113TH CONGRESS 
2D SESSION 
H. R. 4413 
AN ACT 
To reauthorize the Commodity Futures Trading Commission, 
to better protect futures customers, to provide end users 
with market certainty, to make basic reforms to ensure 
transparency and accountability at the Commission, to 
help farmers, ranchers, and end users manage risks to 
help keep consumer costs low, and for other purposes.
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 ‘‘Customer Protection 
and End-User Relief Act’’. 
SEC. 2. TABLE OF CONTENTS. 
The table of contents of this Act is as follows: 
Sec. 1. Short title. 
Sec. 2. Table of contents. 
TITLE I—CUSTOMER PROTECTIONS 
Sec. 101. Short title. 
Sec. 102. Enhanced protections for futures customers. 
Sec. 103. Electronic confirmation of customer funds. 
Sec. 104. Notice and certifications providing additional customer protections. 
Sec. 105. Futures commission merchant compliance. 
Sec. 106. Certainty for futures customers and market participants. 
Sec. 107. Study on high-frequency trading. 
TITLE II—COMMODITY FUTURES TRADING COMMISSION 
REFORMS 
Sec. 201. Short title. 
Sec. 202. Extension of operations. 
Sec. 203. Consideration by the Commodity Futures Trading Commission of the 
costs and benefits of its regulations and orders. 
Sec. 204. Division directors. 
Sec. 205. Office of the Chief Economist. 
Sec. 206. Procedures governing actions taken without a commission vote. 
Sec. 207. Strategic technology plan. 
Sec. 208. Internal risk controls. 
Sec. 209. Subpoena duration and renewal. 
Sec. 210. Implementation plan for Commission rulemakings. 
Sec. 211. Applicability of notice and comment requirements of the Administra-
tive Procedure Act to guidance voted on by the Commission. 
Sec. 212. Judicial review of Commission rules. 
Sec. 213. GAO study on adequacy of CFTC resources. 
Sec. 214. Disclosure of required data of other registered entities. 
Sec. 215. GAO study on Commission leases. 
TITLE III—END-USER RELIEF 
Sec. 301. Short title. 
Subtitle A—End-User Exemption From Margin Requirements 
Sec. 311. End-user margin requirements. 
Sec. 312. Implementation.
Subtitle B—Inter-Affiliate Swaps 
Sec. 321. Treatment of affiliate transactions. 
Subtitle C—Indemnification Requirements Related to Swap Data Repositories 
Sec. 331. Indemnification requirements. 
Subtitle D—Relief for Municipal Utilities 
Sec. 341. Transactions with utility special entities. 
Sec. 342. Utility special entity defined. 
Sec. 343. Utility operations-related swap. 
Subtitle E—End-User Regulatory Relief 
Sec. 351. End-users not treated as financial entities. 
Sec. 352. Reporting of illiquid swaps so as to not disadvantage certain non-fi-
nancial end-users. 
Sec. 353. Relief for grain elevator operators, farmers, agricultural counterpar-
ties, and commercial market participants. 
Sec. 354. Relief for end-users who use physical contracts with volumetric 
optionality. 
Sec. 355. Commission vote required before automatic change of swap dealer de 
minimis level. 
Sec. 356. Capital requirements for non-bank swap dealers. 
Sec. 357. Harmonization with the Jumpstart Our Business Startups Act. 
Sec. 358. Bona fide hedge defined to protect end-user risk management needs. 
Sec. 359. Cross-border regulation of derivatives transactions. 
Sec. 360. Report on foreign boards of trade. 
Sec. 361. Treatment of certain funds. 
Subtitle F—Effective Date 
Sec. 371. Effective date. 
TITLE I—CUSTOMER 
PROTECTIONS 
SEC. 101. SHORT TITLE. 
This title may be cited as the ‘‘Futures Customer 
Protection Act’’. 
SEC. 102. ENHANCED PROTECTIONS FOR FUTURES CUS-
TOMERS. 
Section 17 of the Commodity Exchange Act (7 U.S.C. 
21) is amended by adding at the end the following: 
‘‘(s) A registered futures association shall—
‘‘(1) require each member of the association 
that is a futures commission merchant to maintain 
written policies and procedures regarding the main-
tenance of— 
‘‘(A) the residual interest of the member, 
as described in section 1.23 of title 17, Code of 
Federal Regulations, in any customer seg-
regated funds account of the member, as identi-
fied in section 1.20 of such title, and in any for-
eign futures and foreign options customer se-
cured amount funds account of the member, as 
identified in section 30.7 of such title; and 
‘‘(B) the residual interest of the member, 
as described in section 22.2(e)(4) of such title, 
in any cleared swaps customer collateral ac-
count of the member, as identified in section 
22.2 of such title; and 
‘‘(2) establish rules to govern the withdrawal, 
transfer or disbursement by any member of the asso-
ciation, that is a futures commission merchant, of 
the member’s residual interest in customer seg-
regated funds as provided in such section 1.20, in 
foreign futures and foreign options customer secured 
amount funds, identified as provided in such section
30.7, and from a cleared swaps customer collateral, 
identified as provided in such section 22.2.’’. 
SEC. 103. ELECTRONIC CONFIRMATION OF CUSTOMER 
FUNDS. 
Section 17 of the Commodity Exchange Act (7 U.S.C. 
21), as amended by section 102 of this Act, is amended 
by adding at the end the following: 
‘‘(t) A registered futures association shall require any 
member of the association that is a futures commission 
merchant to— 
‘‘(1) use an electronic system or systems to re-
port financial and operational information to the as-
sociation, including information related to customer 
segregated funds, foreign futures and foreign options 
customer secured amount funds accounts, and 
cleared swaps customer collateral, in accordance 
with such terms, conditions, documentation stand-
ards, and regular time intervals as are established 
by the association; 
‘‘(2) instruct each depository, including any 
bank, trust company, derivatives clearing organiza-
tion, or futures commission merchant, holding cus-
tomer segregated funds under section 1.20 of title 
17, Code of Federal Regulations, foreign futures and 
foreign options customer secured amount funds
under section 30.7 of such title, or cleared swap cus-
tomer funds under section 22.2 of such title, to re-
port balances in the futures commission merchant’s 
section 1.20 customer segregated funds, section 30.7 
foreign futures and foreign options customer secured 
amount funds, and section 22.2 cleared swap cus-
tomer funds, to the registered futures association or 
another party designated by the registered futures 
association, in the form, manner, and interval pre-
scribed by the registered futures association; and 
‘‘(3) hold section 1.20 customer segregated 
funds, section 30.7 foreign futures and foreign op-
tions customer secured amount funds and section 
22.2 cleared swaps customer funds in a depository 
that reports the balances in these accounts of the fu-
tures commission merchant held at the depository to 
the registered futures association or another party 
designated by the registered futures association in 
the form, manner, and interval prescribed by the 
registered futures association.’’. 
SEC. 104. NOTICE AND CERTIFICATIONS PROVIDING ADDI-
TIONAL CUSTOMER PROTECTIONS. 
Section 17 of the Commodity Exchange Act (7 U.S.C. 
21), as amended by sections 102 and 103 of this Act, is 
amended by adding at the end the following:
‘‘(u) A futures commission merchant that has ad-
justed net capital in an amount less than the amount re-
quired by regulations established by the Commission or 
a self-regulatory organization of which the futures com-
mission merchant is a member shall immediately notify 
the Commission and the self-regulatory organization of 
this occurrence. 
