,,iib #aacth ,,congress #b;d ,session ,h4 ,r4 #ddac ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,june #be1 #bjad,received2 read twice and referred to the ,committee on ,agriculture1 ,nutrition1 and ,forestry ,,an ,,act ,to reauthorize the ,commodity ,futures ,trading ,commission1 to better protect futures customers1 to provide end users with market certainty1 to make basic reforms to ensure transparency and accountability at the ,commission1 to help farmers1 ranchers1 and end users manage risks to help keep consumer costs low1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,customer ,protection and ,end-,user ,relief ,act4 #b4 ,table of contents ,the table of contents of this ,act is as follows3 ,sec4 #a4 ,short title4 ,sec4 #b4 ,table of contents4 ,title ,i--,customer protections ,sec4 #aja4 ,short title4 ,sec4 #ajb4 ,enhanced protections for futures customers4 ,sec4 #ajc4 ,electronic confirmation of customer funds4 ,sec4 #ajd4 ,notice and certifications providing additional customer protections4 ,sec4 #aje4 ,futures commission merchant compliance4 ,sec4 #ajf4 ,certainty for futures customers and market participants4 ,sec4 #ajg4 ,study on high-frequency trading4 ,title ,,ii--,commodity ,futures ,trading ,commission reforms ,sec4 #bja4 ,short title4 ,sec4 #bjb4 ,extension of operations4 ,sec4 #bjc4 ,consideration by the ,commodity ,futures ,trading ,commission of the costs and benefits of its regulations and orders4 ,sec4 #bjd4 ,division directors4 ,sec4 #bje4 ,office of the ,chief ,economist4 ,sec4 #bjf4 ,procedures governing actions taken without a commission vote4 ,sec4 #bjg4 ,strategic technology plan4 ,sec4 #bjh4 ,internal risk controls4 ,sec4 #bji4 ,subpoena duration and renewal4 ,sec4 #baj4 ,implementation plan for ,commission rulemakings4 ,sec4 #baa4 ,applicability of notice and comment requirements of the ,administrative ,procedure ,act to guidance voted on by the ,commission4 ,sec4 #bab4 ,judicial review of ,commission rules4 ,sec4 #bac4 ,,gao study on adequacy of ,,cftc resources4 ,sec4 #bad4 ,disclosure of required data of other registered entities4 ,sec4 #bae4 ,,gao study on ,commission leases4 ,title ,,iii--,end-user relief ,sec4 #cja4 ,short title4 ,subtitle ,a--,end-,user exemption from margin requirements ,sec4 #caa4 ,end-user margin requirements4 ,sec4 #cab4 ,implementation4 ,subtitle ,b--,inter-,affiliate swaps ,sec4 #cba4 ,treatment of affiliate transactions4 ,subtitle ,c--,indemnification requirements related to swap data repositories ,sec4 #cca4 ,indemnification requirements4 ,subtitle ,d--,relief for municipal utilities ,sec4 #cda4 ,transactions with utility special entities4 ,sec4 #cdb4 ,utility special entity defined4 ,sec4 #cdc4 ,utility operations-related swap4 ,subtitle ,e--,end-,user regulatory relief ,sec4 #cea4 ,end-users not treated as financial entities4 ,sec4 #ceb4 ,reporting of illiquid swaps so as to not disadvantage certain non-financial end-users4 ,sec4 #cec4 ,relief for grain elevator operators1 farmers1 agricultural counterparties1 and commercial market participants4 ,sec4 #ced4 ,relief for end-users who use physical contracts with volumetric optionality4 ,sec4 #cee4 ,commission vote required before automatic change of swap dealer de minimis level4 ,sec4 #cef4 ,capital requirements for non-bank swap dealers4 ,sec4 #ceg4 ,harmonization with the ,jumpstart ,our ,business ,startups ,act4 ,sec4 #ceh4 ,bona fide hedge defined to protect end-user risk management needs4 ,sec4 #cei4 ,cross-border regulation of derivatives transactions4 ,sec4 #cfj4 ,report on foreign boards of trade4 ,sec4 #cfa4 ,treatment of certain funds4 ,subtitle ,f--,effective date ,sec4 #cga4 ,effective date4 ,i ,customer protections #aja4 ,short title ,this title may be cited as the ,futures ,customer ,protection ,act4 #ajb4 ,enhanced protections for futures customers ,section #ag of the ,commodity ,exchange ,act 7#g ,u4,s4,c4 #ba7 is amended by adding at the end the following3 7s7 ,a registered futures association shall-- 7#a7 require each member of the association that is a futures commission merchant to maintain written policies and procedures regarding the maintenance of-- 7,a7 the residual interest of the member1 as described in section #a4bc of title #ag1 ,code of ,federal ,regulations1 in any customer segregated funds account of the member1 as identified in section #a4bj of such title1 and in any foreign futures and foreign options customer secured amount funds account of the member1 as identified in section #cj4g of such title2 and 7,b7 the residual interest of the member1 as described in section #bb4b7;e77#d7 of such title1 in any cleared swaps customer collateral account of the member1 as identified in section #bb4b of such title2 and 7#b7 establish rules to govern the withdrawal1 transfer or disbursement by any member of the association1 that is a futures commission merchant1 of the member's residual interest in customer segregated funds as provided in such section #a4bj1 in foreign futures and foreign options customer secured amount funds1 identified as provided in such section #cj4g1 and from a cleared swaps customer collateral1 identified as provided in such section #bb4b4 4 #ajc4 ,electronic confirmation of customer funds ,section #ag of the ,commodity ,exchange ,act 7#g ,u4,s4,c4 #ba71 as amended by section #ajb of this ,act1 is amended by adding at the end the following3 7t7 ,a registered futures association shall require any member of the association that is a futures commission merchant to-- 7#a7 use an electronic system or systems to report financial and operational information to the association1 including information related to customer segregated funds1 foreign futures and foreign options customer secured amount funds accounts1 and cleared swaps customer collateral1 in accordance with such terms1 conditions1 documentation standards1 and regular time intervals as are established by the association2 7#b7 instruct each depository1 including any bank1 trust company1 derivatives clearing organization1 or futures commission merchant1 holding customer segregated funds under section #a4bj of title #ag1 ,code of ,federal ,regulations1 foreign futures and foreign options customer secured amount funds under section #cj4g of such title1 or cleared swap customer funds under section #bb4b of such title1 to report balances in the futures commission merchant's section #a4bj customer segregated funds1 section #cj4g foreign futures and foreign options customer secured amount funds1 and section #bb4b cleared swap customer funds1 to the registered futures association or another party designated by the registered futures association1 in the form1 manner1 and interval prescribed by the registered futures association2 and 7#c7 hold section #a4bj customer segregated funds1 section #cj4g foreign futures and foreign