IB 

Union Calendar No. 266 

112TH CONGRESS 

2D SESSION H. R. 2586 

[Report No. 112–345, Parts I and II] 

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 

DECEMBER 23, 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] 

DECEMBER 23, 2011 

Referral to the Committee on Agriculture extended for a period ending not 

later than February 1, 2012 

FEBRUARY 1, 2012 

Referral to the Committee on Agriculture extended for a period ending not 

later than February 8, 2012 


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FEBRUARY 8, 2012 

Additional sponsors: Mr. GRIMM, Mr. NEUGEBAUER, Mr. FITZPATRICK, Ms. 

MOORE, and Mr. DOLD

FEBRUARY 8, 2012 

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 July 19, 2011] 

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. 


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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 Execution Facil5 ity Clarification Act’’. 

6 SEC. 2. DEFINITION OF SWAP EXECUTION FACILITY. 

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

8 the Commodity Exchange Act (7 U.S.C. 1a(50)) is amend9 ed— 

10 (1) by striking ‘‘The term’’ and inserting the fol11 lowing: 

12 ‘‘(A) IN GENERAL.—The term’’; 

13 (2) by redesignating subparagraphs (A) and (B) 

14 as clauses (i) and (ii), respectively (and by moving 

15 the margins 2 ems to the right); and 

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

17 ‘‘(B) INTERPRETATION.—In interpreting or 

18 further defining the term ‘swap execution facil19 ity’, the Commission shall not require a swap 

20 execution facility to— 

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

23 any trading system or platform 

24 functionality; 


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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 to 

5 enter into and execute any swap trans6 actions on the trading system or platform; 

7 or 

8 ‘‘(iv) require bids or offers on one trad9 ing system or platform operated by the 

10 swap execution facility to interact with bids 

11 or offers on another trading system or plat12 form operated by the swap execution facil13 ity’’. 

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

15 3(a)(77) of the Securities Exchange Act of 1934 (15 U.S.C. 

16 78c(a)(77)) is amended— 

17 (1) by striking ‘‘The term’’ and inserting the fol18 lowing: 

19 ‘‘(A) IN GENERAL.—The term’’; 

20 (2) by redesignating subparagraphs (A) and (B) 

21 as clauses (i) and (ii), respectively (and by moving 

22 the margins 2 ems to the right); and 

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

24 ‘‘(B) INTERPRETATION.—In interpreting or 

25 further defining the term ‘security-based swap 


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1 execution facility’, the Commission shall not re2 quire a security-based swap execution facility 

3 to— 

4 ‘‘(i) have a minimum number of par5 ticipants receive a bid or offer or respond to 

6 any trading system or platform 

7 functionality; 

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

9 any period of time; 

10 ‘‘(iii) limit the means of interstate 

11 commerce utilized by market participants to 

12 enter into and execute any security-based 

13 swap transactions on the ‘method of trading 

14 functionality; or 

15 ‘‘(iv) require bids or offers on one trad16 ing system or platform operated by the 

17 swap execution facility to interact with bids 

18 or offers on another method of trading 

19 functionality operated by the swap execu20 tion facility.’’. 

21 SECTION 1. SHORT TITLE. 

22 This Act may be cited as the ‘‘Swap Execu23 tion Facility Clarification Act’’. 


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1 SEC. 2. DEFINITION OF SWAP EXECUTION FACILITY. 

2 (a) COMMODITY EXCHANGE ACT.—Section 

3 1a(50) of the Commodity Exchange Act (7 

4 U.S.C. 1a(50)) is amended— 

5 (1) by striking ‘‘The term’’ and insert6 ing the following: 

7 ‘‘(A) IN GENERAL.—The term’’; 

8 (2) by redesignating subparagraphs 

9 (A) and (B) as clauses (i) and (ii), respec10 tively, and increasing the indentation of 

11 each such provision by 2 ems; and 

12 (3) by adding at the end the fol13 lowing: 

14 ‘‘(B) INTERPRETATION.—In inter15 preting or further defining the term 

16 ‘swap execution facility’, the Commis17 sion shall not require a swap execu18 tion facility to— 

19 ‘‘(i) have a minimum number 

20 of participants receive a bid or 

21 offer or respond to any method of 

22 trading functionality; 

23 ‘‘(ii) delay bids or offers for 

24 any period of time; or 

25 ‘‘(iii) limit the means of inter26 state commerce utilized by marVerDate Mar 15 2010 20:37 Feb 09, 2012 Jkt 019200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6202 E:\BILLS\H2586.RH H2586

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1 ket participants to enter into and 

2 execute any swap transactions on 

3 the method of trading 

4 functionality.’’. 

5 (b) SECURITIES EXCHANGE ACT OF 1934.— 

6 Section 3(a)(77) of the Securities Exchange 

7 Act of 1934 (15 U.S.C. 78c(a)(77)), as added by 

8 section 761(a)(6) of the Dodd-Frank Wall 

9 Street Reform and Consumer Protection Act, 

10 is amended— 

11 (1) by striking ‘‘The term’’ and insert12 ing the following: 

13 ‘‘(A) IN GENERAL.—The term’’; 

14 (2) by redesignating subparagraphs 

15 (A) and (B) as clauses (i) and (ii), respec16 tively, and increasing the indentation of 

17 each such provision by 2 ems; and 

18 (3) by adding at the end the fol19 lowing: 

20 ‘‘(B) INTERPRETATION.—In inter21 preting or further defining the term 

22 ‘security-based swap execution facil23 ity’, the Commission shall not require 

24 a security-based swap execution facil25 ity to— 


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1 ‘‘(i) have a minimum number 

2 of participants receive a bid or 

3 offer or respond to any trading 

4 system or platform functionality; 

5 ‘‘(ii) display or delay bids or 

6 offers for any period of time; 

7 ‘‘(iii) limit the means of inter8 state commerce utilized by mar9 ket participants to enter into and 

10 execute any security-based swap 

11 transactions on the trading sys12 tem or platform; or 

13 ‘‘(iv) require bids or offers on 

14 one trading system or platform 

15 operated by the swap execution 

16 facility to interact with bids or of17 fers on another trading system or 

18 platform operated by the swap 

19 execution facility.’’. 

20 SEC. 3. IMPLEMENTATION. 

21 The amendments made by this Act shall 

22 be implemented— 

23 (1) without regard to— 

24 (A) chapter 35 of title 44, United 

25 States Code; and 


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1 (B) the notice and comment provi2 sions of section 553 of title 5, United 

3 States Code; and 

4 (2) through the promulgation of an 

5 interim final rule. 


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Union Calendar No. 266 

112TH CONGRESS 

2D SESSION H. R. 2586 

[Report No. 112–345, Parts I and II] 

A BILL 

To refine the definition of swap execution facility in 

and Consumer Protection Act. title VII of the Dodd-Frank Wall Street Reform the provisions regulating swap markets added by 

FEBRUARY 8, 2012 

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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