[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[H.R. 238 Referred in Senate (RFS)]

<DOC>
115th CONGRESS
  1st Session
                                H. R. 238


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            January 17, 2017

  Received; read twice and referred to the Committee on Agriculture, 
                        Nutrition, and Forestry

_______________________________________________________________________

                                 AN ACT


 
  To reauthorize the Commodity Futures Trading Commission, to better 
protect futures customers, to provide end-users with market certainty, 
to make basic reforms to ensure transparency and accountability at the 
 Commission, to help farmers, ranchers, and end-users manage risks, to 
         help keep consumer costs low, 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 ``Commodity End-User Relief Act''.

SEC. 2. TABLE OF CONTENTS.

    The table of contents of this Act is as follows:

Sec. 1. Short title.
Sec. 2. Table of contents.
                     TITLE I--CUSTOMER PROTECTIONS

Sec. 101. Enhanced protections for futures customers.
Sec. 102. Electronic confirmation of customer funds.
Sec. 103. Notice and certifications providing additional customer 
                            protections.
Sec. 104. Futures commission merchant compliance.
Sec. 105. Certainty for futures customers and market participants.
         TITLE II--COMMODITY FUTURES TRADING COMMISSION REFORMS

Sec. 201. Extension of operations.
Sec. 202. Consideration by the Commodity Futures Trading Commission of 
                            the costs and benefits of its regulations 
                            and orders.
Sec. 203. Division directors.
Sec. 204. Office of the Chief Economist.
Sec. 205. Procedures governing actions taken by Commission staff.
Sec. 206. Strategic technology plan.
Sec. 207. Internal risk controls.
Sec. 208. Subpoena duration and renewal.
Sec. 209. Applicability of notice and comment requirements of the 
                            Administrative Procedure Act to guidance 
                            voted on by the Commission.
Sec. 210. Judicial review of Commission rules.
Sec. 211. GAO study on use of Commission resources.
Sec. 212. Disclosure of required data of other registered entities.
Sec. 213. Elimination of certain leasing authority of the Commission.
Sec. 214. Reform of the Customer Protection Fund.
                       TITLE III--END-USER RELIEF

Sec. 301. Transactions with utility special entities.
Sec. 302. Utility special entity defined.
Sec. 303. Utility operations-related swap.
Sec. 304. End-users not treated as financial entities.
Sec. 305. Reporting of illiquid swaps so as to not disadvantage certain 
                            non-financial end-users.
Sec. 306. Relief for grain elevator operators, farmers, agricultural 
                            counterparties, and commercial market 
                            participants.
Sec. 307. Relief for end-users who use physical contracts with 
                            volumetric optionality.
Sec. 308. Commission vote required before automatic change of swap 
                            dealer de minimis level.
Sec. 309. Capital requirements for non-bank swap dealers.
Sec. 310. Harmonization with the Jumpstart Our Business Startups Act.
Sec. 311. Bona fide hedge defined to protect end-user risk management 
                            needs.
Sec. 312. Cross-border regulation of derivatives transactions.
Sec. 313. Exemption of qualified charitable organizations from 
                            designation and regulation as commodity 
                            pool operators.
Sec. 314. Small bank holding company clearing exemption.
Sec. 315. Core principle certainty.
Sec. 316. Treatment of Federal Home Loan Bank products.
Sec. 317. Treatment of certain funds.
Sec. 318. Procedure for obtaining certain intellectual property.
Sec. 319. Determination of predominant engagement.
Sec. 320. Treatment of transactions between affiliates.
Sec. 321. Requirements related to position limits.
                    TITLE IV--TECHNICAL CORRECTIONS

Sec. 401. Correction of references.
Sec. 402. Elimination of obsolete references to dealer options.
Sec. 403. Updated trade data publication requirement.
Sec. 404. Flexibility for registered entities.
Sec. 405. Elimination of obsolete references to electronic trading 
                            facilities.
Sec. 406. Elimination of obsolete reference to alternative swap 
                            execution facilities.
Sec. 407. Elimination of redundant references to types of registered 
                            entities.
Sec. 408. Clarification of Commission authority over swaps trading.
Sec. 409. Elimination of obsolete reference to the Commodity Exchange 
                            Commission.
Sec. 410. Elimination of obsolete references to derivative transaction 
                            execution facilities.
Sec. 411. Elimination of obsolete references to exempt boards of trade.
Sec. 412. Elimination of report due in 1986.
Sec. 413. Compliance report flexibility.
Sec. 414. Miscellaneous corrections.
Sec. 415. Delay in full implementation of the final rule on ownership 
                            and control reporting.

                     TITLE I--CUSTOMER PROTECTIONS

SEC. 101. ENHANCED PROTECTIONS FOR FUTURES CUSTOMERS.

    Section 17 of the Commodity Exchange Act (7 U.S.C. 21) is amended 
by adding at the end the following:
    ``(t) A registered futures association shall--
            ``(1) require each member of the association that is a 
        futures commission merchant to maintain written policies and 
        procedures regarding the maintenance of--
                    ``(A) the residual interest of the member, as 
                described in section 1.23 of title 17, Code of Federal 
                Regulations, in any customer segregated funds account 
                of the member, as identified in section 1.20 of such 
                title, and in any foreign futures and foreign options 
                customer secured amount funds account of the member, as 
                identified in section 30.7 of such title; and
                    ``(B) the residual interest of the member, as 
                described in section 22.2(e)(4) of such title, in any 
                cleared swaps customer collateral account of the 
                member, as identified in section 22.2 of such title; 
                and
            ``(2) establish rules to govern the withdrawal, transfer or 
        disbursement by any member of the association, that is a 
        futures commission merchant, of the member's residual interest 
        in customer segregated funds as provided in such section 1.20, 
        in foreign futures and foreign options customer secured amount 
        funds, identified as provided in such section 30.7, and from a 
        cleared swaps customer collateral, identified as provided in 
        such section 22.2.''.

SEC. 102. ELECTRONIC CONFIRMATION OF CUSTOMER FUNDS.

    Section 17 of the Commodity Exchange Act (7 U.S.C. 21), as amended 
by section 101 of this Act, is amended by adding at the end the 
following:
    ``(u) A registered futures association shall require any member of 
the association that is a futures commission merchant to--
            ``(1) use an electronic system or systems to report 
        financial and operational information to the association or 
        another party designated by the registered futures association, 
        including information related to customer segregated funds, 
        foreign futures and foreign options customer secured amount 
        funds accounts, and cleared swaps customer collateral, in 
        accordance with such terms, conditions, documentation 
        standards, and regular time intervals as are established by the 
        registered futures association;
            ``(2) instruct each depository, including any bank, trust 
        company, derivatives clearing organization, or futures 
        commission merchant, holding customer segregated funds under 
        section 1.20 of title 17, Code of Federal Regulations, foreign 
        futures and foreign options customer secured amount funds under 
        section 30.7 of such title, or cleared swap customer funds 
        under section 22.2 of such title, to report balances in the 
        futures commission merchant's section 1.20 customer segregated 
        funds, section 30.7 foreign futures and foreign options 
        customer secured amount funds, and section 22.2 cleared swap 
        customer funds, to the registered futures association or 
        another party designated by the registered futures association, 
        in the form, manner, and interval prescribed by the registered 
        futures association; and
            ``(3) hold section 1.20 customer segregated funds, section 
        30.7 foreign futures and foreign options customer secured 
        amount funds and section 22.2 cleared swaps customer funds in a 
        depository that reports the balances in these accounts of the 
        futures commission merchant held at the depository to the 
        registered futures association or another party designated by 
        the registered futures association in the form, manner, and 
        interval prescribed by the registered futures association.''.

SEC. 103. NOTICE AND CERTIFICATIONS PROVIDING ADDITIONAL CUSTOMER 
              PROTECTIONS.

    Section 17 of the Commodity Exchange Act (7 U.S.C. 21), as amended 
by sections 101 and 102 of this Act, is amended by adding at the end 
the following:
    ``(v) A futures commission merchant that has adjusted net capital 
in an amount less than the amount required by regulations established 
by the Commission or a self-regulatory organization of which the 
futures commission merchant is a member shall immediately notify the 
Commission and the self-regulatory organization of this occurrence.
    ``(w) A futures commission merchant that does not hold a sufficient 
amount of funds in segregated accounts for futures customers under 
section 1.20 of title 17, Code of Federal Regulations, in foreign 
futures and foreign options secured amount accounts for foreign futures 
and foreign options secured amount customers under section 30.7 of such 
title, or in segregated accounts for cleared swap customers under 
section 22.2 of such title, as required by regulations established by 
the Commission or a self-regulatory organization of which the futures 
commission merchant is a member, shall immediately notify the 
Commission and the self-regulatory organization of this occurrence.
    ``(x) Within such time period established by the Commission after 
the end of each fiscal year, a futures commission merchant shall file 
with the Commission a report from the chief compliance officer of the 
futures commission merchant containing an assessment of the internal 
compliance programs of the futures commission merchant.''.

SEC. 104. FUTURES COMMISSION MERCHANT COMPLIANCE.

    (a) In General.--Section 4d(a) of the Commodity Exchange Act (7 
U.S.C. 6d(a)) is amended--
            (1) by redesignating paragraphs (1) and (2) as 
        subparagraphs (A) and (B);
            (2) by inserting ``(1)'' before ``It shall be unlawful''; 
        and
            (3) by adding at the end the following new paragraph:
            ``(2) Any rules or regulations requiring a futures 
        commission merchant to maintain a residual interest in accounts 
        held for the benefit of customers in amounts at least 
        sufficient to exceed the sum of all uncollected margin deficits 
        of such customers shall provide that a futures commission 
        merchant shall meet its residual interest requirement as of the 
        end of each business day calculated as of the close of business 
        on the previous business day.''.
    (b) Conforming Amendment.--Section 4d(h) of such Act (7 U.S.C. 
6d(h)) is amended by striking ``Notwithstanding subsection (a)(2)'' and 
inserting ``Notwithstanding subsection (a)(1)(B)''.

SEC. 105. CERTAINTY FOR FUTURES CUSTOMERS AND MARKET PARTICIPANTS.

    Section 20(a) of the Commodity Exchange Act (7 U.S.C. 24(a)) is 
amended--
            (1) by striking ``and'' at the end of paragraph (4);
            (2) by striking the period at the end of paragraph (5) and 
        inserting ``; and''; and
            (3) by adding at the end the following:
            ``(6) that cash, securities, or other property of the 
        estate of a commodity broker, including the trading or 
        operating accounts of the commodity broker and commodities held 
        in inventory by the commodity broker, shall be included in 
        customer property, subject to any otherwise unavoidable 
        security interest, or otherwise unavoidable contractual offset 
        or netting rights of creditors (including rights set forth in a 
        rule or bylaw of a derivatives clearing organization or a 
        clearing agency) in respect of such property, but only to the 
        extent that the property that is otherwise customer property is 
        insufficient to satisfy the net equity claims of public 
        customers (as such term may be defined by the Commission by 
        rule or regulation) of the commodity broker.''.

         TITLE II--COMMODITY FUTURES TRADING COMMISSION REFORMS

SEC. 201. EXTENSION OF OPERATIONS.

