[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[S. 2976 Introduced in Senate (IS)]

113th CONGRESS
  2d Session
                                S. 2976

To amend the Commodity Exchange Act and the Securities Exchange Act of 
 1934 to specify how clearing requirements apply to certain affiliate 
                 transactions, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            December 4, 2014

 Ms. Collins (for herself and Ms. Klobuchar) introduced the following 
      bill; which was read twice and referred to the Committee on 
                  Agriculture, Nutrition, and Forestry

_______________________________________________________________________

                                 A BILL


 
To amend the Commodity Exchange Act and the Securities Exchange Act of 
 1934 to specify how clearing requirements apply to certain affiliate 
                 transactions, and for other purposes.

    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 ``Derivatives End-Users Clarification 
Act''.

SEC. 2. TREATMENT OF AFFILIATE TRANSACTIONS.

    (a) In General.--
            (1) Commodity exchange act amendment.--Section 2(h)(7)(D) 
        of the Commodity Exchange Act (7 U.S.C. 2(h)(7)(D)) is amended 
        by striking clause (i) and inserting the following:
                            ``(i) In general.--An affiliate of a person 
                        that qualifies for an exception under 
                        subparagraph (A) (including affiliate entities 
                        predominantly engaged in providing financing 
                        for the purchase of the merchandise or 
                        manufactured goods of the person) may qualify 
                        for the exception only if the affiliate enters 
                        into the swap to hedge or mitigate the 
                        commercial risk of the person or other 
                        affiliate of the person that is not a financial 
                        entity, on the condition that if the hedge or 
                        mitigation of that commercial risk is addressed 
                        by entering into a swap with a swap dealer or 
                        major swap participant, an appropriate credit 
                        support measure or other mechanism shall be 
                        used.''.
            (2) Securities exchange act of 1934 amendment.--Section 
        3C(g)(4) of the Securities Exchange Act of 1934 (15 U.S.C. 78c-
        3(g)(4)) is amended by striking subparagraph (A) and inserting 
        the following:
                    ``(A) In general.--An affiliate of a person that 
                qualifies for an exception under this subsection 
                (including affiliate entities predominantly engaged in 
                providing financing for the purchase of the merchandise 
                or manufactured goods of the person) may qualify for 
                the exception only if the affiliate enters into the 
                security-based swap to hedge or mitigate the commercial 
                risk of the person or other affiliate of the person 
                that is not a financial entity, on the condition that 
                if the hedge or mitigation of that commercial risk is 
                addressed by entering into a security-based swap with a 
                security-based swap dealer or major security-based swap 
                participant, an appropriate credit support measure or 
                other mechanism shall be used.''.
    (b) Applicability of Credit Support Measure Requirement.--The 
requirements of section 2(h)(7)(D)(i) of the Commodity Exchange Act (7 
U.S.C. 2(h)(7)(D)(i)) and section 3C(g)(4)(A) of the Securities 
Exchange Act of 1934 (15 U.S.C. 78c-3(g)(4)(A)) (as amended by 
subsection (a)) shall not apply with respect to swaps or security-based 
swaps, as appropriate, entered into before the date of enactment of 
this Act.
                                 <all>