H.R. 2586 (112th): Swap Execution Facility Clarification Act

HR 2586 RH

To refine the definition of swap execution facility in the provisions regulating swap markets added by title VII of the Dodd-Frank Wall Street Reform and Consumer Protection Act.

July 19, 2011

Mr. GARRETT (for himself, Mrs. MALONEY, Mr. HURT, and Mr. MEEKS) introduced the following bill; which was referred to the Committee on Financial Services, and in addition to the Committee on Agriculture, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned

December 23, 2011

Reported from the Committee on Financial Services with an amendment

[Strike out all after the enacting clause and insert the part printed in italic]

December 23, 2011

Referral to the Committee on Agriculture extended for a period ending not later than February 1, 2012

February 1, 2012

Referral to the Committee on Agriculture extended for a period ending not later than February 8, 2012

February 8, 2012

Additional sponsors: Mr. GRIMM, Mr. NEUGEBAUER, Mr. FITZPATRICK, Ms. MOORE, and Mr. DOLD

February 8, 2012

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

[Strike out all after the enacting clause and insert the part printed in boldface roman]

[For text of introduced bill, see copy of bill as introduced on July 19, 2011]

To refine the definition of swap execution facility in the provisions regulating swap markets added by title VII of the Dodd-Frank Wall Street Reform and Consumer Protection Act.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the ‘Swap Execution Facility Clarification Act’.

SEC. 2. DEFINITION OF SWAP EXECUTION FACILITY.

(a) Commodity Exchange Act- Section 1a(50) of the Commodity Exchange Act (7 U.S.C. 1a(50)) is amended--

(1) by striking ‘The term’ and inserting the following:

‘(A) IN GENERAL- The term’;

(2) by redesignating subparagraphs (A) and (B) as clauses (i) and (ii), respectively (and by moving the margins 2 ems to the right); and

(3) by adding at the end the following:

‘(B) INTERPRETATION- In interpreting or further defining the term ‘swap execution facility’, the Commission shall not require a swap execution facility to--

‘(i) have a minimum number of participants receive a bid or offer or respond to any trading system or platform functionality;

‘(ii) display or delay bids or offers for any period of time;

‘(iii) limit the means of interstate commerce utilized by market participants to enter into and execute any swap transactions on the trading system or platform; or

‘(iv) require bids or offers on one trading system or platform operated by the swap execution facility to interact with bids or offers on another trading system or platform operated by the swap execution facility’.

(b) Securities Exchange Act of 1934- Section 3(a)(77) of the Securities Exchange Act of 1934 (15 U.S.C. 78c(a)(77)) is amended--

(1) by striking ‘The term’ and inserting the following:

‘(A) IN GENERAL- The term’;

(2) by redesignating subparagraphs (A) and (B) as clauses (i) and (ii), respectively (and by moving the margins 2 ems to the right); and

(3) by adding at the end the following:

‘(B) INTERPRETATION- In interpreting or further defining the term ‘security-based swap execution facility’, the Commission shall not require a security-based swap execution facility to--

‘(i) have a minimum number of participants receive a bid or offer or respond to any trading system or platform functionality;

‘(ii) display or delay bids or offers for any period of time;

‘(iii) limit the means of interstate commerce utilized by market participants to enter into and execute any security-based swap transactions on the ‘method of trading functionality; or

‘(iv) require bids or offers on one trading system or platform operated by the swap execution facility to interact with bids or offers on another method of trading functionality operated by the swap execution facility.’.

SECTION 1. SHORT TITLE.

This Act may be cited as the ‘Swap Execution Facility Clarification Act’.

SEC. 2. DEFINITION OF SWAP EXECUTION FACILITY.

(a) Commodity Exchange Act- Section 1a(50) of the Commodity Exchange Act (7 U.S.C. 1a(50)) is amended--

(1) by striking ‘The term’ and inserting the following:

‘(A) IN GENERAL- The term’;

(2) by redesignating subparagraphs (A) and (B) as clauses (i) and (ii), respectively, and increasing the indentation of each such provision by 2 ems; and

(3) by adding at the end the following:

‘(B) INTERPRETATION- In interpreting or further defining the term ‘swap execution facility’, the Commission shall not require a swap execution facility to--

‘(i) have a minimum number of participants receive a bid or offer or respond to any method of trading functionality;

‘(ii) delay bids or offers for any period of time; or

‘(iii) limit the means of interstate commerce utilized by market participants to enter into and execute any swap transactions on the method of trading functionality.’.

(b) Securities Exchange Act of 1934- Section 3(a)(77) of the Securities Exchange Act of 1934 (15 U.S.C. 78c(a)(77)), as added by section 761(a)(6) of the Dodd-Frank Wall Street Reform and Consumer Protection Act, is amended--

(1) by striking ‘The term’ and inserting the following:

‘(A) IN GENERAL- The term’;

(2) by redesignating subparagraphs (A) and (B) as clauses (i) and (ii), respectively, and increasing the indentation of each such provision by 2 ems; and

(3) by adding at the end the following:

‘(B) INTERPRETATION- In interpreting or further defining the term ‘security-based swap execution facility’, the Commission shall not require a security-based swap execution facility to--

‘(i) have a minimum number of participants receive a bid or offer or respond to any trading system or platform functionality;

‘(ii) display or delay bids or offers for any period of time;

‘(iii) limit the means of interstate commerce utilized by market participants to enter into and execute any security-based swap transactions on the trading system or platform; or

‘(iv) require bids or offers on one trading system or platform operated by the swap execution facility to interact with bids or offers on another trading system or platform operated by the swap execution facility.’.

SEC. 3. IMPLEMENTATION.

The amendments made by this Act shall be implemented--

(1) without regard to--

(A) chapter 35 of title 44, United States Code; and

(B) the notice and comment provisions of section 553 of title 5, United States Code; and

(2) through the promulgation of an interim final rule.

Union Calendar No. 266

To refine the definition of swap execution facility in the provisions regulating swap markets added by title VII of the Dodd-Frank Wall Street Reform and Consumer Protection Act.

February 8, 2012

Loading...