    Section 12(d) of the Commodity Exchange Act (7 U.S.C. 16(d)) is 
amended to read as follows:
    ``(d) Authorization of Appropriations.--There is authorized to be 
appropriated $250,000,000 for each of fiscal years 2017 through 2021 to 
carry out this Act.''.

SEC. 202. CONSIDERATION BY THE COMMODITY FUTURES TRADING COMMISSION OF 
              THE COSTS AND BENEFITS OF ITS REGULATIONS AND ORDERS.

    Section 15(a) of the Commodity Exchange Act (7 U.S.C. 19(a)) is 
amended--
            (1) by striking paragraphs (1) and (2) and inserting the 
        following:
            ``(1) In general.--Before promulgating a regulation under 
        this Act or issuing an order (except as provided in paragraph 
        (3)), the Commission, through the Office of the Chief 
        Economist, shall assess and publish in the regulation or order 
        the costs and benefits, both qualitative and quantitative, of 
        the proposed regulation or order, and the proposed regulation 
        or order shall state its statutory justification.
            ``(2) Considerations.--In making a reasoned determination 
        of the costs and the benefits, the Commission shall evaluate--
                    ``(A) considerations of protection of market 
                participants and the public;
                    ``(B) considerations of the efficiency, 
                competitiveness, and financial integrity of futures and 
                swaps markets;
                    ``(C) considerations of the impact on market 
                liquidity in the futures and swaps markets;
                    ``(D) considerations of price discovery;
                    ``(E) considerations of sound risk management 
                practices;
                    ``(F) available alternatives to direct regulation;
                    ``(G) the degree and nature of the risks posed by 
                various activities within the scope of its 
                jurisdiction;
                    ``(H) the costs of complying with the proposed 
                regulation or order by all regulated entities, 
                including a methodology for quantifying the costs 
                (recognizing that some costs are difficult to 
                quantify);
                    ``(I) whether the proposed regulation or order is 
                inconsistent, incompatible, or duplicative of other 
                Federal regulations or orders;
                    ``(J) the cost to the Commission of implementing 
                the proposed regulation or order by the Commission 
                staff, including a methodology for quantifying the 
                costs;
                    ``(K) whether, in choosing among alternative 
                regulatory approaches, those approaches maximize net 
                benefits (including potential economic and other 
                benefits, distributive impacts, and equity); and
                    ``(L) other public interest considerations.''; and
            (2) by adding at the end the following:
            ``(4) Judicial review.--Notwithstanding section 24(d), a 
        court shall affirm a Commission assessment of costs and 
        benefits under this subsection, unless the court finds the 
        assessment to be an abuse of discretion.''.

SEC. 203. DIVISION DIRECTORS.

    Section 2(a)(6)(C) of the Commodity Exchange Act (7 U.S.C. 
2(a)(6)(C)) is amended by inserting ``, and the heads of the units 
shall serve at the pleasure of the Commission'' before the period.

SEC. 204. OFFICE OF THE CHIEF ECONOMIST.

    (a) In General.--Section 2(a) of the Commodity Exchange Act (7 
U.S.C. 2(a)) is amended by adding at the end the following:
            ``(16) Office of the chief economist.--
                    ``(A) Establishment.--There is established in the 
                Commission the Office of the Chief Economist.
                    ``(B) Head.--The Office of the Chief Economist 
                shall be headed by the Chief Economist, who shall be 
                appointed by the Commission and serve at the pleasure 
                of the Commission.
                    ``(C) Functions.--The Chief Economist shall report 
                directly to the Commission and perform such functions 
                and duties as the Commission may prescribe.
                    ``(D) Professional staff.--The Commission shall 
                appoint such other economists as may be necessary to 
                assist the Chief Economist in performing such economic 
                analysis, regulatory cost-benefit analysis, or research 
                any member of the Commission may request.''.
    (b) Conforming Amendment.--Section 2(a)(6)(A) of such Act (7 U.S.C. 
2(a)(6)(A)) is amended by striking ``(4) and (5) of this subsection'' 
and inserting ``(4), (5), and (16)''.
    (c) Sense of the Congress.--It is the sense of the Congress that 
the Commodity Futures Trading Commission should take all appropriate 
actions to encourage applications for positions in the Office of the 
Chief Economist from members of minority groups, women, disabled 
persons, and veterans.

SEC. 205. PROCEDURES GOVERNING ACTIONS TAKEN BY COMMISSION STAFF.

    Section 2(a)(12) of the Commodity Exchange Act (7 U.S.C. 2(a)(12)) 
is amended--
            (1) by striking ``(12) The'' and inserting the following:
            ``(12) Rules and regulations.--
                    ``(A) In general.--Subject to the other provisions 
                of this paragraph, the''; and
            (2) by adding after and below the end the following new 
        subparagraph:
                    ``(B) Notice to commissioners.--The Commission 
                shall develop and publish internal procedures governing 
                the issuance by any division or office of the 
                Commission of any response to a formal, written request 
                or petition from any member of the public for an 
                exemptive, a no-action, or an interpretive letter and 
                such procedures shall provide that the commissioners be 
                provided with the final version of the matter to be 
                issued with sufficient notice to review the matter 
                prior to its issuance.''.

SEC. 206. STRATEGIC TECHNOLOGY PLAN.

    Section 2(a) of the Commodity Exchange Act (7 U.S.C. 2(a)), as 
amended by section 204(a) of this Act, is amended by adding at the end 
the following:
            ``(17) Strategic technology plan.--
                    ``(A) In general.--Every 5 years, the Commission 
                shall develop and submit to the Committee on 
                Agriculture of the House of Representatives and the 
                Committee on Agriculture, Nutrition, and Forestry of 
                the Senate a detailed plan focused on the acquisition 
                and use of technology by the Commission.
                    ``(B) Contents.--The plan shall--
                            ``(i) include for each related division or 
                        office a detailed technology strategy focused 
                        on market surveillance and risk detection, 
                        market data collection, aggregation, 
                        interpretation, standardization, harmonization, 
                        normalization, validation, streamlining or 
                        other data analytic processes, and internal 
                        management and protection of data collected by 
                        the Commission, including a detailed accounting 
                        of how the funds provided for technology will 
                        be used and the priorities that will apply in 
                        the use of the funds;
                            ``(ii) set forth annual goals to be 
                        accomplished and annual budgets needed to 
                        accomplish the goals; and
                            ``(iii) include a summary of any plan of 
                        action and milestones to address any known 
                        information security vulnerability, as 
                        identified pursuant to a widely accepted 
                        industry or Government standard, including--
                                    ``(I) specific information about 
                                the industry or Government standard 
                                used to identify the known information 
                                security vulnerability;
                                    ``(II) a detailed time line with 
                                specific deadlines for addressing the 
                                known information security 
                                vulnerability; and
                                    ``(III) an update of any such time 
                                line and the rationale for any 
                                deviation from the time line.''.

SEC. 207. INTERNAL RISK CONTROLS.

    Section 2(a)(12) of the Commodity Exchange Act (7 U.S.C. 2(a)(12)), 
as amended by section 205 of this Act, is amended by adding at the end 
the following:
                    ``(C) Internal risk controls.--The Commission, in 
                consultation with the Chief Economist, shall develop 
                comprehensive internal risk control mechanisms to 
                safeguard and govern the storage of all market data by 
                the Commission, all market data sharing agreements of 
                the Commission, and all academic research performed at 
                the Commission using market data.''.

SEC. 208. SUBPOENA DURATION AND RENEWAL.

    Section 6(c)(5) of the Commodity Exchange Act (7 U.S.C. 9(5)) is 
amended--
            (1) by striking ``(5) Subpoena.--For'' and inserting the 
        following:
            ``(5) Subpoena.--
                    ``(A) In general.--For''; and
            (2) by adding after and below the end the following:
                    ``(B) Omnibus orders of investigation.--
                            ``(i) Duration and renewal.--An omnibus 
                        order of investigation shall not be for an 
                        indefinite duration and may be renewed only by 
                        Commission action.
                            ``(ii) Definition.--In clause (i), the term 
                        `omnibus order of investigation' means an order 
                        of the Commission authorizing one of more 
                        members of the Commission or its staff to issue 
                        subpoenas under subparagraph (A) to multiple 
                        persons in relation to a particular subject 
                        matter area.''.

SEC. 209. APPLICABILITY OF NOTICE AND COMMENT REQUIREMENTS OF THE 
              ADMINISTRATIVE PROCEDURE ACT TO GUIDANCE VOTED ON BY THE 
              COMMISSION.

    Section 2(a)(12) of the Commodity Exchange Act (7 U.S.C. 2(a)(12)), 
as amended by sections 205 and 207 of this Act, is amended by adding at 
the end the following:
                    ``(D) Applicability of notice and comment rules to 
                guidance voted on by the commission.--The notice and 
                comment requirements of section 553 of title 5, United 
                States Code, shall also apply with respect to any 
                Commission statement or guidance, including 
                interpretive rules, general statements of policy, or 
                rules of Commission organization, procedure, or 
                practice, that has the effect of implementing, 
                interpreting or prescribing law or policy and that is 
                voted on by the Commission.''.

SEC. 210. JUDICIAL REVIEW OF COMMISSION RULES.

    The Commodity Exchange Act (7 U.S.C. 1 et seq.) is amended by 
adding at the end the following:

``SEC. 24. JUDICIAL REVIEW OF COMMISSION RULES.

    ``(a) A person adversely affected by a rule of the Commission 
promulgated under this Act may obtain review of the rule in the United 
States Court of Appeals for the District of Columbia Circuit or the 
United States Court of Appeals for the circuit where the party resides 
or has the principal place of business, by filing in the court, within 
60 days after publication in the Federal Register of the entry of the 
rule, a written petition requesting that the rule be set aside.
    ``(b) A copy of the petition shall be transmitted forthwith by the 
clerk of the court to an officer designated by the Commission for that 
purpose. Thereupon the Commission shall file in the court the record on 
which the rule complained of is entered, as provided in section 2112 of 
title 28, United States Code, and the Federal Rules of Appellate 
Procedure.
    ``(c) On the filing of the petition, the court has jurisdiction, 
which becomes exclusive on the filing of the record, to affirm and 
enforce or to set aside the rule in whole or in part.
    ``(d) The court shall affirm and enforce the rule unless the 
Commission's action in promulgating the rule is found to be arbitrary, 
capricious, an abuse of discretion, or otherwise not in accordance with 
law; contrary to constitutional right, power, privilege, or immunity; 
in excess of statutory jurisdiction, authority, or limitations, or 
short of statutory right; or without observance of procedure required 
by law.''.

SEC. 211. GAO STUDY ON USE OF COMMISSION RESOURCES.

