Swap Jurisdiction Certainty Act

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. 1. Short title This Act may be cited as the Swap Jurisdiction Certainty Act 2. Joint rulemaking on cross-border swaps (a) Joint rulemaking required (1) In general Not later than 180 days 270 days cross-border transacted between transactions involving and or (2) Construction The Commissions shall jointly issue the shall be identical, sections 30(c) and 36(c) section 30(c) ; 78mm(c) 7 U.S.C. 2(i) , except to the extent necessary to accommodate differences in other underlying statutory requirements under such Acts, and the rules thereunder (b) Considerations The Commissions shall jointly issue rules that address— (1) the nature of the connections to the United States that require a non-U.S. person to register as a swap dealer, major swap participant, security-based swap dealer, or major (2) which of the United States swaps requirements shall apply to the swap and security-based swap activities of non-U.S. persons, U.S. persons, and their branches, agencies, subsidiaries, and affiliates outside of the United States and the extent to which such requirements shall apply; and (3) the circumstances under which a non-U.S. person in compliance with the regulatory requirements of a foreign jurisdiction shall be exempt from United States swaps requirements. (c) Rule in accordance with APA required No guidance, memorandum of understanding, or any such other agreement may satisfy the requirement to issue a joint rule from the Commissions in accordance with section 553 (d) General application to G20 member nations countries or administrative regions having nine largest markets (1) General application In issuing rules under this section, the Commissions shall provide that a non-U.S. person in compliance with the swaps regulatory requirements of a G20 member nation country or administrative region that has one of the nine largest combined swap and security-based swap markets by notional amount in the calendar year preceding issuance of such rules the G20 member nation such country or administrative region (2) Effective date schedule The exemption described in paragraph (1) and set forth under the rules required by this section shall apply to persons or transactions relating to or involving— (A) G20 member nations countries or administrative regions described in such paragraph and (B) G20 member nations, or any other foreign jurisdiction as jointly determined by the Commissions, accounting for the next five largest combined swap and security-based swap markets by notional amount in the calendar year preceding issuance of such rules, 1 year after the date on which such rules are issued; and (C) the remaining G20 member nations, and any other foreign jurisdiction as jointly determined by the Commissions, 18 months after the date on which such rules are issued. (B) the remaining countries or administrative regions described in such paragraph, and any other foreign jurisdiction as jointly determined by the Commissions, 1 year after the date on which such rules are issued. (3) Criteria In such rules, the Commissions shall jointly establish criteria for determining that one or more categories of regulatory requirements of a G20 member nation country or administrative region described in paragraph (1) that G20 member nation such country or administrative region G20 member nation country or administrative region described in paragraph (1) G20 member nation country or administrative region (4) Required assessment Beginning on after G20 member nations countries or administrative regions described in paragraph (1) paragraph (3) this subsection a G20 member nation such a country or administrative region . (e) Report to Congress If the Commissions make the joint determination described in subsection (d)(1) that the regulatory requirements of the G20 member nation a country or administrative region described in such subsection (f) Definitions As used in this Act and for purposes of the rules issued pursuant to this Act, the following definitions apply: (1) The term G20 member nation (2) The term U.S. person (1) The term U.S. person (A) means— (i) any natural person resident in the United States; (ii) any partnership, corporation, trust, or other legal person organized or incorporated under the laws of the United States or having its principal place of business in the United States; (iii) any account (whether discretionary or non-discretionary) of a U.S. person; and (iv) any other person as the Commissions may further jointly define to more effectively carry out the purposes of this Act; and (B) does not include the International Monetary Fund, the International Bank for Reconstruction and Development, the Inter-American Development Bank, the Asian Development Bank, the African Development Bank, the United Nations, their agencies and pension plans, and any other similar international organizations and their agencies and pension plans. (3) (2) The term United States swaps requirements 15 U.S.C. 8301 et seq. (g) Conforming amendments (1) Securities Exchange Act of 1934 Section 36(c) of the Securities Exchange Act of 1934 ( 15 U.S.C. 78mm(c) or except as necessary to effectuate the purposes of the Swap Jurisdiction Certainty Act, to grant exemptions, (2) Commodity Exchange Act Section 4(c)(1)(A) of the Commodity Exchange Act ( 7 U.S.C. 6(c)(1)(A) or except as necessary to effectuate the purposes of the Swap Jurisdiction Certainty Act, to grant exemptions, June 10, 2013 Reported from the Committee on Financial Services June 10, 2013 Reported from the Committee on Agriculture

Summary: (This measure has not been amended since it was reported to the House as amended, Part I, on June 10, 2013. The summary of that version is repeated here.) Swap Jurisdiction Certainty Act - Directs the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) to issue jointly rules governing the application of swaps requirements of the Securities Exchange Act of 1934 and the Commodity Exchange Act, relating to cross-border swaps and security-based swaps transactions involving U.S. persons or non-U.S. persons. Requires such rules to be identical (except to the extent necessary to accommodate differences in other underlying statutory requirements), and to address: (1) the nature of the connections to the United States that require a non-U.S. person to register as a swap dealer, major swap participant, security-based swap dealer, or security-based swap participant under each Commission's respective Acts and related regulations; (2) the extent to which U.S. swaps requirements shall apply to the swap and security-based swap activities of non-U.S. persons, U.S. persons, and their branches, agencies, subsidiaries, and affiliates outside the United States; and (3) the circumstances under which a non-U.S. person in compliance with the regulatory requirements of a foreign jurisdiction shall be exempt from U.S. swaps requirements. Directs the Commissions to exempt from U.S. swaps requirements any non-U.S. person in compliance with the swaps regulatory requirements of a country or administrative region having one of the nine largest combined swap and security-based swap markets by notional amount in the calendar year preceding issuance of such rules (unless the Commissions jointly determine that such requirements are not broadly equivalent to U.S. swaps requirements). Requires the Commissions to report to Congress if they determine jointly that the regulatory requirements of such foreign jurisdictions are not broadly equivalent to U.S. swaps requirements.