```

[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5471 Referred in Senate (RFS)]

113th CONGRESS
  2d Session
                                H. R. 5471

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                            December 3, 2014

     Received; read twice and referred to the Committee on Banking, 
                       Housing, and Urban Affairs

_______________________________________________________________________

                                 AN ACT

 
To amend the Commodity Exchange Act and the Securities Exchange Act of 
 1934 to specify how clearing requirements apply to certain affiliate 
                 transactions, and for other purposes.

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

SECTION 1. TREATMENT OF AFFILIATE TRANSACTIONS.

    (a) In General.--
            (1) Commodity exchange act amendment.--Section 
        2(h)(7)(D)(i) of the Commodity Exchange Act (7 U.S.C. 
        2(h)(7)(D)(i)) is amended to read as follows:
                            ``(i) In general.--An affiliate of a person 
                        that qualifies for an exception under 
                        subparagraph (A) (including affiliate entities 
                        predominantly engaged in providing financing 
                        for the purchase of the merchandise or 
                        manufactured goods of the person) may qualify 
                        for the exception only if the affiliate enters 
                        into the swap to hedge or mitigate the 
                        commercial risk of the person or other 
                        affiliate of the person that is not a financial 
                        entity, provided that if the hedge or 
                        mitigation of such commercial risk is addressed 
                        by entering into a swap with a swap dealer or 
                        major swap participant, an appropriate credit 
                        support measure or other mechanism must be 
                        utilized.''.
            (2) Securities exchange act of 1934 amendment.--Section 
        3C(g)(4)(A) of the Securities Exchange Act of 1934 (15 U.S.C. 
        78c-3(g)(4)(A)) is amended to read as follows:
                    ``(A) In general.--An affiliate of a person that 
                qualifies for an exception under paragraph (1) 
                (including affiliate entities predominantly engaged in 
                providing financing for the purchase of the merchandise 
                or manufactured goods of the person) may qualify for 
                the exception only if the affiliate enters into the 
                security-based swap to hedge or mitigate the commercial 
                risk of the person or other affiliate of the person 
                that is not a financial entity, provided that if the 
                hedge or mitigation such commercial risk is addressed 
                by entering into a security-based swap with a security-
                based swap dealer or major security-based swap 
                participant, an appropriate credit support measure or 
                other mechanism must be utilized.''.
    (b) Applicability of Credit Support Measure Requirement.--The 
requirements in section 2(h)(7)(D)(i) of the Commodity Exchange Act and 
section 3C(g)(4)(A) of the Securities Exchange Act of 1934, as amended 
by subsection (a), requiring that a credit support measure or other 
mechanism be utilized if the transfer of commercial risk referred to in 
such sections is addressed by entering into a swap with a swap dealer 
or major swap participant or a security-based swap with a security-
based swap dealer or major security-based swap participant, as 
appropriate, shall not apply with respect to swaps or security-based 
swaps, as appropriate, entered into before the date of the enactment of 
this Act.

            Passed the House of Representatives December 2, 2014.

            Attest:

                                                 KAREN L. HAAS,

                                                                 Clerk.
```