‘‘(v) A futures commission merchant that does not 
hold a sufficient amount of funds in segregated accounts 
for futures customers under section 1.20 of title 17, Code 
of Federal Regulations, in foreign futures and foreign op-
tions secured amount accounts for foreign futures and for-
eign options secured amount customers under section 30.7 
of such title, or in segregated accounts for cleared swap 
customers under section 22.2 of such title, as required by 
regulations established by the Commission or a self-regu-
latory organization of which the futures commission mer-
chant is a member, shall immediately notify the Commis-
sion and the self-regulatory organization of this occur-
rence. 
‘‘(w) Within such time period established by the Com-
mission after the end of each fiscal year, a futures com-
mission merchant shall file with the Commission a report 
from the chief compliance officer of the futures commis-
sion merchant containing an assessment of the internal
compliance programs of the futures commission mer-
chant.’’. 
SEC. 105. FUTURES COMMISSION MERCHANT COMPLIANCE. 
(a) IN GENERAL.—Section 4d(a) of the Commodity 
Exchange Act (7 U.S.C. 6d(a)) is amended— 
(1) by redesignating paragraphs (1) and (2) as 
subparagraphs (A) and (B); 
(2) by inserting ‘‘(1)’’ before ‘‘It shall be unlaw-
ful’’; and 
(3) by adding at the end the following new 
paragraph: 
‘‘(2) Any rules or regulations requiring a futures 
commission merchant to maintain a residual interest in 
accounts held for the benefit of customers in amounts at 
least sufficient to exceed the sum of all uncollected margin 
deficits of such customers shall provide that a futures 
commission merchant shall meet its residual interest re-
quirement as of the end of each business day calculated 
as of the close of business on the previous business day.’’. 
(b) CONFORMING AMENDMENT.—Section 4d(h) of 
the Commodity Exchange Act (7 U.S.C. 6d(h)) is amend-
ed by striking ‘‘Notwithstanding subsection (a)(2)’’ and 
inserting ‘‘Notwithstanding subsection (a)(1)(B)’’.
SEC. 106. CERTAINTY FOR FUTURES CUSTOMERS AND MAR-
KET PARTICIPANTS. 
Section 20(a) of the Commodity Exchange Act (7 
U.S.C. 24(a)) is amended— 
(1) by striking ‘‘and’’ at the end of paragraph 
(4); 
(2) by striking the period at the end of para-
graph (5) and inserting ‘‘; and’’; and 
(3) by adding at the end the following: 
‘‘(6) that cash, securities, or other property of 
the estate of a commodity broker, including the 
trading or operating accounts of the commodity 
broker and commodities held in inventory by the 
commodity broker, shall be included in customer 
property, subject to any otherwise unavoidable secu-
rity interest, or otherwise unavoidable contractual 
offset or netting rights of creditors (including rights 
set forth in a rule or bylaw of a derivatives clearing 
organization or a clearing agency) in respect of such 
property, but only to the extent that the property 
that is otherwise customer property is insufficient to 
satisfy the net equity claims of public customers (as 
such term may be defined by the Commission by 
rule or regulation) of the commodity broker.’’.
SEC. 107. STUDY ON HIGH-FREQUENCY TRADING. 
(a) IN GENERAL.—Not later than one year after the 
date of the enactment of this Act, the Commodity Futures 
Trading Commission shall submit to the Committee on 
Agriculture of the House of Representatives and the Com-
mittee on Agriculture, Nutrition, and Forestry of the Sen-
ate a report examining the effect of the practice commonly 
referred to as high-frequency trading on markets under 
its jurisdiction. 
(b) SPECIFIC AREAS EXAMINED
IN REPORT.—In 
preparing the report submitted under subsection (a), the 
Commission shall particularly examine each of the fol-
lowing areas: 
(1) The technology, personnel, or other re-
sources the Commission may require for purposes of 
monitoring the effect of high-frequency trading. 
(2) The role such trading plays in providing 
market liquidity. 
(3) Whether the technology creates discrep-
ancies in the marketplace between market partici-
pants. 
(4) Whether the existing authority of the Com-
mission with respect to such trading is sufficient to 
meet the Commission’s mission to— 
(A) protect market participants and the 
public from fraud, manipulation, abusive prac-
tices, and systemic risk related to derivatives; 
and 
(B) foster transparent, open, competitive, 
and financially sound markets. 
(5) Whether such trading increases market vol-
atility, including short term market swings. 
TITLE II—COMMODITY FUTURES 
TRADING 
COMMISSION 
RE-
FORMS 
SEC. 201. SHORT TITLE. 
This title may be cited as the ‘‘Commodity Futures 
Trading Commission Reform Act’’. 
SEC. 202. EXTENSION OF OPERATIONS. 
Section 12(d) of the Commodity Exchange Act (7 
U.S.C. 16(d)) is amended by striking ‘‘2013’’ and insert-
ing ‘‘2018’’. 
SEC. 203. CONSIDERATION BY THE COMMODITY FUTURES 
TRADING COMMISSION OF THE COSTS AND 
BENEFITS OF ITS REGULATIONS AND OR-
DERS. 
Section 15(a) of the Commodity Exchange Act (7 
U.S.C. 19(a)) is amended— 
(1) by striking paragraphs (1) and (2) and in-
serting the following:
‘‘(1) IN GENERAL.—Before promulgating a reg-
ulation under this Act or issuing an order (except as 
provided in paragraph (3)), the Commission, 
through the Office of the Chief Economist, shall as-
sess and publish in the regulation or order the costs 
and benefits, both qualitative and quantitative, of 
the proposed regulation or order, and the proposed 
regulation or order shall state its statutory justifica-
tion. 
‘‘(2) CONSIDERATIONS.—In making a reasoned 
determination of the costs and the benefits, the 
Commission shall evaluate— 
‘‘(A) considerations of protection of market 
participants and the public; 
‘‘(B) considerations of the efficiency, com-
petitiveness, and financial integrity of futures 
and swaps markets; 
‘‘(C) considerations of the impact on mar-
ket liquidity in the futures and swaps markets; 
‘‘(D) considerations of price discovery; 
‘‘(E) considerations of sound risk manage-
ment practices; 
‘‘(F) available alternatives to direct regula-
tion;
‘‘(G) the degree and nature of the risks 
posed by various activities within the scope of 
its jurisdiction; 
‘‘(H) the costs of complying with the pro-
posed regulation or order by all regulated enti-
ties, including a methodology for quantifying 
the costs (recognizing that some costs are dif-
ficult to quantify); 
‘‘(I) whether the proposed regulation or 
order is inconsistent, incompatible, or duplica-
tive of other Federal regulations or orders; 
‘‘(J) whether, in choosing among alter-
native regulatory approaches, those approaches 
maximize net benefits (including potential eco-
nomic and other benefits, distributive impacts, 
and equity); and 
‘‘(K) other public interest considerations.’’; 
and 
(2) by adding at the end the following: 
‘‘(4) JUDICIAL REVIEW.—Notwithstanding sec-
tion 24(d), a court shall affirm a Commission as-
sessment of costs and benefits under this subsection, 
unless the court finds the assessment to be an abuse 
of discretion.’’.
SEC. 204. DIVISION DIRECTORS. 
Section 2(a)(6)(C) of the Commodity Exchange Act 
(7 U.S.C. 2(a)(6)(C)) is amended by inserting ‘‘, and the 
heads of the units shall serve at the pleasure of the Com-
mission, report directly to the Commission, and perform 
such functions and duties as the Commission may pre-
scribe’’ before the period. 
SEC. 205. OFFICE OF THE CHIEF ECONOMIST. 
(a) IN GENERAL.—Section 2(a) of the Commodity 
Exchange Act (7 U.S.C. 2(a)) is amended by adding at 
the end the following: 
‘‘(17) OFFICE OF THE CHIEF ECONOMIST.— 
‘‘(A) ESTABLISHMENT.—There is estab-
lished in the Commission the Office of the Chief 
Economist. 
