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.

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.
                                                 

Summary: Swap Execution Facility Clarification Act - Amends the Commodity Exchange Act to prohibit the Commodity Futures Trading Commission (CFTC), in interpreting or defining a security-based swap execution facility, from requiring it to: (1) have a minimum number of participants receive a bid or offer or respond to any trading system or platform functionality, (2) display or delay bids or offers for any period of time, (3) limit the means of interstate commerce used by market participants to enter into and execute swap transactions on the trading system or platform, or (4) 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 that facility. Amends the Securities Exchange Act of 1934 to prohibit the Securities and Exchange Commission (SEC), in interpreting or defining a security-based swap execution facility, from requiring such a facility to do any of the things the CFTC is prohibited by this Act from requiring, with the exception that the SEC may not require such a facility to limit the means of interstate commerce used by market participants to enter into and execute security-based swap transactions on the method of trading functionality.