IB 

Union Calendar No. 63 

112TH CONGRESS 

1ST SESSION H. R. 1573 

[Report No. 112–109, Parts I and II] 

To facilitate implementation of title VII of the Dodd-Frank Wall Street 

Reform and Consumer Protection Act, promote regulatory coordination, 

and avoid market disruption. 

IN THE HOUSE OF REPRESENTATIVES 

APRIL 15, 2011 

Mr. LUCAS (for himself, Mr. BACHUS, Mr. CONAWAY, 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 

JUNE 16, 2011 

Additional sponsors: Mr. JOHNSON of Illinois, Mr. NEUGEBAUER, Mrs. 

SCHMIDT, Mr. THOMPSON of Pennsylvania, Mr. CRAWFORD, Mrs. 

ELLMERS, Mr. GIBBS, Mr. GIBSON, Mr. HULTGREN, Mr. RIBBLE, Mr. 

AUSTIN SCOTT of Georgia, Mr. KINGSTON, Mr. HENSARLING, Mr. 

HANNA, Ms. JENKINS, Mrs. HARTZLER, Mr. COFFMAN of Colorado, Mr. 

YODER, and Mr. GOODLATTE

JUNE 16, 2011 

Reported from the Committee on Financial Services with an amendment 

[Strike out all after the enacting clause and insert the part printed in italic] 


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JUNE 16, 2011 

Reported from the Committee on Agriculture with an amendment, committed 

to the Committee of the Whole House on the State of the Union, and 

ordered to be printed 

[Strike out all after the enacting clause and insert the part printed in boldface roman] 

[For text of introduced bill, see copy of bill as introduced on April 15, 2011] 

A BILL 

To facilitate implementation of title VII of the Dodd-Frank 

Wall Street Reform and Consumer Protection Act, promote regulatory coordination, and avoid market disruption. 


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

3 SECTION 1. EFFECTIVE DATES. 

4 Section 712(f) of the Dodd-Frank Wall Street Reform 

5 and Consumer Protection Act (Public Law 111–203; 15 

6 U.S.C. 8302(f)) is amended to read as follows: 

7 ‘‘(f) RULES AND REGISTRATION BEFORE FINAL EF8 FECTIVE DATES.— 

9 ‘‘(1) IN GENERAL.—Beginning on the date of en10 actment of this Act and notwithstanding the effective 

11 date of any provision of this Act, the Commodity Fu12 tures Trading Commission and the Securities and 

13 Exchange Commission may, in order to prepare for 

14 the effective dates of the provisions of this Act— 

15 ‘‘(A) promulgate rules, regulations, or or16 ders permitted or required by this Act; 

17 ‘‘(B) conduct studies and prepare reports 

18 and recommendations required by this Act; 

19 ‘‘(C) register persons under the provisions of 

20 this Act; and 

21 ‘‘(D) exempt persons, agreements, contracts, 

22 or transactions from provisions of this Act, 

23 under the terms contained in this Act. 

24 ‘‘(2) EFFECTIVE DATE.—(A) Notwithstanding 

25 paragraph (1), an action by the Commodity Futures 


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1 Trading Commission or the Securities and Exchange 

2 Commission described in paragraph (1) shall not be3 come effective before the effective date applicable to the 

4 action under this Act, except as provided in para5 graph (3). 

6 ‘‘(B) Notwithstanding any provision of this Act 

7 (other than paragraph (3)), this title and the regula8 tions under this title shall become effective on the lat9 est of— 

10 ‘‘(i) September 30, 2012; 

11 ‘‘(ii) 90 days after the publication of the 

12 relevant final rule or regulation in the Federal 

13 Register or such later date as may be specified 

14 in the final rule or regulation; or 

15 ‘‘(iii) the effective date otherwise applicable 

16 to this title. 

17 ‘‘(3) EXCEPTIONS.— 

18 ‘‘(A) CERTAIN DEFINITIONS.—Notwith19 standing any other provision of this Act, in 

20 order to assist persons subject to this title in 

21 coming into compliance with the provisions of 

22 this title on a timely basis, the Commodity Fu23 tures Trading Commission and the Securities 

24 and Exchange Commission, in consultation with 

25 the Board of Governors, shall adopt definitions 


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1 further defining the terms specified in subsection 

2 (d)(1) not later than 360 days after the date of 

3 the enactment of this Act. Such definitions shall 

4 become effective 90 days after their publication 

5 in the Federal Register. 