‘‘(B) HEAD.—The Office of the Chief 
Economist shall be headed by the Chief Econo-
mist, who shall be appointed by the Commission 
and serve at the pleasure of the Commission. 
‘‘(C) FUNCTIONS.—The Chief Economist 
shall report directly to the Commission and per-
form such functions and duties as the Commis-
sion may prescribe. 
‘‘(D) PROFESSIONAL
STAFF.—The Com-
mission shall appoint such other economists as 
may be necessary to assist the Chief Economist
in performing such economic analysis, regu-
latory cost-benefit analysis, or research as the 
Commission may direct.’’. 
(b) CONFORMING AMENDMENT.—Section 2(a)(6)(A) 
of such Act (7 U.S.C. 2(a)(6)(A)) is amended by striking 
‘‘(4) and (5)’’ and inserting ‘‘(4), (5), and (17)’’. 
SEC. 206. PROCEDURES GOVERNING ACTIONS TAKEN WITH-
OUT A COMMISSION VOTE. 
Section 2(a)(12) of the Commodity Exchange Act (7 
U.S.C. 2(a)(12)) is amended— 
(1) by striking ‘‘(12) The’’ and inserting the 
following: 
‘‘(12) RULES AND REGULATIONS.— 
‘‘(A) IN GENERAL.—Subject to the other 
provisions of this paragraph, the’’; and 
(2) by adding after and below the end the fol-
lowing new subparagraph: 
‘‘(B) NOTICE TO COMMISSION.—The Com-
mission shall develop and publish internal pro-
cedures governing the issuance by any division 
or office of the Commission of any response to 
a formal, written request or petition from any 
member of the public for an exemptive, a no-ac-
tion, or an interpretive letter and such proce-
dures shall provide that the Commission be pro-
vided with the final version of the matter to be 
issued with sufficient notice to thoroughly re-
view the matter prior to its issuance.’’. 
SEC. 207. STRATEGIC TECHNOLOGY PLAN. 
Section 2(a) of the Commodity Exchange Act (7 
U.S.C. 2(a)), as amended by section 204(a) of this Act, 
is amended by adding at the end the following: 
‘‘(18) STRATEGIC TECHNOLOGY PLAN.— 
‘‘(A) IN
GENERAL.—Every 5 years, the 
Commission shall develop and submit to the 
Committee on Agriculture of the House of Rep-
resentatives and the Committee on Agriculture, 
Nutrition, and Forestry of the Senate a detailed 
plan focused on the acquisition and use of tech-
nology by the Commission. 
‘‘(B) CONTENTS.—The plan shall— 
‘‘(i) include for each related division 
or office a detailed technology strategy fo-
cused on market surveillance and risk de-
tection, market data collection, aggrega-
tion, interpretation, standardization, har-
monization, 
normalization, 
validation, 
streamlining or other data analytic proc-
esses, and internal management and pro-
tection of data collected by the Commis-
sion, including a detailed accounting of 
how the funds provided for technology will 
be used and the priorities that will apply in 
the use of the funds; and 
‘‘(ii) set forth annual goals to be ac-
complished and annual budgets needed to 
accomplish the goals.’’. 
SEC. 208. INTERNAL RISK CONTROLS. 
(a) IN GENERAL.—Section 2(a)(12) of the Com-
modity Exchange Act (7 U.S.C. 2(a)(12)), as amended by 
section 206 of this Act, is amended by adding at the end 
the following: 
‘‘(C) INTERNAL
RISK
CONTROLS.—The 
Commission, in consultation with the Chief 
Economist, shall develop comprehensive internal 
risk control mechanisms to safeguard and gov-
ern the storage of all market data by the Com-
mission, all market data sharing agreements of 
the Commission, and all academic research per-
formed at the Commission using market data.’’. 
(b) REPORTS TO THE CONGRESS.— 
(1) CONTENT.—The Commission shall submit 
to the Committee on Agriculture of the House of 
Representatives and the Committee on Agriculture, 
Nutrition, and Forestry of the Senate 2 reports on
the progress made in implementing the internal risk 
controls provided for in section 2(a)(12)(C) of the 
Commodity Exchange Act. 
(2) TIMING.—The Commission shall submit the 
1st report required by paragraph (1) within 60 days 
after the date of the enactment of this Act, and the 
2nd such report within 120 days after such date of 
enactment. 
SEC. 209. SUBPOENA DURATION AND RENEWAL. 
Section 6(c)(5) of the Commodity Exchange Act (7 
U.S.C. 9(5)) is amended— 
(1) by striking ‘‘(5) SUBPOENA.—For’’ and in-
serting the following: 
‘‘(5) SUBPOENA.— 
‘‘(A) IN GENERAL.—For’’; and 
(2) by adding after and below the end the fol-
lowing: 
‘‘(B) CONTENT OF ORDER.—An order of 
the Commission authorizing the issuance of a 
subpoena in an investigation shall state in good 
faith— 
‘‘(i) the legitimate purpose of the in-
vestigation; and
‘‘(ii) the information sought by any 
subpoena order that will be reasonably rel-
evant to that purpose. 
‘‘(C) DURATION AND RENEWAL.—An order 
issued under this paragraph shall not be for an 
indefinite duration and may be renewed only by 
Commission action.’’. 
SEC. 
210. 
IMPLEMENTATION 
PLAN 
FOR 
COMMISSION 
RULEMAKINGS. 
Section 2(a)(12) of the Commodity Exchange Act (7 
U.S.C. 2(a)(12)), as amended by sections 206 and 208(a) 
of this Act, is amended by adding at the end the following: 
‘‘(D) REQUIREMENT TO PUBLISH IMPLE-
MENTATION PLAN FOR COMMISSION RULES.— 
The Commission shall direct its staff to develop 
and publish in any proposed rule a plan for— 
‘‘(i) when and for how long the pro-
posed rule will be subject to public com-
ment; and 
‘‘(ii) by when compliance with the 
final rule will be required.’’.
SEC. 211. APPLICABILITY OF NOTICE AND COMMENT RE-
QUIREMENTS OF THE ADMINISTRATIVE PRO-
CEDURE ACT TO GUIDANCE VOTED ON BY 
THE COMMISSION. 
Section 2(a)(12) of the Commodity Exchange Act (7 
U.S.C. 2(a)(12)), as amended by sections 206, 208(a), 
and 210 of this Act, is amended by adding at the end 
the following: 
‘‘(E) APPLICABILITY OF NOTICE AND COM-
MENT RULES TO GUIDANCE VOTED ON BY THE 
COMMISSION.—The notice and comment re-
quirements of chapter 5 of title 5, United 
States Code, shall also apply with respect to 
any guidance issued by the Commission.’’. 
SEC. 212. JUDICIAL REVIEW OF COMMISSION RULES. 
The Commodity Exchange Act (7 U.S.C. 1 et seq.) 
is amended by adding at the end the following: 
‘‘SEC. 24. JUDICIAL REVIEW OF COMMISSION RULES. 
‘‘(a) A person adversely affected by a rule of the 
Commission promulgated under this Act may obtain re-
view of the rule in the United States Court of Appeals 
for the District of Columbia Circuit or the United States 
Court of Appeals for the circuit where the party resides 
or has the principal place of business, by filing in the 
court, within 60 days after publication in the Federal Reg-
ister of the entry of the rule, a written petition requesting 
that the rule be set aside. 
‘‘(b) A copy of the petition shall be transmitted forth-
with by the clerk of the court to an officer designated by 
the Commission for that purpose. Thereupon the Commis-
sion shall file in the court the record on which the rule 
complained of is entered, as provided in section 2112 of 
title 28, United States Code, and the Federal Rules of 
Appellate Procedure. 