options customer secured amount funds and section #bb4b 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 form1 manner1 and interval prescribed by the registered futures association4 4 #ajd4 ,notice and certifications providing additional customer protections ,section #ag of the ,commodity ,exchange ,act 7#g ,u4,s4,c4 #ba71 as amended by sections #ajb and #ajc of this ,act1 is amended by adding at the end the following3 7u7 ,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 occurrence4 7v7 ,a futures commission merchant that does not hold a sufficient amount of funds in segregated accounts for futures customers under section #a4bj of title #ag1 ,code of ,federal ,regulations1 in foreign futures and foreign options secured amount accounts for foreign futures and foreign options secured amount customers under section #cj4g of such title1 or in segregated accounts for cleared swap customers under section #bb4b of such title1 as required by regulations established by the ,commission or a self-regulatory organization of which the futures commission merchant is a member1 shall immediately notify the ,commission and the self-regulatory organization of this occurrence4 7w7 ,within such time period established by the ,commission after the end of each fiscal year1 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 merchant4 4 #aje4 ,futures commission merchant compliance 7a7 ,in general ,section #d;d7a7 of the ,commodity ,exchange ,act 7#g ,u4,s4,c4 #f;d7a77 is amended-- 7#a7 by redesignating paragraphs 7#a7 and 7#b7 as subparagraphs 7,a7 and 7,b72 7#b7 by inserting 7#a7 before ,it shall be unlawful2 and 7#c7 by adding at the end the following new paragraph3 7#b7 ,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 day4 4 7b7 ,conforming amendment ,section #d;d7h7 of the ,commodity ,exchange ,act 7#g ,u4,s4,c4 #f;d7h77 is amended by striking ,notwithstanding subsection 7a77#b7 and inserting ,notwithstanding subsection 7a77#a77;,b74 #ajf4 ,certainty for futures customers and market participants ,section #bj7;a7 of the ,commodity ,exchange ,act 7#g ,u4,s4,c4 #bd7;a77 is amended-- 7#a7 by striking and at the end of paragraph 7#d72 7#b7 by striking the period at the end of paragraph 7#e7 and inserting 2 and2 and 7#c7 by adding at the end the following3 7#f7 that cash1 securities1 or other property of the estate of a commodity broker1 including the trading or operating accounts of the commodity broker and commodities held in inventory by the commodity broker1 shall be included in customer property1 subject to any otherwise unavoidable security interest1 or otherwise unavoidable contractual offset or netting rights of creditors 7including rights set forth in a rule or bylaw of a derivatives clearing organization or a clearing agency7 in respect of such property1 but only to the extent that the property that is otherwise customer property is insufficient to satisfy the net equity claims of public customers 7as such term may be defined by the ,commission by rule or regulation7 of the commodity broker4 4 #ajg4 ,study on high-frequency trading 7a7 ,in general ,not later than one year after the date of the enactment of this ,act1 the ,commodity ,futures ,trading ,commission shall submit to the ,committee on ,agriculture of the ,house of ,representatives and the ,committee on ,agriculture1 ,nutrition1 and ,forestry of the ,senate a report examining the effect of the practice commonly referred to as high-frequency trading on markets under its jurisdiction4 7b7 ,specific areas examined in report ,in preparing the report submitted under subsection 7a71 the ,commission shall particularly examine each of the following areas3 7#a7 ,the technology1 personnel1 or other resources the ,commission may require for purposes of monitoring the effect of high-frequency trading4 7#b7 ,the role such trading plays in providing market liquidity4 7#c7 ,whether the technology creates discrepancies in the marketplace between market participants4 7#d7 ,whether the existing authority of the ,commission with respect to such trading is sufficient to meet the ,commission's mission to-- 7,a7 protect market participants and the public from fraud1 manipulation1 abusive practices1 and systemic risk related to derivatives2 and 7,b7 foster transparent1 open1 competitive1 and financially sound markets4 7#e7 ,whether such trading increases market volatility1 including short term market swings4 ,,ii ,commodity ,futures ,trading ,commission reforms #bja4 ,short title ,this title may be cited as the ,commodity ,futures ,trading ,commission ,reform ,act4 #bjb4 ,extension of operations ,section #ab7;d7 of the ,commodity ,exchange ,act 7#g ,u4,s4,c4 #af7;d77 is amended by striking #bjac and inserting #bjah4 #bjc4 ,consideration by the ,commodity ,futures ,trading ,commission of the costs and benefits of its regulations and orders ,section #ae7;a7 of the ,commodity ,exchange ,act 7#g ,u4,s4,c4 #ai7;a77 is amended-- 7#a7 by striking paragraphs 7#a7 and 7#b7 and inserting the following3 7#a7 ,in general ,before promulgating a regulation under this ,act or issuing an order 7except as provided in paragraph 7#c771 the ,commission1 through the ,office of the ,chief ,economist1 shall assess and publish in the regulation or order the costs and benefits1 both qualitative and quantitative1 of the proposed regulation or order1 and the proposed regulation or order shall state its statutory justification4 7#b7 ,considerations ,in making a reasoned determination of the costs and the benefits1 the ,commission shall evaluate-- 7,a7 considerations of protection of market participants and the public2 7,b7 considerations of the efficiency1 competitiveness1 and financial integrity of futures and swaps markets2 7,c7 considerations of the impact on market liquidity in the futures and swaps markets2 7,d7 considerations of price discovery2 7,e7 considerations of sound risk management practices2 7,f7 available alternatives to direct regulation2 7,g7 the degree and nature of the risks posed by various activities within the scope of its jurisdiction2 7,h7 the costs of complying with the proposed regulation or order by all regulated entities1 including a methodology for quantifying the costs 7recognizing that some costs are difficult to quantify72 7,i7 whether the proposed regulation or order is inconsistent1 incompatible1 or duplicative of other ,federal regulations or orders2 7,j7 whether1 in choosing among alternative regulatory approaches1 those approaches maximize net benefits 7including potential economic and other benefits1 distributive impacts1 and equity72 and 7,k7 other public interest considerations4 2 and 7#b7 by adding at the end the following3 7#d7 ,judicial review ,notwithstanding section #bd7;d71 a court shall affirm a ,commission assessment of costs and benefits under this subsection1 unless the