    (a) Study.--The Comptroller General of the United States shall 
conduct a study of the resources of the Commodity Futures Trading 
Commission that--
            (1) assesses whether the resources of the Commission are 
        sufficient to enable the Commission to effectively carry out 
        the duties of the Commission;
            (2) examines the expenditures of the Commission on 
        hardware, software, and analytical processes designed to 
        protect customers in the areas of--
                    (A) market surveillance and risk detection; and
                    (B) market data collection, aggregation, 
                interpretation, standardization, harmonization, and 
                streamlining;
            (3) analyzes the additional workload undertaken by the 
        Commission, and ascertains where self-regulatory organizations 
        could be more effectively utilized; and
            (4) examines existing and emerging post-trade risk 
        reduction services in the swaps market, the notional amount of 
        risk reduction transactions provided by the services, and the 
        effects the services have on financial stability, including--
                    (A) market surveillance and risk detection;
                    (B) market data collection, aggregation, 
                interpretation, standardization, harmonization, and 
                streamlining; and
                    (C) oversight and compliance work by market 
                participants and regulators.
    (b) Report.--Not later than 180 days after the date of the 
enactment of this Act, the Comptroller General of the United States 
shall submit to the Committee on Agriculture of the House of 
Representatives and the Committee on Agriculture, Nutrition, and 
Forestry of the Senate a report that contains the results of the study 
required by subsection (a).

SEC. 212. DISCLOSURE OF REQUIRED DATA OF OTHER REGISTERED ENTITIES.

    Section 8 of the Commodity Exchange Act (7 U.S.C. 12) is amended by 
adding at the end the following:
    ``(j) Disclosure of Required Data of Other Registered Entities.--
            ``(1) Except as provided in this subsection, the Commission 
        may not be compelled to disclose any proprietary information 
        provided to the Commission, except that nothing in this 
        subsection--
                    ``(A) authorizes the Commission to withhold 
                information from Congress; or
                    ``(B) prevents the Commission from--
                            ``(i) complying with a request for 
                        information from any other Federal department 
                        or agency, any State or political subdivision 
                        thereof, or any foreign government or any 
                        department, agency, or political subdivision 
                        thereof requesting the report or information 
                        for purposes within the scope of its 
                        jurisdiction, upon an agreement of 
                        confidentiality to protect the information in a 
                        manner consistent with this paragraph and 
                        subsection (e); or
                            ``(ii) making a disclosure made pursuant to 
                        a court order in connection with an 
                        administrative or judicial proceeding brought 
                        under this Act, in any receivership proceeding 
                        involving a receiver appointed in a judicial 
                        proceeding brought under this Act, or in any 
                        bankruptcy proceeding in which the Commission 
                        has intervened or in which the Commission has 
                        the right to appear and be heard under title 11 
                        of the United States Code.
            ``(2) Any proprietary information of a commodity trading 
        advisor or commodity pool operator ascertained by the 
        Commission in connection with Form CPO-PQR, Form CTA-PR, and 
        any successor forms thereto, shall be subject to the same 
        limitations on public disclosure, as any facts ascertained 
        during an investigation, as provided by subsection (a); 
        provided, however, that the Commission shall not be precluded 
        from publishing aggregate information compiled from such forms, 
        to the extent such aggregate information does not identify any 
        individual person or firm, or such person's proprietary 
        information.
            ``(3) For purposes of section 552 of title 5, United States 
        Code, this subsection, and the information contemplated herein, 
        shall be considered a statute described in subsection (b)(3)(B) 
        of such section 552.
            ``(4) For purposes of the definition of proprietary 
        information in paragraph (5), the records and reports of any 
        client account or commodity pool to which a commodity trading 
        advisor or commodity pool operator registered under this title 
        provides services that are filed with the Commission on Form 
        CPO-PQR, CTA-PR, and any successor forms thereto, shall be 
        deemed to be the records and reports of the commodity trading 
        advisor or commodity pool operator, respectively.
            ``(5) For purposes of this section, proprietary information 
        of a commodity trading advisor or commodity pool operator 
        includes sensitive, non-public information regarding--
                    ``(A) the commodity trading advisor, commodity pool 
                operator or the trading strategies of the commodity 
                trading advisor or commodity pool operator;
                    ``(B) analytical or research methodologies of a 
                commodity trading advisor or commodity pool operator;
                    ``(C) trading data of a commodity trading advisor 
                or commodity pool operator; and
                    ``(D) computer hardware or software containing 
                intellectual property of a commodity trading advisor or 
                commodity pool operator;''.

SEC. 213. ELIMINATION OF CERTAIN LEASING AUTHORITY OF THE COMMISSION.

    Section 12(b)(3) of the Commodity Exchange Act (7 U.S.C. 16(b)(3)) 
is amended--
            (1) by striking ``including, but not limited to,'' and 
        inserting ``excluding''; and
            (2) by adding at the end the following new sentence: ``In 
        the case of an existing lease contract entered into under this 
        paragraph, the Commission may not extend the lease term, but 
        may agree to any other contract modification that does not 
        result in any additional cost to the Federal Government.''.

SEC. 214. REFORM OF THE CUSTOMER PROTECTION FUND.

    Section 23(g) of the Commodity Exchange Act (7 U.S.C. 26(g)) is 
amended--
            (1) in paragraph (2)--
                    (A) in the matter preceding subparagraph (A), by 
                striking ``or fiscal year limitation'';
                    (B) in subparagraph (A), by striking ``; and'' and 
                inserting ``, without fiscal year limitation;''; and
                    (C) in subparagraph (B), by striking 
                ``thereunder.'' and inserting ``, the total amount of 
                which shall not exceed $5,000,000 per fiscal year.'';
            (2) in paragraph (3)(A), by striking ``unless the balance 
        of the Fund at the time the monetary judgment is collected 
        exceeds $100,000,000'' and inserting ``, but only to the extent 
        that the resulting balance of the Fund does not exceed 
        $50,000,000''; and
            (3) by redesignating paragraph (5) as paragraph (6) and 
        inserting after paragraph (4) the following:
            ``(5) Reversion to treasury.--Notwithstanding the preceding 
        provisions of this subsection, to the extent the balance of the 
        Fund exceeds $50,000,000, the excess amount shall be deposited 
        in the Treasury of the United States as miscellaneous 
        receipts.''.

                       TITLE III--END-USER RELIEF

SEC. 301. TRANSACTIONS WITH UTILITY SPECIAL ENTITIES.

    Section 1a(49) of the Commodity Exchange Act (7 U.S.C. 1a(49)) is 
amended by adding at the end the following:
                    ``(E) Certain transactions with a utility special 
                entity.--
                            ``(i) Transactions in utility operations-
                        related swaps shall be reported pursuant to 
                        section 4r.
                            ``(ii) In making a determination to exempt 
                        pursuant to subparagraph (D), the Commission 
                        shall treat a utility operations-related swap 
                        entered into with a utility special entity, as 
                        defined in section 4s(h)(2)(D), as if it were 
                        entered into with an entity that is not a 
                        special entity, as defined in section 
                        4s(h)(2)(C).''.

SEC. 302. UTILITY SPECIAL ENTITY DEFINED.

    Section 4s(h)(2) of the Commodity Exchange Act (7 U.S.C. 6s(h)(2)) 
is amended by adding at the end the following:
                    ``(D) Utility special entity.--For purposes of this 
                Act, the term `utility special entity' means a special 
                entity, or any instrumentality, department, or 
                corporation of or established by a State or political 
                subdivision of a State, that--
                            ``(i) owns or operates, or anticipates 
                        owning or operating, an electric or natural gas 
                        facility or an electric or natural gas 
                        operation;
                            ``(ii) supplies, or anticipates supplying, 
                        natural gas and or electric energy to another 
                        utility special entity;
                            ``(iii) has, or anticipates having, public 
                        service obligations under Federal, State, or 
                        local law or regulation to deliver electric 
                        energy or natural gas service to customers; or
                            ``(iv) is a Federal power marketing agency, 
                        as defined in section 3 of the Federal Power 
                        Act.''.

SEC. 303. UTILITY OPERATIONS-RELATED SWAP.

    (a) Swap Further Defined.--Section 1a(47)(A)(iii) of the Commodity 
Exchange Act (7 U.S.C. 1a(47)(A)(iii)) is amended--
            (1) by striking ``and'' at the end of subclause (XXI);
            (2) by adding ``and'' at the end of subclause (XXII); and
            (3) by adding at the end the following:
                                    ``(XXIII) a utility operations-
                                related swap;''.
    (b) Utility Operations-Related Swap Defined.--Section 1a of such 
Act (7 U.S.C. 1a) is amended by adding at the end the following:
            ``(52) Utility operations-related swap.--The term `utility 
        operations-related swap' means a swap that--
                    ``(A) is entered into by a utility to hedge or 
                mitigate a commercial risk;
                    ``(B) is not a contract, agreement, or transaction 
                based on, derived on, or referencing--
                            ``(i) an interest rate, credit, equity, or 
                        currency asset class;
                            ``(ii) except as used for fuel for electric 
                        energy generation, a metal, agricultural 
                        commodity, or crude oil or gasoline commodity 
                        of any grade; or
                            ``(iii) any other commodity or category of 
                        commodities identified for this purpose in a 
                        rule or order adopted by the Commission in 
                        consultation with the appropriate Federal and 
                        State regulatory commissions; and
                    ``(C) is associated with--
                            ``(i) the generation, production, purchase, 
                        or sale of natural gas or electric energy, the 
                        supply of natural gas or electric energy to a 
                        utility, or the delivery of natural gas or 
                        electric energy service to utility customers;
                            ``(ii) fuel supply for the facilities or 
                        operations of a utility;
                            ``(iii) compliance with an electric system 
                        reliability obligation;
                            ``(iv) compliance with an energy, energy 
                        efficiency, conservation, or renewable energy 
                        or environmental statute, regulation, or 
                        government order applicable to a utility; or
                            ``(v) any other electric energy or natural 
                        gas swap to which a utility is a party.''.

SEC. 304. END-USERS NOT TREATED AS FINANCIAL ENTITIES.