6 ‘‘(B) REGULATORY REPORTING.— 

7 ‘‘(i) SWAP DATA REPORTING.—Sections 

8 2(h)(5) and 4r of the Commodity Exchange 

9 Act and the rules and regulations of the 

10 Commodity Futures Trading Commission 

11 issued under such sections shall become ef12 fective on the later of— 

13 ‘‘(I) 90 days after the publication 

14 of the relevant final rule or regulation 

15 in the Federal Register, or such later 

16 date as may be specified in the final 

17 rule or regulation; or 

18 ‘‘(II) the effective date otherwise 

19 applicable to such sections. 

20 ‘‘(ii) SECURITY-BASED SWAP DATA RE21 PORTING.—Sections 3C(e) and 13A(a) of the 

22 Securities Exchange Act of 1934 and the 

23 rules and regulations of the Securities and 

24 Exchange Commission issued under such 


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1 sections shall become effective on the later 

2 of— 

3 ‘‘(I) 90 days after the publication 

4 of the relevant final rule or regulation 

5 in the Federal Register, or such later 

6 date as may be specified in the rule or 

7 regulation; or 

8 ‘‘(II) the effective date otherwise 

9 applicable to such sections. 

10 ‘‘(iii) SWAP DATA REPOSITORIES.—To 

11 facilitate compliance, before September 30, 

12 2012, with the regulatory reporting provi13 sions of this section, the Commodity Futures 

14 Trading Commission and the Securities and 

15 Exchange Commission may authorize the 

16 reporting of swap data and security-based 

17 swap data to any person then conducting 

18 the business described in section 1a(48) of 

19 the Commodity Exchange Act (7 U.S.C. 

20 1a(48)) or section 3(a)(75) of the Securities 

21 Exchange Act of 1934 (15 U.S.C. 78m), re22 spectively, who has— 

23 ‘‘(I) provided notice to the rel24 evant Commission of its intention to 

25 register as a swap data repository or 


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1 security-based swap data repository, as 

2 applicable; and 

3 ‘‘(II) made such undertakings to 

4 the relevant Commission as such Com5 mission has determined to be appro6 priate and in the public interest, con7 sistent with this title. 

8 ‘‘(C) CERTAIN CLEARING PROVISIONS.—Sec9 tion 3C of the Securities Exchange Act of 1934 

10 (15 U.S.C. 78c–3) (except for subsections (e) and 

11 (h) of such section) and the rules and regulations 

12 of the Securities and Exchange Commission 

13 under such section shall take effect on the date 

14 otherwise applicable to such section. 

15 ‘‘(D) AUTHORITY RELATING TO SPECULA16 TIVE TRADING.—Notwithstanding any other pro17 vision of this Act, this subsection shall not delay 

18 the use of any authority granted to the Securities 

19 and Exchange Commission and the Commodity 

20 Futures Trading Commission to address specula21 tive trading, including the impact of such trad22 ing on the markets, users, or investors and con23 sumers. The Commissions shall report to the ap24 propriate committees of Congress on the use of 

25 such authority. 


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1 ‘‘(E) PROHIBITION ON FEDERAL BAIL2 OUTS.—Notwithstanding paragraph (2), section 

3 716 of this Act shall take effect on the date pro4 vided for in such section.’’. 

5 SEC. 2. IMPLEMENTATION ANALYSIS. 

6 Section 712 of the Dodd-Frank Wall Street Reform 

7 and Consumer Protection Act (Public Law 111–203; 15 

8 U.S.C. 8302), as amended by section 1 of this Act, is 

9 amended by adding at the end the following: 

10 ‘‘(g) IMPLEMENTATION ANALYSIS.—Notwithstanding 

11 any other provision of this title, the Commodity Futures 

12 Trading Commission and the Securities and Exchange 

13 Commission shall, before prescribing final rules and regula14 tions under this title— 

15 ‘‘(1) conduct public hearings and roundtables 

16 and take testimony of affected market participants, 

17 experts and other interested parties, and solicit public 

18 comment, regarding— 

19 ‘‘(A) the time and resources that would be 

20 required of affected parties in order to develop 

21 systems and infrastructure necessary to comply 

22 with any rules and regulations proposed or then 

23 contemplated by the relevant Commission; 


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1 ‘‘(B) any alternative approaches capable of 

2 accomplishing the relevant Commission’s rule3 making objectives; and 

4 ‘‘(C) the time and resources that would be 

5 required of affected parties in order to develop 

6 policies and procedures designed to comply with 

7 any rules and regulations proposed or then con8 templated by the relevant Commission, and 

9 ‘‘(2) take such testimony and comment into ac10 count in— 

11 ‘‘(A) performing the cost-benefit analysis re12 quired under Federal law in connection with its 

13 adoption of the relevant final rules and regula14 tions; and 

15 ‘‘(B) determining the effective date of the 

16 relevant final rules and regulations.’’. 

