IB 

Union Calendar No. 72 

113TH CONGRESS 

1ST SESSION H. R. 1256 

[Report No. 113–103, Parts I and II] 

To direct the Securities and Exchange Commission and the Commodity Futures Trading Commission to jointly adopt rules setting forth the application to cross-border swaps transactions of certain provisions relating 

to swaps that were enacted as part of the Dodd-Frank Wall Street 

Reform and Consumer Protection Act. 

IN THE HOUSE OF REPRESENTATIVES 

MARCH 19, 2013 

Mr. GARRETT (for himself, Mr. CONAWAY, Mr. CARNEY, and Mr. DAVID

SCOTT of Georgia) 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 10, 2013 

Reported from the Committee on Financial Services with amendments 

[Omit the part struck through and insert the part printed in italic] 

JUNE 10, 2013 

Reported from the Committee on Agriculture; committed to the Committee of 

the Whole House on the State of the Union and ordered to be printed 


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A BILL 

To direct the Securities and Exchange Commission and the 

Commodity Futures Trading Commission to jointly adopt 

rules setting forth the application to cross-border swaps 

transactions of certain provisions relating to swaps that 

were enacted as part of the Dodd-Frank Wall Street 

Reform and Consumer Protection Act. 


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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. SHORT TITLE. 

4 This Act may be cited as the ‘‘Swap Jurisdiction Cer5 tainty Act’’. 

6 SEC. 2. JOINT RULEMAKING ON CROSS-BORDER SWAPS. 

7 (a) JOINT RULEMAKING REQUIRED.— 

8 (1) IN GENERAL.—Not later than 180 days 270 

9 days after the date of enactment of this Act, the Se10 curities and Exchange Commission and the Com11 modity Futures Trading Commission shall jointly 

12 issue rules setting forth the application of United 

13 States swaps requirements of the Securities Ex14 change Act of 1934 and the Commodity Exchange 

15 Act relating to cross-border swaps and security-based 

16 swaps transacted between transactions involving 

17 U.S. persons and or non-U.S. persons. 

18 (2) CONSTRUCTION.—The Commissions shall 

19 jointly issue the rules required under paragraph (1) 

20 shall be identical, notwithstanding any difference in 

21 the authorities granted the Commissions in sections 

22 30(c) and 36(c) section 30(c) of the Securities Ex23 change Act of 1934 (15 U.S.C. 78dd(c); 78mm(c)) 

24 and section 2(i) of the Commodity Exchange Act (7 

25 U.S.C. 2(i)), respectively, except to the extent necVerDate Mar 15 2010 21:49 Jun 10, 2013 Jkt 029200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H1256.RH H1256

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1 essary to accommodate differences in other underlying 

2 statutory requirements under such Acts, and the rules 

3 thereunder. 

4 (b) CONSIDERATIONS.—The Commissions shall joint5 ly issue rules that address— 

6 (1) the nature of the connections to the United 

7 States that require a non-U.S. person to register as 

8 a swap dealer, major swap participant, security9 based swap dealer, or major security-based swap 

10 participant under each Commission’s respective Acts 

11 and the regulations issued under such Acts; 

12 (2) which of the United States swaps require13 ments shall apply to the swap and security-based 

14 swap activities of non-U.S. persons, U.S. persons, 

15 and their branches, agencies, subsidiaries, and affili16 ates outside of the United States and the extent to 

17 which such requirements shall apply; and 

18 (3) the circumstances under which a non-U.S. 

19 person in compliance with the regulatory require20 ments of a foreign jurisdiction shall be exempt from 

21 United States swaps requirements. 

22 (c) RULE IN ACCORDANCE WITH APA REQUIRED.— 

23 No guidance, memorandum of understanding, or any such 

24 other agreement may satisfy the requirement to issue a 


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1 joint rule from the Commissions in accordance with sec2 tion 553 of title 5, United States Code. 

