[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4717 Introduced in House (IH)]
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116th CONGRESS
1st Session
H. R. 4717
To improve swap execution facility administration, swap entity
compliance, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
October 17, 2019
Mr. Crawford (for himself and Mr. Austin Scott of Georgia) introduced
the following bill; which was referred to the Committee on Agriculture
_______________________________________________________________________
A BILL
To improve swap execution facility administration, swap entity
compliance, 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 ``Swap Trading Improvement Act''.
SEC. 2. SIMPLIFICATION OF SWAP DATA AGGREGATION REQUIREMENTS.
(a) Obligations for Designated Contract Markets.--Section 5(d)(5)
of the Commodity Exchange Act (7 U.S.C. 7(d)(5)) is amended--
(1) in subparagraph (A), by inserting ``that is not a swap
contract'' after ``for each contract of the board of trade'';
and
(2) in subparagraph (B), by inserting ``that is not a swap
contract'' after ``contract''.
(b) Obligations for Swap Execution Facilities.--Section 5h(f)(4)(B)
of such Act (7 U.S.C. 7b-3(f)(4)(B)) is amended by striking ``in
swaps'' and inserting ``activity in swaps occurring on the swap
execution facility''.
(c) Cross-Facility Data Aggregation Relief.--Section 5h(f) of such
Act (7 U.S.C. 7b-3(f)) is amended by striking paragraph (6).
SEC. 3. SWAP ENTITY ADMINISTRATIVE IMPROVEMENTS.
(a) Authority of Registered Entities To Use Third-Party Service
Providers.--Section 5c(b) of the Commodity Exchange Act (7 U.S.C. 7a-
2(b)) is amended to read as follows:
``(b) Delegation of Functions Under Core Principles.--
``(1) In general.--A registered entity may comply with any
applicable core principle through delegation of any relevant
function to a third-party service provider.
``(2) Responsibility.--A registered entity that delegates a
function under paragraph (1) shall remain responsible for
carrying out the function.
``(3) Noncompliance.--If a registered entity that delegates
a function under paragraph (1) becomes aware that the function
is not being performed as required under this Act, the
registered entity shall promptly take steps to address the
noncompliance.''.
(b) Registration of Swap Execution Facilities.--Section 5h(a)(1) of
such Act (7 U.S.C. 7b-3(a)(1)) is amended by striking ``or
processing''.
(c) Core Principles for Swap Execution Facilities.--
(1) Modification of emergency authority requirements.--
Section 5h(f)(8) of such Act (7 U.S.C. 7b-3(f)(8)) is amended
by striking all that follows ``cooperation with the
Commission'' and inserting ``or other registered entities, as
is necessary and appropriate, to facilitate the liquidation or
transfer of open positions in any swap, or to suspend or
curtail trading in a swap.''.
(2) Reduction of operating capital requirement.--Section
5h(f)(13)(B) of such Act (7 U.S.C. 7b-3(f)(13)(B)) is amended
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.''.
SEC. 4. SIMPLIFICATION OF SWAP EXECUTION FACILITY CHIEF COMPLIANCE
OFFICER OBLIGATIONS.
Section 5h(f)(15) of the Commodity Exchange Act (7 U.S.C. 7b-
3(f)(15)) is amended--
(1) in subparagraph (A), by adding at the end the
following: ``The individual may also perform other
responsibilities for the swap execution facility.'';
(2) in subparagraph (B)--
(A) in clause (i), by inserting ``, to a committee
of the board,'' after ``directly to the board'';
(B) 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
(C) by redesignating clause (vi) as clause (v);
(3) in subparagraph (C), by striking ``(B)(vi)'' and
inserting ``(B)(v)''; and
(4) in subparagraph (D)--
(A) 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
(B) 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. 5. CLARIFICATION OF CFTC AUTHORITY OVER SWAPS ENTITIES.
(a) Section 6b of the Commodity Exchange Act (7 U.S.C. 13a) is
amended by inserting ``or section 5h'' after ``sections 5 through 5c''.
(b) Section 8a of such Act (7 U.S.C. 12a) is amended--
(1) in paragraph (7)(A), by inserting ``or swap contracts''
after ``contracts of sale''; and
(2) in paragraph (9), by striking ``futures contract'' and
inserting ``contract of sale for future delivery or swap
contract'' each place it occurs.
(c) Section 15(b) of such Act (7 U.S.C. 19(b)) is amended by
striking ``contract market'' and inserting ``registered entity''.
SEC. 6. TECHNICAL CORRECTION.
Section 5h(h) of the Commodity Exchange Act (7 U.S.C. 7b-3)(h)) is
amended by striking ``alternative''.
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