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 Fu-
tures Trading Commission to jointly adopt rules setting forth the applica-
tion 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 juris-
diction 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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Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Swap Jurisdiction Cer-
tainty Act’’. 
SEC. 2. JOINT RULEMAKING ON CROSS-BORDER SWAPS. 
(a) JOINT RULEMAKING REQUIRED.— 
(1) IN GENERAL.—Not later than 180 days 270 
days after the date of enactment of this Act, the Se-
curities and Exchange Commission and the Com-
modity Futures Trading Commission shall jointly 
issue rules setting forth the application of United 
States swaps requirements of the Securities Ex-
change Act of 1934 and the Commodity Exchange 
Act relating to cross-border swaps and security-based 
swaps transacted
between
transactions involving 
U.S. persons and or non-U.S. persons. 
(2) CONSTRUCTION.—The Commissions shall 
jointly issue the rules required under paragraph (1) 
shall be identical, notwithstanding any difference in 
the authorities granted the Commissions in sections 
30(c) and 36(c) section 30(c) of the Securities Ex-
change Act of 1934 (15 U.S.C. 78dd(c); 78mm(c)) 
and section 2(i) of the Commodity Exchange Act (7 
U.S.C. 2(i)), respectively, except to the extent nec-
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essary to accommodate differences in other underlying 
statutory requirements under such Acts, and the rules 
thereunder. 
(b) CONSIDERATIONS.—The Commissions shall joint-
ly 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 security-based swap 
participant under each Commission’s respective Acts 
and the regulations issued under such Acts; 
(2) which of the United States swaps require-
ments shall apply to the swap and security-based 
swap activities of non-U.S. persons, U.S. persons, 
and their branches, agencies, subsidiaries, and affili-
ates 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 require-
ments 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 
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joint rule from the Commissions in accordance with sec-
tion 553 of title 5, United States Code. 
(d) GENERAL APPLICATION TO G20 MEMBER NA-
TIONS 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 pre-
ceding issuance of such rules, or other foreign juris-
diction as jointly determined by the Commissions, 
shall be exempt from United States swaps require-
ments in accordance with the schedule set forth in 
paragraph (2), unless the Commissions jointly deter-
mine that the regulatory requirements of the G20 
member nation such country or administrative region 
or other foreign jurisdiction are not broadly equiva-
lent to United States swaps requirements. 
(2) EFFECTIVE DATE SCHEDULE.—The exemp-
tion described in paragraph (1) and set forth under 
the rules required by this section shall apply to per-
sons or transactions relating to or involving— 
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(A) G20 member nations countries or ad-
ministrative regions described in such para-
graph, or any other foreign jurisdiction as joint-
ly determined by the Commissions, accounting 
for the five largest combined swap and security- 
based swap markets by notional amount in the 
calendar year preceding issuance of such rules, 
on the date on which final rules are issued 
under this section; and 
(B) G20 member nations, or any other for-
eign jurisdiction as jointly determined by the 
Commissions, accounting for the next five larg-
est 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 de-
termined by the Commissions, 18 months after 
the date on which such rules are issued. 
(B) the remaining countries or administra-
tive regions described in such paragraph, and 
any other foreign jurisdiction as jointly deter-
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mined 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 re-
gion described in paragraph (1) or other foreign ju-
risdiction is not broadly equivalent to United States 
swaps requirements and shall jointly determine the 
appropriate application of certain United States 
swap requirements to persons or transactions relat-
ing to or involving that G20 member nation such 
country or administrative region or other foreign ju-
risdiction. Such criteria shall include the scope and 
objectives of the regulatory requirements of a G20 
member nation country or administrative region de-
scribed in paragraph (1) or other foreign jurisdiction 
as well as the effectiveness of the supervisory com-
pliance program administered, and the enforcement 
authority exercised, by such G20 member nation 
country or administrative region or other foreign ju-
risdiction, and such other factors as the Commis-
sions, by rule, jointly determine to be necessary or 
appropriate in the public interest. 
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(4) REQUIRED
ASSESSMENT.—Beginning on 
after the date on which final rules are issued under 
this section, the Commissions shall begin to jointly 
assess the regulatory requirements of G20 member 
nations countries or administrative regions described 
in paragraph (1), as the Commissions jointly deter-
mine appropriate, in accordance with the criteria es-
tablished pursuant to paragraph (3) this subsection, 
to determine if one or more categories of regulatory 
requirements of a G20 member nation such a coun-
try or administrative region or other foreign jurisdic-
tion is not broadly equivalent to United States swaps 
requirements. 
(e) REPORT
TO CONGRESS.—If the Commissions 
make the joint determination described in subsection 
(d)(1) that the regulatory requirements of the G20 mem-
ber nation a country or administrative region described in 
such subsection or other foreign jurisdiction are not broad-
ly equivalent to United States swaps requirements, the 
Commissions shall articulate the basis for such a deter-
mination in a written report transmitted to the Committee 
on Financial Services and the Committee on Agriculture 
of the House of Representatives and the Committee on 
Banking, Housing, and Urban Affairs and the Committee 
on Agriculture, Nutrition, and Forestry of the Senate 
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within 30 days of the determination. The determination 
shall not be effective until the transmission of such report. 
(f) DEFINITIONS.—As used in this Act and for pur-
poses of the rules issued pursuant to this Act, the fol-
lowing definitions apply: 
(1) The term ‘‘G20 member nation’’ refers to a 
nation that is a member nation of the Group of 
Twenty Finance Ministers and Central Bank Gov-
ernors. 
(2) The term ‘‘U.S. person’’ has the meaning 
given such term in section 230.902(k) of title 17, 
Code of Federal Regulations. The Commissions may, 
by rule, jointly revise the definition of U.S. person 
for purposes of the rules required under this section 
as they determine appropriate to more effectively 
carry out the purposes of this Act. 
(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 in-
corporated under the laws of the United 
States or having its principal place of busi-
ness in the United States; 
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