court finds the assessment to be an abuse of discretion4 4 #bjd4 ,division directors ,section #b7;a77#f77;,c7 of the ,commodity ,exchange ,act 7#g ,u4,s4,c4 #b7;a77#f77;,c77 is amended by inserting 1 and the heads of the units shall serve at the pleasure of the ,commission1 report directly to the ,commission1 and perform such functions and duties as the ,commission may prescribe before the period4 #bje4 ,office of the ,chief ,economist 7a7 ,in general ,section #b7;a7 of the ,commodity ,exchange ,act 7#g ,u4,s4,c4 #b7;a77 is amended by adding at the end the following3 7#ag7 ,office of the chief economist 7,a7 ,establishment ,there is established in the ,commission the ,office of the ,chief ,economist4 7,b7 ,head ,the ,office of the ,chief ,economist shall be headed by the ,chief ,economist1 who shall be appointed by the ,commission and serve at the pleasure of the ,commission4 7,c7 ,functions ,the ,chief ,economist shall report directly to the ,commission and perform such functions and duties as the ,commission may prescribe4 7,d7 ,professional staff ,the ,commission shall appoint such other economists as may be necessary to assist the ,chief ,economist in performing such economic analysis1 regulatory cost-benefit analysis1 or research as the ,commission may direct4 4 7b7 ,conforming amendment ,section #b7;a77#f77;,a7 of such ,act 7#g ,u4,s4,c4 #b7;a77#f77;,a77 is amended by striking 7#d7 and 7#e7 and inserting 7#d71 7#e71 and 7#ag74 #bjf4 ,procedures governing actions taken without a commission vote ,section #b7;a77#ab7 of the ,commodity ,exchange ,act 7#g ,u4,s4,c4 #b7;a77#ab77 is amended-- 7#a7 by striking 7#ab7 ,the and inserting the following3 7#ab7 ,rules and regulations 7,a7 ,in general ,subject to the other provisions of this paragraph1 the 2 and 7#b7 by adding after and below the end the following new subparagraph3 7,b7 ,notice to commission ,the ,commission shall develop and publish internal procedures governing the issuance by any division or office of the ,commission of any response to a formal1 written request or petition from any member of the public for an exemptive1 a no-action1 or an interpretive letter and such procedures shall provide that the ,commission be provided with the final version of the matter to be issued with sufficient notice to thoroughly review the matter prior to its issuance4 4 #bjg4 ,strategic technology plan ,section #b7;a7 of the ,commodity ,exchange ,act 7#g ,u4,s4,c4 #b7;a771 as amended by section #bjd7;a7 of this ,act1 is amended by adding at the end the following3 7#ah7 ,strategic technology plan 7,a7 ,in general ,every #e years1 the ,commission shall develop and submit to the ,committee on ,agriculture of the ,house of ,representatives and the ,committee on ,agriculture1 ,nutrition1 and ,forestry of the ,senate a detailed plan focused on the acquisition and use of technology by the ,commission4 7,b7 ,contents ,the plan shall-- 7i7 include for each related division or office a detailed technology strategy focused on market surveillance and risk detection1 market data collection1 aggregation1 interpretation1 standardization1 harmonization1 normalization1 validation1 streamlining or other data analytic processes1 and internal management and protection of data collected by the ,commission1 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 funds2 and 7ii7 set forth annual goals to be accomplished and annual budgets needed to accomplish the goals4 4 #bjh4 ,internal risk controls 7a7 ,in general ,section #b7;a77#ab7 of the ,commodity ,exchange ,act 7#g ,u4,s4,c4 #b7;a77#ab771 as amended by section #bjf of this ,act1 is amended by adding at the end the following3 7,c7 ,internal risk controls ,the ,commission1 in consultation with the ,chief ,economist1 shall develop comprehensive internal risk control mechanisms to safeguard and govern the storage of all market data by the ,commission1 all market data sharing agreements of the ,commission1 and all academic research performed at the ,commission using market data4 4 7b7 ,reports to the ,congress 7#a7 ,content ,the ,commission shall submit to the ,committee on ,agriculture of the ,house of ,representatives and the ,committee on ,agriculture1 ,nutrition1 and ,forestry of the ,senate #b reports on the progress made in implementing the internal risk controls provided for in section #b7;a77#ab77;,c7 of the ,commodity ,exchange ,act4 7#b7 ,timing ,the ,commission shall submit the #ast report required by paragraph 7#a7 within #fj days after the date of the enactment of this ,act1 and the #bnd such report within #abj days after such date of enactment4 #bji4 ,subpoena duration and renewal ,section #f7;c77#e7 of the ,commodity ,exchange ,act 7#g ,u4,s4,c4 #i7e77 is amended-- 7#a7 by striking 7#e7 ,subpoena4--,for and inserting the following3 7#e7 ,subpoena 7,a7 ,in general ,for 2 and 7#b7 by adding after and below the end the following3 7,b7 ,content of order ,an order of the ,commission authorizing the issuance of a subpoena in an investigation shall state in good faith-- 7i7 the legitimate purpose of the investigation2 and 7ii7 the information sought by any subpoena order that will be reasonably relevant to that purpose4 7,c7 ,duration and renewal ,an order issued under this paragraph shall not be for an indefinite duration and may be renewed only by ,commission action4 4 #baj4 ,implementation plan for ,commission rulemakings ,section #b7;a77#ab7 of the ,commodity ,exchange ,act 7#g ,u4,s4,c4 #b7;a77#ab771 as amended by sections #bjf and #bjh7;a7 of this ,act1 is amended by adding at the end the following3 7,d7 ,requirement to publish implementation plan for ,commission rules ,the ,commission shall direct its staff to develop and publish in any proposed rule a plan for-- 7i7 when and for how long the proposed rule will be subject to public comment2 and 7ii7 by when compliance with the final rule will be required4 4 #baa4 ,applicability of notice and comment requirements of the ,administrative ,procedure ,act to guidance voted on by the ,commission ,section #b7;a77#ab7 of the ,commodity ,exchange ,act 7#g ,u4,s4,c4 #b7;a77#ab771 as amended by sections #bjf1 #bjh7;a71 and #baj of this ,act1 is amended by adding at the end the following3 7,e7 ,applicability of notice and comment rules to guidance voted on by the ,commission ,the notice and comment requirements of chapter #e of title #e1 ,united ,states ,code1 shall also apply with respect to any guidance issued by the ,commission4 4 #bab4 ,judicial review of ,commission rules ,the ,commodity ,exchange ,act 7#g ,u4,s4,c4 #a et seq47 is amended by adding at the end the following3 #bd4 ,judicial review of commission rules 7a7 ,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 business1 by filing in the court1 within #fj days after publication in the ,federal ,register of the entry of the rule1 a written petition