,i #aacth ,,congress #ast ,session ,h4 ,r4 #fgg ,,in ,,the ,,house ,,of ,,representatives ,february #ac1 #bjac ,mr4 ,stivers 7for himself1 ,ms4 ,fudge1 ,ms4 ,moore1 ,mr4 ,gibson1 and ,mr4 ,schweikert7 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 exempt inter-affiliate swaps from certain regulatory requirements put in place by the ,dodd-,frank ,wall ,street ,reform and ,consumer ,protection ,act4 #a4 ,short title ,this ,act may be cited as the ,inter-,affiliate ,swap ,clarification ,act4 #b4 ,treatment of affiliate transactions 7a7 ,commodity ,exchange ,act amendments 7#a7 ,treatment of affiliate transactions ,section #a;a7#dg7 of the ,commodity ,exchange ,act 7#g ,u4,s4,c4 #a;a7#dg771 as added by section #gba7;a77#ba7 of the ,dodd-,frank ,wall ,street ,reform and ,consumer ,protection ,act1 is amended by adding at the end the following3 7,g7 ,treatment of affiliate transactions 7i7 ,in general ,for the purposes of any clearing and execution requirements under section #b7;h7 and any applicable margin and capital requirements of section #ds7e7 and for purposes of defining swap dealer or major swap participant1 and reporting requirements other than those set forth in clause 7ii71 the term swap does not include any agreement1 contract1 or transaction that-- 7,i7 would otherwise be included as a swap under subparagraph 7,a72 and 7,,ii7 is entered into by parties1 neither of which is a #8swap dealer' that is an insured depository institution or a #8major swap participant' that is an insured depository institution1 that report information or prepare financial statements on a consolidated basis1 or for which a company affiliated with both parties reports information or prepares financial statements on a consolidated basis4 7ii7 ,reporting ,all agreements1 contracts1 or transactions described in clause 7i7 shall be reported to either a swap data repository1 or1 if there is no swap data repository that would accept such agreements1 contracts1 or transactions1 to the ,commission pursuant to section #dr1 or to a swap data repository or to the ,commission pursuant to section #b7;h77#e71 within such time period as the ,commission may by rule or regulation prescribe4 ,nothing in this subparagraph shall prohibit the ,commission from establishing public reporting requirements for covered transactions between affiliates as described in sections #bc;,a and #bc;,b of the ,federal ,reserve ,act in a manner consistent with rules governing the treatment of such covered transactions pursuant to section #b7;a77#ac7 of this ,act4 7iii7 ,protection of insurance funds ,nothing in this subparagraph shall be construed to prevent the regulator of a ,federal or ,state insurance fund or guaranty fund from exercising its other existing authority to protect the integrity of such a fund1 except that such regulator shall not subject agreements1 contracts1 or transactions described in clause 7i7 to clearing and execution requirements under section #b of this ,act1 to any applicable margin and capital requirements of section #ds7e7 of this ,act1 or to reporting requirements of title ,,vii of ,public ,law #aaa-bjc other than those set forth in clause 7ii7 of this subparagraph4 7iv7 ,preservation of federal reserve act authority ,nothing in this subparagraph shall exempt a transaction described in this subparagraph from sections #bc;,a or #bc;,b of the ,federal ,reserve ,act or implementing regulations thereunder4 7v7 ,preservation of federal and state regulatory authorities ,nothing in this subparagraph shall affect the ,federal banking agencies' safety-and-soundness authorities over banks established in law other than title ,,vii of ,public ,law #aaa-bjc or the authorities of ,state insurance regulators over insurers1 including the authority to impose capital requirements with regard to swaps4 ,for purposes of this clause1 the term #8bank' shall be defined pursuant to section #c7;a77#f7 of the ,securities ,exchange ,act of #aicd1 #8insurer' shall be defined pursuant to title ,v of ,public ,law #aaa-bjc1 and #8swap' shall be defined pursuant to title ,,vii of ,public ,law #aaa-bjc4 7vi7 ,prevention of evasion ,the ,commission may prescribe rules under this subparagraph 7and issue interpretations of such rules7 as determined by the ,commission to be necessary to include in the definition of swaps under this paragraph any agreement1 contract1 or transaction that has been structured to evade the