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

                                                  Union Calendar No. 72
113th CONGRESS
  1st Session
                                H. R. 1256

                  [Report No. 113-103, Parts I and II]

  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

                             June 10, 2013

   Reported from the Committee on Financial Services with amendments
  [Omit the part struck through and insert the part printed in italic]

                             June 10, 2013

Reported from the Committee on Agriculture; committed to the Committee 
 of the Whole House on the State of the Union and ordered to be printed


_______________________________________________________________________

                                 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 <DELETED>180 days</DELETED> 
        270 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 cross-border swaps and security-based swaps 
        <DELETED>transacted between</DELETED> transactions involving 
        U.S. persons <DELETED>and</DELETED> or non-U.S. persons.
            (2) Construction.--The <DELETED>Commissions shall jointly 
        issue the</DELETED> rules required under paragraph (1) shall be 
        identical, notwithstanding any difference in the authorities 
        granted the Commissions in <DELETED>sections 30(c) and 36(c)</DELETED> 
        section 30(c) of the Securities Exchange Act of 1934 (15 U.S.C. 
        78dd(c)<DELETED>; 78mm(c)</DELETED>) and section 2(i) of the 
        Commodity Exchange Act (7 U.S.C. 2(i)), respectively, except to 
        the extent necessary to accommodate differences in other 
        underlying statutory requirements under such Acts, and the 
        rules thereunder.
    (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 major 
        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 <DELETED>G20 Member Nations </DELETED> 
Countries or Administrative Regions Having Nine Largest Markets.--
            (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 
        <DELETED>G20 member nation</DELETED> country or administrative 
        region that has one of the nine largest combined swap and 
        security-based swap markets by notional amount in the calendar 
        year preceding issuance of such rules, 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 
        <DELETED>the G20 member nation</DELETED> such country or 
        administrative region 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) <DELETED>G20 member nations</DELETED> countries 
                or administrative regions described in such paragraph, 
                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; and
                <DELETED>    (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</DELETED>
                <DELETED>    (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.</DELETED>
                    (B) the remaining countries or administrative 
                regions described in such paragraph, and any other 
                foreign jurisdiction as jointly determined by the 
                Commissions, 1 year 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 <DELETED>G20 member nation</DELETED> 
        country or administrative region described in paragraph (1) 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 <DELETED>that G20 member nation</DELETED> such 
        country or administrative region or other foreign jurisdiction. 
        Such criteria shall include the scope and objectives of the 
        regulatory requirements of a <DELETED>G20 member nation</DELETED> 
        country or administrative region described in paragraph (1) or 
        other foreign jurisdiction as well as the effectiveness of the 
        supervisory compliance program administered, and the 
        enforcement authority exercised, by such <DELETED>G20 member 
        nation</DELETED> country or administrative region 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 <DELETED>after</DELETED> 
        the date on which final rules are issued under this section, 
        the Commissions shall begin to jointly assess the regulatory 
        requirements of <DELETED>G20 member nations</DELETED> countries 
        or administrative regions described in paragraph (1), as the 
        Commissions jointly determine appropriate, in accordance with 
        the criteria established pursuant to <DELETED>paragraph (3)</DELETED> 
        this subsection, to determine if one or more categories of 
        regulatory requirements of <DELETED>a G20 member nation</DELETED> 
        such a country or administrative region 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 <DELETED>the G20 member nation</DELETED> a country or 
administrative region described in such subsection 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:
        <DELETED>    (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.</DELETED>
        <DELETED>    (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.</DELETED>
            (1) The term ``U.S. person''--
                    (A) means--
                            (i) any natural person resident in the 
                        United States;
                            (ii) any partnership, corporation, trust, 
                        or other legal person organized or incorporated 
                        under the laws of the United States or having 
                        its principal place of business in the United 
                        States;
                            (iii) any account (whether discretionary or 
                        non-discretionary) of a U.S. person; and
                            (iv) any other person as the Commissions 
                        may further jointly define to more effectively 
                        carry out the purposes of this Act; and
                    (B) does not include the International Monetary 
                Fund, the International Bank for Reconstruction and 
                Development, the Inter-American Development Bank, the 
                Asian Development Bank, the African Development Bank, 
                the United Nations, their agencies and pension plans, 
                and any other similar international organizations and 
                their agencies and pension plans.
            <DELETED>(3)</DELETED> (2) 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,''.
                                                  Union Calendar No. 72

113th CONGRESS

  1st Session

                               H. R. 1256

                  [Report No. 113-103, Parts I and II]

_______________________________________________________________________

                                 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.

_______________________________________________________________________

                             June 10, 2013

   Reported from the Committee on Financial Services with amendments

                             June 10, 2013

Reported from the Committee on Agriculture; committed to the Committee 
 of the Whole House on the State of the Union and ordered to be printed