,i #aacth ,,congress #ast ,session ,h4 ,r4 #abef ,,in ,,the ,,house ,,of ,,representatives ,march #ai1 #bjac ,mr4 ,garrett 7for himself1 ,mr4 ,conaway1 ,mr4 ,carney1 and ,mr4 ,david ,scott of ,georgia7 introduced the following bill2 which was referred to the ,committee on ,financial ,services1 and in addition to the ,committee on ,agriculture1 for a period to be subsequently determined by the ,speaker1 in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned ,a ,,bill ,to direct the ,securities and ,exchange ,commission and the ,commodity ,futures ,trading ,commission to jointly adopt rules setting forth the application to cross-border swaps transactions of certain provisions relating to swaps that were enacted as part of the ,dodd-,frank ,wall ,street ,reform and ,consumer ,protection ,act4 #a4 ,short title ,this ,act may be cited as the ,swap ,jurisdiction ,certainty ,act4 #b4 ,joint rulemaking on cross-border swaps 7a7 ,joint rulemaking required 7#a7 ,in general ,not later than #ahj days after the date of enactment of this ,act1 the ,securities and ,exchange ,commission and the ,commodity ,futures ,trading ,commission shall jointly issue rules setting forth the application of ,united ,states swaps requirements of the ,securities ,exchange ,act of #aicd and the ,commodity ,exchange ,act relating to swaps and security-based swaps transacted between ,u4,s4 persons and non-,u4,s4 persons4 7#b7 ,construction ,the ,commissions shall jointly issue the rules required under paragraph 7#a7 notwithstanding any difference in the authorities granted the ,commissions in sections #cj7;c7 and #cf7;c7 of the ,securities ,exchange ,act of #aicd 7#ae ,u4,s4,c4 #gh;dd7c72 #ghmm7c77 and section #b7;i7 of the ,commodity ,exchange ,act 7#g ,u4,s4,c4 #b7;i771 respectively4 7b7 ,considerations ,the ,commissions shall jointly issue rules that address-- 7#a7 the nature of the connections to the ,united ,states that require a non-,u4,s4 person to register as a swap dealer1 major swap participant1 security-based swap dealer1 or security-based swap participant under each ,commission's respective ,acts and the regulations issued under such ,acts2 7#b7 which of the ,united ,states swaps requirements shall apply to the swap and security-based swap activities of non-,u4,s4 persons1 ,u4,s4 persons1 and their branches1 agencies1 subsidiaries1 and affiliates outside of the ,united ,states and the extent to which such requirements shall apply2 and 7#c7 the circumstances under which a non-,u4,s4 person in compliance with the regulatory requirements of a foreign jurisdiction shall be exempt from ,united ,states swaps requirements4 7c7 ,rule in accordance with ,,apa required ,no guidance1 memorandum of understanding1 or any such other agreement may satisfy the requirement to issue a joint rule from the ,commissions in accordance with section #eec of title #e1 ,united ,states ,code4 7d7 ,general application to ,g#bj member nations 7#a7 ,general application ,in issuing rules under this section1 the ,commissions shall provide that a non-,u4,s4 person in compliance with the swaps regulatory requirements of a ,g#bj member nation1 or other foreign jurisdiction as jointly determined by the ,commissions1 shall be exempt from ,united ,states swaps requirements in accordance with the schedule set forth in paragraph 7#b71 unless the ,commissions jointly determine that the regulatory requirements of the ,g#bj member nation or other foreign jurisdiction are not broadly equivalent to ,united ,states swaps requirements4 7#b7 ,effective date schedule ,the exemption described in paragraph 7#a7 and set forth under the rules required by this section shall apply to persons or transactions relating to or involving-- 7,a7 ,g#bj member nations1 or any other foreign jurisdiction as jointly determined by the ,commissions1 accounting for the five largest combined swap and security-based swap markets by notional amount in the calendar year preceding issuance of such rules1 on the date on which final rules are issued under this section2 7,b7 ,g#bj member nations1 or any other foreign jurisdiction as jointly determined by the ,commissions1 accounting for the next five largest combined swap and security-based swap markets by