I 
112TH CONGRESS 
1ST SESSION H. R. 1610 
To provide end user exemptions from certain provisions of the Commodity 
Exchange Act and the Securities Exchange Act of 1934, and for other 
purposes. 
IN THE HOUSE OF REPRESENTATIVES 
APRIL 15, 2011 
Mr. GRIMM (for himself, Mr. NEUGEBAUER, and Mr. GARRETT) introduced 
the following bill; which was referred to the Committee on Financial Serv-
ices, 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 jurisdiction of the committee con-
cerned 
A BILL 
To provide end user exemptions from certain provisions of 
the Commodity Exchange Act and the Securities Ex-
change Act of 1934, 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 ‘‘Business Risk Mitiga-
tion and Price Stabilization Act of 2011’’. 
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SEC. 2. MARGIN RULES. 
(a) COMMODITY EXCHANGE ACT AMENDMENTS.— 
The Commodity Exchange Act (7 U.S.C. 1 et seq.) is 
amended— 
(1) in section 1a(33)(A), as added by section 
721(a)(6) of the Dodd-Frank Wall Street Reform 
and Consumer Protection Act, by amending clause 
(ii) to read as follows: 
‘‘(ii) whose outstanding swaps create 
substantial net counterparty exposure that 
could have serious adverse effects on the 
financial stability of the United States 
banking system or financial markets; or’’; 
and 
(2) in section 4s(e), as added by section 731 of 
the Dodd-Frank Wall Street Reform and Consumer 
Protection Act, by adding at the end the following 
new paragraphs: 
‘‘(4) 
APPLICABILITY
WITH
RESPECT
TO 
COUNTERPARTIES.—The margin requirements of 
this subsection shall not apply to swaps in which 1 
of the counterparties is not— 
‘‘(A) a swap dealer or major swap partici-
pant; 
‘‘(B) an investment fund that— 
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‘‘(i) has issued securities, other than 
debt securities, to greater than five unaf-
filiated persons; 
‘‘(ii) would be an investment company 
(as defined in section 3 of the Investment 
Company Act of 1940 (15 U.S.C. 80a–3)) 
but for paragraph (1) or (7) of section 3(c) 
of that Act (15 U.S.C. 80a–3(c)); and 
‘‘(iii) is not primarily invested in 
physical assets (which shall include com-
mercial real estate) directly or through in-
terest in its affiliates that own such assets; 
‘‘(C) an entity defined in section 1303(20) 
of the Federal Housing Enterprises Financial 
Safety and Soundness Act of 1992 (12 U.S.C. 
4502(20)); or 
‘‘(D) a commodity pool. 
‘‘(5) MARGIN TRANSITION RULES.—Swaps en-
tered into before the date upon which final rules 
must be published under section 712(e) of the Wall 
Street Transparency and Accountability Act of 2010 
are exempt from the margin requirements of this 
subsection.’’. 
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(b) SECURITIES EXCHANGE ACT OF 1934 AMEND-
MENTS.—The Securities Exchange Act of 1934 (15 
U.S.C. 78a et seq.) is amended— 
(1) in section 3(a)(67)(A), as added by section 
761(a)(6) of the Dodd-Frank Wall Street Reform 
and Consumer Protection Act, by amending clause 
(ii) to read as follows: 
‘‘(ii) whose outstanding security-based 
swaps create substantial net counterparty 
exposure that could have serious adverse 
effects on the financial stability of the 
United States banking system or financial 
markets; or’’; and 
(2) in section 15F(e), as added by section 
764(a) of the Dodd-Frank Wall Street Reform and 
Consumer Protection Act, by adding at the end the 
following new paragraphs: 
‘‘(4) 
APPLICABILITY
WITH
RESPECT
TO 
COUNTERPARTIES.—The margin requirements of 
this subsection shall not apply to security-based 
swaps in which one of the counterparties is not— 
‘‘(A) a security-based swap dealer or major 
security-based swap participant; 
‘‘(B) an investment fund that would be an 
investment company (as defined in section 3 of 
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the Investment Company Act of 1940 (15 
U.S.C. 80a–3)) but for paragraph (1) or (7) of 
section 3(c) of that Act (15 U.S.C. 80a–3(c)); 
‘‘(C) primarily invested in physical assets 
(which shall include commercial real estate) di-
rectly or through interest in its affiliates that 
own such assets; 
‘‘(D) an entity defined in section 1303(20) 
of the Federal Housing Enterprises Financial 
Safety and Soundness Act of 1992 (12 U.S.C. 
4502(20)); or 
‘‘(E) a commodity pool. 
‘‘(5) MARGIN
TRANSITION
RULES.—Security- 
based swaps entered into before the date upon which 
final rules must be published under section 
712(a)(5) of the Wall Street Transparency and Ac-
countability Act of 2010 are exempt from the mar-
gin requirements of this subsection.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall take effect as if included in the provisions 
of the Dodd-Frank Wall Street Reform and Consumer 
Protection Act to which they relate. 
Æ 
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