17 SEC. 3. REGULATORY COORDINATION. 

18 (a) COMMODITY FUTURES TRADING COMMISSION.— 

19 Section 2(a)(1) of the Commodity Exchange Act (7 U.S.C. 

20 2(a)(1)) is amended by adding at the end the following: 

21 ‘‘(J)(i) Notwithstanding any other provi22 sion of this Act, the Commission may exempt, in 

23 whole or in part, a person from the registration 

24 and related regulatory requirements of this Act 

25 that were added by title VII of the Dodd-Frank 


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1 Wall Street Reform and Consumer Protection 

2 Act if and to the extent that the Commission de3 termines that— 

4 ‘‘(I) the person is subject to comprehen5 sive supervision and regulation under a reg6 ulatory scheme administered by another 

7 regulatory authority or the appropriate gov8 ernmental authorities in the person’s home 

9 country that is comparable to the relevant 

10 provisions of this Act, 

11 ‘‘(II) adequate information-sharing ar12 rangements are in effect between the Com13 mission and the other regulatory authority, 

14 and 

15 ‘‘(III) the exemption would be con16 sistent with the public interest. 

17 ‘‘(ii) The Commission may condition any 

18 such exemption on compliance with all or any 

19 part of the alternate regulatory scheme, and on 

20 such other terms as the Commission determines 

21 appropriate, and may deem any noncompliance 

22 with the alternate regulatory scheme or other 

23 terms a violation of the corresponding provisions 

24 of this Act.’’. 


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1 (b) SECURITIES AND EXCHANGE COMMISSION.—The 

2 Securities Exchange Act of 1934 (15 U.S.C. 78m) is amend3 ed by inserting after section 4E the following: 

4 ‘‘SEC. 4F. EXEMPTIVE AUTHORITY. 

5 ‘‘(a) IN GENERAL.—Notwithstanding any other provi6 sion of this Act, the Commission may exempt, in whole or 

7 in part, a person from the registration and related regu8 latory requirements of this Act that were added by title VII 

9 of the Dodd-Frank Wall Street Reform and Consumer Pro10 tection Act if and to the extent that the Commission deter11 mines that— 

12 ‘‘(1) the person is subject to comprehensive su13 pervision and regulation under a regulatory scheme 

14 administered by another regulatory authority or the 

15 appropriate governmental authorities in the person’s 

16 home country that is comparable to the relevant pro17 visions of this Act; 

18 ‘‘(2) adequate information-sharing arrangements 

19 are in effect with the other regulatory authority; and 

20 ‘‘(3) the exemption would be consistent with the 

21 protection of investors. 

22 ‘‘(b) CONDITION ON COMPLIANCE.—The Commission 

23 may condition any such exemption on compliance with all 

24 or any part of the alternate regulatory scheme, and such 

25 other terms as the Commission determines appropriate, and 


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1 may deem any noncompliance with the alternate regulatory 

2 scheme or other terms a violation of the corresponding pro3 visions of this Act.’’. 

4 SECTION 1. EFFECTIVE DATES. 

5 Section 712(f) of the Dodd-Frank Wall 

6 Street Reform and Consumer Protection Act 

7 (Public Law 111–203) is amended to read as 

8 follows: 

9 ‘‘(f) RULES AND REGISTRATION BEFORE

10 FINAL EFFECTIVE DATES.— 

11 ‘‘(1) IN GENERAL.—Beginning on the 

12 date of enactment of this Act and not13 withstanding the effective date of any 

14 provision of this Act, the Commodity Fu15 tures Trading Commission and the Secu16 rities and Exchange Commission may, in 

17 order to prepare for the effective dates of 

18 the provisions of this Act— 

19 ‘‘(A) promulgate rules, regula20 tions, or orders permitted or required 

21 by this Act; 

22 ‘‘(B) conduct studies and prepare 

23 reports and recommendations re24 quired by this Act; 


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1 ‘‘(C) register persons under the 

2 provisions of this Act; and 

3 ‘‘(D) exempt persons, agreements, 

4 contracts, or transactions from provi5 sions of this Act, under the terms con6 tained in this Act. 