    (a) In General.--Section 2(h)(7)(C)(iii) of the Commodity Exchange 
Act (7 U.S.C. 2(h)(7)(C)(iii)) is amended to read as follows:
                            ``(iii) Limitation.--Such definition shall 
                        not include an entity--
                                    ``(I) whose primary business is 
                                providing financing, and who uses 
                                derivatives for the purpose of hedging 
                                underlying commercial risks related to 
                                interest rate and foreign currency 
                                exposures, 90 percent or more of which 
                                arise from financing that facilitates 
                                the purchase or lease of products, 90 
                                percent or more of which are 
                                manufactured by the parent company or 
                                another subsidiary of the parent 
                                company; or
                                    ``(II) who is not supervised by a 
                                prudential regulator, and is not 
                                described in any of subclauses (I) 
                                through (VII) of clause (i), and--
                                            ``(aa) is a commercial 
                                        market participant; or
                                            ``(bb) enters into swaps, 
                                        contracts for future delivery, 
                                        and other derivatives on behalf 
                                        of, or to hedge or mitigate the 
                                        commercial risk of, whether 
                                        directly or in the aggregate, 
                                        affiliates that are not so 
                                        supervised or described.''.
    (b) Commercial Market Participant Defined.--
            (1) In general.--Section 1a of such Act (7 U.S.C. 1a), as 
        amended by section 303(b) of this Act, is amended by 
        redesignating paragraphs (7) through (52) as paragraphs (8) 
        through (53), respectively, and by inserting after paragraph 
        (6) the following:
            ``(7) Commercial market participant.--The term `commercial 
        market participant' means any producer, processor, merchant, or 
        commercial user of an exempt or agricultural commodity, or the 
        products or byproducts of such a commodity.''.
            (2) Conforming amendments.--
                    (A) Section 1a of such Act (7 U.S.C. 1a) is 
                amended--
                            (i) in subparagraph (A) of paragraph (18) 
                        (as so redesignated by paragraph (1) of this 
                        subsection), in the matter preceding clause 
                        (i), by striking ``(18)(A)'' and inserting 
                        ``(19)(A)''; and
                            (ii) in subparagraph (A)(vii) of paragraph 
                        (19) (as so redesignated by paragraph (1) of 
                        this subsection), in the matter following 
                        subclause (III), by striking ``(17)(A)'' and 
                        inserting ``(18)(A)''.
                    (B) Section 4(c)(1)(A)(i)(I) of such Act (7 U.S.C. 
                6(c)(1)(A)(i)(I)) is amended by striking ``(7), 
                paragraph (18)(A)(vii)(III), paragraphs (23), (24), 
                (31), (32), (38), (39), (41), (42), (46), (47), (48), 
                and (49)'' and inserting ``(8), paragraph 
                (19)(A)(vii)(III), paragraphs (24), (25), (32), (33), 
                (39), (40), (42), (43), (47), (48), (49), and (50)''.
                    (C) Section 4q(a)(1) of such Act (7 U.S.C. 6o-
                1(a)(1)) is amended by striking ``1a(9)'' and inserting 
                ``1a(10)''.
                    (D) Section 4s(f)(1)(D) of such Act (7 U.S.C. 
                6s(f)(1)(D)) is amended by striking ``1a(47)(A)(v)'' 
                and inserting ``1a(48)(A)(v)''.
                    (E) Section 4s(h)(5)(A)(i) of such Act (7 U.S.C. 
                6s(h)(5)(A)(i)) is amended by striking ``1a(18)'' and 
                inserting ``1a(19)''.
                    (F) Section 4t(b)(1)(C) of such Act (7 U.S.C. 
                6t(b)(1)(C)) is amended by striking ``1a(47)(A)(v)'' 
                and inserting ``1a(48)(A)(v)''.
                    (G) Section 5(d)(23) of such Act (7 U.S.C. 
                7(d)(23)) is amended by striking ``1a(47)(A)(v)'' and 
                inserting ``1a(48)(A)(v)''.
                    (H) Section 5(e)(1) of such Act (7 U.S.C. 7(e)(1)) 
                is amended by striking ``1a(9)'' and inserting 
                ``1a(10)''.
                    (I) Section 5b(k)(3)(A) of such Act (7 U.S.C. 7a-
                1(k)(3)(A)) is amended by striking ``1a(47)(A)(v)'' and 
                inserting ``1a(48)(A)(v)''.
                    (J) Section 5h(f)(10)(A)(iii) of such Act (7 U.S.C. 
                7b-3(f)(10)(A)(iii)) is amended by striking 
                ``1a(47)(A)(v)'' and inserting ``1a(48)(A)(v)''.
                    (K) Section 21(f)(4)(C) of such Act (7 U.S.C. 
                24a(f)(4)(C)) is amended by striking ``1a(48)'' and 
                inserting ``1a(49)''.
                    (L) Section 3a(68)(A)(i) of the Securities Exchange 
                Act of 1934 (15 U.S.C. 78c(a)(68)(A)(i)) is amended by 
                striking ``(47)(B)(x)'' and inserting ``(48)(B)(x)''.
                    (M) Section 3C(g)(3)(A)(v) of the Securities 
                Exchange Act of 1934 (15 U.S.C. 78c-3(g)(3)(A)(v)) is 
                amended by striking ``1a(10)'' and inserting 
                ``1a(11)''.
                    (N) Section 6(g)(5)(B)(i) of the Securities 
                Exchange Act of 1934 (15 U.S.C. 78f(g)(5)(B)(i)) is 
                amended--
                            (i) in sublcause (I), by striking 
                        ``1a(18)(B)(ii)'' and inserting 
                        ``1a(19)(B)(ii)''; and
                            (ii) in subclause (II), by striking 
                        ``1a(18)'' and inserting ``1a(19)''.
                    (O) Section 15F(h)(5)(A)(i) of the Securities 
                Exchange Act of 1934 (15 U.S.C. 78o-10(h)(5)(A)(i)) is 
                amended by striking ``1a(18)'' and inserting 
                ``1a(19)''.

SEC. 305. REPORTING OF ILLIQUID SWAPS SO AS TO NOT DISADVANTAGE CERTAIN 
              NON-FINANCIAL END-USERS.

    Section 2(a)(13) of the Commodity Exchange Act (7 U.S.C. 2(a)(13)) 
is amended--
            (1) in subparagraph (C), by striking ``The Commission'' and 
        inserting ``Except as provided in subparagraph (D), the 
        Commission''; and
            (2) by redesignating subparagraphs (D) through (G) as 
        subparagraphs (E) through (H), respectively, and inserting 
        after subparagraph (C) the following:
                    ``(D) Requirements for swap transactions in 
                illiquid markets.--Notwithstanding subparagraph (C):
                            ``(i) The Commission shall provide by rule 
                        for the public reporting of swap transactions, 
                        including price and volume data, in illiquid 
                        markets that are not cleared and entered into 
                        by a non-financial entity that is hedging or 
                        mitigating commercial risk in accordance with 
                        subsection (h)(7)(A).
                            ``(ii) The Commission shall ensure that the 
                        swap transaction information referred to in 
                        clause (i) of this subparagraph is available to 
                        the public no sooner than 30 days after the 
                        swap transaction has been executed or at such 
                        later date as the Commission determines 
                        appropriate to protect the identity of 
                        participants and positions in illiquid markets 
                        and to prevent the elimination or reduction of 
                        market liquidity.
                            ``(iii) In this subparagraph, the term 
                        `illiquid markets' means any market in which 
                        the volume and frequency of trading in swaps is 
                        at such a level as to allow identification of 
                        individual market participants.''.

SEC. 306. RELIEF FOR GRAIN ELEVATOR OPERATORS, FARMERS, AGRICULTURAL 
              COUNTERPARTIES, AND COMMERCIAL MARKET PARTICIPANTS.

    The Commodity Exchange Act (7 U.S.C. 1 et seq.) is amended by 
inserting after section 4t the following:

``SEC. 4U. RECORDKEEPING REQUIREMENTS APPLICABLE TO NON-REGISTERED 
              MEMBERS OF CERTAIN REGISTERED ENTITIES.

    ``Except as provided in section 4(a)(3), a member of a designated 
contract market or a swap execution facility that is not registered 
with the Commission and not required to be registered with the 
Commission in any capacity shall satisfy the recordkeeping requirements 
of this Act and any recordkeeping rule, order, or regulation under this 
Act by maintaining a written record of each transaction in a contract 
for future delivery, option on a future, swap, swaption, trade option, 
or related cash or forward transaction. The written record shall be 
sufficient if it includes the final agreement between the parties and 
the material economic terms of the transaction.''.

SEC. 307. RELIEF FOR END-USERS WHO USE PHYSICAL CONTRACTS WITH 
              VOLUMETRIC OPTIONALITY.

    Section 1a(48)(B)(ii) of the Commodity Exchange Act (7 U.S.C. 
1a(47)(B)(ii)), as so redesignated by section 304(b)(1) of this Act, is 
amended to read as follows:
                            ``(ii) any purchase or sale of a 
                        nonfinancial commodity or security for deferred 
                        shipment or delivery, so long as the 
                        transaction is intended to be physically 
                        settled, including any stand-alone or embedded 
                        option for which exercise results in a physical 
                        delivery obligation;''.

SEC. 308. COMMISSION VOTE REQUIRED BEFORE AUTOMATIC CHANGE OF SWAP 
              DEALER DE MINIMIS LEVEL.

    Section 1a(50)(D) of the Commodity Exchange Act (7 U.S.C. 
1a(49)(D)), as so redesignated by section 304(b)(1) of this Act, is 
amended--
            (1) by striking all that precedes ``shall exempt'' and 
        inserting the following:
                    ``(D) Exception.--
                            ``(i) In general.--The Commission''; and
            (2) by adding after and below the end the following new 
        clause:
                            ``(ii) De minimis quantity.--The de minimis 
                        quantity of swap dealing described in clause 
                        (i) shall be set at a quantity of 
                        $8,000,000,000, and may be amended or changed 
                        only through a new affirmative action of the 
                        Commission undertaken by rule or regulation.''.

SEC. 309. CAPITAL REQUIREMENTS FOR NON-BANK SWAP DEALERS.

    (a) Commodity Exchange Act.--Section 4s(e) of the Commodity 
Exchange Act (7 U.S.C. 6s(e)) is amended--
            (1) in paragraph (2)(B), by striking ``shall'' and 
        inserting the following: ``and the Securities and Exchange 
        Commission, in consultation with the prudential regulators, 
        shall jointly''; and
            (2) in paragraph (3)(D)--
                    (A) in clause (ii), by striking ``shall, to the 
                maximum extent practicable,'' and inserting ``shall''; 
                and
                    (B) by adding at the end the following:
                            ``(iii) Financial models.--To the extent 
                        that swap dealers and major swap participants 
                        that are banks are permitted to use financial 
                        models approved by the prudential regulators or 
                        the Securities and Exchange Commission to 
                        calculate minimum capital requirements and 
                        minimum initial and variation margin 
                        requirements, including the use of non-cash 
                        collateral, the Commission shall, in 
                        consultation with the prudential regulators and 
                        the Securities and Exchange Commission, permit 
                        the use of comparable financial models by swap 
                        dealers and major swap participants that are 
                        not banks.''.
    (b) Securities Exchange Act of 1934.--Section 15F(e) of the 
Securities Exchange Act of 1934 (15 U.S.C. 78o-10(e)) is amended--
            (1) in paragraph (2)(B), by striking ``shall'' and 
        inserting the following: ``and the Commodity Futures Trading 
        Commission, in consultation with the prudential regulators, 
        shall jointly''; and
            (2) in paragraph (3)(D)--
                    (A) in clause (ii), by striking ``shall, to the 
                maximum extent practicable,'' and inserting ``shall''; 
                and
                    (B) by adding at the end the following:
                            ``(iii) Financial models.--To the extent 
                        that security-based swap dealers and major 
                        security-based swap participants that are banks 
                        are permitted to use financial models approved 
                        by the prudential regulators or the Commodity 
                        Futures Trading Commission to calculate minimum 
                        capital requirements and minimum initial and 
                        variation margin requirements, including the 
                        use of non-cash collateral, the Commission 
                        shall, in consultation with the Commodity 
                        Futures Trading Commission, permit the use of 
                        comparable financial models by security-based 
                        swap dealers and major security-based swap 
                        participants that are not banks.''.

SEC. 310. HARMONIZATION WITH THE JUMPSTART OUR BUSINESS STARTUPS ACT.

