I 

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116TH CONGRESS 

1ST SESSION H. R. 4717 

To improve swap execution facility administration, swap entity compliance, 

and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

OCTOBER 17, 2019 

Mr. CRAWFORD (for himself and Mr. AUSTIN SCOTT of Georgia) introduced 

the following bill; which was referred to the Committee on Agriculture 

A BILL 

To improve swap execution facility administration, swap 

entity compliance, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Swap Trading Im5 provement Act’’. 

6 SEC. 2. SIMPLIFICATION OF SWAP DATA AGGREGATION RE7 QUIREMENTS. 

8 (a) OBLIGATIONS FOR DESIGNATED CONTRACT MAR9 KETS.—Section 5(d)(5) of the Commodity Exchange Act 

10 (7 U.S.C. 7(d)(5)) is amended— 


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1 (1) in subparagraph (A), by inserting ‘‘that is 

2 not a swap contract’’ after ‘‘for each contract of the 

3 board of trade’’; and 

4 (2) in subparagraph (B), by inserting ‘‘that is 

5 not a swap contract’’ after ‘‘contract’’. 

6 (b) OBLIGATIONS FOR SWAP EXECUTION FACILI7 TIES.—Section 5h(f)(4)(B) of such Act (7 U.S.C. 7b– 

8 3(f)(4)(B)) is amended by striking ‘‘in swaps’’ and insert9 ing ‘‘activity in swaps occurring on the swap execution fa10 cility’’. 

11 (c) CROSS-FACILITY DATA AGGREGATION RELIEF.— 

12 Section 5h(f) of such Act (7 U.S.C. 7b–3(f)) is amended 

13 by striking paragraph (6). 

14 SEC. 3. SWAP ENTITY ADMINISTRATIVE IMPROVEMENTS. 

15 (a) AUTHORITY OF REGISTERED ENTITIES TO USE

16 THIRD-PARTY SERVICE PROVIDERS.—Section 5c(b) of the 

17 Commodity Exchange Act (7 U.S.C. 7a–2(b)) is amended 

18 to read as follows: 

19 ‘‘(b) DELEGATION OF FUNCTIONS UNDER CORE

20 PRINCIPLES.— 

21 ‘‘(1) IN GENERAL.—A registered entity may 

22 comply with any applicable core principle through 

23 delegation of any relevant function to a third-party 

24 service provider. 


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1 ‘‘(2) RESPONSIBILITY.—A registered entity that 

2 delegates a function under paragraph (1) shall re3 main responsible for carrying out the function. 

4 ‘‘(3) NONCOMPLIANCE.—If a registered entity 

5 that delegates a function under paragraph (1) be6 comes aware that the function is not being per7 formed as required under this Act, the registered en8 tity shall promptly take steps to address the non9 compliance.’’. 

10 (b) REGISTRATION OF SWAP EXECUTION FACILI11 TIES.—Section 5h(a)(1) of such Act (7 U.S.C. 7b–3(a)(1)) 

12 is amended by striking ‘‘or processing’’. 

13 (c) CORE PRINCIPLES FOR SWAP EXECUTION FA14 CILITIES.— 

15 (1) MODIFICATION OF EMERGENCY AUTHORITY

16 REQUIREMENTS.—Section 5h(f)(8) of such Act (7 

17 U.S.C. 7b–3(f)(8)) is amended by striking all that 

18 follows ‘‘cooperation with the Commission’’ and in19 serting ‘‘or other registered entities, as is necessary 

20 and appropriate, to facilitate the liquidation or 

21 transfer of open positions in any swap, or to suspend 

22 or curtail trading in a swap.’’. 

23 (2) REDUCTION OF OPERATING CAPITAL RE24 QUIREMENT.—Section 5h(f)(13)(B) of such Act (7 

25 U.S.C. 7b–3(f)(13)(B)) is amended by striking ‘‘1- 


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1 year period, as calculated on a rolling basis,’’ and in2 serting ‘‘90-day period, as calculated on a rolling 

3 basis, or conduct an orderly wind-down of its oper4 ations, whichever is greater.’’. 

5 SEC. 4. SIMPLIFICATION OF SWAP EXECUTION FACILITY 

6 CHIEF COMPLIANCE OFFICER OBLIGATIONS. 

7 Section 5h(f)(15) of the Commodity Exchange Act (7 

8 U.S.C. 7b–3(f)(15)) is amended— 

9 (1) in subparagraph (A), by adding at the end 

10 the following: ‘‘The individual may also perform 

11 other responsibilities for the swap execution facil12 ity.’’; 

13 (2) in subparagraph (B)— 

14 (A) in clause (i), by inserting ‘‘, to a com15 mittee of the board,’’ after ‘‘directly to the 

16 board’’; 

17 (B) by striking clauses (iii) through (v) 

18 and inserting the following: 

19 ‘‘(iii) establish and administer policies 

20 and procedures that are reasonably de21 signed to resolve any conflicts of interest 

22 that may arise; 

23 ‘‘(iv) establish and administer policies 

24 and procedures that reasonably ensure 

25 compliance with this Act and the rules and 


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1 regulations issued under this Act, includ2 ing rules prescribed by the Commission 

3 pursuant to this section; and’’; and 

4 (C) by redesignating clause (vi) as clause 

5 (v); 

6 (3) in subparagraph (C), by striking ‘‘(B)(vi)’’ 

7 and inserting ‘‘(B)(v)’’; and 

8 (4) in subparagraph (D)— 

9 (A) in clause (i)— 

10 (i) by striking ‘‘In accordance with 

11 rules prescribed by the Commission, the’’ 

12 and inserting ‘‘The’’; and 

13 (ii) by striking ‘‘and sign’’; and 

14 (B) in clause (ii)— 

15 (i) in the matter preceding subclause 

16 (I), by inserting ‘‘or senior officer’’ after 

17 ‘‘officer’’; 

18 (ii) by amending subclause (I) to read 

19 as follows: 

20 ‘‘(I) submit each report described 

21 in clause (i) to the Commission; and’’; 

22 and 

23 (iii) in subclause (II), by inserting 

24 ‘‘materially’’ before ‘‘accurate’’. 


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1 SEC. 5. CLARIFICATION OF CFTC AUTHORITY OVER SWAPS 

2 ENTITIES. 

3 (a) Section 6b of the Commodity Exchange Act (7 

4 U.S.C. 13a) is amended by inserting ‘‘or section 5h’’ after 

5 ‘‘sections 5 through 5c’’. 

6 (b) Section 8a of such Act (7 U.S.C. 12a) is amend7 ed— 

8 (1) in paragraph (7)(A), by inserting ‘‘or swap 

9 contracts’’ after ‘‘contracts of sale’’; and 

10 (2) in paragraph (9), by striking ‘‘futures con11 tract’’ and inserting ‘‘contract of sale for future de12 livery or swap contract’’ each place it occurs. 

13 (c) Section 15(b) of such Act (7 U.S.C. 19(b)) is 

14 amended by striking ‘‘contract market’’ and inserting 

15 ‘‘registered entity’’. 

16 SEC. 6. TECHNICAL CORRECTION. 

17 Section 5h(h) of the Commodity Exchange Act (7 

18 U.S.C. 7b–3)(h)) is amended by striking ‘‘alternative’’. 

Æ 


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