IIB 
113TH CONGRESS 
2D SESSION 
H. R. 5471 
IN THE SENATE OF THE UNITED STATES 
DECEMBER 3, 2014 
Received; read twice and referred to the Committee on Banking, Housing, and 
Urban Affairs 
AN ACT 
To amend the Commodity Exchange Act and the Securities 
Exchange Act of 1934 to specify how clearing require-
ments apply to certain affiliate transactions, and for 
other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
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SECTION 1. 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 hedge or mitigation of such commer-
cial risk is addressed by entering into a 
swap with a swap dealer or major swap 
participant, an appropriate credit support 
measure or other mechanism must be uti-
lized.’’. 
(2) SECURITIES
EXCHANGE
ACT
OF
1934 
AMENDMENT.—Section 3C(g)(4)(A) of the Securities 
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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 hedge or mitigation such commercial risk 
is addressed by entering into a security-based 
swap with a security-based swap dealer or 
major security-based swap participant, an ap-
propriate credit support measure or other 
mechanism must be utilized.’’. 
(b) APPLICABILITY OF CREDIT SUPPORT MEASURE 
REQUIREMENT.—The 
requirements 
in 
section 
2(h)(7)(D)(i) of the Commodity Exchange Act and section 
3C(g)(4)(A) of the Securities 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 
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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 secu-
rity-based swaps, as appropriate, entered into before the 
date of the enactment of this Act. 
Passed the House of Representatives December 2, 
2014. 
Attest: 
KAREN L. HAAS, 
Clerk. 
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