requesting that the rule be set aside4 7b7 ,a copy of the petition shall be transmitted forthwith by the clerk of the court to an officer designated by the ,commission for that purpose4 ,thereupon the ,commission shall file in the court the record on which the rule complained of is entered1 as provided in section #baab of title #bh1 ,united ,states ,code1 and the ,federal ,rules of ,appellate ,procedure4 7c7 ,on the filing of the petition1 the court has jurisdiction1 which becomes exclusive on the filing of the record1 to affirm and enforce or to set aside the rule4 7d7 ,the court shall affirm and enforce the rule unless the ,commission's action in promulgating the rule is found to be arbitrary1 capricious1 an abuse of discretion1 or otherwise not in accordance with law2 contrary to constitutional right1 power1 privilege1 or immunity2 in excess of statutory jurisdiction1 authority1 or limitations1 or short of statutory right2 or without observance of procedure required by law4 4 #bac4 ,,gao study on adequacy of ,,cftc resources 7a7 ,study ,the ,comptroller ,general of the ,united ,states shall conduct a study of the resources of the ,commodity ,futures ,trading ,commission that-- 7#a7 assesses whether the resources of the ,commission are sufficient to enable the ,commission to effectively carry out the duties of the ,commission2 and 7#b7 examines the prior expenditures of the ,commission on hardware1 software1 and analytical processes designed to protect customers in the areas of-- 7,a7 market surveillance and risk detection2 and 7,b7 market data collection1 aggregation1 interpretation1 standardization1 harmonization1 normalization1 validation1 and streamlining or other data analytic processes4 7b7 ,report ,not later than #ahj days after the date of the enactment of this ,act1 the ,comptroller ,general of the ,united ,states shall submit to the ,committee on ,agriculture of the ,house of ,representatives and the ,committee on ,agriculture1 ,nutrition1 and ,forestry of the ,senate a report that contains the results of the study4 #bad4 ,disclosure of required data of other registered entities ,section #h of the ,commodity ,exchange ,act 7#g ,u4,s4,c4 #ab7 is amended by adding at the end the following3 7j7 ,disclosure of required data of other registered entities 7#a7 ,except as provided in this subsection1 the ,commission may not be compelled to disclose any proprietary information provided to the ,commission1 except that nothing in this subsection-- 7,a7 authorizes the ,commission to withhold information from ,congress1 upon an agreement of confidentiality2 or 7,b7 prevents the ,commission from-- 7i7 complying with a request for information from any other ,federal department or agency1 any ,state or political subdivision thereof1 or any foreign government or any department1 agency1 or political subdivision thereof requesting the report or information for purposes within the scope of its jurisdiction1 upon an agreement of confidentiality to protect the information in a manner consistent with this paragraph and subsection 7e72 or 7ii7 a disclosure made pursuant to a court order in connection with an administrative or judicial proceeding brought under this ,act1 in any receivership proceeding involving a receiver appointed in a judicial proceeding brought under this ,act1 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 #aa of the ,united ,states ,code4 7#b7 ,any proprietary information of a commodity trading advisor or commodity pool operator ascertained by the ,commission in connection with ,form ,,cpo-,,pqr1 ,form ,,cta-,,pr1 and any successor forms thereto1 shall be subject to the same limitations on public disclosure1 as any facts ascertained during an investigation1 as provided by subsection 7a72 provided1 however1 that the ,commission shall not be precluded from publishing aggregate information compiled from such forms1 to the extent such aggregate information does not identify any individual person or firm1 or such person's proprietary information4 7#c7 ,for purposes of section #eeb of title #e1 ,united ,states ,code1 this subsection1 and the information contemplated herein1 shall be considered a statute described in subsection 7b77#c77;,b7 of such section #eeb4 7#d7 ,for purposes of the definition of proprietary information in paragraph 7#e71 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-,,pqr1 ,,cta-,,pr1 and any successor forms thereto1 shall be deemed to be the records and reports of the commodity trading advisor or commodity pool operator1 respectively4 7#e7 ,for purposes of this section1 proprietary information of a commodity trading advisor or commodity pool operator includes sensitive1 non-public information regarding-- 7,a7 the commodity trading advisor1 commodity pool operator or the trading strategies of the commodity trading advisor or commodity pool operator2 7,b7 analytical or research methodologies of a commodity trading advisor or commodity pool operator2 7,c7 trading data of a commodity trading advisor or commodity pool operator2 and 7,d7 computer hardware or software containing intellectual property of a commodity trading advisor or commodity pool operator2 4 #bae4 ,,gao study on ,commission leases 7a7 ,the ,comptroller ,general of the ,united ,states shall1 in consultation with the ,commodity ,futures ,trading ,commission ,inspector ,general1 conduct a study and publish a report regarding achieving efficiencies in leasing and rental costs at the ,commodity ,futures ,trading ,commission4 7b7 ,the report shall be published within #ij days after the date of the enactment of this ,act regarding achieving efficiencies in leasing and rental costs of buildings occupied by the ,commodity ,futures ,trading ,commission1 and shall include recommendations to the ,chairman of the ,commodity ,futures ,trading ,commission and the congressional committees of jurisdiction regarding the following3 7#a7 ,average occupancy rates and leasing costs of buildings across the ,federal ,government compared to those currently in effect with respect to buildings and locations occupied by the ,commodity ,futures ,trading ,commission4 7#b7 ,changes to leasing authority that could achieve efficiencies1 including the revocation of independent leasing authority and transfer of authority to the ,administrator of ,general ,services4 7#c7 ,the recommendations and responses contained in the report by the ,commodity ,futures ,trading ,commission ,inspector ,general1 dated ,june #d1 #bjad4 7#d7 ,other related recommendations that would achieve efficiencies in leasing and rental costs of buildings currently occupied by the ,commodity ,futures ,trading ,commission4 7#e7 ,is the ,commodity ,futures ,trading ,commission violating any laws1 including the ,anti-,deficiency ,act1 by entering into these leases1 particularly those with more than #e-year terms1 and if so1 how they can avoid violating ,federal law in the future4 7c7 ,the ,chairman of the ,commodity ,futures ,trading ,commission shall report to the congressional committees of jurisdiction within #fj days after receipt of the report as to whether the ,chairman accepts or rejects each of the recommendations of the ,comptroller ,general1 and an explanation for each decision4 ,,iii ,end-user relief #cja4 ,short title ,this title may be cited as the ,end-,user ,relief and ,market ,certainty ,act4 ,a ,end-,user exemption from margin requirements #caa4 ,end-user margin requirements 7a7 ,commodity ,exchange ,act amendment ,section #ds7e7 of the ,commodity ,exchange ,act 7#g ,u4,s4,c4 #fs7e77 is amended by adding at the end the following new paragraph3 7#d7 ,applicability with respect to counterparties ,the requirements of paragraphs 7#b77;,a77ii7 and 7#b77;,b77ii71 including the initial and variation margin requirements imposed by rules adopted pursuant to paragraphs 7#b77;,a77ii7 and 7#b77;,b77ii71 shall not apply to a swap in which a counterparty qualifies for an exception under section #b7;h77#g77;,a71 or an exemption issued under section #d7;c77#a7 from the requirements of section #b7;h77#a77;,a7 for cooperative entities as defined in such exemption1 or satisfies the criteria in section #b7;h77#g77;,d74 4 7b7 ,securities ,exchange ,act of #aicd amendment ,section #ae;,f7e7 of the ,securities ,exchange ,act of #aicd 7#ae ,u4,s4,c4 #gho-#aj7;e77 is amended by adding at the end the following new paragraph3 7#d7 ,applicability with respect to counterparties ,the requirements of paragraphs 7#b77;,a77ii7 and 7#b77;,b77ii7 shall not apply to a security-based swap in which a counterparty qualifies for an exception under section #c;,c7g77#a7 or satisfies the criteria in section #c;,c7g77#d74 4 #cab4 ,implementation ,the amendment made to the ,commodity ,exchange ,act by this subtitle shall be implemented-- 7#a7 without regard to-- 7,a7 chapter #ce of title #dd1 ,united ,states ,code2 and 7,b7 the notice and comment provisions of section #eec of title #e1 ,united ,states ,code2 7#b7 through the promulgation of an interim final rule1 pursuant to which public comment will be sought before a final rule is issued2 and 7#c7 such that paragraph 7#a7 shall apply solely to changes to rules and regulations1 or proposed rules and regulations1 that are limited to and directly a consequence of the amendment4 ,b ,inter-,affiliate swaps #cba4 ,treatment of affiliate transactions 7a7 ,in general 7#a7 ,commodity ,exchange ,act amendment ,section #b7;h77#g77;,d77i7 of the ,commodity ,exchange ,act 7#g ,u4,s4,c4 #b7;h77#g77;,d77i77 is amended to read as follows3 7i7 ,in general ,an affiliate of a person that qualifies for an exception under subparagraph 7,a7 7including affiliate entities predominantly engaged in providing financing for the purchase of the merchandise or manufactured goods of the person7 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 entity1 provided that if the transfer of commercial risk is addressed by entering into a swap with a swap dealer or major swap participant1 an appropriate credit support measure or other mechanism is utilized4 4 7#b7 ,securities ,exchange ,act of #aicd amendment ,section #c;,c7g77#d77;,a7 of the ,securities ,exchange ,act of #aicd 7#ae ,u4,s4,c4 #gh;c-#c7;g77#d77;,a77 is amended to read as follows3 7,a7 ,in general ,an affiliate of a person that qualifies for an exception under paragraph 7#a7 7including affiliate entities predominantly engaged in providing financing for the purchase of the merchandise or manufactured goods of the person7 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 entity1 provided that if the transfer of commercial risk is addressed by entering into a security-based swap with a security-based swap dealer or major security-based swap participant1 an appropriate credit support measure or other mechanism is utilized4 4 7b7 ,applicability of credit support measure requirement ,notwithstanding section #cga of this ,act1 the requirements in section #b7;h77#g77;,d77i7 of the ,commodity ,exchange ,act and section #c;,c7g77#d77;,a7 of the ,securities ,exchange ,act of #aicd1 as amended by subsection 7a71 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 participant1 as appropriate1 shall not apply with respect to swaps or security-based swaps1 as appropriate1 entered into before the date of the enactment of this ,act4 ,c ,indemnification requirements related to swap data repositories #cca4 ,indemnification requirements 7a7 ,derivatives clearing organizations ,section #e;b7k77#e7 of the ,commodity ,exchange ,act 7#g ,u4,s4,c4 #g;a-#a7k77#e77 is amended to read as follows3 7#e7 ,confidentiality agreement ,before the ,commission may share information with any entity described in paragraph 7#d71 the ,commission shall receive a written agreement from each entity stating that the entity shall abide by the confidentiality requirements described in section #h relating to the information on swap transactions that is provided4 4 7b7 ,swap data repositories ,section #ba7;d7 of such ,act 7#g ,u4,s4,c4 #bd;a7d77 is amended to read as follows3 7d7 ,confidentiality agreement ,before the swap data repository may share information with any entity described in subsection 7c77#g71 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 #h relating to the information on swap transactions that is provided4 4 7c7 ,security-,based swap data repositories ,section #ac7n77#e77;,h7 of the ,securities ,exchange ,act of #aicd 7#ae ,u4,s4,c4 #ghm7n77#e77;,h77 is amended to read as follows3 7,h7 ,confidentiality agreement ,before the security-based swap data repository may share information with any entity described in subparagraph 7,g71 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 #bd relating to the information on security-based swap transactions that is provided4 4 ,d ,relief for municipal utilities #cda4 ,transactions with utility special entities ,section #a;a7#di7 of the ,commodity ,exchange ,act 7#g ,u4,s4,c4 #a;a7#di77 is amended by adding at the end the following3 7,e7 ,certain transactions with a utility special entity 7i7 ,transactions in utility operations-related swaps shall be reported pursuant to section #dr4 7ii7 ,in making a determination to exempt pursuant to subparagraph 7,d71 the ,commission shall treat a utility operations-related swap entered into with a utility special entity1 as defined in section #ds7h77#b77;,d71 as if it were entered into with an entity that is not a special entity1 as defined in section #ds7h77#b77;,c74 4 #cdb4 ,utility special entity defined ,section #ds7h77#b7 of the ,commodity ,exchange ,act 7#g ,u4,s4,c4 #fs7h77#b77 is amended by adding at the end the following3 7,d7 ,utility special entity ,for purposes of this ,act1 the term utility special