    Within 90 days after the date of the enactment of this Act, the 
Commodity Futures Trading Commission shall--
            (1) revise section 4.7(b) of title 17, Code of Federal 
        Regulations, in the matter preceding paragraph (1), to read as 
        follows:
    ``(b) Relief available to commodity pool operators. Upon filing the 
notice required by paragraph (d) of this section, and subject to 
compliance with the conditions specified in paragraph (d) of this 
section, any registered commodity pool operator who sells 
participations in a pool solely to qualified eligible persons in an 
offering which qualifies for exemption from the registration 
requirements of the Securities Act pursuant to section 4(2) of that Act 
or pursuant to Regulation S, 17 CFR 230.901 et seq., and any bank 
registered as a commodity pool operator in connection with a pool that 
is a collective trust fund whose securities are exempt from 
registration under the Securities Act pursuant to section 3(a)(2) of 
that Act and are sold solely to qualified eligible persons, may claim 
any or all of the following relief with respect to such pool:''; and
            (2) revise section 4.13(a)(3)(i) of such title to read as 
        follows:
                            ``(i) Interests in the pool are exempt from 
                        registration under the Securities Act of 1933, 
                        and such interests are offered and sold 
                        pursuant to section 4 of the Securities Act of 
                        1933 and the regulations thereunder;''.

SEC. 311. BONA FIDE HEDGE DEFINED TO PROTECT END-USER RISK MANAGEMENT 
              NEEDS.

    Section 4a(c) of the Commodity Exchange Act (7 U.S.C. 6a(c)) is 
amended--
            (1) in paragraph (1)--
                    (A) by striking ``may'' and inserting ``shall''; 
                and
                    (B) by striking ``future for which'' and inserting 
                ``future, to be determined by the Commission, for which 
                either an appropriate swap is available or'';
            (2) in paragraph (2)--
                    (A) in the matter preceding subparagraph (A), by 
                striking ``subsection (a)(2)'' and all that follows 
                through ``position as'' and inserting ``paragraph (1) 
                for swaps, contracts of sale for future delivery, or 
                options on the contracts or commodities, a bona fide 
                hedging transaction or position is''; and
                    (B) in subparagraph (A)(ii), by striking ``of 
                risks'' and inserting ``or management of current or 
                anticipated risks''; and
            (3) by adding at the end the following:
            ``(3) The Commission may further define, by rule or 
        regulation, what constitutes a bona fide hedging transaction, 
        provided that the rule or regulation is consistent with the 
        requirements of subparagraphs (A) and (B) of paragraph (2).''.

SEC. 312. CROSS-BORDER REGULATION OF DERIVATIVES TRANSACTIONS.

    (a) Rulemaking Required.--Within 1 year after the date of the 
enactment of this Act, the Commodity Futures Trading Commission shall 
issue a rule that addresses--
            (1) the nature of the connections to the United States that 
        require a non-United States person to register as a swap dealer 
        or a major swap participant under the Commodity Exchange Act 
        and the regulations issued under such Act;
            (2) which of the United States swaps requirements apply to 
        the swap activities of non-United States persons and United 
        States persons and their branches, agencies, subsidiaries, and 
        affiliates outside of the United States, and the extent to 
        which the requirements apply; and
            (3) the circumstances under which a United States person or 
        non-United States person in compliance with the swaps 
        regulatory requirements of a foreign jurisdiction shall be 
        exempt from United States swaps requirements.
    (b) Content of the Rule.--
            (1) Criteria.--In the rule, the Commission shall establish 
        criteria for determining that one or more categories of the 
        swaps regulatory requirements of a foreign jurisdiction are 
        comparable to and as comprehensive as United States swaps 
        requirements. The criteria shall include--
                    (A) the scope and objectives of the swaps 
                regulatory requirements of the foreign jurisdiction;
                    (B) the effectiveness of the supervisory compliance 
                program administered;
                    (C) the enforcement authority exercised by the 
                foreign jurisdiction; and
                    (D) such other factors as the Commission, by rule, 
                determines to be necessary or appropriate in the public 
                interest.
            (2) Comparability.--In the rule, the Commission shall--
                    (A) provide that any non-United States person or 
                any transaction between two non-United States persons 
                shall be exempt from United States swaps requirements 
                if the person or transaction is in compliance with the 
                swaps regulatory requirements of a foreign jurisdiction 
                which the Commission has determined to be comparable to 
                and as comprehensive as United States swaps 
                requirements; and
                    (B) set forth the circumstances in which a United 
                States person or a transaction between a United States 
                person and a non-United States person shall be exempt 
                from United States swaps requirements if the person or 
                transaction is in compliance with the swaps regulatory 
                requirements of a foreign jurisdiction which the 
                Commission has determined to be comparable to and as 
                comprehensive as United States swaps requirements.
            (3) Outcomes-based comparison.--In developing and applying 
        the criteria, the Commission shall emphasize the results and 
        outcomes of, rather than the design and construction of, 
        foreign swaps regulatory requirements.
            (4) Risk-based rulemaking.--In the rule, the Commission 
        shall not take into account, for the purposes of determining 
        the applicability of United States swaps requirements, the 
        location of personnel that arrange, negotiate, or execute 
        swaps.
            (5) No part of any rulemaking under this section shall 
        limit the Commission's antifraud or antimanipulation authority.
    (c) Application of the Rule.--
            (1) Assessments of foreign jurisdictions.--Beginning on the 
        date on which a final rule is issued under this section, the 
        Commission shall begin to assess the swaps regulatory 
        requirements of foreign jurisdictions, in the order the 
        Commission determines appropriate, in accordance with the 
        criteria established pursuant to subsection (b)(1). Following 
        each assessment, the Commission shall determine, by rule or by 
        order, whether the swaps regulatory requirements of the foreign 
        jurisdiction are comparable to and as comprehensive as United 
        States swaps requirements.
            (2) Substituted compliance for unassessed major markets.--
        Beginning 18 months after the date of enactment of this Act--
                    (A) the swaps regulatory requirements of each of 
                the 8 foreign jurisdictions with the largest swaps 
                markets, as calculated by notional value during the 12-
                month period ending with such date of enactment, except 
                those with respect to which a determination has been 
                made under paragraph (1), shall be considered to be 
                comparable to and as comprehensive as United States 
                swaps requirements; and
                    (B) a non-United States person or a transaction 
                between two non-United States persons shall be exempt 
                from United States swaps requirements if the person or 
                transaction is in compliance with the swaps regulatory 
                requirements of any of such unexcepted foreign 
                jurisdictions.
            (3) Suspension of substituted compliance.--If the 
        Commission determines, by rule or by order, that--
                    (A) the swaps regulatory requirements of a foreign 
                jurisdiction are not comparable to and as comprehensive 
                as United States swaps requirements, using the 
                categories and criteria established under subsection 
                (b)(1);
                    (B) the foreign jurisdiction does not exempt from 
                its swaps regulatory requirements United States persons 
                who are in compliance with United States swaps 
                requirements; or
                    (C) the foreign jurisdiction is not providing 
                equivalent recognition of, or substituted compliance 
                for, registered entities (as defined in section 1a(41) 
                of the Commodity Exchange Act) domiciled in the United 
                States,
        the Commission may suspend, in whole or in part, a 
        determination made under paragraph (1) or a consideration 
        granted under paragraph (2).
    (d) Petition for Review of Foreign Jurisdiction Practices.--A 
registered entity, commercial market participant (as defined in section 
1a(7) of the Commodity Exchange Act), or Commission registrant (within 
the meaning of such Act) who petitions the Commission to make or change 
a determination under subsection (c)(1) or (c)(3) of this section shall 
be entitled to expedited consideration of the petition. A petition 
shall include any evidence or other supporting materials to justify why 
the petitioner believes the Commission should make or change the 
determination. Petitions under this section shall be considered by the 
Commission any time following the enactment of this Act. Within 180 
days after receipt of a petition for a rulemaking under this section, 
the Commission shall take final action on the petition. Within 90 days 
after receipt of a petition to issue an order or change an order issued 
under this section, the Commission shall take final action on the 
petition.
    (e) Report to Congress.--If the Commission makes a determination 
described in this section through an order, the Commission shall 
articulate the basis for the determination in a written report 
published in the Federal Register and transmitted to the Committee on 
Agriculture of the House of Representatives and Committee on 
Agriculture, Nutrition, and Forestry of the Senate within 15 days of 
the determination. The determination shall not be effective until 15 
days after the committees receive the report.
    (f) Definitions.--As used in this Act and for purposes of the rules 
issued pursuant to this Act, the following definitions apply:
            (1) United states person.--The term ``United States 
        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 United States person; 
                        and
                            (iv) any other person as the Commission may 
                        further define to more effectively carry out 
                        the purposes of this section; 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 or pension plans, or 
                any other similar international organizations or their 
                agencies or pension plans.
            (2) United states swaps requirements.--The term ``United 
        States swaps requirements'' means the provisions relating to 
        swaps contained in the Commodity Exchange Act (7 U.S.C. 1a 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 Commodity 
        Futures Trading Commission pursuant to such provisions.
            (3) Foreign jurisdiction.--The term ``foreign 
        jurisdiction'' means any national or supranational political 
        entity with common rules governing swaps transactions.
            (4) Swaps regulatory requirements.--The term ``swaps 
        regulatory requirements'' means any provisions of law, and any 
        rules or regulations pursuant to the provisions, governing 
        swaps transactions or the counterparties to swaps transactions.
    (g) Conforming Amendment.--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 Commodity End-User 
Relief Act,'' after ``to grant exemptions,''.

SEC. 313. EXEMPTION OF QUALIFIED CHARITABLE ORGANIZATIONS FROM 
              DESIGNATION AND REGULATION AS COMMODITY POOL OPERATORS.

    (a) Exclusion From Definition of Commodity Pool.--Section 1a(11) of 
the Commodity Exchange Act (7 U.S.C. 1a(10)), as so redesignated by 
section 304(b)(1) of this Act, is amended by adding at the end the 
following:
                    ``(C) Exclusion.--The term `commodity pool' shall 
                not include any investment trust, syndicate, or similar 
                form of enterprise excluded from the definition of 
                `investment company' pursuant to section 3(c)(10) or 
                3(c)(14) of the Investment Company Act of 1940.''.
    (b) Inapplicability of Prohibition on Use of Instrumentalities of 
Interstate Commerce by Unregistered Commodity Trading Advisor.--Section 
4m of such Act (7 U.S.C. 6m) is amended--
            (1) in paragraph (1), in the second sentence, by inserting 
        ``: Provided further, That the provisions of this section shall 
        not apply to any commodity trading advisor that is: (A) a 
        charitable organization, as defined in section 3(c)(10)(D) of 
        the Investment Company Act of 1940, or a trustee, director, 
        officer, employee, or volunteer of such a charitable 
        organization acting within the scope of the employment or 
        duties of the person with the organization, whose trading 
        advice is provided only to, or with respect to, one or more of 
        the following: (i) any such charitable organization; or (ii) an 
        investment trust, syndicate or similar form of enterprise 
        excluded from the definition of `investment company' pursuant 
        to section 3(c)(10) of the Investment Company Act of 1940; or 
        (B) any plan, company, or account described in section 3(c)(14) 
        of the Investment Company Act of 1940, any person or entity who 
        establishes or maintains such a plan, company, or account, or 
        any trustee, director, officer, employee, or volunteer for any 
        of the foregoing plans, persons, or entities acting within the 
        scope of the employment or duties of the person with the 
        organization, whose trading advice is provided only to, or with 
        respect to, any investment trust, syndicate, or similar form of 
        enterprise excluded from the definition of `investment company' 
        pursuant to section 3(c)(14) of the Investment Company Act of 
        1940'' before the period; and
            (2) by adding at the end the following:
    ``(4) Disclosure Concerning Excluded Charitable Organizations.--The 
operator of or advisor to any investment trust, syndicate, or similar 
form of enterprise excluded from the definition of `commodity pool' by 
reason of section 1a(11)(C) of this Act pursuant to section 3(c)(10) of 
the Investment Company Act of 1940 shall provide disclosure in 
accordance with section 7(e) of the Investment Company Act of 1940.''.