‘‘(c) On the filing of the petition, the court has juris-
diction, which becomes exclusive on the filing of the 
record, to affirm and enforce or to set aside the rule. 
‘‘(d) The court shall affirm and enforce the rule un-
less the Commission’s action in promulgating the rule is 
found to be arbitrary, capricious, an abuse of discretion, 
or otherwise not in accordance with law; contrary to con-
stitutional right, power, privilege, or immunity; in excess 
of statutory jurisdiction, authority, or limitations, or short 
of statutory right; or without observance of procedure re-
quired by law.’’. 
SEC. 213. GAO STUDY ON ADEQUACY OF CFTC RESOURCES. 
(a) STUDY.—The Comptroller General of the United 
States shall conduct a study of the resources of the Com-
modity Futures Trading Commission that—
(1) assesses whether the resources of the Com-
mission are sufficient to enable the Commission to 
effectively carry out the duties of the Commission; 
and 
(2) examines the prior expenditures of the Com-
mission on hardware, software, and analytical proc-
esses designed to protect customers in the areas 
of— 
(A) market surveillance and risk detection; 
and 
(B) market data collection, aggregation, 
interpretation, standardization, harmonization, 
normalization, validation, and streamlining or 
other data analytic processes. 
(b) REPORT.—Not later than 180 days after the date 
of the enactment of this Act, the Comptroller General of 
the United States shall submit to the Committee on Agri-
culture of the House of Representatives and the Com-
mittee on Agriculture, Nutrition, and Forestry of the Sen-
ate a report that contains the results of the study. 
SEC. 214. DISCLOSURE OF REQUIRED DATA OF OTHER REG-
ISTERED ENTITIES. 
Section 8 of the Commodity Exchange Act (7 U.S.C. 
12) is amended by adding at the end the following:
‘‘(j) DISCLOSURE OF REQUIRED DATA OF OTHER 
REGISTERED ENTITIES.— 
‘‘(1) Except as provided in this subsection, the 
Commission may not be compelled to disclose any 
proprietary information provided to the Commission, 
except that nothing in this subsection— 
‘‘(A) authorizes the Commission to with-
hold information from Congress, upon an agree-
ment of confidentiality; or 
‘‘(B) prevents the Commission from— 
‘‘(i) complying with a request for in-
formation from any other Federal depart-
ment or agency, any State or political sub-
division thereof, or any foreign government 
or any department, agency, or political 
subdivision thereof requesting the report or 
information for purposes within the scope 
of its jurisdiction, upon an agreement of 
confidentiality to protect the information 
in a manner consistent with this paragraph 
and subsection (e); or 
‘‘(ii) a disclosure made pursuant to a 
court order in connection with an adminis-
trative or judicial proceeding brought 
under this Act, in any receivership pro-
ceeding involving a receiver appointed in a 
judicial proceeding brought under this Act, 
or in any bankruptcy proceeding in which 
the Commission has intervened or in which 
the Commission has the right to appear 
and be heard under title 11 of the United 
States Code. 
‘‘(2) Any proprietary information of a com-
modity trading advisor or commodity pool operator 
ascertained by the Commission in connection with 
Form CPO–PQR, Form CTA–PR, and any suc-
cessor forms thereto, shall be subject to the same 
limitations on public disclosure, as any facts 
ascertained during an investigation, as provided by 
subsection (a); provided, however, that the Commis-
sion shall not be precluded from publishing aggre-
gate information compiled from such forms, to the 
extent such aggregate information does not identify 
any individual person or firm, or such person’s pro-
prietary information. 
‘‘(3) For purposes of section 552 of title 5, 
United States Code, this subsection, and the infor-
mation contemplated herein, shall be considered a 
statute described in subsection (b)(3)(B) of such 
section 552.
‘‘(4) For purposes of the definition of propri-
etary information in paragraph (5), the records and 
reports of any client account or commodity pool to 
which a commodity trading advisor or commodity 
pool operator registered under this title provides 
services that are filed with the Commission on Form 
CPO–PQR, CTA–PR, and any successor forms 
thereto, shall be deemed to be the records and re-
ports of the commodity trading advisor or com-
modity pool operator, respectively. 
‘‘(5) For purposes of this section, proprietary 
information of a commodity trading advisor or com-
modity pool operator includes sensitive, non-public 
information regarding— 
‘‘(A) the commodity trading advisor, com-
modity pool operator or the trading strategies 
of the commodity trading advisor or commodity 
pool operator; 
‘‘(B) analytical or research methodologies 
of a commodity trading advisor or commodity 
pool operator; 
‘‘(C) trading data of a commodity trading 
advisor or commodity pool operator; and
‘‘(D) computer hardware or software con-
taining intellectual property of a commodity 
trading advisor or commodity pool operator;’’. 
SEC. 215. GAO STUDY ON COMMISSION LEASES. 
(a) The Comptroller General of the United States 
shall, in consultation with the Commodity Futures Trad-
ing Commission Inspector General, conduct a study and 
publish a report regarding achieving efficiencies in leasing 
and rental costs at the Commodity Futures Trading Com-
mission. 
(b) The report shall be published within 90 days after 
the date of the enactment of this Act regarding achieving 
efficiencies in leasing and rental costs of buildings occu-
pied by the Commodity Futures Trading Commission, and 
shall include recommendations to the Chairman of the 
Commodity Futures Trading Commission and the con-
gressional committees of jurisdiction regarding the fol-
lowing: 
(1) Average occupancy rates and leasing costs 
of buildings across the Federal Government com-
pared to those currently in effect with respect to 
buildings and locations occupied by the Commodity 
Futures Trading Commission. 
(2) Changes to leasing authority that could 
achieve efficiencies, including the revocation of inde-
pendent leasing authority and transfer of authority 
to the Administrator of General Services. 
(3) The recommendations and responses con-
tained in the report by the Commodity Futures 
Trading Commission Inspector General, dated June 
4, 2014. 
(4) Other related recommendations that would 
achieve efficiencies in leasing and rental costs of 
buildings currently occupied by the Commodity Fu-
tures Trading Commission. 
(5) Is the Commodity Futures Trading Com-
mission violating any laws, including the Anti-Defi-
ciency Act, by entering into these leases, particularly 
those with more than 5-year terms, and if so, how 
they can avoid violating Federal law in the future. 
(c) The Chairman of the Commodity Futures Trad-
ing Commission shall report to the congressional commit-
tees of jurisdiction within 60 days after receipt of the re-
port as to whether the Chairman accepts or rejects each 
of the recommendations of the Comptroller General, and 
an explanation for each decision. 
TITLE III—END-USER RELIEF 
SEC. 301. SHORT TITLE. 
This title may be cited as the ‘‘End-User Relief and 
Market Certainty Act’’.
Subtitle A—End-User Exemption 
From Margin Requirements 
SEC. 311. END-USER MARGIN REQUIREMENTS. 
(a) COMMODITY EXCHANGE ACT AMENDMENT.— 
Section 4s(e) of the Commodity Exchange Act (7 U.S.C. 
6s(e)) is amended by adding at the end the following new 
paragraph: 
‘‘(4) 
APPLICABILITY
WITH
RESPECT
TO 
COUNTERPARTIES.—The requirements of paragraphs 
(2)(A)(ii) and (2)(B)(ii), including the initial and 
variation margin requirements imposed by rules 
adopted pursuant to paragraphs (2)(A)(ii) and 
(2)(B)(ii), shall not apply to a swap in which a 
counterparty qualifies for an exception under section 
2(h)(7)(A), or an exemption issued under section 
4(c)(1) from the requirements of section 2(h)(1)(A) 
for cooperative entities as defined in such exemption, 
or satisfies the criteria in section 2(h)(7)(D).’’. 
