[Congressional Bills 114th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2289 Referred in Senate (RFS)]
114th CONGRESS
1st Session
H. R. 2289
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
June 10, 2015
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. Report on status of any application of metals exchange to
register as a foreign board of trade;
deadline for action on application.
TITLE III--END-USER RELIEF
Sec. 301. Relief for hedgers utilizing centralized risk management
practices.
Sec. 302. Indemnification requirements.
Sec. 303. Transactions with utility special entities.
Sec. 304. Utility special entity defined.
Sec. 305. Utility operations-related swap.
Sec. 306. End-users not treated as financial entities.
Sec. 307. Reporting of illiquid swaps so as to not disadvantage certain
non-financial end-users.
Sec. 308. Relief for grain elevator operators, farmers, agricultural
counterparties, and commercial market
participants.
Sec. 309. Relief for end-users who use physical contracts with
volumetric optionality.
Sec. 310. Commission vote required before automatic change of swap
dealer de minimis level.
Sec. 311. Capital requirements for non-bank swap dealers.
Sec. 312. Harmonization with the Jumpstart Our Business Startups Act.
Sec. 313. Bona fide hedge defined to protect end-user risk management
needs.
Sec. 314. Cross-border regulation of derivatives transactions.
Sec. 315. Exemption of qualified charitable organizations from
designation and regulation as commodity
pool operators.
Sec. 316. Small bank holding company clearing exemption.
Sec. 317. Core principle certainty.
Sec. 318. Treatment of Federal Home Loan Bank products.
Sec. 319. Treatment of certain funds.
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.
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 by striking ``2013'' and inserting ``2019''.
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 1 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. REPORT ON STATUS OF ANY APPLICATION OF METALS EXCHANGE TO
REGISTER AS A FOREIGN BOARD OF TRADE; DEADLINE FOR ACTION
ON APPLICATION.
(a) Report to Congress.--Within 90 days after the date of the
enactment of this section, the Commodity Futures Trading Commission
shall submit to the Congress a written report on--
(1) the status of the review by the Commission of any
application submitted by a metals exchange to register with the
Commission under section 4(b)(1) of the Commodity Exchange Act;
(2) the status of Commission negotiations with foreign
regulators regarding aluminum warehousing; and
(3) the status of consultations with all United States
market participants including major producers and consumers.
(b) Deadline for Action.--Not later than September 30, 2016, the
Commission shall take action on any such application submitted to the
Commission on or before August 14, 2012.
TITLE III--END-USER RELIEF
SEC. 301. RELIEF FOR HEDGERS UTILIZING CENTRALIZED RISK MANAGEMENT
PRACTICES.
(a) In General.--
(1) Commodity exchange act amendment.--Section
2(h)(7)(D)(i) of the Commodity Exchange Act (7 U.S.C.
2(h)(7)(D)(i)) is amended to read as follows:
``(i) In general.--An affiliate of a person
that qualifies for an exception under
subparagraph (A) (including an affiliate entity
predominantly engaged in providing financing
for the purchase of the merchandise or
manufactured goods of the person) may qualify
for the exception only if the affiliate enters
into the swap to hedge or mitigate the
commercial risk of the person or other
affiliate of the person that is not a financial
entity, provided that if the hedge or
mitigation of such commercial risk is addressed
by entering into a swap with a swap dealer or
major swap participant, an appropriate credit
support measure or other mechanism must be
utilized.''.
(2) Securities exchange act of 1934 amendment.--Section
3C(g)(4)(A) of the Securities Exchange Act of 1934 (15 U.S.C.
78c-3(g)(4)(A)) is amended to read as follows:
``(A) In general.--An affiliate of a person that
qualifies for an exception under paragraph (1)
(including affiliate entities predominantly engaged in
providing financing for the purchase of the merchandise
or manufactured goods of the person) may qualify for
the exception only if the affiliate enters into the
security-based swap to hedge or mitigate the commercial
risk of the person or other affiliate of the person
that is not a financial entity, provided that if the
hedge or mitigation of such commercial risk is
addressed by entering into a security-based swap with a
security-based swap dealer or major security-based swap
participant, an appropriate credit support measure or
other mechanism must be utilized.''.
