[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1256 Introduced in House (IH)]

113th CONGRESS
  1st Session
                                H. R. 1256

  To direct the Securities and Exchange Commission and the Commodity 
  Futures Trading Commission to jointly adopt rules setting forth the 
 application to cross-border swaps transactions of certain provisions 
  relating to swaps that were enacted as part of the Dodd-Frank Wall 
               Street Reform and Consumer Protection Act.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             March 19, 2013

Mr. Garrett (for himself, Mr. Conaway, Mr. Carney, and Mr. David Scott 
 of Georgia) 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

_______________________________________________________________________

                                 A BILL


 
  To direct the Securities and Exchange Commission and the Commodity 
  Futures Trading Commission to jointly adopt rules setting forth the 
 application to cross-border swaps transactions of certain provisions 
  relating to swaps that were enacted as part of 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,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Swap Jurisdiction Certainty Act''.

SEC. 2. JOINT RULEMAKING ON CROSS-BORDER SWAPS.

    (a) Joint Rulemaking Required.--
            (1) In general.--Not later than 180 days after the date of 
        enactment of this Act, the Securities and Exchange Commission 
        and the Commodity Futures Trading Commission shall jointly 
        issue rules setting forth the application of United States 
        swaps requirements of the Securities Exchange Act of 1934 and 
        the Commodity Exchange Act relating to swaps and security-based 
        swaps transacted between U.S. persons and non-U.S. persons.
            (2) Construction.--The Commissions shall jointly issue the 
        rules required under paragraph (1) notwithstanding any 
        difference in the authorities granted the Commissions in 
        sections 30(c) and 36(c) of the Securities Exchange Act of 1934 
        (15 U.S.C. 78dd(c); 78mm(c)) and section 2(i) of the Commodity 
        Exchange Act (7 U.S.C. 2(i)), respectively.
    (b) Considerations.--The Commissions shall jointly issue rules that 
address--
            (1) the nature of the connections to the United States that 
        require a non-U.S. person to register as a swap dealer, major 
        swap participant, security-based swap dealer, or security-based 
        swap participant under each Commission's respective Acts and 
        the regulations issued under such Acts;
            (2) which of the United States swaps requirements shall 
        apply to the swap and security-based swap activities of non-
        U.S. persons, U.S. persons, and their branches, agencies, 
        subsidiaries, and affiliates outside of the United States and 
        the extent to which such requirements shall apply; and
            (3) the circumstances under which a non-U.S. person in 
        compliance with the regulatory requirements of a foreign 
        jurisdiction shall be exempt from United States swaps 
        requirements.
    (c) Rule in Accordance With APA Required.--No guidance, memorandum 
of understanding, or any such other agreement may satisfy the 
requirement to issue a joint rule from the Commissions in accordance 
with section 553 of title 5, United States Code.
    (d) General Application to G20 Member Nations.--
            (1) General application.--In issuing rules under this 
        section, the Commissions shall provide that a non-U.S. person 
        in compliance with the swaps regulatory requirements of a G20 
        member nation, or other foreign jurisdiction as jointly 
        determined by the Commissions, shall be exempt from United 
        States swaps requirements in accordance with the schedule set 
        forth in paragraph (2), unless the Commissions jointly 
        determine that the regulatory requirements of the G20 member 
        nation or other foreign jurisdiction are not broadly equivalent 
        to United States swaps requirements.
            (2) Effective date schedule.--The exemption described in 
        paragraph (1) and set forth under the rules required by this 
        section shall apply to persons or transactions relating to or 
        involving--
                    (A) G20 member nations, or any other foreign 
                jurisdiction as jointly determined by the Commissions, 
                accounting for the five largest combined swap and 
                security-based swap markets by notional amount in the 
                calendar year preceding issuance of such rules, on the 
                date on which final rules are issued under this 
                section;
                    (B) G20 member nations, or any other foreign 