3 (d) GENERAL APPLICATION TO G20 MEMBER NA4 TIONS COUNTRIES OR ADMINISTRATIVE REGIONS HAVING

5 NINE LARGEST MARKETS.— 

6 (1) GENERAL APPLICATION.—In issuing rules 

7 under this section, the Commissions shall provide 

8 that a non-U.S. person in compliance with the swaps 

9 regulatory requirements of a G20 member nation 

10 country or administrative region that has one of the 

11 nine largest combined swap and security-based swap 

12 markets by notional amount in the calendar year pre13 ceding issuance of such rules, or other foreign juris14 diction as jointly determined by the Commissions, 

15 shall be exempt from United States swaps require16 ments in accordance with the schedule set forth in 

17 paragraph (2), unless the Commissions jointly deter18 mine that the regulatory requirements of the G20 

19 member nation such country or administrative region 

20 or other foreign jurisdiction are not broadly equiva21 lent to United States swaps requirements. 

22 (2) EFFECTIVE DATE SCHEDULE.—The exemp23 tion described in paragraph (1) and set forth under 

24 the rules required by this section shall apply to per25 sons or transactions relating to or involving— 


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1 (A) G20 member nations countries or ad2 ministrative regions described in such para3 graph, or any other foreign jurisdiction as joint4 ly determined by the Commissions, accounting 

5 for the five largest combined swap and security6 based swap markets by notional amount in the 

7 calendar year preceding issuance of such rules, 

8 on the date on which final rules are issued 

9 under this section; and 

10 (B) G20 member nations, or any other for11 eign jurisdiction as jointly determined by the 

12 Commissions, accounting for the next five larg13 est combined swap and security-based swap 

14 markets by notional amount in the calendar 

15 year preceding issuance of such rules, 1 year 

16 after the date on which such rules are issued; 

17 and 

18 (C) the remaining G20 member nations, 

19 and any other foreign jurisdiction as jointly de20 termined by the Commissions, 18 months after 

21 the date on which such rules are issued. 

22 (B) the remaining countries or administra23 tive regions described in such paragraph, and 

24 any other foreign jurisdiction as jointly deterVerDate Mar 15 2010 21:49 Jun 10, 2013 Jkt 029200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6203 E:\BILLS\H1256.RH H1256

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1 mined by the Commissions, 1 year after the date 

2 on which such rules are issued. 

3 (3) CRITERIA.—In such rules, the Commissions 

4 shall jointly establish criteria for determining that 

5 one or more categories of regulatory requirements of 

6 a G20 member nation country or administrative re7 gion described in paragraph (1) or other foreign ju8 risdiction is not broadly equivalent to United States 

9 swaps requirements and shall jointly determine the 

10 appropriate application of certain United States 

11 swap requirements to persons or transactions relat12 ing to or involving that G20 member nation such 

13 country or administrative region or other foreign ju14 risdiction. Such criteria shall include the scope and 

15 objectives of the regulatory requirements of a G20 

16 member nation country or administrative region de17 scribed in paragraph (1) or other foreign jurisdiction 

18 as well as the effectiveness of the supervisory com19 pliance program administered, and the enforcement 

20 authority exercised, by such G20 member nation 

21 country or administrative region or other foreign ju22 risdiction, and such other factors as the Commis23 sions, by rule, jointly determine to be necessary or 

24 appropriate in the public interest. 


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1 (4) REQUIRED ASSESSMENT.—Beginning on 

2 after the date on which final rules are issued under 

3 this section, the Commissions shall begin to jointly 

4 assess the regulatory requirements of G20 member 

5 nations countries or administrative regions described 

6 in paragraph (1), as the Commissions jointly deter7 mine appropriate, in accordance with the criteria es8 tablished pursuant to paragraph (3) this subsection, 

9 to determine if one or more categories of regulatory 

10 requirements of a G20 member nation such a coun11 try or administrative region or other foreign jurisdic12 tion is not broadly equivalent to United States swaps 

13 requirements. 

14 (e) REPORT TO CONGRESS.—If the Commissions 

15 make the joint determination described in subsection 

16 (d)(1) that the regulatory requirements of the G20 mem17 ber nation a country or administrative region described in 

18 such subsection or other foreign jurisdiction are not broad19 ly equivalent to United States swaps requirements, the 

20 Commissions shall articulate the basis for such a deter21 mination in a written report transmitted to the Committee 

22 on Financial Services and the Committee on Agriculture 

23 of the House of Representatives and the Committee on 

24 Banking, Housing, and Urban Affairs and the Committee 

25 on Agriculture, Nutrition, and Forestry of the Senate 


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1 within 30 days of the determination. The determination 

2 shall not be effective until the transmission of such report. 