(b) SECURITIES EXCHANGE ACT OF 1934 AMEND-
MENT.—Section 15F(e) of the Securities Exchange Act of 
1934 (15 U.S.C. 78o–10(e)) is amended by adding at the 
end the following new paragraph: 
‘‘(4) 
APPLICABILITY
WITH
RESPECT
TO 
COUNTERPARTIES.—The requirements of paragraphs 
(2)(A)(ii) and (2)(B)(ii) shall not apply to a secu-
rity-based swap in which a counterparty qualifies for 
an exception under section 3C(g)(1) or satisfies the 
criteria in section 3C(g)(4).’’. 
SEC. 312. IMPLEMENTATION. 
The amendment made to the Commodity Exchange 
Act by this subtitle shall be implemented— 
(1) without regard to— 
(A) chapter 35 of title 44, United States 
Code; and 
(B) the notice and comment provisions of 
section 553 of title 5, United States Code; 
(2) through the promulgation of an interim 
final rule, pursuant to which public comment will be 
sought before a final rule is issued; and 
(3) such that paragraph (1) shall apply solely 
to changes to rules and regulations, or proposed 
rules and regulations, that are limited to and di-
rectly a consequence of the amendment. 
Subtitle B—Inter-Affiliate Swaps 
SEC. 321. TREATMENT OF AFFILIATE TRANSACTIONS. 
(a) IN GENERAL.— 
(1) 
COMMODITY
EXCHANGE
ACT
AMEND-
MENT.—Section 2(h)(7)(D)(i) of the Commodity Ex-
change 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 pro-
viding 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 transfer of commercial risk is ad-
dressed by entering into a swap with a 
swap dealer or major swap participant, an 
appropriate credit support measure or 
other mechanism is 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 per-
son that qualifies for an exception under para-
graph (1) (including affiliate entities predomi-
nantly engaged in providing financing for the 
purchase of the merchandise or manufactured
goods of the person) may qualify for the excep-
tion 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 per-
son that is not a financial entity, provided that 
if the transfer of 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 is uti-
lized.’’. 
(b) APPLICABILITY OF CREDIT SUPPORT MEASURE 
REQUIREMENT.—Notwithstanding section 371 of this Act, 
the requirements in section 2(h)(7)(D)(i) of the Com-
modity Exchange Act and section 3C(g)(4)(A) of the Se-
curities 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.
Subtitle 
C—Indemnification 
Re-
quirements 
Related 
to 
Swap 
Data Repositories 
SEC. 331. INDEMNIFICATION REQUIREMENTS. 
(a) DERIVATIVES CLEARING ORGANIZATIONS.—Sec-
tion 5b(k)(5) of the Commodity Exchange Act (7 U.S.C. 
7a–1(k)(5)) is amended to read as follows: 
‘‘(5) CONFIDENTIALITY
AGREEMENT.—Before 
the Commission may share information with any en-
tity described in paragraph (4), the Commission 
shall receive a written agreement from each entity 
stating that the entity shall abide by the confiden-
tiality requirements described in section 8 relating to 
the information on swap transactions that is pro-
vided.’’. 
(b) SWAP DATA REPOSITORIES.—Section 21(d) of 
such Act (7 U.S.C. 24a(d)) is amended to read as follows: 
‘‘(d) CONFIDENTIALITY AGREEMENT.—Before the 
swap data repository may share information with any enti-
ty described in subsection (c)(7), the swap data repository 
shall receive a written agreement from each entity stating 
that the entity shall abide by the confidentiality require-
ments described in section 8 relating to the information 
on swap transactions that is provided.’’.
(c) SECURITY-BASED SWAP DATA REPOSITORIES.— 
Section 13(n)(5)(H) of the Securities Exchange Act of 
1934 (15 U.S.C. 78m(n)(5)(H)) is amended to read as 
follows: 
‘‘(H) CONFIDENTIALITY
AGREEMENT.— 
Before the security-based swap data repository 
may share information with any entity de-
scribed in subparagraph (G), the security-based 
swap data repository shall receive a written 
agreement from each entity stating that the en-
tity shall abide by the confidentiality require-
ments described in section 24 relating to the in-
formation on security-based swap transactions 
that is provided.’’. 
Subtitle D—Relief for Municipal 
Utilities 
SEC. 341. TRANSACTIONS WITH UTILITY SPECIAL ENTITIES. 
Section 1a(49) of the Commodity Exchange Act (7 
U.S.C. 1a(49)) is amended by adding at the end the fol-
lowing: 
‘‘(E) CERTAIN
TRANSACTIONS
WITH
A 
UTILITY SPECIAL ENTITY.— 
‘‘(i) Transactions in utility operations- 
related swaps shall be reported pursuant to 
section 4r.
‘‘(ii) In making a determination to ex-
empt pursuant to subparagraph (D), the 
Commission shall treat a utility operations- 
related swap entered into with a utility 
special entity, as defined in section 
4s(h)(2)(D), as if it were entered into with 
an entity that is not a special entity, as de-
fined in section 4s(h)(2)(C).’’. 
SEC. 342. UTILITY SPECIAL ENTITY DEFINED. 
Section 4s(h)(2) of the Commodity Exchange Act (7 
U.S.C. 6s(h)(2)) is amended by adding at the end the fol-
lowing: 
‘‘(D) UTILITY SPECIAL ENTITY.—For pur-
poses of this Act, the term ‘utility special enti-
ty’ means a special entity, or any instrumen-
tality, department, or corporation of or estab-
lished by a State or political subdivision of a 
State, that— 
‘‘(i) owns or operates an electric or 
natural gas facility or an electric or nat-
ural gas operation; 
‘‘(ii) supplies natural gas and or elec-
tric energy to another utility special entity; 
‘‘(iii) has public service obligations 
under Federal, State, or local law or regu-
lation to deliver electric energy or natural 
gas service to customers; or 
‘‘(iv) is a Federal power marketing 
agency, as defined in section 3 of the Fed-
eral Power Act.’’. 
SEC. 343. UTILITY OPERATIONS-RELATED SWAP. 
(a) 
SWAP
FURTHER
DEFINED.—Section 
1a(47)(A)(iii) of the Commodity Exchange Act (7 U.S.C. 
1a(47)(A)(iii)) is amended— 
(1) by striking ‘‘and’’ at the end of subclause 
(XXI); 
(2) by adding ‘‘and’’ at the end of subclause 
(XXII); and 
(3) by adding at the end the following: 
‘‘(XXIII) a utility operations-re-
lated swap;’’. 
(b) UTILITY
OPERATIONS-RELATED
SWAP
DE-
FINED.—Section 1a of such Act (7 U.S.C. 1a) is amended 
by adding at the end the following: 
‘‘(52) UTILITY OPERATIONS-RELATED SWAP.— 
The term ‘utility operations-related swap’ means a 
swap that— 
‘‘(A) is entered into to hedge or mitigate a 
commercial risk;
‘‘(B) is not a contract, agreement, or 
transaction based on, derived on, or ref-
erencing— 
‘‘(i) an interest rate, credit, equity, or 
currency asset class; or 
‘‘(ii) a metal, agricultural commodity, 
or crude oil or gasoline commodity of any 
grade, except as used as fuel for electric 
energy generation; and 
‘‘(C) is associated with— 
‘‘(i) the generation, production, pur-
chase, or sale of natural gas or electric en-
ergy, the supply of natural gas or electric 
energy to a utility, or the delivery of nat-
ural gas or electric energy service to utility 
customers; 
‘‘(ii) all fuel supply for the facilities or 
operations of a utility; 
‘‘(iii) compliance with an electric sys-
tem reliability obligation; 
‘‘(iv) compliance with an energy, en-
ergy efficiency, conservation, or renewable 
energy or environmental statute, regula-
tion, or government order applicable to a 
utility; or
‘‘(v) any other electric energy or nat-
ural gas swap to which a utility is a 
party.’’. 