SEC. 314. SMALL BANK HOLDING COMPANY CLEARING EXEMPTION.

    Section 2(h)(7)(C) of the Commodity Exchange Act (7 U.S.C. 
2(h)(7)(C)) is amended by adding at the end the following:
                            ``(iv) Holding companies.--A determination 
                        made by the Commission under clause (ii) shall, 
                        with respect to small banks and savings 
                        associations, also apply to their respective 
                        bank holding company (as defined in section 2 
                        of the Bank Holding Company Act of 1956), or 
                        savings and loan holding company (as defined in 
                        section 10 of the Home Owners' Loan Act of 
                        1933)), if the total consolidated assets of the 
                        holding company are no greater than the asset 
                        threshold set by the Commission in determining 
                        small bank and savings association eligibility 
                        under clause (ii).''.

SEC. 315. CORE PRINCIPLE CERTAINTY.

    Section 5h(f) of the Commodity Exchange Act (7 U.S.C. 7b-3(f)) is 
amended--
            (1) in paragraph (1)(B), by inserting ``except as described 
        in this subsection'' after ``Commission by rule or 
        regulation'';
            (2) in paragraph (2), by amending subparagraph (D) to read 
        as follows:
                    ``(D) have reasonable discretion in establishing 
                and enforcing its rules related to trade practice 
                surveillance, market surveillance, real-time marketing 
                monitoring, and audit trail given that a swap execution 
                facility may offer a trading system or platform to 
                execute or trade swaps through any means of interstate 
                commerce. A swap execution facility shall be 
                responsible for monitoring trading in swaps only on its 
                own facility.'';
            (3) in paragraph (4)(B), by adding at the end the 
        following: ``A swap execution facility shall be responsible for 
        monitoring trading in swaps only on its own facility.'';
            (4) in paragraph (6)(B)--
                    (A) by striking ``shall--'' and all that follows 
                through ``compliance with the'' and insert ``shall 
                monitor the trading activity on its facility for 
                compliance with any''; and
                    (B) by adding at the end the following: ``A swap 
                execution facility shall be responsible for monitoring 
                positions only on its own facility.'';
            (5) in paragraph (8), by striking ``to liquidate'' and all 
        that follows and inserting ``to suspend or curtail trading in a 
        swap on its own facility.'';
            (6) in paragraph (13)(B), by striking ``1-year period, as 
        calculated on a rolling basis'' and inserting ``90-day period, 
        as calculated on a rolling basis, or conduct an orderly wind-
        down of its operations, whichever is greater''; and
            (7) in paragraph (15)--
                    (A) in subparagraph (A), by adding at the end the 
                following: ``The individual may also perform other 
                responsibilities for the swap execution facility.'';
                    (B) in subparagraph (B)--
                            (i) in clause (i), by inserting ``, a 
                        committee of the board,'' after ``directly to 
                        the board'';
                            (ii) by striking clauses (iii) through (v) 
                        and inserting the following:
                            ``(iii) establish and administer policies 
                        and procedures that are reasonably designed to 
                        resolve any conflicts of interest that may 
                        arise;
                            ``(iv) establish and administer policies 
                        and procedures that reasonably ensure 
                        compliance with this Act and the rules and 
                        regulations issued under this Act, including 
                        rules prescribed by the Commission pursuant to 
                        this section; and''; and
                            (iii) by redesignating clause (vi) as 
                        clause (v);
                    (C) in subparagraph (C), by striking ``(B)(vi)'' 
                and inserting ``(B)(v)''; and
                    (D) in subparagraph (D)--
                            (i) in clause (i)--
                                    (I) by striking ``In accordance 
                                with rules prescribed by the 
                                Commission, the'' and inserting 
                                ``The''; and
                                    (II) by striking ``and sign''; and
                            (ii) in clause (ii)--
                                    (I) in the matter preceding 
                                subclause (I), by inserting ``or senior 
                                officer'' after ``officer'';
                                    (II) by amending subclause (I) to 
                                read as follows:
                                    ``(I) submit each report described 
                                in clause (i) to the Commission; and''; 
                                and
                                    (III) in subclause (II), by 
                                inserting ``materially'' before 
                                ``accurate''.

SEC. 316. TREATMENT OF FEDERAL HOME LOAN BANK PRODUCTS.

    (a) Section 1a(2) of the Commodity Exchange Act (7 U.S.C. 1a(2)) is 
amended--
            (1) in subparagraph (B), by striking ``and'';
            (2) in subparagraph (C), by striking the period and 
        inserting ``; and''; and
            (3) by adding at the end the following:
                    ``(D) is the Federal Housing Finance Agency for any 
                Federal Home Loan Bank (as defined in section 2 of the 
                Federal Home Loan Bank Act).''.
    (b) Section 402(a) of the Legal Certainty for Bank Products Act of 
2000 (7 U.S.C. 27(a)) is amended--
            (1) by striking ``or'' at the end of paragraph (6);
            (2) by striking the period at the end of paragraph (7) and 
        inserting ``; or''; and
            (3) by adding at the end the following:
            ``(8) any Federal Home Loan Bank (as defined in section 2 
        of the Federal Home Loan Bank Act).''.

SEC. 317. TREATMENT OF CERTAIN FUNDS.

    (a) Amendment to the Definition of Commodity Pool Operator.--
Section 1a(12) of the Commodity Exchange Act (7 U.S.C. 1a(11)), as so 
redesignated by section 304(b)(1) of this Act, is amended by adding at 
the end the following:
                    ``(C)(i) The term `commodity pool operator' does 
                not include a person who serves as an investment 
                adviser to an investment company registered pursuant to 
                section 8 of the Investment Company Act of 1940 or a 
                subsidiary of such a company, if the investment company 
                or subsidiary invests, reinvests, owns, holds, or 
                trades in commodity interests limited to only financial 
                commodity interests.
                    ``(ii) For purposes of this subparagraph only, the 
                term `financial commodity interest' means a futures 
                contract, an option on a futures contract, or a swap, 
                involving a commodity that is not an exempt commodity 
                or an agricultural commodity, including any index of 
                financial commodity interests, whether cash settled or 
                involving physical delivery.
                    ``(iii) For purposes of this subparagraph only, the 
                term `commodity' does not include a security issued by 
                a real estate investment trust, business development 
                company, or issuer of asset-backed securities, 
                including any index of such securities.''.
    (b) Amendment to the Definition of Commodity Trading Advisor.--
Section 1a(13) of such Act (7 U.S.C. 1a(12)), as so redesignated by 
section 304(b)(1) of this Act, is amended by adding at the end the 
following:
                    ``(E) The term `commodity trading advisor' does not 
                include a person who serves as an investment adviser to 
                an investment company registered pursuant to section 8 
                of the Investment Company Act of 1940 or a subsidiary 
                of such a company, if the commodity trading advice 
                relates only to a financial commodity interest, as 
                defined in paragraph (12)(C)(ii) of this section. For 
                purposes of this subparagraph only, the term 
                `commodity' does not include a security issued by a 
                real estate investment trust, business development 
                company, or issuer of asset-backed securities, 
                including any index of such securities.''.

SEC. 318. PROCEDURE FOR OBTAINING CERTAIN INTELLECTUAL PROPERTY.

    The Commodity Exchange Act (7 U.S.C. 1 et seq.) is amended by 
inserting after section 4t the following:

``SEC. 4U. PROCEDURE FOR OBTAINING CERTAIN INTELLECTUAL PROPERTY.

    ``The Commission is not authorized to compel persons to produce or 
furnish algorithmic trading source code or similar intellectual 
property to the Commission, unless the Commission first issues a 
subpoena.''.

SEC. 319. DETERMINATION OF PREDOMINANT ENGAGEMENT.

    Section 2(h)(7)(C) of the Commodity Exchange Act (7 U.S.C. 
2(h)(7)(C)), as amended by section 314 of this Act, is amended by 
adding at the end the following:
                            ``(v) In determining whether a person is 
                        predominantly engaged in a business or activity 
                        for purposes of clause (i)(VIII), there shall 
                        be excluded revenues and assets that are, or 
                        result from, any transaction that is entered 
                        into solely for purposes of hedging or 
                        mitigating commercial risk (as defined by the 
                        Commission for purposes of subparagraph 
                        (A)(ii)).''.

SEC. 320. TREATMENT OF TRANSACTIONS BETWEEN AFFILIATES.

    Section 1a(48) of the Commodity Exchange Act (7 U.S.C. 1a(47)), as 
so redesignated by section 304(b)(1) of this Act, is amended by adding 
at the end the following:
                    ``(G) Treatment of transactions between 
                affiliates.--
                            ``(i) Exemption from swap rules.--An 
                        agreement, contract, or transaction described 
                        in subparagraphs (A) through (F) shall not be 
                        regulated as a swap under this Act if all of 
                        the following apply with respect to the 
                        agreement, contract, or transaction:
                                    ``(I) Affiliation.--One 
                                counterparty, directly or indirectly, 
                                holds a majority ownership interest in 
                                the other counterparty, or a third 
                                party, directly or indirectly, holds a 
                                majority ownership interest in both 
                                counterparties.
                                    ``(II) Financial statements.--The 
                                affiliated counterparty that holds the 
                                majority interest in the other 
                                counterparty or the third party that, 
                                directly or indirectly, holds the 
                                majority interests in both affiliated 
                                counterparties, reports its financial 
                                statements on a consolidated basis 
                                under generally accepted accounting 
                                principles or International Financial 
                                Reporting Standards, or other similar 
                                standards, and the financial statements 
                                include the financial results of the 
                                majority-owned affiliated counterparty 
                                or counterparties.
                            ``(ii) Reporting requirement.--If at least 
                        one counterparty to an agreement, contract, or 
                        transaction that meets the requirements of 
                        clause (i) is a swap dealer or major swap 
                        participant, that counterparty shall report the 
                        agreement, contract, or transaction pursuant to 
                        section 4r, within such time period as the 
                        Commission may by rule or regulation 
                        prescribe--
                                    ``(I) to a swap data repository; or
                                    ``(II) if there is no swap data 
                                repository that would accept the 
                                agreement, contract or transaction, to 
                                the Commission .
                            ``(iii) Risk management requirement.--If at 
                        least one counterparty to an agreement, 
                        contract, or transaction that meets the 
                        requirements of clause (i) is a swap dealer or 
                        major swap participant, the agreement, 
                        contract, or transaction shall be subject to a 
                        centralized risk management program pursuant to 
                        section 4s(j) that is reasonably designed to 
                        monitor and to manage the risks associated with 
                        the agreement, contract, or transaction.
                            ``(iv) Variation margin requirement.--
                        Affiliated counterparties to an agreement, 
                        contract, or transaction that meets the 
                        requirements of clause (i) shall exchange 
                        variation margin to the extent prescribed under 
                        any rule promulgated by the Commission or any 
                        prudential regulator pursuant to section 4s(e).
                            ``(v) Anti-evasion requirement.--An 
                        agreement, contract, or transaction that meets 
                        the requirements of clause (i) shall not be 
                        structured to evade the Dodd-Frank Wall Street 
                        Reform and Consumer Protection Act in violation 
                        of any rule promulgated by the Commission 
                        pursuant to section 721(c) of such Act.''.

