‘‘(v) PRESERVATION
OF
FEDERAL 
AND STATE REGULATORY AUTHORITIES.— 
Nothing in this subparagraph shall affect 
the Federal banking agencies’ safety-and- 
soundness authorities over banks estab-
lished in law other than title VII of Public 
Law 111–203 or the authorities of State 
insurance regulators over insurers, includ-
ing the authority to impose capital require-
ments with regard to swaps. For purposes 
of this clause, the term ‘bank’ shall be de-
fined pursuant to section 3(a)(6) of the Se-
curities Exchange Act of 1934, ‘insurer’ 
shall be defined pursuant to title V of Pub-
lic Law 111–203, and ‘swap’ shall be de-
fined pursuant to title VII of Public Law 
111–203. 
‘‘(vi) PREVENTION OF EVASION.—The 
Commission may prescribe rules under this 
subparagraph (and issue interpretations of 
such rules) as determined by the Commis-
sion to be necessary to include in the defi-
nition of swaps under this paragraph any 
agreement, contract, or transaction that 
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TKELLEY on DSK3SPTVN1PROD with BILLS
has been structured to evade the require-
ments of this Act applicable to swaps.’’. 
(2) 
TREATMENT
OF
AFFILIATES.—Section 
2(h)(7)(D)(i) of the Commodity Exchange Act (7 
U.S.C. 2(h)(7)(D)(i)), as added by section 723(a) of 
the Dodd-Frank Wall Street Reform and Consumer 
Protection Act, 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.’’. 
(b) SECURITIES EXCHANGE ACT OF 1934 AMEND-
MENTS.— 
(1) 
TREATMENT
OF
AFFILIATE
TRANS-
ACTIONS.—Section 3(a)(68) of the Securities Ex-
change Act of 1934 (15 U.S.C. 78c(a)(68)), as 
added by section 761(a)(6) of the Dodd-Frank Wall 
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TKELLEY on DSK3SPTVN1PROD with BILLS
Street Reform and Consumer Protection Act, is 
amended by adding at the end the following: 
‘‘(F) TREATMENT OF AFFILIATE TRANS-
ACTIONS.— 
‘‘(i) IN GENERAL.—For the purposes 
of any clearing and execution requirements 
under section 3C and any applicable mar-
gin and capital requirements of section 
15F(e), and for purposes of defining ‘secu-
rity-based swap dealer’ or a ‘major secu-
rity-based swap participant’, and reporting 
requirements other than those set forth in 
clause (ii), the term ‘security-based swap’ 
does not include any agreement, contract, 
or transaction that— 
‘‘(I) would otherwise be included 
as a ‘security-based swap’ under sub-
paragraph (A); and 
‘‘(II) is entered into by parties, 
neither of which is a ‘security-based 
swap dealer’ that is an insured deposi-
tory institution or a ‘major security- 
based swap participant’ that is an in-
sured depository institution, that re-
port information or prepare financial 
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TKELLEY on DSK3SPTVN1PROD with BILLS
statements on a consolidated basis, or 
for which a company affiliated with 
both parties reports information or 
prepares financial statements on a 
consolidated basis. 
‘‘(ii) REPORTING.—All agreements, 
contracts, or transactions described in 
clause (i) shall be reported to either a se-
curity-based swap data repository, or, if 
there is no security-based swap data repos-
itory that would accept such agreements, 
contracts, or transactions, to the Commis-
sion pursuant to section 13A, within such 
time period as the Commission may by rule 
or regulation prescribe. 
‘‘(iii) PRESERVATION
OF
FEDERAL 
RESERVE
ACT
AUTHORITY.—Nothing in 
this subparagraph shall exempt a trans-
action described in this subparagraph from 
sections 23A or 23B of the Federal Re-
serve Act or implementing regulations 
thereunder. 
‘‘(iv) PROTECTION
OF
INSURANCE 
FUNDS.—Nothing in this subparagraph 
shall be construed to prevent the regulator 
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TKELLEY on DSK3SPTVN1PROD with BILLS
of a Federal or State insurance fund or 
guaranty fund from exercising its other ex-
isting authority to protect the integrity of 
such a fund, except that such regulator 
shall not subject security-based swap 
transactions between affiliated companies 
to clearing and execution requirements 
under section 3C, to any applicable margin 
and capital requirements of section 15F(e), 
or to reporting requirements of title VII of 
Public Law 111–203 other than those set 
forth in clause (ii). 
‘‘(v) PRESERVATION
OF
FEDERAL 
AND STATE REGULATORY AUTHORITIES.— 
Nothing in this subparagraph shall affect 
the Federal banking agencies’ safety-and- 
soundness authorities over banks estab-
lished in law other than title VII of Public 
Law 111–203 or the authorities of State 
insurance regulators over insurers, includ-
ing the authority to impose capital require-
ments with regard to security-based swaps. 
For purposes of this clause, the term 
‘bank’ shall be defined pursuant to section 
3(a)(6) of the Securities Exchange Act of 
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TKELLEY on DSK3SPTVN1PROD with BILLS
1934, ‘insurer’ shall be defined pursuant 
to title V of Public Law 111–203, and ‘se-
curity-based swap’ shall be defined pursu-
ant to title VII of Public Law 111–203. 
‘‘(vi) PREVENTION OF EVASION.—The 
Commission may prescribe rules under this 
subparagraph (and issue interpretations of 
such rules) as determined by the Commis-
sion to be necessary to include in the defi-
nition of security-based swap under this 
paragraph any agreement, contract, or 
transaction that has been structured to 
evade the requirements of this Act applica-
ble to security-based swaps.’’. 
(2) 
TREATMENT
OF
AFFILIATES.—Section 
3C(g)(4)(A) of the Securities Exchange Act of 1934 
(15 U.S.C. 78c-3(g)(4)(A)), as added by section 
763(a) of the Dodd-Frank Wall Street Reform and 
Consumer Protection Act, is amended to read as fol-
lows: 
‘‘(i) IN GENERAL.—An affiliate of a 
person that qualifies for an exception 
under this subsection (including affiliate 
entities predominantly engaged in pro-
viding financing for the purchase of the 
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