I 

112TH CONGRESS 

1ST SESSION H. R. 1610 

To provide end user exemptions from certain provisions of the Commodity 

Exchange Act and the Securities Exchange Act of 1934, and for other 

purposes. 

IN THE HOUSE OF REPRESENTATIVES 

APRIL 15, 2011 

Mr. GRIMM (for himself, Mr. NEUGEBAUER, and Mr. GARRETT) introduced 

the following bill; which was referred to the Committee on Financial Services, and in addition to the Committee on Agriculture, for a period to be 

subsequently determined by the Speaker, in each case for consideration 

of such provisions as fall within the jurisdiction of the committee concerned 

A BILL 

To provide end user exemptions from certain provisions of 

the Commodity Exchange Act and the Securities Exchange Act of 1934, 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 ‘‘Business Risk Mitiga5 tion and Price Stabilization Act of 2011’’. 


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1 SEC. 2. MARGIN RULES. 

2 (a) COMMODITY EXCHANGE ACT AMENDMENTS.— 

3 The Commodity Exchange Act (7 U.S.C. 1 et seq.) is 

4 amended— 

5 (1) in section 1a(33)(A), as added by section 

6 721(a)(6) of the Dodd-Frank Wall Street Reform 

7 and Consumer Protection Act, by amending clause 

8 (ii) to read as follows: 

9 ‘‘(ii) whose outstanding swaps create 

10 substantial net counterparty exposure that 

11 could have serious adverse effects on the 

12 financial stability of the United States 

13 banking system or financial markets; or’’; 

14 and 

15 (2) in section 4s(e), as added by section 731 of 

16 the Dodd-Frank Wall Street Reform and Consumer 

17 Protection Act, by adding at the end the following 

18 new paragraphs: 

19 ‘‘(4) APPLICABILITY WITH RESPECT TO

20 COUNTERPARTIES.—The margin requirements of 

21 this subsection shall not apply to swaps in which 1 

22 of the counterparties is not— 

23 ‘‘(A) a swap dealer or major swap partici24 pant; 

25 ‘‘(B) an investment fund that— 


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•HR 1610 IH

1 ‘‘(i) has issued securities, other than 

2 debt securities, to greater than five unaf3 filiated persons; 

4 ‘‘(ii) would be an investment company 

5 (as defined in section 3 of the Investment 

6 Company Act of 1940 (15 U.S.C. 80a–3)) 

7 but for paragraph (1) or (7) of section 3(c) 

8 of that Act (15 U.S.C. 80a–3(c)); and 

9 ‘‘(iii) is not primarily invested in 

10 physical assets (which shall include com11 mercial real estate) directly or through in12 terest in its affiliates that own such assets; 

13 ‘‘(C) an entity defined in section 1303(20) 

14 of the Federal Housing Enterprises Financial 

15 Safety and Soundness Act of 1992 (12 U.S.C. 

16 4502(20)); or 

17 ‘‘(D) a commodity pool. 

18 ‘‘(5) MARGIN TRANSITION RULES.—Swaps en19 tered into before the date upon which final rules 

20 must be published under section 712(e) of the Wall 

21 Street Transparency and Accountability Act of 2010 

22 are exempt from the margin requirements of this 

23 subsection.’’. 


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•HR 1610 IH

1 (b) SECURITIES EXCHANGE ACT OF 1934 AMEND2 MENTS.—The Securities Exchange Act of 1934 (15 

3 U.S.C. 78a et seq.) is amended— 

4 (1) in section 3(a)(67)(A), as added by section 

5 761(a)(6) of the Dodd-Frank Wall Street Reform 

6 and Consumer Protection Act, by amending clause 

7 (ii) to read as follows: 

8 ‘‘(ii) whose outstanding security-based 

9 swaps create substantial net counterparty 

10 exposure that could have serious adverse 

11 effects on the financial stability of the 

12 United States banking system or financial 

13 markets; or’’; and 

14 (2) in section 15F(e), as added by section 

15 764(a) of the Dodd-Frank Wall Street Reform and 

16 Consumer Protection Act, by adding at the end the 

17 following new paragraphs: 

18 ‘‘(4) APPLICABILITY WITH RESPECT TO

19 COUNTERPARTIES.—The margin requirements of 

20 this subsection shall not apply to security-based 

21 swaps in which one of the counterparties is not— 

22 ‘‘(A) a security-based swap dealer or major 

23 security-based swap participant; 

24 ‘‘(B) an investment fund that would be an 

25 investment company (as defined in section 3 of 


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•HR 1610 IH

1 the Investment Company Act of 1940 (15 

2 U.S.C. 80a–3)) but for paragraph (1) or (7) of 

3 section 3(c) of that Act (15 U.S.C. 80a–3(c)); 

4 ‘‘(C) primarily invested in physical assets 

5 (which shall include commercial real estate) di6 rectly or through interest in its affiliates that 

7 own such assets; 

8 ‘‘(D) an entity defined in section 1303(20) 

9 of the Federal Housing Enterprises Financial 

10 Safety and Soundness Act of 1992 (12 U.S.C. 

11 4502(20)); or 

12 ‘‘(E) a commodity pool. 

13 ‘‘(5) MARGIN TRANSITION RULES.—Security14 based swaps entered into before the date upon which 

15 final rules must be published under section 

16 712(a)(5) of the Wall Street Transparency and Ac17 countability Act of 2010 are exempt from the mar18 gin requirements of this subsection.’’. 

19 (c) EFFECTIVE DATE.—The amendments made by 

20 this section shall take effect as if included in the provisions 

21 of the Dodd-Frank Wall Street Reform and Consumer 

22 Protection Act to which they relate. 

Æ 


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