(b) Applicability of Credit Support Measure Requirement.--The
requirements in section 2(h)(7)(D)(i) of the Commodity Exchange Act and
section 3C(g)(4)(A) of the Securities Exchange Act of 1934, as amended
by subsection (a), requiring that a credit support measure or other
mechanism be utilized if the transfer of commercial risk referred to in
such sections is addressed by entering into a swap with a swap dealer
or major swap participant or a security-based swap with a security-
based swap dealer or major security-based swap participant, as
appropriate, shall not apply with respect to swaps or security-based
swaps, as appropriate, entered into before the date of the enactment of
this Act.
SEC. 302. INDEMNIFICATION REQUIREMENTS.
(a) Derivatives Clearing Organizations.--Section 5b(k)(5) of the
Commodity Exchange Act (7 U.S.C. 7a-1(k)(5)) is amended to read as
follows:
``(5) Confidentiality agreement.--Before the Commission may
share information with any entity described in paragraph (4),
the Commission shall receive a written agreement from each
entity stating that the entity shall abide by the
confidentiality requirements described in section 8 relating to
the information on swap transactions that is provided.''.
(b) Swap Data Repositories.--Section 21 of such Act (7 U.S.C. 24a)
is amended--
(1) in subsection (c)(7)--
(A) in the matter preceding subparagraph (A), by
striking ``all'' and inserting ``swap''; and
(B) in subparagraph (E)--
(i) in clause (ii), by striking ``and'' at
the end; and
(ii) by adding at the end the following:
``(iv) other foreign authorities; and'';
and
(2) by striking subsection (d) and inserting the following:
``(d) Confidentiality Agreement.--Before the swap data repository
may share information with any entity described in subsection (c)(7),
the swap data repository shall receive a written agreement from each
entity stating that the entity shall abide by the confidentiality
requirements described in section 8 relating to the information on swap
transactions that is provided.''.
(c) Security-Based Swap Data Repositories.--Section 13(n)(5) of the
Securities Exchange Act of 1934 25 (15 U.S.C. 78m(n)(5)) is amended--
(1) in subparagraph (G)--
(A) in the matter preceding clause (i), by striking
``all'' and inserting ``security-based swap''; and
(B) in subclause (v)--
(i) in subclause (II), by striking ``;
and'' and inserting a semicolon;
(ii) in subclause (III), by striking the
period at the end and inserting ``; and''; and
(iii) by adding at the end the following:
``(IV) other foreign
authorities.''; and
(2) by striking subparagraph (H) and inserting the
following:
``(H) Confidentiality agreement.--Before the
security-based swap data repository may share
information with any entity described in subparagraph
(G), the security-based swap data repository shall
receive a written agreement from each entity stating
that the entity shall abide by the confidentiality
requirements described in section 24 relating to the
information on security-based swap transactions that is
provided.''.
(d) Effective Date.--The amendments made by this section shall take
effect as if enacted on July 21, 2010.
SEC. 303. 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. 304. 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. 305. 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. 306. 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 305(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)''.
SEC. 307. 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. 308. 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. 309. 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 306(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. 310. 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 306(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. 311. 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. 312. 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. 313. 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 ``paragraphs (2)
and (5) of subsection (a) 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. 314. 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 1 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 2 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 2 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. 315. 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 306(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, 1 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(10)(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. 316. 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. 317. 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. 318. 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. 319. 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 306(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 306(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.''.
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 306(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 306(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 306(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 306(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 306(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 306(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 306(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''.
Passed the House of Representatives June 9, 2015.
Attest:
KAREN L. HAAS,
Clerk.