                jurisdiction as jointly determined by the Commissions, 
                accounting for the next five largest combined swap and 
                security-based swap markets by notional amount in the 
                calendar year preceding issuance of such rules, 1 year 
                after the date on which such rules are issued; and
                    (C) the remaining G20 member nations, and any other 
                foreign jurisdiction as jointly determined by the 
                Commissions, 18 months after the date on which such 
                rules are issued.
            (3) Criteria.--In such rules, the Commissions shall jointly 
        establish criteria for determining that one or more categories 
        of regulatory requirements of a G20 member nation or other 
        foreign jurisdiction is not broadly equivalent to United States 
        swaps requirements and shall jointly determine the appropriate 
        application of certain United States swap requirements to 
        persons or transactions relating to or involving that G20 
        member nation or other foreign jurisdiction. Such criteria 
        shall include the scope and objectives of the regulatory 
        requirements of a G20 member nation or other foreign 
        jurisdiction as well as the effectiveness of the supervisory 
        compliance program administered, and the enforcement authority 
        exercised, by such G20 member nation or other foreign 
        jurisdiction, and such other factors as the Commissions, by 
        rule, jointly determine to be necessary or appropriate in the 
        public interest.
            (4) Required assessment.--Beginning on after the date on 
        which final rules are issued under this section, the 
        Commissions shall begin to jointly assess the regulatory 
        requirements of G20 member nations, as the Commissions jointly 
        determine appropriate, in accordance with the criteria 
        established pursuant to paragraph (3), to determine if one or 
        more categories of regulatory requirements of a G20 member 
        nation or other foreign jurisdiction is not broadly equivalent 
        to United States swaps requirements
    (e) Report to Congress.--If the Commissions make the joint 
determination described in subsection (d)(1) that the regulatory 
requirements of the G20 member nation or other foreign jurisdiction are 
not broadly equivalent to United States swaps requirements, the 
Commissions shall articulate the basis for such a determination in a 
written report transmitted to the Committee on Financial Services and 
the Committee on Agriculture of the House of Representatives and the 
Committee on Banking, Housing, and Urban Affairs and the Committee on 
Agriculture, Nutrition, and Forestry of the Senate within 30 days of 
the determination. The determination shall not be effective until the 
transmission of such report.
    (f) Definitions.--As used in this Act and for purposes of the rules 
issued pursuant to this Act, the following definitions apply:
            (1) The term ``G20 member nation'' refers to a nation that 
        is a member nation of the Group of Twenty Finance Ministers and 
        Central Bank Governors.
            (2) The term ``U.S. person'' has the meaning given such 
        term in section 230.902(k) of title 17, Code of Federal 
        Regulations. The Commissions may, by rule, jointly revise the 
        definition of U.S. person for purposes of the rules required 
        under this section as they determine appropriate to more 
        effectively carry out the purposes of this Act.
            (3) The term ``United States swaps requirements'' means the 
        provisions relating to swaps and security-based swaps contained 
        in the Commodity Exchange Act (7 U.S.C. 1a et seq.) and the 
        Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.) that 
        were added by title VII of the Dodd-Frank Wall Street Reform 
        and Consumer Protection Act (15 U.S.C. 8301 et seq.) and any 
        rules or regulations prescribed by the Securities and Exchange 
        Commission and the Commodity Futures Trading Commission 
        pursuant to such provisions.
    (g) Conforming Amendments.--
            (1) Securities exchange act of 1934.--Section 36(c) of the 
        Securities Exchange Act of 1934 (15 U.S.C. 78mm(c)) is amended 
        by inserting ``or except as necessary to effectuate the 
        purposes of the Swap Jurisdiction Certainty Act,'' after ``to 
        grant exemptions,''.
            (2) Commodity exchange act.--Section 4(c)(1)(A) of the 
        Commodity Exchange Act (7 U.S.C. 6(c)(1)(A)) is amended by 
        inserting ``or except as necessary to effectuate the purposes 
        of the Swap Jurisdiction Certainty Act,'' after ``to grant 
        exemptions,''.
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