Subtitle E—End-User Regulatory 
Relief 
SEC. 351. END-USERS NOT TREATED AS FINANCIAL ENTI-
TIES. 
(a) IN GENERAL.—Section 2(h)(7)(C)(iii) of the 
Commodity Exchange Act (7 U.S.C. 2(h)(7)(C)(iii)) is 
amended to read as follows: 
‘‘(iii) LIMITATION.—Such definition 
shall not include an entity— 
‘‘(I) whose primary business is 
providing financing, and who uses de-
rivatives for the purpose of hedging 
underlying commercial risks related to 
interest rate and foreign currency ex-
posures, 90 percent or more of which 
arise from financing that facilitates 
the purchase or lease of products, 90 
percent or more of which are manu-
factured by the parent company or 
another subsidiary of the parent com-
pany; or
‘‘(II) who is not supervised by a 
prudential regulator, and is not de-
scribed in any of subclauses (I) 
through (VII) of clause (i), and— 
‘‘(aa) is a commercial mar-
ket participant and is considered 
a financial entity under clause 
(i)(VIII) because the entity pre-
dominantly engages in physical 
delivery contracts; or 
‘‘(bb) enters into swaps, 
contracts for future delivery, and 
other derivatives on behalf of, or 
to hedge or mitigate the commer-
cial risk of, whether directly or in 
the aggregate, affiliates that are 
not so supervised or described.’’. 
(b) 
COMMERCIAL
MARKET
PARTICIPANT
DE-
FINED.— 
(1) IN GENERAL.—Section 1a of such Act (7 
U.S.C. 1a), as amended by section 343(b) of this 
Act, is amended by redesignating paragraphs (8) 
through (52) as paragraphs (9) through (53), re-
spectively, and by inserting after paragraph (6) the 
following:
‘‘(7) COMMERCIAL MARKET PARTICIPANT.—The 
term ‘commercial market participant’ means any 
producer, processor, merchant, or commercial user 
of an exempt or agricultural commodity, or the prod-
ucts or byproducts of such a commodity.’’. 
(2) CONFORMING AMENDMENTS.— 
(A) Section 1a of such Act (7 U.S.C. 1a) 
is amended— 
(i) in subparagraph (A) of paragraph 
(18) (as so redesignated by paragraph (1) 
of this subsection), in the matter preceding 
clause (i), by striking ‘‘(18)(A)’’ and in-
serting ‘‘(19)(A)’’; and 
(ii) in subparagraph (A)(vii) of para-
graph (19) (as so redesignated by para-
graph (1) of this subsection), in the matter 
following subclause (III), by striking 
‘‘(17)(A)’’ and inserting ‘‘(18)(A)’’. 
(B) Section 4(c)(1)(A)(i)(I) of such Act (7 
U.S.C. 6(c)(1)(A)(i)(I)) is amended by striking 
‘‘(7), paragraph (18)(A)(vii)(III), paragraphs 
(23), (24), (31), (32), (38), (39), (41), (42), 
(46), (47), (48), and (49)’’ and inserting ‘‘(8), 
paragraph (19)(A)(vii)(III), paragraphs (24),
(25), (32), (33), (39), (40), (42), (43), (47), 
(48), (49), and (50)’’. 
(C) Section 4q(a)(1) of such Act (7 U.S.C. 
6o–1(a)(1)) is amended by striking ‘‘1a(9)’’ and 
inserting ‘‘1a(10)’’. 
(D) Section 4s(f)(1)(D) of such Act (7 
U.S.C. 6s(f)(1)(D)) is amended by striking 
‘‘1a(47)(A)(v)’’ and inserting ‘‘1a(48)(A)(v)’’. 
(E) Section 4s(h)(5)(A)(i) of such Act (7 
U.S.C. 6s(h)(5)(A)(i)) is amended by striking 
‘‘1a(18)’’ and inserting ‘‘1a(19)’’. 
(F) Section 4t(b)(1)(C) of such Act (7 
U.S.C. 6t(b)(1)(C)) is amended by striking 
‘‘1a(47)(A)(v)’’ and inserting ‘‘1a(48)(A)(v)’’. 
(G) Section 5(d)(23) of such Act (7 U.S.C. 
7(d)(23)) 
is 
amended 
by 
striking 
‘‘1a(47)(A)(v)’’ and inserting ‘‘1a(48)(A)(v)’’. 
(H) Section 5(e)(1) of such Act (7 U.S.C. 
7(e)(1)) is amended by striking ‘‘1a(9)’’ and in-
serting ‘‘1a(10)’’. 
(I) Section 5b(k)(3)(A) of such Act (7 
U.S.C. 7a–1(k)(3)(A)) is amended by striking 
‘‘1a(47)(A)(v)’’ and inserting ‘‘1a(48)(A)(v)’’.
(J) Section 5c(c)(4)(B) of such Act (7 
U.S.C. 7a–2(c)(4)(B)) is amended by striking 
‘‘1a(10)’’ and inserting ‘‘1a(11)’’. 
(K) Section 5h(f)(10)(A)(iii) of such Act 
(7 U.S.C. 7b–3(f)(10)(A)(iii)) is amended by 
striking 
‘‘1a(47)(A)(v)’’ 
and 
inserting 
‘‘1a(48)(A)(v)’’. 
(L) Section 21(f)(4)(C) of such Act (7 
U.S.C. 24a(f)(4)(C)) is amended by striking 
‘‘1a(48)’’ and inserting ‘‘1a(49)’’. 
SEC. 352. REPORTING OF ILLIQUID SWAPS SO AS TO NOT 
DISADVANTAGE 
CERTAIN 
NON-FINANCIAL 
END-USERS. 
Section 2(a)(13) of the Commodity Exchange Act (7 
U.S.C. 2(a)(13)) is amended— 
(1) in subparagraph (C), by striking ‘‘The 
Commission’’ and inserting ‘‘Except as provided in 
subparagraph (D), the Commission’’; and 
(2) 
by 
redesignating 
subparagraphs 
(D) 
through (G) as subparagraphs (E) through (H), re-
spectively, and inserting after subparagraph (C) the 
following: 
‘‘(D) REQUIREMENTS
FOR
SWAP
TRANS-
ACTIONS
IN
ILLIQUID
MARKETS.—Notwith-
standing subparagraph (C):
‘‘(i) The Commission shall provide by 
rule for the public reporting of swap trans-
actions, including price and volume data, 
in illiquid markets that are not cleared and 
entered into by a non-financial entity that 
is hedging or mitigating commercial risk in 
accordance with subsection (h)(7)(A). 
‘‘(ii) The Commission shall ensure 
that the swap transaction information re-
ferred to in clause (i) of this subparagraph 
is available to the public no sooner than 30 
days after the swap transaction has been 
executed or at such later date as the Com-
mission determines appropriate to protect 
the identity of participants and positions in 
illiquid markets and to prevent the elimi-
nation or reduction of market liquidity. 
‘‘(iii) In this subparagraph, the term 
‘illiquid markets’ means any market in 
which the volume and frequency of trading 
in swaps is at such a level as to allow iden-
tification of individual market partici-
pants.’’.
SEC. 353. RELIEF FOR GRAIN ELEVATOR OPERATORS, 
FARMERS, 
AGRICULTURAL 
COUNTERPAR-
TIES, AND COMMERCIAL MARKET PARTICI-
PANTS. 