3 (f) DEFINITIONS.—As used in this Act and for pur4 poses of the rules issued pursuant to this Act, the fol5 lowing definitions apply: 

6 (1) The term ‘‘G20 member nation’’ refers to a 

7 nation that is a member nation of the Group of 

8 Twenty Finance Ministers and Central Bank Gov9 ernors. 

10 (2) The term ‘‘U.S. person’’ has the meaning 

11 given such term in section 230.902(k) of title 17, 

12 Code of Federal Regulations. The Commissions may, 

13 by rule, jointly revise the definition of U.S. person 

14 for purposes of the rules required under this section 

15 as they determine appropriate to more effectively 

16 carry out the purposes of this Act. 

17 (1) The term ‘‘U.S. person’’— 

18 (A) means— 

19 (i) any natural person resident in the 

20 United States; 

21 (ii) any partnership, corporation, 

22 trust, or other legal person organized or in23 corporated under the laws of the United 

24 States or having its principal place of busi25 ness in the United States; 


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1 (iii) any account (whether discre2 tionary or non-discretionary) of a U.S. per3 son; and 

4 (iv) any other person as the Commis5 sions may further jointly define to more ef6 fectively carry out the purposes of this Act; 

7 and 

8 (B) does not include the International Mon9 etary Fund, the International Bank for Recon10 struction and Development, the Inter-American 

11 Development Bank, the Asian Development 

12 Bank, the African Development Bank, the United 

13 Nations, their agencies and pension plans, and 

14 any other similar international organizations 

15 and their agencies and pension plans. 

16 (3) (2) The term ‘‘United States swaps require17 ments’’ means the provisions relating to swaps and 

18 security-based swaps contained in the Commodity 

19 Exchange Act (7 U.S.C. 1a et seq.) and the Securi20 ties Exchange Act of 1934 (15 U.S.C. 78a et seq.) 

21 that were added by title VII of the Dodd-Frank Wall 

22 Street Reform and Consumer Protection Act (15 

23 U.S.C. 8301 et seq.) and any rules or regulations 

24 prescribed by the Securities and Exchange CommisVerDate Mar 15 2010 21:49 Jun 10, 2013 Jkt 029200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6201 E:\BILLS\H1256.RH H1256

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1 sion and the Commodity Futures Trading Commis2 sion pursuant to such provisions. 

3 (g) CONFORMING AMENDMENTS.— 

4 (1) SECURITIES EXCHANGE ACT OF 1934.— 

5 Section 36(c) of the Securities Exchange Act of 

6 1934 (15 U.S.C. 78mm(c)) is amended by inserting 

7 ‘‘or except as necessary to effectuate the purposes of 

8 the Swap Jurisdiction Certainty Act,’’ after ‘‘to 

9 grant exemptions,’’. 

10 (2) COMMODITY EXCHANGE ACT.—Section 

11 4(c)(1)(A) of the Commodity Exchange Act (7 

12 U.S.C. 6(c)(1)(A)) is amended by inserting ‘‘or ex13 cept as necessary to effectuate the purposes of the 

14 Swap Jurisdiction Certainty Act,’’ after ‘‘to grant 

15 exemptions,’’. 


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Union Calendar No. 72 

113TH CONGRESS 

1ST SESSION H. R. 1256 

[Report No. 113–103, Parts I and II] 

A BILL 

To direct the Securities and Exchange Commission 

form and Consumer Protection Act. acted as part of the Dodd-Frank Wall Street Retain provisions relating to swaps that were encation to cross-border swaps transactions of cersion to jointly adopt rules setting forth the appliand the Commodity Futures Trading CommisJUNE 10, 2013 

Reported from the Committee on Financial Services with 

amendments 

JUNE 10, 2013 

Reported from the Committee on Agriculture; committed 

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


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