I 

112TH CONGRESS 

1ST SESSION H. R. 2586 

To refine the definition of swap execution facility in the provisions regulating 

swap markets added by title VII of the Dodd-Frank Wall Street Reform 

and Consumer Protection Act. 

IN THE HOUSE OF REPRESENTATIVES 

JULY 19, 2011 

Mr. GARRETT (for himself, Mrs. MALONEY, Mr. HURT, and Mr. MEEKS) 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 refine the definition of swap execution facility in the 

provisions regulating swap markets added by title VII 

of the Dodd-Frank Wall Street Reform and Consumer 

Protection Act. 

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 Execution Facil5 ity Clarification Act’’. 


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1 SEC. 2. DEFINITION OF SWAP EXECUTION FACILITY. 

2 (a) COMMODITY EXCHANGE ACT.—Section 1a(50) of 

3 the Commodity Exchange Act (7 U.S.C. 1a(50)) is amend4 ed— 

5 (1) by striking ‘‘The term’’ and inserting the 

6 following: 

7 ‘‘(A) IN GENERAL.—The term’’; 

8 (2) by redesignating subparagraphs (A) and 

9 (B) as clauses (i) and (ii), respectively; and 

10 (3) by adding at the end the following: 

11 ‘‘(B) INTERPRETATION.—In interpreting 

12 or further defining the term ‘swap execution fa13 cility’, the Commission shall not require a swap 

14 execution facility to— 

15 ‘‘(i) have a minimum number of par16 ticipants receive a bid or offer or respond 

17 to any trading system or platform 

18 functionality; 

19 ‘‘(ii) display or delay bids or offers for 

20 any period of time; 

21 ‘‘(iii) limit the means of interstate 

22 commerce utilized by market participants 

23 to enter into and execute any swap trans24 actions on the trading system or platform; 

25 or 


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1 ‘‘(iv) require bids or offers on one 

2 trading system or platform operated by the 

3 swap execution facility to interact with 

4 bids or offers on another trading system or 

5 platform operated by the swap execution 

6 facility’’. 

7 (b) SECURITIES EXCHANGE ACT OF 1934.—Section 

8 3(a)(77) of the Securities Exchange Act of 1934 (15 

9 U.S.C. 78c(a)(77)) is amended— 

10 (1) by striking ‘‘The term’’ and inserting the 

11 following: 

12 ‘‘(A) IN GENERAL.—The term’’; 

13 (2) by redesignating subparagraphs (A) and 

14 (B) as clauses (i) and (ii), respectively; and 

15 (3) by adding at the end the following: 

16 ‘‘(B) INTERPRETATION.—In interpreting 

17 or further defining the term ‘security-based 

18 swap execution facility’, the Commission shall 

19 not require a security-based swap execution fa20 cility to— 

21 ‘‘(i) have a minimum number of par22 ticipants receive a bid or offer or respond 

23 to any trading system or platform 

24 functionality; 


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•HR 2586 IH

1 ‘‘(ii) display or delay bids or offers for 

2 any period of time; 

3 ‘‘(iii) limit the means of interstate 

4 commerce utilized by market participants 

5 to enter into and execute any security6 based swap transactions on the trading 

7 system or platform; or 

8 ‘‘(iv) require bids or offers on one 

9 trading system or platform operated by the 

10 swap execution facility to interact with 

11 bids or offers on another trading system or 

12 platform operated by the swap execution 

13 facility.’’. 

Æ 


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