II 112th CONGRESS 2d Session S. 3480 IN THE SENATE OF THE UNITED STATES August 1, 2012 Mr. Johanns (for himself, Mr. Crapo, Mr. Tester, Mr. Kohl, Mr. Toomey, and Mrs. Hagan) introduced the following bill; which was read twice and referred to the Committee on Banking, Housing, and Urban Affairs A BILL To provide end user exemptions from certain provisions of the Commodity Exchange Act and the Securities Exchange Act of 1934.

1.

Margin requirements

(a)

Requirements

(1)

Commodity Exchange Act amendment

Section 4s(e) of the Commodity Exchange Act (7 U.S.C. 6s(e)), as added by section 731 of the Dodd-Frank Wall Street Reform and Consumer Protection Act, is amended by adding at the end the following new paragraph: (4)

Applicability with respect to counterparties

The requirements of paragraphs (2)(A)(ii) and (2)(B)(ii) shall not apply to a swap in which a counterparty qualifies for an exception under section 2(h)(7)(A) or satisfies the criteria in section 2(h)(7)(D). . (2)

Securities Exchange Act amendment

Section 15F(e) of the Securities Exchange Act of 1934 (15 U.S.C. 78o–10(e)), as added by section 764(a) of the Dodd-Frank Wall Street Reform and Consumer Protection Act, is amended by adding at the end the following new paragraph: (4)

Applicability with respect to counterparties

The requirements of paragraphs (2)(A)(ii) and (2)(B)(ii) shall not apply to a security-based swap in which a counterparty qualifies for an exception under section 3C(g)(1) or satisfies the criteria in section 3C(g)(4). . (b)

Implementation

The amendments made by this section to the Commodity Exchange 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; (2)through the promulgation of an interim final rule, pursuant to which public comment will be sought before a final rule is issued; and (3)such that paragraph (1) shall apply solely to changes to rules and regulations, or proposed rules and regulations, that are limited to and directly a consequence of such amendments.