SEC. 321. REQUIREMENTS RELATED TO POSITION LIMITS.

    (a) In General.--Section 4a(a) of the Commodity Exchange Act (7 
U.S.C. 6a(a)) is amended--
            (1) by striking paragraphs (2), (3), (5), and (6); and
            (2) by redesignating paragraphs (4) and (7) as paragraphs 
        (2) and (3), respectively.
    (b) Bona Fide Hedging Transaction Definition.--Section 
4a(c)(2)(A)(i) of such Act (7 U.S.C. 6a(c)(2)(A)(i)) is amended by 
inserting ``normally'' before ``represents''.
    (c) Effective Date.--The amendments made by this section shall take 
effect on the date of the enactment of this section.

                    TITLE IV--TECHNICAL CORRECTIONS

SEC. 401. CORRECTION OF REFERENCES.

    (a) Section 2(h)(8)(A)(ii) of the Commodity Exchange Act (7 U.S.C. 
2(h)(8)(A)(ii)) is amended by striking ``5h(f) of this Act'' and 
inserting ``5h(g)''.
    (b) Section 5c(c)(5)(C)(i) of such Act (7 U.S.C. 7a-2(c)(5)(C)(i)) 
is amended by striking ``1a(2)(i))'' and inserting ``1a(19)(i))''.
    (c) Section 23(f) of such Act (7 U.S.C. 26(f)) is amended by 
striking ``section 7064'' and inserting ``section 706''.

SEC. 402. ELIMINATION OF OBSOLETE REFERENCES TO DEALER OPTIONS.

    (a) In General.--Section 4c of the Commodity Exchange Act (7 U.S.C. 
6c) is amended by striking subsections (d) and (e) and redesignating 
subsections (f) and (g) as subsections (d) and (e), respectively.
    (b) Conforming Amendments.--
            (1) Section 2(d) of such Act (7 U.S.C. 2(d)) is amended by 
        striking ``(g) of'' and inserting ``(e) of''.
            (2) Section 4f(a)(4)(A)(i) of such Act (7 U.S.C. 
        6f(a)(4)(A)(i)) is amended by striking ``, (d), (e), and (g)'' 
        and inserting ``and (e)''.
            (3) Section 4k(5)(A) of such Act (7 U.S.C. 6k(5)(A)) is 
        amended by striking ``, (d), (e), and (g)'' and inserting ``and 
        (e)''.
            (4) Section 5f(b)(1)(A) of such Act (7 U.S.C. 7b-
        1(b)(1)(A)) is amended by striking ``, (e), and (g)'' and 
        inserting ``and (e)''.
            (5) Section 9(a)(2) of such Act (7 U.S.C. 13(a)(2)) is 
        amended by striking ``through (e)'' and inserting ``and (c)''.

SEC. 403. UPDATED TRADE DATA PUBLICATION REQUIREMENT.

    Section 4g(e) of the Commodity Exchange Act (7 U.S.C. 6g(e)) is 
amended by striking ``exchange'' and inserting ``each designated 
contract market and swap execution facility''.

SEC. 404. FLEXIBILITY FOR REGISTERED ENTITIES.

    Section 5c(b) of the Commodity Exchange Act (7 U.S.C. 7a-2(b)) is 
amended by striking ``contract market, derivatives transaction 
execution facility, or electronic trading facility'' each place it 
appears and inserting ``registered entity''.

SEC. 405. ELIMINATION OF OBSOLETE REFERENCES TO ELECTRONIC TRADING 
              FACILITIES.

    (a) Section 1a(19)(A)(x) of the Commodity Exchange Act (7 U.S.C. 
1a(18)(A)(x)), as so redesignated by section 304(b)(1) of this Act, is 
amended by striking ``(other than an electronic trading facility with 
respect to a significant price discovery contract)''.
    (b) Section 1a(40) of such Act (7 U.S.C. 1a(41)), as so 
redesignated by section 304(b)(1) of this Act, is amended--
            (1) by adding ``and'' at the end of subparagraph (D); and
            (2) by striking all that follows ``section 21'' and 
        inserting a period.
    (c) Section 4a(e) of such Act (7 U.S.C. 6a(e)) is amended--
            (1) in the first sentence--
                    (A) by striking ``or by any electronic trading 
                facility'';
                    (B) by striking ``or on an electronic trading 
                facility''; and
                    (C) by striking ``or electronic trading facility'' 
                each place it appears; and
            (2) in the second sentence, by striking ``or electronic 
        trading facility with respect to a significant price discovery 
        contract''.
    (d) Section 4g(a) of such Act (7 U.S.C. 6g(a)) is amended by 
striking ``any significant price discovery contract traded or executed 
on an electronic trading facility or''.
    (e) Section 4i of such Act (7 U.S.C. 6i) is amended--
            (1) by striking ``, or any significant price discovery 
        contract traded or executed on an electronic trading facility 
        or any agreement, contract, or transaction that is treated by a 
        derivatives clearing organization, whether registered or not 
        registered, as fungible with a significant price discovery 
        contract''; and
            (2) by striking ``or electronic trading facility''.
    (f) Section 6(b) of such Act (7 U.S.C. 8(b)) is amended by striking 
``or electronic trading facility'' each place it appears.
    (g) Section 12(e)(2) of such Act (7 U.S.C. 16(e)(2)) is amended by 
striking ``in the case of--'' and all that follows and inserting ``in 
the case of an agreement, contract, or transaction that is excluded 
from this Act under section 2(c) or 2(f) of this Act or title IV of the 
Commodity Futures Modernization Act of 2000, or exempted under section 
4(c) of this Act (regardless of whether any such agreement, contract, 
or transaction is otherwise subject to this Act).''.

SEC. 406. ELIMINATION OF OBSOLETE REFERENCE TO ALTERNATIVE SWAP 
              EXECUTION FACILITIES.

    Section 5h(h) of the Commodity Exchange Act (7 U.S.C. 7b-3(h)) is 
amended by striking ``alternative'' before ``swap''.

SEC. 407. ELIMINATION OF REDUNDANT REFERENCES TO TYPES OF REGISTERED 
              ENTITIES.

    Section 6b of the Commodity Exchange Act (7 U.S.C. 13a) is amended 
in the first sentence by striking ``as set forth in sections 5 through 
5c''.

SEC. 408. CLARIFICATION OF COMMISSION AUTHORITY OVER SWAPS TRADING.

    Section 8a of the Commodity Exchange Act (7 U.S.C. 12a) is 
amended--
            (1) in paragraph (7)--
                    (A) by inserting ``the protection of swaps traders 
                and to assure fair dealing in swaps, for'' after 
                ``appropriate for'';
                    (B) in subparagraph (A), by inserting ``swaps or'' 
                after ``conditions in''; and
                    (C) in subparagraph (B), by inserting ``or swaps'' 
                after ``future delivery''; and
            (2) in paragraph (9)--
                    (A) by inserting ``swap or'' after ``or liquidation 
                of any''; and
                    (B) by inserting ``swap or'' after ``margin levels 
                on any''.

SEC. 409. ELIMINATION OF OBSOLETE REFERENCE TO THE COMMODITY EXCHANGE 
              COMMISSION.

    Section 13(c) of the Commodity Exchange Act (7 U.S.C. 13c(c)) is 
amended by striking ``or the Commission''.

SEC. 410. ELIMINATION OF OBSOLETE REFERENCES TO DERIVATIVE TRANSACTION 
              EXECUTION FACILITIES.