entity means a special entity1 or any instrumentality1 department1 or corporation of or established by a ,state or political subdivision of a ,state1 that-- 7i7 owns or operates an electric or natural gas facility or an electric or natural gas operation2 7ii7 supplies natural gas and or electric energy to another utility special entity2 7iii7 has public service obligations under ,federal1 ,state1 or local law or regulation to deliver electric energy or natural gas service to customers2 or 7iv7 is a ,federal power marketing agency1 as defined in section #c of the ,federal ,power ,act4 4 #cdc4 ,utility operations-,related swap 7a7 ,swap further defined ,section #a;a7#dg77;,a77iii7 of the ,commodity ,exchange ,act 7#g ,u4,s4,c4 #a;a7#dg77;,a77iii77 is amended-- 7#a7 by striking and at the end of subclause 7,,xxi72 7#b7 by adding and at the end of subclause 7,,xxii72 and 7#c7 by adding at the end the following3 7,,xxiii7 a utility operations-related swap2 4 7b7 ,utility operations-,related swap defined ,section #a;a of such ,act 7#g ,u4,s4,c4 #a;a7 is amended by adding at the end the following3 7#eb7 ,utility operations-related swap ,the term utility operations-related swap means a swap that-- 7,a7 is entered into to hedge or mitigate a commercial risk2 7,b7 is not a contract1 agreement1 or transaction based on1 derived on1 or referencing-- 7i7 an interest rate1 credit1 equity1 or currency asset class2 or 7ii7 a metal1 agricultural commodity1 or crude oil or gasoline commodity of any grade1 except as used as fuel for electric energy generation2 and 7,c7 is associated with-- 7i7 the generation1 production1 purchase1 or sale of natural gas or electric energy1 the supply of natural gas or electric energy to a utility1 or the delivery of natural gas or electric energy service to utility customers2 7ii7 all fuel supply for the facilities or operations of a utility2 7iii7 compliance with an electric system reliability obligation2 7iv7 compliance with an energy1 energy efficiency1 conservation1 or renewable energy or environmental statute1 regulation1 or government order applicable to a utility2 or 7v7 any other electric energy or natural gas swap to which a utility is a party4 4 ,e ,end-,user regulatory relief #cea4 ,end-users not treated as financial entities 7a7 ,in general ,section #b7;h77#g77;,c77iii7 of the ,commodity ,exchange ,act 7#g ,u4,s4,c4 #b7;h77#g77;,c77iii77 is amended to read as follows3 7iii7 ,limitation ,such definition shall not include an entity-- 7,i7 whose primary business is providing financing1 and who uses derivatives for the purpose of hedging underlying commercial risks related to interest rate and foreign currency exposures1 #ij percent or more of which arise from financing that facilitates the purchase or lease of products1 #ij percent or more of which are manufactured by the parent company or another subsidiary of the parent company2 or 7,,ii7 who is not supervised by a prudential regulator1 and is not described in any of subclauses 7,i7 through 7,,vii7 of clause 7i71 and-- 7aa7 is a commercial market participant and is considered a financial entity under clause 7i77,,viii7 because the entity predominantly engages in physical delivery contracts2 or 7bb7 enters into swaps1 contracts for future delivery1 and other derivatives on behalf of1 or to hedge or mitigate the commercial risk of1 whether directly or in the aggregate1 affiliates that are not so supervised or described4 4 7b7 ,commercial market participant defined 7#a7 ,in general ,section #a;a of such ,act 7#g ,u4,s4,c4 #a;a71 as amended by section #cdc7;b7 of this ,act1 is amended by redesignating paragraphs 7#h7 through 7#eb7 as paragraphs 7#i7 through 7#ec71 respectively1 and by inserting after paragraph 7#f7 the following3 7#g7 ,commercial market participant ,the term commercial market participant means any producer1 processor1 merchant1 or commercial user of an exempt or agricultural commodity1 or the products or byproducts of such a commodity4 4 7#b7 ,conforming amendments 7,a7 ,section #a;a of such ,act 7#g ,u4,s4,c4 #a;a7 is amended-- 7i7 in subparagraph 7,a7 of paragraph 7#ah7 7as so redesignated by paragraph 7#a7 of this subsection71 in the matter preceding clause 7i71 by striking 7#ah77;,a7 and inserting 7#ai77;,a72 and 7ii7 in subparagraph 7,a77vii7 of paragraph 7#ai7 7as so redesignated by paragraph 7#a7 of this subsection71 in the matter following subclause 7,,iii71 by striking 7#ag77;,a7 and inserting 7#ah77;,a74 7,b7 ,section #d7;c77#a77;,a77i77,i7 of such ,act 7#g ,u4,s4,c4 #f7;c77#a77;,a77i77,i77 is amended by striking 7#g71 paragraph 7#ah77;,a77vii77,,iii71 paragraphs 7#bc71 7#bd71 7#ca71 7#cb71 7#ch71 7#ci71 7#da71 7#db71 7#df71 7#dg71 7#dh71 and 7#di7 and inserting 7#h71 paragraph 7#ai77;,a77vii77,,iii71 paragraphs 7#bd71 7#be71 7#cb71 7#cc71 7#ci71 7#dj71 7#db71 7#dc71 7#dg71 7#dh71 7#di71 and 7#ej74 7,c7 ,section #dq7a77#a7 of such ,act 7#g ,u4,s4,c4 #fo-#a7;a77#a77 is amended by striking #a;a7#i7 and inserting #a;a7#aj74 7,d7 ,section #ds7f77#a77;,d7 of such ,act 7#g ,u4,s4,c4 #fs7f77#a77;,d77 is amended by striking #a;a7#dg77;,a77v7 and inserting #a;a7#dh77;,a77v74 7,e7 ,section #ds7h77#e77;,a77i7 of such ,act 7#g ,u4,s4,c4 #fs7h77#e77;,a77i77 is amended by striking #a;a7#ah7 and inserting #a;a7#ai74 7,f7 ,section #dt7b77#a77;,c7 of such ,act 7#g ,u4,s4,c4 #ft7b77#a77;,c77 is amended by striking #a;a7#dg77;,a77v7 and inserting #a;a7#dh77;,a77v74 7,g7 ,section #e7;d77#bc7 of such ,act 7#g ,u4,s4,c4 #g7;d77#bc77 is amended by striking #a;a7#dg77;,a77v7 and inserting #a;a7#dh77;,a77v74 7,h7 ,section #e7;e77#a7 of such ,act 7#g ,u4,s4,c4 #g7;e77#a77 is amended by striking #a;a7#i7 and inserting #a;a7#aj74 7,i7 ,section #e;b7k77#c77;,a7 of such ,act 7#g ,u4,s4,c4 #g;a-#a7k77#c77;,a77 is amended by striking #a;a7#dg77;,a77v7 and inserting #a;a7#dh77;,a77v74 7,j7 ,section #e;c7c77#d77;,b7 of such ,act 7#g ,u4,s4,c4 #g;a-#b7;c77#d77;,b77 is amended by striking #a;a7#aj7 and inserting #a;a7#aa74 7,k7 ,section #e;h7f77#aj77;,a77iii7 of such ,act 7#g ,u4,s4,c4 #g;b-#c7;f77#aj77;,a77iii77 is amended by striking #a;a7#dg77;,a77v7 and inserting #a;a7#dh77;,a77v74 7,l7 ,section #ba7;f77#d77;,c7 of such ,act 7#g ,u4,s4,c4 #bd;a7f77#d77;,c77 is amended by striking #a;a7#dh7 and inserting #a;a7#di74 #ceb4 ,reporting of illiquid swaps so as to not disadvantage certain non-financial end-users ,section #b7;a77#ac7 of the ,commodity ,exchange ,act 7#g ,u4,s4,c4 #b7;a77#ac77 is amended-- 7#a7 in subparagraph 7,c71 by striking ,the ,commission and inserting ,except as provided in subparagraph 7,d71 the ,commission2 and 7#b7 by redesignating subparagraphs 7,d7 through 7,g7 as subparagraphs 7,e7 through 7,h71 respectively1 and inserting after subparagraph 7,c7 the following3 7,d7 ,requirements for swap transactions in illiquid markets ,notwithstanding subparagraph 