7 ‘‘(2) EFFECTIVE DATE.—(A) Notwith8 standing paragraph (1), an action by the 

9 Commodity Futures Trading Commission 

10 or the Securities and Exchange Commis11 sion described in paragraph (1) shall not 

12 become effective before the effective date 

13 applicable to the action under this Act, 

14 except as provided in paragraph (3). 

15 ‘‘(B) Notwithstanding any provision of 

16 this Act (other than paragraph (3) and 

17 sections 721(a)(4) and 721(f)), this title 

18 and the regulations under this title shall 

19 become effective on the latest of— 

20 ‘‘(i) December 31, 2012; 

21 ‘‘(ii) 90 days after the publication 

22 of the relevant final rule or regula23 tion in the Federal Register or such 

24 later date as may be specified in the 

25 final rule or regulation; or 


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1 ‘‘(iii) the effective date otherwise 

2 applicable to this title. 

3 ‘‘(3) EXCEPTIONS.— 

4 ‘‘(A) CERTAIN DEFINITIONS.—Not5 withstanding any other provision of 

6 this Act, in order to assist persons 

7 subject to this title in coming into 

8 compliance with the provisions of 

9 this title on a timely basis, the Com10 modity Futures Trading Commission 

11 and the Securities and Exchange 

12 Commission, in consultation with the 

13 Board of Governors, shall adopt defi14 nitions further defining the terms 

15 specified in subsection (d)(1) not later 

16 than 360 days after the date of the en17 actment of this Act. Such definitions 

18 shall become effective 90 days after 

19 their publication in the Federal Reg20 ister. 

21 ‘‘(B) REGULATORY REPORTING.— 

22 ‘‘(i) SWAP DATA REPORTING.— 

23 Notwithstanding any other provi24 sion of this Act, sections 2(h)(5) 

25 and 4r of the Commodity ExVerDate Mar 15 2010 02:10 Jun 17, 2011 Jkt 099200 PO 00000 Frm 00014 Fmt 6652 Sfmt 6202 E:\BILLS\H1573.RH H1573

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1 change Act and the rules and reg2 ulations of the Commodity Fu3 tures Trading Commission issued 

4 under such sections shall become 

5 effective on the later of— 

6 ‘‘(I) 90 days after the pub7 lication of the relevant final 

8 rule or regulation in the Fed9 eral Register, or such later 

10 date as may be specified in 

11 the final rule or regulation; or 

12 ‘‘(II) the effective date oth13 erwise applicable to such sec14 tions. 

15 ‘‘(ii) SECURITY-BASED SWAP

16 DATA REPORTING.—Sections 3C(e) 

17 and 13A(a) of the Securities Ex18 change Act of 1934 and the rules 

19 and regulations of the Securities 

20 and Exchange Commission issued 

21 under such sections shall become 

22 effective on the later of— 

23 ‘‘(I) 90 days after the pub24 lication of the relevant final 

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1 eral Register, or such later 

2 date as may be specified in 

3 the rule or regulation; or 

4 ‘‘(II) the effective date oth5 erwise applicable to such sec6 tions. 

7 ‘‘(iii) SWAP DATA REPOSI8 TORIES.—To facilitate compliance, 

9 before December 31, 2012, with 

10 the regulatory reporting provi11 sions of this section, the Com12 modity Futures Trading Commis13 sion and the Securities and Ex14 change Commission may author15 ize the reporting of swap data 

16 and security-based swap data to 

17 any person then conducting the 

18 business described in section 

19 1a(48) of the Commodity Ex20 change Act (7 U.S.C. 1a(48)) or 

21 section 3(a)(75) of the Securities 

22 Exchange Act of 1934 (15 U.S.C. 

23 78m), respectively, who has— 

24 ‘‘(I) provided notice to the 

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1 tention to register as a swap 

2 data repository or security3 based swap data repository, 

4 as applicable; and 

5 ‘‘(II) made such under6 takings to the relevant Com7 mission as such Commission 

8 has determined to be appro9 priate and in the public inter10 est, consistent with this title.’’. 