    (a) Section 1a(13)(B)(vi) of the Commodity Exchange Act (7 U.S.C. 
1a(12)(B)(vi)), as so redesignated by section 304(b)(1) of this Act, is 
amended by striking ``derivatives transaction execution facility'' and 
inserting ``swap execution facility''.
    (b) Section 1a(35) of such Act (7 U.S.C. 1a(34)), as so 
redesignated by section 304(b)(1) of this Act, is amended by striking 
``or derivatives transaction execution facility'' each place it 
appears.
    (c) Section 1a(36)(B)(iii)(I) of such Act (7 U.S.C. 
1a(35)(B)(iii)(I)), as so redesignated by section 304(b)(1) of this 
Act, is amended by striking ``or registered derivatives transaction 
execution facility''.
    (d) Section 2(a)(1)(C)(ii) of such Act (7 U.S.C. 2(a)(1)(C)(ii)) is 
amended--
            (1) by striking ``, or register a derivatives transaction 
        execution facility that trades or executes,'';
            (2) by striking ``, and no derivatives transaction 
        execution facility shall trade or execute such contracts of 
        sale (or options on such contracts) for future delivery''; and
            (3) by striking ``or the derivatives transaction execution 
        facility,''.
    (e) Section 2(a)(1)(C)(v)(I) of such Act (7 U.S.C. 
2(a)(1)(C)(v)(I)) is amended by striking ``, or any derivatives 
transaction execution facility on which such contract or option is 
traded,''.
    (f) Section 2(a)(1)(C)(v)(II) of such Act (7 U.S.C. 
2(a)(1)(C)(v)(II)) is amended by striking ``or derivatives transaction 
execution facility'' each place it appears.
    (g) Section 2(a)(1)(C)(v)(V) of such Act (7 U.S.C. 
2(a)(1)(C)(v)(V)) is amended by striking ``or registered derivatives 
transaction execution facility''.
    (h) Section 2(a)(1)(D)(i) of such Act (7 U.S.C. 2(a)(1)(D)(i)) is 
amended in the matter preceding subclause (I)--
            (1) by striking ``in, or register a derivatives transaction 
        execution facility''; and
            (2) by striking ``, or registered as a derivatives 
        transaction execution facility for,''.
    (i) Section 2(a)(1)(D)(i)(IV) of such Act (7 U.S.C. 
2(a)(1)(D)(i)(IV)) is amended by striking ``registered derivatives 
transaction execution facility,'' each place it appears.
    (j) Section 2(a)(1)(D)(ii)(I) of such Act (7 U.S.C. 
2(a)(1)(D)(ii)(I)) is amended to read as follows:
            ``(I) the transaction is conducted on or subject to the 
        rules of a board of trade that has been designated by the 
        Commission as a contract market in such security futures 
        product; or''.
    (k) Section 2(a)(1)(D)(ii)(II) of such Act (7 U.S.C. 
2(a)(1)(D)(ii)(II)) is amended by striking ``or registered derivatives 
transaction execution facility''.
    (l) Section 2(a)(1)(D)(ii)(III) of such Act (7 U.S.C. 
2(a)(1)(D)(ii)(III)) is amended by striking ``or registered derivatives 
transaction execution facility member''.
    (m) Section 2(a)(9)(B)(ii) of such Act (7 U.S.C. 2(a)(9)(B)(ii)) is 
amended--
            (1) by striking ``or registration'' each place it appears;
            (2) by striking ``or derivatives transaction execution 
        facility'' each place it appears;
            (3) by striking ``or register'';
            (4) by striking ``, registering,''; and
            (5) by striking ``registration,''.
    (n) Section 2(c)(2) of such Act (7 U.S.C. 2(c)(2)) is amended by 
striking ``or a derivatives transaction execution facility''.
    (o) Section 4(a)(1) of such Act (7 U.S.C. 6(a)(1)) is amended by 
striking ``or derivatives transaction execution facility'' each place 
it appears.
    (p) Section 4(c)(1) of such Act (7 U.S.C. 6(c)(1)) is amended--
            (1) by striking ``or registered'' after ``designated''; and
            (2) by striking ``or derivatives transaction execution 
        facility''.
    (q) Section 4a(a)(1) of such Act (7 U.S.C. 6a(a)(1)) is amended--
            (1) by striking ``or derivatives transaction execution 
        facilities''; and
            (2) by striking ``or derivatives transaction execution 
        facility''.
    (r) Section 4a(e) of such Act (7 U.S.C. 6a(e)) is amended--
            (1) by striking ``, derivatives transaction execution 
        facility,'' each place it appears; and
            (2) by striking ``or derivatives transaction execution 
        facility''.
    (s) Section 4c(e) of such Act (7 U.S.C. 6c(g)), as so redesignated 
by section 402(a) of this Act, is amended by striking ``or derivatives 
transaction execution facility'' each place it appears.
    (t) Section 4d of such Act (7 U.S.C. 6d) is amended by striking 
``or derivatives transaction execution facility'' each place it 
appears.
    (u) Section 4e of such Act (7 U.S.C. 6e) is amended by striking 
``or derivatives transaction execution facility''.
    (v) Section 4f(b) of such Act (7 U.S.C. 6f(b)) is amended by 
striking ``or derivatives transaction execution facility'' each place 
it appears.
    (w) Section 4i of such Act (7 U.S.C. 6i) is amended by striking 
``or derivatives transaction execution facility''.
    (x) Section 4j(a) of such Act (7 U.S.C. 6j(a)) is amended by 
striking ``and registered derivatives transaction execution facility''.
    (y) Section 4p(a) of such Act (7 U.S.C. 6p(a)) is amended by 
striking ``, or derivatives transaction execution facilities''.
    (z) Section 4p(b) of such Act (7 U.S.C. 6p(b)) is amended by 
striking ``derivatives transaction execution facility,''.
    (aa) Section 5c(f) of such Act (7 U.S.C. 7a-2(f)) is amended by 
striking ``and registered derivatives transaction execution facility''.
    (bb) Section 5c(f)(1) of such Act (7 U.S.C. 7a-2(f)(1)) is amended 
by striking ``or registered derivatives transaction execution 
facility''.
    (cc) Section 6 of such Act (7 U.S.C. 8) is amended--
            (1) by striking ``or registered'';
            (2) by striking ``or derivatives transaction execution 
        facility'' each place it appears; and
            (3) by striking ``or registration'' each place it appears.
    (dd) Section 6a(a) of such Act (7 U.S.C. 10a(a)) is amended--
            (1) by striking ``or registered'';
            (2) by striking ``or a derivatives transaction execution 
        facility''; and
            (3) by inserting ``shall'' before ``exclude'' the first 
        place it appears.
    (ee) Section 6a(b) of such Act (7 U.S.C. 10a(b)) is amended--
            (1) by striking ``or registered''; and
            (2) by striking ``or a derivatives transaction execution 
        facility''.
    (ff) Section 6d(1) of such Act (7 U.S.C. 13a-2(1)) is amended by 
striking ``derivatives transaction execution facility,''.

SEC. 411. ELIMINATION OF OBSOLETE REFERENCES TO EXEMPT BOARDS OF TRADE.

    (a) Section 1a(19)(A)(x) of the Commodity Exchange Act (7 U.S.C. 
1a(18)(A)(x)), as so redesignated by section 304(b)(1) of this Act, is 
amended by striking ``or an exempt board of trade''.
    (b) Section 12(e)(1)(B)(i) of such Act (7 U.S.C. 16(e)(1)(B)(i)) is 
amended by striking ``or exempt board of trade''.

SEC. 412. ELIMINATION OF REPORT DUE IN 1986.

    Section 26 of the Futures Trading Act of 1978 (7 U.S.C. 16a) is 
amended by striking subsection (b) and redesignating subsection (c) as 
subsection (b).

SEC. 413. COMPLIANCE REPORT FLEXIBILITY.

    Section 4s(k)(3)(B) of the Commodity Exchange Act (7 U.S.C. 
6s(k)(3)(B)) is amended to read as follows:
                    ``(B) Requirements.--A compliance report under 
                subparagraph (A) shall--
                            ``(i) include a certification that, under 
                        penalty of law, the compliance report is 
                        materially accurate and complete; and
                            ``(ii) be furnished at such time as the 
                        Commission determines by rule, regulation, or 
                        order, to be appropriate.''.

SEC. 414. MISCELLANEOUS CORRECTIONS.

    (a) Section 1a(13)(A)(i)(II) of the Commodity Exchange Act (7 
U.S.C. 1a(12)(A)(i)(II)), as so redesignated by section 304(b)(1) of 
this Act, is amended by adding at the end a semicolon.
    (b) Section 2(a)(1)(C)(ii)(III) of such Act (7 U.S.C. 
2(a)(1)(C)(ii)(III)) is amended by moving the provision 2 ems to the 
right.
    (c) Section 2(a)(1)(C)(iii) of such Act (7 U.S.C. 2(a)(1)(C)(iii)) 
is amended by moving the provision 2 ems to the right.
    (d) Section 2(a)(1)(C)(iv) of such Act (7 U.S.C. 2(a)(1)(C)(iv)) is 
amended by striking ``under or'' and inserting ``under''.
    (e) Section 2(a)(1)(C)(v) of such Act (7 U.S.C. 2(a)(1)(C)(v)) is 
amended by moving the provision 2 ems to the right.
    (f) Section 2(a)(1)(C)(v)(VI) of such Act (7 U.S.C. 
2(a)(1)(C)(v)(VI)) is amended by striking ``III'' and inserting 
``(III)''.
    (g) Section 2(c)(1) of such Act (7 U.S.C. 2(c)(1)) is amended by 
striking the second comma.
    (h) Section 4(c)(3)(H) of such Act (7 U.S.C. 6(c)(3)(H)) is amended 
by striking ``state'' and inserting ``State''.
    (i) Section 4c(c) of such Act (7 U.S.C. 6c(c)) is amended to read 
as follows:
    ``(c) The Commission shall issue regulations to continue to permit 
the trading of options on contract markets under such terms and 
conditions that the Commission from time to time may prescribe.''.
    (j) Section 4d(b) of such Act (7 U.S.C. 6d(b)) is amended by 
striking ``paragraph (2) of this section'' and inserting ``subsection 
(a)(2)''.
    (k) Section 4f(c)(3)(A) of such Act (7 U.S.C. 6f(c)(3)(A)) is 
amended by striking the first comma.
    (l) Section 4f(c)(4)(A) of such Act (7 U.S.C. 6f(c)(4)(A)) is 
amended by striking ``in developing'' and inserting ``In developing''.
    (m) Section 4f(c)(4)(B) of such Act (7 U.S.C. 6f(c)(4)(B)) is 
amended by striking ``1817(a)'' and inserting ``1817(a))''.
    (n) Section 5 of such Act (7 U.S.C. 7) is amended by redesignating 
subsections (c) through (e) as subsections (b) through (d), 
respectively.
    (o) Section 5b of such Act (7 U.S.C. 7a-1) is amended by 
redesignating subsection (k) as subsection (j).
    (p) Section 5f(b)(1) of such Act (7 U.S.C. 7b-1(b)(1)) is amended 
by striking ``section 5f'' and inserting ``this section''.
    (q) Section 6(a) of such Act (7 U.S.C. 8(a)) is amended by striking 
``the the'' and inserting ``the''.
    (r) Section 8a of such Act (7 U.S.C. 12a) is amended in each of 
paragraphs (2)(E) and (3)(B) by striking ``Investors'' and inserting 
``Investor''.
    (s) Section 9(a)(2) of such Act (7 U.S.C. 13(a)(2)) is amended by 
striking ``subsection 4c'' and inserting ``section 4c''.
    (t) Section 12(b)(4) of such Act (7 U.S.C. 16(b)(4)) is amended by 
moving the provision 2 ems to the left.
    (u) Section 14(a)(2) of such Act (7 U.S.C. 18(a)(2)) is amended by 
moving the provision 2 ems to the left.
    (v) Section 17(b)(9)(D) of such Act (7 U.S.C. 21(b)(9)(D)) is 
amended by striking the semicolon and inserting a period.
    (w) Section 17(b)(10)(C)(ii) of such Act (7 U.S.C. 
21(b)(10)(C)(ii)) is amended by striking ``and'' at the end.
    (x) Section 17(b)(11) of such Act (7 U.S.C. 21(b)(11)) is amended 
by striking the period and inserting a semicolon.
    (y) Section 17(b)(12) of such Act (7 U.S.C. 21(b)(12)) is amended--
            (1) by striking ``(A)''; and
            (2) by striking the period and inserting ``; and''.
    (z) Section 17(b)(13) of such Act (7 U.S.C. 21(b)(13)) is amended 
by striking ``A'' and inserting ``a''.
    (aa) Section 17 of such Act (7 U.S.C. 21), as amended by sections 
101 through 103 of this Act, is amended by redesignating subsection 
(q), as added by section 233(5) of Public Law 97-444, and subsections 
(s) through (w) as subsections (r) through (x), respectively.
    (bb) Section 22(b)(3) of such Act (7 U.S.C. 25(b)(3)) is amended by 
striking ``of registered'' and inserting ``of a registered''.
    (cc) Section 22(b)(4) of such Act (7 U.S.C. 25(b)(4)) is amended by 
inserting a comma after ``entity''.

SEC. 415. DELAY IN FULL IMPLEMENTATION OF THE FINAL RULE ON OWNERSHIP 
              AND CONTROL REPORTING.

    The Commodity Futures Trading Commission may not enforce non-
compliance with the final rule titled ``Ownership and Control Reports, 
Forms 102/2S, 40/40S, and 71'' (78 FR 69178; November 18, 2013) until 
the Commission votes to approve a final rule that has been amended to--
            (1) provide that the reportable trading volume level shall 
        be at least 300 contracts;
            (2) provide that the reporting entity shall not be required 
        to provide natural person controller data; and
            (3) provide that the reporting entity is not obligated to 
        supply data that violates foreign privacy laws.

            Passed the House of Representatives January 12, 2017.

            Attest:

                                                 KAREN L. HAAS,

                                                                 Clerk.