The Commodity Exchange Act (7 U.S.C. 1 et seq.) 
is amended by inserting after section 4t the following: 
‘‘SEC. 4u. RECORDKEEPING REQUIREMENTS APPLICABLE 
TO NON-REGISTERED MEMBERS OF CERTAIN 
REGISTERED ENTITIES. 
‘‘Except as provided in section 4(a)(3), a member of 
a designated contract market or a swap execution facility 
that is not registered with the Commission and not re-
quired to be registered with the Commission in any capac-
ity shall satisfy the recordkeeping requirements of this Act 
and any recordkeeping rule, order, or regulation under 
this Act by maintaining a written record of each trans-
action in a contract for future delivery, option on a future, 
swap, swaption, trade option, or related cash or forward 
transaction. The written record shall be sufficient if it in-
cludes the final agreement between the parties and the 
material economic terms of the transaction and is identifi-
able and searchable by transaction.’’.
SEC. 354. RELIEF FOR END-USERS WHO USE PHYSICAL 
CONTRACTS 
WITH 
VOLUMETRIC 
OPTIONALITY. 
Section 1a(47)(B)(ii) of the Commodity Exchange 
Act (7 U.S.C. 1a(47)(B)(ii)) is amended to read as fol-
lows: 
‘‘(ii) any purchase or sale of a non-
financial commodity or security for de-
ferred shipment or delivery, so long as the 
transaction is intended to be physically set-
tled, including any stand-alone or embed-
ded option— 
‘‘(I) for which exercise results in 
a physical delivery obligation; 
‘‘(II) that cannot be severed or 
marketed separately from the overall 
transaction for the purpose of finan-
cial settlement; and 
‘‘(III) for which both parties are 
commercial market participants;’’. 
SEC. 355. COMMISSION VOTE REQUIRED BEFORE AUTO-
MATIC CHANGE OF SWAP DEALER DE MINI-
MIS LEVEL. 
Section 1a(49)(D) of the Commodity Exchange Act 
(7 U.S.C. 1a(49)(D)) is amended—
(1) by striking all that precedes ‘‘shall exempt’’ 
and inserting the following: 
‘‘(D) DE MINIMIS EXCEPTION.— 
‘‘(i) IN GENERAL.—The Commission’’; 
and 
(2) by adding after and below the end the fol-
lowing new clause: 
‘‘(ii) SPECIAL RULE.—The de minimis 
quantity of swap dealing as described in 
clause (i) that is currently set at a quan-
tity of $8,000,000,000 shall only be 
amended or reduced through a new affirm-
ative action of the Commission undertaken 
by rule or regulation.’’. 
SEC. 356. CAPITAL REQUIREMENTS FOR NON-BANK SWAP 
DEALERS. 
(a) COMMODITY EXCHANGE ACT.—Section 4s(e) of 
the Commodity Exchange Act (7 U.S.C. 6s(e)) is amend-
ed— 
(1) in paragraph (2)(B), by striking ‘‘shall’’ 
and inserting the following: ‘‘and the Securities and 
Exchange Commission, in consultation with the pru-
dential regulators, shall jointly’’; and 
(2) in paragraph (3)(D)—
(A) in clause (ii), by striking ‘‘shall, to the 
maximum extent practicable,’’ and inserting 
‘‘shall’’; and 
(B) by adding at the end the following: 
‘‘(iii) FINANCIAL
MODELS.—To the 
extent that swap dealers and major swap 
participants that are banks are permitted 
to use financial models approved by the 
prudential regulators or the Securities and 
Exchange Commission to calculate min-
imum capital requirements and minimum 
initial and variation margin requirements, 
including the use of non-cash collateral, 
the Commission shall, in consultation with 
the prudential regulators and the Securi-
ties and Exchange Commission, permit the 
use of comparable financial models by 
swap dealers and major swap participants 
that are not banks.’’. 
(b) SECURITIES EXCHANGE ACT OF 1934.—Section 
15F(e) of the Securities Exchange Act of 1934 (15 U.S.C. 
78o–10(e)) is amended— 
(1) in paragraph (2)(B), by striking ‘‘shall’’ 
and inserting the following: ‘‘and the Commodity
Futures Trading Commission, in consultation with 
the prudential regulators, shall jointly’’; and 
(2) in paragraph (3)(D)— 
(A) in clause (ii), by striking ‘‘shall, to the 
maximum extent practicable,’’ and inserting 
‘‘shall’’; and 
(B) by adding at the end the following: 
‘‘(iii) FINANCIAL
MODELS.—To the 
extent that security-based swap dealers 
and major security-based swap participants 
that are banks are permitted to use finan-
cial models approved by the prudential reg-
ulators or the Commodity Futures Trading 
Commission to calculate minimum capital 
requirements and minimum initial and var-
iation margin requirements, including the 
use of non-cash collateral, the Commission 
shall, in consultation with the Commodity 
Futures Trading Commission, permit the 
use of comparable financial models by se-
curity-based swap dealers and major secu-
rity-based swap participants that are not 
banks.’’.
SEC. 357. HARMONIZATION WITH THE JUMPSTART OUR 
BUSINESS STARTUPS ACT. 
Within 90 days after the date of the enactment of 
this Act, the Commodity Futures Trading Commission 
shall— 
(1) revise section 4.7(b) of title 17, Code of 
Federal Regulations, in the matter preceding para-
graph (1), to read as follows: 
‘‘(b) Relief available to commodity pool operators. 
Upon filing the notice required by paragraph (d) of this 
section, and subject to compliance with the conditions 
specified in paragraph (d) of this section, any registered 
commodity pool operator who sells participations in a pool 
solely to qualified eligible persons in an offering which 
qualifies for exemption from the registration requirements 
of the Securities Act pursuant to section 4(2) of that Act 
or pursuant to Regulation S, 17 CFR 230.901 et seq., 
and any bank registered as a commodity pool operator in 
connection with a pool that is a collective trust fund whose 
securities are exempt from registration under the Securi-
ties Act pursuant to section 3(a)(2) of that Act and are 
sold solely to qualified eligible persons, may claim any or 
all of the following relief with respect to such pool:’’; and 
(2) revise section 4.13(a)(3)(i) of such title to 
read as follows:
‘‘(i) Interests in the pool are exempt from registration 
under the Securities Act of 1933, and such interests are 
offered and sold pursuant to section 4 of the Securities 
Act of 1933 and the regulations thereunder;’’. 
SEC. 358. BONA FIDE HEDGE DEFINED TO PROTECT END- 
USER RISK MANAGEMENT NEEDS. 
Section 4a(c) of the Commodity Exchange Act (7 
U.S.C. 6a(c)) is amended— 
(1) in paragraph (1)— 
(A) by striking ‘‘may’’ and inserting 
‘‘shall’’; and 
(B) by striking ‘‘future for which’’ and in-
serting ‘‘future, to be determined by the Com-
mission, for which either an appropriate swap is 
available or’’; 
(2) in paragraph (2)— 
(A) in the matter preceding subparagraph 
(A), by striking ‘‘subsection (a)(2)’’ and all that 
follows through ‘‘position as’’ and inserting 
‘‘paragraphs (2) and (5) of subsection (a) for 
swaps, contracts of sale for future delivery, or 
options on the contracts or commodities, a bona 
fide hedging transaction or position is’’; and
(B) in subparagraph (A)(ii), by striking 
‘‘of risks’’ and inserting ‘‘or management of 
current or anticipated risks’’; and 
(3) by adding at the end the following: 
‘‘(3) The Commission may further define, by 
rule or regulation, what constitutes a bona fide 
hedging transaction, provided that the rule or regu-
lation is consistent with the requirements of sub-
paragraphs (A) and (B) of paragraph (2).’’. 