11 SEC. 2. IMPLEMENTATION ANALYSIS. 

12 Section 712 of the Dodd-Frank Wall Street 

13 Reform and Consumer Protection Act (Public 

14 Law 111–203), as amended by section 1 of this 

15 Act, is amended by adding at the end the fol16 lowing: 

17 ‘‘(g) IMPLEMENTATION ANALYSIS.—Notwith18 standing any other provision of this title, the 

19 Commodity Futures Trading Commission and 

20 the Securities and Exchange Commission 

21 shall, before prescribing final rules and regu22 lations under this title— 

23 ‘‘(1) conduct public hearings and 

24 roundtables and take testimony of af25 fected market participants, experts and 


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1 other interested parties, and solicit pub2 lic comment, regarding— 

3 ‘‘(A) the time and resources that 

4 would be required of affected parties 

5 in order to develop systems and infra6 structure necessary to comply with 

7 any rules and regulations proposed 

8 or then contemplated by the relevant 

9 Commission; 

10 ‘‘(B) any alternative approaches 

11 capable of accomplishing the relevant 

12 Commission’s rulemaking objectives; 

13 and 

14 ‘‘(C) the time and resources that 

15 would be required of affected parties 

16 in order to develop policies and pro17 cedures designed to comply with any 

18 rules and regulations proposed or 

19 then contemplated by the relevant 

20 Commission, and 

21 ‘‘(2) take such testimony and com22 ment into account in— 

23 ‘‘(A) performing the cost-benefit 

24 analysis required under Federal law 

25 in connection with its adoption of the 


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1 relevant final rules and regulations; 

2 and 

3 ‘‘(B) determining the effective 

4 date of the relevant final rules and 

5 regulations.’’. 

6 SEC. 3. REGULATORY COORDINATION. 

7 (a) COMMODITY FUTURES TRADING COMMIS8 SION.—Section 2(a)(1) of the Commodity Ex9 change Act (7 U.S.C. 2(a)(1)) is amended by 

10 adding at the end the following: 

11 ‘‘(J)(i) Notwithstanding any other 

12 provision of this Act, the Commission 

13 may exempt, in whole or in part, a 

14 person from the registration and re15 lated regulatory requirements of this 

16 Act if and to the extent that the Com17 mission determines that— 

18 ‘‘(I) the person is subject to 

19 comprehensive supervision and 

20 regulation under a regulatory 

21 scheme administered by another 

22 domestic regulatory authority or 

23 the appropriate governmental au24 thorities in the person’s home 


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1 country that is comparable to the 

2 relevant provisions of this Act, 

3 ‘‘(II) adequate information4 sharing arrangements are in ef5 fect between the Commission and 

6 the other regulatory authority, 

7 and 

8 ‘‘(III) the exemption would be 

9 consistent with the public inter10 est. 

11 ‘‘(ii) The Commission may condi12 tion any such exemption on compli13 ance with all or any part of the alter14 nate regulatory scheme, and on such 

15 other terms as the Commission deter16 mines appropriate, and may deem 

17 any noncompliance with the 

18 altrernate regulatory scheme or other 

19 terms a violation of the cor20 responding provisions of this Act.’’. 

21 (b) SECURITIES AND EXCHANGE COMMIS22 SION.—The Securities Exchange Act of 1934 

23 (15 U.S.C. 78m) is amended by inserting after 

24 section 4E the following: 


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1 ‘‘SEC. 4F. EXEMPTIVE AUTHORITY. 

2 ‘‘(a) IN GENERAL.—Notwithstanding any 

3 other provision of this Act, the Commission 

4 may exempt, in whole or in part, a person 

5 from the registration and related regulatory 

6 requirements of this Act if and to the extent 

7 that the Commission determines that— 

8 ‘‘(1) the person is subject to com9 prehensive supervision and regulation 

10 under a regulatory scheme administered 

11 by another regulatory authority or the 

12 appropriate governmental authorities in 

13 the person’s home country that is com14 parable to the relevant provisions of this 

15 Act; 

16 ‘‘(2) adequate information-sharing ar17 rangements are in effect with the other 

18 regulatory authority; and 

19 ‘‘(3) the exemption would be con20 sistent with the protection of investors. 

21 ‘‘(b) CONDITION ON COMPLIANCE.—The Com22 mission may condition any such exemption on 

23 compliance with all or any part of the alter24 nate regulatory scheme, and such other terms 

25 as the Commission determines appropriate, 

26 and may deem any noncompliance with the 


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1 alternate regulatory scheme or other terms a 

2 violation of the corresponding provisions of 

3 this Act.’’. 


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Union Calendar No. 63 

112TH CONGRESS 

1ST SESSION H. R. 1573 

[Report No. 112–109, Parts I and II] 

A BILL 

To facilitate implementation of title VII of the 

and avoid market disruption. Protection Act, promote regulatory coordination, Dodd-Frank Wall Street Reform and Consumer 

JUNE 16, 2011 

Reported from the Committee on Financial Services with 

J

an amendment 

UNE 16, 2011 

Reported from the Committee on Agriculture with an 

printed House on the State of the Union, and ordered to be amendment, committed to the Committee of the Whole 


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