7,c73 7i7 ,the ,commission shall provide by rule for the public reporting of swap transactions1 including price and volume data1 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 7h77#g77;,a74 7ii7 ,the ,commission shall ensure that the swap transaction information referred to in clause 7i7 of this subparagraph is available to the public no sooner than #cj 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 liquidity4 7iii7 ,in this subparagraph1 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 participants4 4 #cec4 ,relief for grain elevator operators1 farmers1 agricultural counterparties1 and commercial market participants ,the ,commodity ,exchange ,act 7#g ,u4,s4,c4 #a et seq47 is amended by inserting after section #dt the following3 #du4 ,recordkeeping requirements applicable to non-registered members of certain registered entities ,except as provided in section #d7;a77#c71 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 rule1 order1 or regulation under this ,act by maintaining a written record of each transaction in a contract for future delivery1 option on a future1 swap1 swaption1 trade option1 or related cash or forward transaction4 ,the written record shall be sufficient if it includes the final agreement between the parties and the material economic terms of the transaction and is identifiable and searchable by transaction4 4 #ced4 ,relief for end-users who use physical contracts with volumetric optionality ,section #a;a7#dg77;,b77ii7 of the ,commodity ,exchange ,act 7#g ,u4,s4,c4 #a;a7#dg77;,b77ii77 is amended to read as follows3 7ii7 any purchase or sale of a nonfinancial commodity or security for deferred shipment or delivery1 so long as the transaction is intended to be physically settled1 including any stand-alone or embedded option-- 7,i7 for which exercise results in a physical delivery obligation2 7,,ii7 that cannot be severed or marketed separately from the overall transaction for the purpose of financial settlement2 and 7,,iii7 for which both parties are commercial market participants2 4 #cee4 ,commission vote required before automatic change of swap dealer de minimis level ,section #a;a7#di77;,d7 of the ,commodity ,exchange ,act 7#g ,u4,s4,c4 #a;a7#di77;,d77 is amended-- 7#a7 by striking all that precedes shall exempt and inserting the following3 7,d7 ,de minimis exception 7i7 ,in general ,the ,commission 2 and 7#b7 by adding after and below the end the following new clause3 7ii7 ,special rule ,the de minimis quantity of swap dealing as described in clause 7i7 that is currently set at a quantity of #h1jjj1jjj1jjj shall only be amended or reduced through a new affirmative action of the ,commission undertaken by rule or regulation4 4 #cef4 ,capital requirements for non-bank swap dealers 7a7 ,commodity ,exchange ,act ,section #ds7e7 of the ,commodity ,exchange ,act 7#g ,u4,s4,c4 #fs7e77 is amended-- 7#a7 in paragraph 7#b77;,b71 by striking shall and inserting the following3 and the ,securities and ,exchange ,commission1 in consultation with the prudential regulators1 shall jointly2 and 7#b7 in paragraph 7#c77;,d7-- 7,a7 in clause 7ii71 by striking shall1 to the maximum extent practicable1 and inserting shall2 and 7,b7 by adding at the end the following3 7iii7 ,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 requirements1 including the use of non-cash collateral1 the ,commission shall1 in consultation with the prudential regulators and the ,securities and ,exchange ,commission1 permit the use of comparable financial models by swap dealers and major swap participants that are not banks4 4 7b7 ,securities ,exchange ,act of #aicd ,section #ae;,f7e7 of the ,securities ,exchange ,act of #aicd 7#ae ,u4,s4,c4 #gho-#aj7;e77 is amended-- 7#a7 in paragraph 7#b77;,b71 by striking shall and inserting the following3 and the ,commodity ,futures ,trading ,commission1 in consultation with the prudential regulators1 shall jointly2 and 7#b7 in paragraph 7#c77;,d7-- 7,a7 in clause 7ii71 by striking shall1 to the maximum extent practicable1 and inserting shall2 and 7,b7 by adding at the end the following3 7iii7 ,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 requirements1 including the use of non-cash collateral1 the ,commission shall1 in consultation with the ,commodity ,futures ,trading ,commission1 permit the use of comparable financial models by security-based swap dealers and major security-based swap participants that are not banks4 4 #ceg4 ,harmonization with the ,jumpstart ,our ,business ,startups ,act ,within #ij days after the date of the enactment of this ,act1 the ,commodity ,futures ,trading ,commission shall-- 7#a7 revise section #d4g7;b7 of title #ag1 ,code of ,federal ,regulations1 in the matter preceding paragraph 7#a71 to read as follows3 7b7 ,relief available to commodity pool operators4 ,upon filing the notice required by paragraph 7d7 of this section1 and subject to compliance with the conditions specified in paragraph 7d7 of this section1 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 #d7b7 of that ,act or pursuant to ,regulation ,s1 #ag ,,cfr #bcj4ija et seq41 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 #c7;a77#b7 of that ,act and are sold solely to qualified eligible persons1 may claim any or all of the following relief with respect to such pool3 2 and 7#b7 revise section #d4ac7;a77#c77;i7 of such title to read as follows3 7i7 ,interests in the pool are exempt from registration under the ,securities ,act of #aicc1 and such interests are offered and sold pursuant to section #d of the ,securities ,act of #aicc and the regulations thereunder2 4 #ceh4 ,bona fide hedge defined to protect end-user risk management needs ,section #d;a7c7 of the ,commodity ,exchange ,act 7#g ,u4,s4,c4 #f;a7c77 is amended-- 7#a7 in paragraph 7#a7-- 7,a7 by striking may and inserting shall2 and 7,b7 by striking future for which and inserting future1 to be determined by the ,commission1 for which either an appropriate swap is available or2 7#b7 in paragraph 7#b7-- 7,a7 in the matter preceding subparagraph 7,a71 by striking subsection 7a77#b7 and all that follows through position as and inserting paragraphs 7#b7 and 7#e7 of subsection 7a7 for swaps1 contracts of sale for future delivery1 or options on the contracts or commodities1 a bona fide hedging transaction or position is2 and 7,b7 in subparagraph 7,a77ii71 by striking of risks and inserting or management of current or anticipated risks2 and 7#c7 by adding at the end the following3 7#c7 ,the ,commission may further define1 by rule or regulation1 what constitutes a bona fide hedging transaction1 provided that the rule or regulation is consistent with the requirements of subparagraphs 7,a7 and 7,b7 of paragraph 7#b74 4 #cei4 ,cross-border regulation of derivatives transactions 7a7 ,joint rulemaking required 7#a7 ,in general ,not later than #bgj 