SEC. 359. CROSS-BORDER REGULATION OF DERIVATIVES 
TRANSACTIONS. 
(a) JOINT RULEMAKING REQUIRED.— 
(1) IN
GENERAL.—Not later than 270 days 
after the date of enactment of this Act, the Securi-
ties and Exchange Commission and the Commodity 
Futures Trading Commission shall jointly issue rules 
setting forth the application of United States swaps 
requirements of the Securities Exchange Act of 
1934 and the Commodity Exchange Act relating to 
cross-border swaps and security-based swaps trans-
actions involving U.S. persons or non-U.S. persons. 
(2) CONSTRUCTION.—The rules required under 
paragraph (1) shall be identical, notwithstanding 
any difference in the authorities granted the Com-
missions in section 30(c) of the Securities Exchange
Act of 1934 (15 U.S.C. 78dd(c)) and section 2(i) of 
the Commodity Exchange Act (7 U.S.C. 2(i)), re-
spectively, except to the extent necessary to accom-
modate differences in other underlying statutory re-
quirements under such Acts, and the rules there-
under. 
(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 
joint rule from the Commissions in accordance with sec-
tion 553 of title 5, United States Code. 
(d) GENERAL APPLICATION TO COUNTRIES OR AD-
MINISTRATIVE REGIONS HAVING NINE LARGEST MAR-
KETS.— 
(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 country or administra-
tive 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, or other foreign jurisdiction as jointly de-
termined by the Commissions, shall be exempt from 
United States swaps requirements in accordance 
with the schedule set forth in paragraph (2), unless 
the Commissions jointly determine that the regu-
latory requirements of such country or administra-
tive region or other foreign jurisdiction are not 
broadly equivalent to United States swaps require-
ments.
(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— 
(A) countries or administrative regions de-
scribed in such paragraph, or any other foreign 
jurisdiction as jointly determined by the Com-
missions, accounting for the five largest com-
bined 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) the remaining countries or administra-
tive regions described in such paragraph, and 
any other foreign jurisdiction as jointly deter-
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 country or administrative region described in para-
graph (1) or other foreign jurisdiction is not broadly 
equivalent to United States swaps requirements and 
shall jointly determine the appropriate application of 
certain United States swap requirements to persons
(e) REPORT
TO CONGRESS.—If the Commissions 
make the joint determination described in subsection 
(d)(1) that the regulatory requirements of a country or 
administrative region described in such subsection or other 
foreign jurisdiction are not broadly equivalent to United 
States swaps requirements, the Commissions shall articu-
late the basis for such a determination in a written report 
transmitted to the Committee on Financial Services and 
the Committee on Agriculture of the House of Representa-
tives and the Committee on Banking, Housing, and Urban 
Affairs and the Committee on Agriculture, Nutrition, and 
Forestry of the Senate within 30 days of the determina-
tion. 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 ‘‘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 busi-
ness in the United States; 
(iii) any account (whether discre-
tionary or non-discretionary) of a U.S. per-
son; and 
(iv) any other person as the Commis-
sions may further jointly define to more ef-
fectively carry out the purposes of this Act; 
and 
(B) does not include the International 
Monetary Fund, the International Bank for Re-
construction and Development, the Inter-Amer-
ican Development Bank, the Asian Development 
Bank, the African Development Bank, the 
United Nations, their agencies and pension 
plans, and any other similar international orga-
nizations and their agencies and pension plans. 
(2) The term ‘‘United States swaps require-
ments’’ means the provisions relating to swaps and 
security-based swaps contained in the Commodity 
Exchange Act (7 U.S.C. 1a et seq.) and the Securi-
ties Exchange Act of 1934 (15 U.S.C. 78a et seq.) 
that were added by title VII of the Dodd-Frank Wall 
Street Reform and Consumer Protection Act (15 
U.S.C. 8301 et seq.) and any rules or regulations
prescribed by the Securities and Exchange Commis-
sion and the Commodity Futures Trading Commis-
sion pursuant to such provisions. 
(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)) is amended by inserting 
‘‘or except as necessary to effectuate the purposes of 
the Customer Protection and End-User Relief Act,’’ 
after ‘‘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)) is amended by inserting ‘‘or ex-
cept as necessary to effectuate the purposes of the 
Customer Protection and End-User Relief Act,’’ 
after ‘‘to grant exemptions,’’. 
SEC. 360. REPORT ON FOREIGN BOARDS OF TRADE. 
Within 1 year after the date of the enactment of this 
Act, the Commodity Futures Trading Commission shall 
prepare and submit to the Committee on Agriculture of 
the House of Representatives and the Committee on Agri-
culture, Nutrition, and Forestry of the Senate a written 
report reviewing the standards and rules of foreign boards 
of trade related to the physical delivery of base metals, 
including warehousing facilities, as compared to the stand-
ards and rules for domestic designated contract markets 
and related warehouses for base metals. 
SEC. 361. TREATMENT OF CERTAIN FUNDS. 
(a) AMENDMENT
TO
THE DEFINITION
OF COM-
MODITY POOL OPERATOR.—Section 1a(11) of the Com-
modity Exchange Act (7 U.S.C. 1a(11)) is amended by 
adding at the end the following: 
‘‘(C)(i) The term ‘commodity pool oper-
ator’ does not include a person who serves as 
an investment adviser to an investment com-
pany registered pursuant to section 8 of the In-
vestment Company Act of 1940 or a subsidiary 
of such a company, if the investment company 
or subsidiary invests, reinvests, owns, holds, or 
trades in commodity interests limited to only fi-
nancial commodity interests. 
‘‘(ii) For purposes of this subparagraph 
only, the term ‘financial commodity interest’ 
means a futures contract, an option on a fu-
tures contract, or a swap, involving a com-
modity that is not an exempt commodity or an 
agricultural commodity, including any index of 
financial commodity interests, whether cash set-
tled or involving physical delivery.
‘‘(iii) For purposes of this subparagraph 
only, the term ‘commodity’ does not include a 
security issued by a real estate investment 
trust, business development company, or issuer 
of asset-backed securities, including any index 
of such securities.’’. 
(b) AMENDMENT
TO
THE DEFINITION
OF COM-
MODITY TRADING ADVISOR.—Section 1a(12) of such Act 
(7 U.S.C. 1a(12)) is amended by adding at the end the 
following: 
‘‘(E) The term ‘commodity trading advisor’ 
does not include a person who serves as an in-
vestment adviser to an investment company reg-
istered pursuant to section 8 of the Investment 
Company Act of 1940 or a subsidiary of such 
a company, if the commodity trading advice re-
lates only to a financial commodity interest, as 
defined in paragraph (11)(C)(ii) of this section. 
For purposes of this subparagraph only, the 
term ‘commodity’ does not include a security 
issued by a real estate investment trust, busi-
ness development company, or issuer of asset- 
backed securities, including any index of such 
securities.’’.
Subtitle F—Effective Date 
SEC. 371. EFFECTIVE DATE. 
Except as otherwise provided in this title, the amend-
ments made by this title shall take effect as if enacted 
on July 21, 2010. 
Passed the House of Representatives June 24, 2014. 
Attest: 
Clerk.
113TH CONGRESS 
2D SESSION 
H. R. 4413 
AN ACT 
To reauthorize the Commodity Futures Trading 
Commission, to better protect futures customers, 
to provide end users with market certainty, to 
make basic reforms to ensure transparency and 
accountability at the Commission, to help farm-
ers, ranchers, and end users manage risks to 
help keep consumer costs low, and for other pur-
poses.