied by the sum of 
                1 and the percentage (if any) by which the Consumer 
                Price Index for all Urban Customers published by the 
                Bureau of Labor Statistics of the Department of Labor 
                changed for the 12-month period ending the preceding 
                April 30.''.

SEC. 3. 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. 270

112th CONGRESS

  2d Session

                               H. R. 3527

                          [Report No. 112-391]

_______________________________________________________________________

                                 A BILL

 To amend the Commodity Exchange Act to clarify the definition of swap 
                                dealer.

_______________________________________________________________________

                            February 8, 2012

  Reported with an amendment, committed to the Committee of the Whole 
       House on the State of the Union, and ordered to be printed