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 ‘‘Swaps Regulatory Im-
provement Act’’. 
SEC. 2. REFORM OF PROHIBITION ON SWAP ACTIVITY AS-
SISTANCE. 
Section 716 of the Dodd-Frank Wall Street Reform 
and Consumer Protection Act (15 U.S.C. 8305) is amend-
ed— 
(1) in subsection (b)— 
(A) in paragraph (2)(B), by striking ‘‘in-
sured depository institution’’ and inserting 
‘‘covered depository institution’’; and 
(B) by adding at the end the following: 
‘‘(3) COVERED
DEPOSITORY
INSTITUTION.— 
The term ‘covered depository institution’ means— 
‘‘(A) an insured depository institution, as 
that term is defined in section 3 of the Federal 
Deposit Insurance Act (12 U.S.C. 1813); and 
‘‘(B) a United States uninsured branch or 
agency of a foreign bank.’’; 
(2) in subsection (c)— 
(A) in the heading for such subsection, by 
striking ‘‘INSURED’’ and inserting ‘‘COVERED’’; 
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(B) by striking ‘‘an insured’’ and inserting 
‘‘a covered’’; 
(C) by striking ‘‘such insured’’ and insert-
ing ‘‘such covered’’; and 
(D) by striking ‘‘or savings and loan hold-
ing company’’ and inserting ‘‘savings and loan 
holding company, or foreign banking organiza-
tion (as such term is defined under Regulation 
K of the Board of Governors of the Federal Re-
serve System (12 C.F.R. 211.21(o)))’’; 
(3) by amending subsection (d) to read as fol-
lows: 
‘‘(d) ONLY BONA FIDE HEDGING AND TRADITIONAL 
BANK ACTIVITIES PERMITTED.— 
‘‘(1) IN
GENERAL.—The prohibition in sub-
section (a) shall not apply to any covered depository 
institution that limits its swap and security-based 
swap activities to the following: 
‘‘(A) HEDGING AND OTHER SIMILAR RISK 
MITIGATION
ACTIVITIES.—Hedging and other 
similar risk mitigating activities directly related 
to the covered depository institution’s activities. 
‘‘(B) NON-STRUCTURED
FINANCE
SWAP 
ACTIVITIES.—Acting as a swaps entity for 
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swaps or security-based swaps other than a 
structured finance swap. 
‘‘(C) 
CERTAIN
STRUCTURED
FINANCE 
SWAP ACTIVITIES.—Acting as a swaps entity for 
swaps or security-based swaps that are struc-
tured finance swaps, if— 
‘‘(i) such structured finance swaps are 
undertaken for hedging or risk manage-
ment purposes; or 
‘‘(ii) each asset-backed security under-
lying such structured finance swaps is of a 
credit quality and of a type or category 
with respect to which the prudential regu-
lators have jointly adopted rules author-
izing swap or security-based swap activity 
by covered depository institutions. 
‘‘(2) DEFINITIONS.—For purposes of this sub-
section: 
‘‘(A) STRUCTURED FINANCE SWAP.—The 
term ‘structured finance swap’ means a swap or 
security-based swap based on an asset-backed 
security (or group or index primarily comprised 
of asset-backed securities). 
‘‘(B) 
ASSET-BACKED
SECURITY.—The 
term ‘asset-backed security’ has the meaning 
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given such term under section 3(a) of the Secu-
rities Exchange Act of 1934 (15 U.S.C. 
78c(a)).’’; 
(4) in subsection (e), by striking ‘‘an insured’’ 
and inserting ‘‘a covered’’; and 
(5) in subsection (f)— 
(A) by striking ‘‘an insured depository’’ 
and inserting ‘‘a covered depository’’; and 
(B) by striking ‘‘the insured depository’’ 
each place such term appears and inserting 
‘‘the covered depository’’. 
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Union Calendar No. 169 
113TH CONGRESS 
1ST SESSION 
H. R. 992 
[Report No. 113–229, Parts I and II] 
A BILL 
To amend provisions in section 716 of the Dodd- 
Frank Wall Street Reform and Consumer Protec-
tion Act relating to Federal assistance for swaps 
entities. 
SEPTEMBER 25, 2013 
Reported from the Committee on Financial Services 
SEPTEMBER 25, 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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