requirements of this ,act applicable to swaps4 4 7#b7 ,treatment of affiliates ,section #b7;h77#g77;,d77i7 of the ,commodity ,exchange ,act 7#g ,u4,s4,c4 #b7;h77#g77;,d77i771 as added by section #gbc7;a7 of the ,dodd-,frank ,wall ,street ,reform and ,consumer ,protection ,act1 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 entity4 4 7b7 ,securities ,exchange ,act of #aicd amendments 7#a7 ,treatment of affiliate transactions ,section #c7;a77#fh7 of the ,securities ,exchange ,act of #aicd 7#ae ,u4,s4,c4 #gh;c7a77#fh771 as added by section #gfa7;a77#f7 of the ,dodd-,frank ,wall ,street ,reform and ,consumer ,protection ,act1 is amended by adding at the end the following3 7,f7 ,treatment of affiliate transactions 7i7 ,in general ,for the purposes of any clearing and execution requirements under section #c;,c and any applicable margin and capital requirements of section #ae;,f7e71 and for purposes of defining security-based swap dealer or a major security-based swap participant1 and reporting requirements other than those set forth in clause 7ii71 the term security-based swap does not include any agreement1 contract1 or transaction that-- 7,i7 would otherwise be included as a security-based swap under subparagraph 7,a72 and 7,,ii7 is entered into by parties1 neither of which is a #8security-based swap dealer' that is an insured depository institution or a #8major security-based swap participant' that is an insured depository institution1 that report information or prepare financial statements on a consolidated basis1 or for which a company affiliated with both parties reports information or prepares financial statements on a consolidated basis4 7ii7 ,reporting ,all agreements1 contracts1 or transactions described in clause 7i7 shall be reported to either a security-based swap data repository1 or1 if there is no security-based swap data repository that would accept such agreements1 contracts1 or transactions1 to the ,commission pursuant to section #ac;,a1 within such time period as the ,commission may by rule or regulation prescribe4 7iii7 ,preservation of federal reserve act authority ,nothing in this subparagraph shall exempt a transaction described in this subparagraph from sections #bc;,a or #bc;,b of the ,federal ,reserve ,act or implementing regulations thereunder4 7iv7 ,protection of insurance funds ,nothing in this subparagraph shall be construed to prevent the regulator of a ,federal or ,state insurance fund or guaranty fund from exercising its other existing authority to protect the integrity of such a fund1 except that such regulator shall not subject security-based swap transactions between affiliated companies to clearing and execution requirements under section #c;,c1 to any applicable margin and capital requirements of section #ae;,f7e71 or to reporting requirements of title ,,vii of ,public ,law #aaa-bjc other than those set forth in clause 7ii74 7v7 ,preservation of federal and state regulatory authorities ,nothing in this subparagraph shall affect the ,federal banking agencies' safety-and-soundness authorities over banks established in law other than title ,,vii of ,public ,law #aaa-bjc or the authorities of ,state insurance regulators over insurers1 including the authority to impose capital requirements with regard to security-based swaps4 ,for purposes of this clause1 the term #8bank' shall be defined pursuant to section #c7;a77#f7 of the ,securities ,exchange ,act of #aicd1 #8insurer' shall be defined pursuant to title ,v of ,public ,law #aaa-bjc1 and #8security-based swap' shall be defined pursuant to title ,,vii of ,public ,law #aaa-bjc4 7vi7 ,prevention of evasion ,the ,commission may prescribe rules under this subparagraph 7and issue interpretations of such rules7 as determined by the ,commission to be necessary to include in the definition of security-based swap under this paragraph any agreement1 contract1 or transaction that has been structured to evade the requirements of this ,act applicable to security-based swaps4 4 7#b7 ,treatment of affiliates ,section #c;,c7g77#d77;,a7 of the ,securities ,exchange ,act of #aicd 7#ae ,u4,s4,c4 #gh;c-#c7;g77#d77;,a771 as added by section #gfc7;a7 of the ,dodd-,frank ,wall ,street ,reform and ,consumer ,protection ,act1 is amended to read as follows3 7i7 ,in general ,an affiliate of a person that qualifies for an exception under this subsection 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 entity4 4