notional amount in the calendar year preceding issuance of such rules1 #a year after the date on which such rules are issued2 and 7,c7 the remaining ,g#bj member nations1 and any other foreign jurisdiction as jointly determined by the ,commissions1 #ah months after the date on which such rules are issued4 7#c7 ,criteria ,in such rules1 the ,commissions shall jointly establish criteria for determining that one or more categories of regulatory requirements of a ,g#bj member nation or other foreign jurisdiction is not broadly equivalent to ,united ,states swaps requirements and shall jointly determine the appropriate application of certain ,united ,states swap requirements to persons or transactions relating to or involving that ,g#bj member nation or other foreign jurisdiction4 ,such criteria shall include the scope and objectives of the regulatory requirements of a ,g#bj member nation or other foreign jurisdiction as well as the effectiveness of the supervisory compliance program administered1 and the enforcement authority exercised1 by such ,g#bj member nation or other foreign jurisdiction1 and such other factors as the ,commissions1 by rule1 jointly determine to be necessary or appropriate in the public interest4 7#d7 ,required assessment ,beginning on after the date on which final rules are issued under this section1 the ,commissions shall begin to jointly assess the regulatory requirements of ,g#bj member nations1 as the ,commissions jointly determine appropriate1 in accordance with the criteria established pursuant to paragraph 7#c71 to determine if one or more categories of regulatory requirements of a ,g#bj member nation or other foreign jurisdiction is not broadly equivalent to ,united ,states swaps requirements 7e7 ,report to ,congress ,if the ,commissions make the joint determination described in subsection 7d77#a7 that the regulatory requirements of the ,g#bj member nation or other foreign jurisdiction are not broadly equivalent to ,united ,states swaps requirements1 the ,commissions shall articulate the basis for such a determination in a written report transmitted to the ,committee on ,financial ,services and the ,committee on ,agriculture of the ,house of ,representatives and the ,committee on ,banking1 ,housing1 and ,urban ,affairs and the ,committee on ,agriculture1 ,nutrition1 and ,forestry of the ,senate within #cj days of the determination4 ,the determination shall not be effective until the transmission of such report4 7f7 ,definitions ,as used in this ,act and for purposes of the rules issued pursuant to this ,act1 the following definitions apply3 7#a7 ,the term ,g#bj member nation refers to a nation that is a member nation of the ,group of ,twenty ,finance ,ministers and ,central ,bank ,governors4 7#b7 ,the term ,u4,s4 person has the meaning given such term in section #bcj4ijb7k7 of title #ag1 ,code of ,federal ,regulations4 ,the ,commissions may1 by rule1 jointly revise the definition of ,u4,s4 person for purposes of the rules required under this section as they determine appropriate to more effectively carry out the purposes of this ,act4 7#c7 ,the term ,united ,states swaps requirements means the provisions relating to swaps and security-based swaps contained in the ,commodity ,exchange ,act 7#g ,u4,s4,c4 #a;a et seq47 and the ,securities ,exchange ,act of #aicd 7#ae ,u4,s4,c4 #gh;a et seq47 that were added by title ,,vii of the ,dodd-,frank ,wall ,street ,reform and ,consumer ,protection ,act 7#ae ,u4,s4,c4 #hcja et seq47 and any rules or regulations prescribed by the ,securities and ,exchange ,commission and the ,commodity ,futures ,trading ,commission pursuant to such provisions4 7g7 ,conforming amendments 7#a7 ,securities ,exchange ,act of #aicd ,section #cf7;c7 of the ,securities ,exchange ,act of #aicd 7#ae ,u4,s4,c4 #ghmm7c77 is amended by inserting or except as necessary to effectuate the purposes of the ,swap ,jurisdiction ,certainty ,act1 after to grant exemptions14 7#b7 ,commodity ,exchange ,act ,section #d7;c77#a77;,a7 of the ,commodity ,exchange ,act 7#g ,u4,s4,c4 #f7;c77#a77;,a77 is amended by inserting or except as necessary to effectuate the purposes of the ,swap ,jurisdiction ,certainty ,act1 after to grant exemptions14