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 cross-border swaps and security-based swaps transactions involving ,u4,s4 persons or non-,u4,s4 persons4 7#b7 ,construction ,the rules required under paragraph 7#a7 shall be identical1 notwithstanding any difference in the authorities granted the ,commissions in section #cj7;c7 of the ,securities ,exchange ,act of #aicd 7#ae ,u4,s4,c4 #gh;dd7c77 and section #b7;i7 of the ,commodity ,exchange ,act 7#g ,u4,s4,c4 #b7;i771 respectively1 except to the extent necessary to accommodate differences in other underlying statutory requirements under such ,acts1 and the rules thereunder4 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 major 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 countries or administrative regions having nine largest markets 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 country or administrative region that has one of the nine largest combined swap and security-based swap markets by notional amount in the calendar year preceding issuance of such rules1 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 such country or administrative region 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 countries or administrative regions described in such paragraph1 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 and 7,b7 the remaining countries or administrative regions described in such paragraph1 and any other foreign jurisdiction as jointly determined by the ,commissions1 #a year 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 country or administrative region described in paragraph 7#a7 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 such country or administrative region or other foreign jurisdiction4 ,such criteria shall include the scope and objectives of the regulatory requirements of a country or administrative region described in paragraph 7#a7 or other foreign jurisdiction as well as the effectiveness of the supervisory compliance program administered1 and the enforcement authority exercised1 by such country or administrative region 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 the date on which final rules are issued under this section1 the ,commissions shall begin to jointly assess the regulatory requirements of countries or administrative regions described in paragraph 7#a71 as the ,commissions jointly determine appropriate1 in accordance with the criteria established pursuant to this subsection1 to determine if one or more categories of regulatory requirements of such a country or administrative region or other foreign jurisdiction is not broadly equivalent to ,united ,states swaps requirements4 7e7 ,report to ,congress ,if the ,commissions make the joint determination described in subsection 7d77#a7 that the regulatory requirements of a country or administrative region described in such subsection 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 ,u4,s4 person-- 7,a7 means-- 7i7 any natural person resident in the ,united ,states2 7ii7 any partnership1 corporation1 trust1 or other legal person organized or incorporated under the laws of the ,united ,states or having its principal place of business in the ,united ,states2 7iii7 any account 7whether discretionary or non-discretionary7 of a ,u4,s4 person2 and 7iv7 any other person as the ,commissions may further jointly define to more effectively carry out the purposes of this ,act2 and 7,b7 does not include the ,international ,monetary ,fund1 the ,international ,bank for ,reconstruction and ,development1 the ,inter-,american ,development ,bank1 the ,asian ,development ,bank1 the ,african ,development ,bank1 the ,united ,nations1 their agencies and pension plans1 and any other similar international organizations and their agencies and pension plans4 7#b7 ,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 ,customer ,protection and ,end-,user ,relief ,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 ,customer ,protection and ,end-,user ,relief ,act1 after to grant exemptions14 #cfj4 ,report on foreign boards of trade ,within #a year after the date of the enactment of this ,act1 the ,commodity ,futures ,trading ,commission shall prepare and submit to the ,committee on ,agriculture of the ,house of ,representatives and the ,committee on ,agriculture1 ,nutrition1 and ,forestry of the ,senate a written report reviewing the standards and rules of foreign boards of trade related to the physical delivery of base metals1 including warehousing facilities1 as compared to the standards and rules for domestic designated contract markets and related warehouses for base metals4 #cfa4 ,treatment of certain funds 7a7 ,amendment to the definition of commodity pool operator ,section #a;a7#aa7 of the ,commodity ,exchange ,act 7#g ,u4,s4,c4 #a;a7#aa77 is amended by adding at the end the following3 7,c7 7i7 ,the term commodity pool operator does not include a person who serves as an investment adviser to an investment company registered pursuant to section #h of the ,investment ,company ,act of #aidj or a subsidiary of such a company1 if the investment company or subsidiary invests1 reinvests1 owns1 holds1 or trades in commodity interests limited to only financial commodity interests4 7ii7 ,for purposes of this subparagraph only1 the term financial commodity interest means a futures contract1 an option on a futures contract1 or a swap1 involving a commodity that is not an exempt commodity or an agricultural commodity1 including any index of financial commodity interests1 whether cash settled or involving physical delivery4 7iii7 ,for purposes of this subparagraph only1 the term commodity does not include a security issued by a real estate investment trust1 business development company1 or issuer of asset-backed securities1 including any index of such securities4 4 7b7 ,amendment to the definition of commodity trading advisor ,section #a;a7#ab7 of such ,act 7#g ,u4,s4,c4 #a;a7#ab77 is amended by adding at the end the following3 7,e7 ,the term commodity trading advisor does not include a person who serves as an investment adviser to an investment company registered pursuant to section #h of the ,investment ,company ,act of #aidj or a subsidiary of such a company1 if the commodity trading advice relates only to a financial commodity interest1 as defined in paragraph 7#aa77;,c77ii7 of this section4 ,for purposes of this subparagraph only1 the term commodity does not include a security issued by a real estate investment trust1 business development company1 or issuer of asset-backed securities1 including any index of such securities4 4 ,f ,effective date #cga4 ,effective date ,except as otherwise provided in this title1 the amendments made by this title shall take effect as if enacted on ,july #ba1 #bjaj4 ,passed the ,house of ,representatives ,june #bd1 #bjad4,karen ,l4 ,haas1,clerk