IB 
Union Calendar No. 266 
112TH CONGRESS 
2D SESSION 
H. R. 2586 
[Report No. 112–345, Parts I and II] 
To refine the definition of swap execution facility in the provisions regulating 
swap markets added by title VII of the Dodd-Frank Wall Street Reform 
and Consumer Protection Act. 
IN THE HOUSE OF REPRESENTATIVES 
JULY 19, 2011 
Mr. GARRETT (for himself, Mrs. MALONEY, Mr. HURT, and Mr. MEEKS) in-
troduced the following bill; which was referred to the Committee on Fi-
nancial Services, 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 com-
mittee concerned 
DECEMBER 23, 2011 
Reported from the Committee on Financial Services with an amendment 
[Strike out all after the enacting clause and insert the part printed in italic] 
DECEMBER 23, 2011 
Referral to the Committee on Agriculture extended for a period ending not 
later than February 1, 2012 
FEBRUARY 1, 2012 
Referral to the Committee on Agriculture extended for a period ending not 
later than February 8, 2012 
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FEBRUARY 8, 2012 
Additional sponsors: Mr. GRIMM, Mr. NEUGEBAUER, Mr. FITZPATRICK, Ms. 
MOORE, and Mr. DOLD 
FEBRUARY 8, 2012 
Reported from the Committee on Agriculture with an amendment; committed 
to the Committee of the Whole House on the State of the Union and or-
dered to be printed 
[Strike out all after the enacting clause and insert the part printed in boldface roman] 
[For text of introduced bill, see copy of bill as introduced on July 19, 2011] 
A BILL 
To refine the definition of swap execution facility in the 
provisions regulating swap markets added by title VII 
of the Dodd-Frank Wall Street Reform and Consumer 
Protection Act. 
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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 ‘‘Swap Execution Facil-
ity Clarification Act’’. 
SEC. 2. DEFINITION OF SWAP EXECUTION FACILITY. 
(a) COMMODITY EXCHANGE ACT.—Section 1a(50) of 
the Commodity Exchange Act (7 U.S.C. 1a(50)) is amend-
ed— 
(1) by striking ‘‘The term’’ and inserting the fol-
lowing: 
‘‘(A) IN GENERAL.—The term’’; 
(2) by redesignating subparagraphs (A) and (B) 
as clauses (i) and (ii), respectively (and by moving 
the margins 2 ems to the right); and 
(3) by adding at the end the following: 
‘‘(B) INTERPRETATION.—In interpreting or 
further defining the term ‘swap execution facil-
ity’, the Commission shall not require a swap 
execution facility to— 
‘‘(i) have a minimum number of par-
ticipants receive a bid or offer or respond to 
any 
trading 
system 
or 
platform 
functionality; 
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‘‘(ii) display or delay bids or offers for 
any period of time; 
‘‘(iii) limit the means of interstate 
commerce utilized by market participants to 
enter into and execute any swap trans-
actions on the trading system or platform; 
or 
‘‘(iv) require bids or offers on one trad-
ing system or platform operated by the 
swap execution facility to interact with bids 
or offers on another trading system or plat-
form operated by the swap execution facil-
ity’’. 
(b) SECURITIES EXCHANGE ACT OF 1934.—Section 
3(a)(77) of the Securities Exchange Act of 1934 (15 U.S.C. 
78c(a)(77)) is amended— 
(1) by striking ‘‘The term’’ and inserting the fol-
lowing: 
‘‘(A) IN GENERAL.—The term’’; 
(2) by redesignating subparagraphs (A) and (B) 
as clauses (i) and (ii), respectively (and by moving 
the margins 2 ems to the right); and 
(3) by adding at the end the following: 
‘‘(B) INTERPRETATION.—In interpreting or 
further defining the term ‘security-based swap 
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execution facility’, the Commission shall not re-
quire a security-based swap execution facility 
to— 
‘‘(i) have a minimum number of par-
ticipants receive a bid or offer or respond to 
any 
trading 
system 
or 
platform 
functionality; 
‘‘(ii) display or delay bids or offers for 
any period of time; 
‘‘(iii) limit the means of interstate 
commerce utilized by market participants to 
enter into and execute any security-based 
swap transactions on the ‘method of trading 
functionality; or 
‘‘(iv) require bids or offers on one trad-
ing system or platform operated by the 
swap execution facility to interact with bids 
or offers on another method of trading 
functionality operated by the swap execu-
tion facility.’’. 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Swap Execu-
tion Facility Clarification Act’’. 
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SEC. 2. DEFINITION OF SWAP EXECUTION FACILITY. 
(a) COMMODITY
EXCHANGE
ACT.—Section 
1a(50) of the Commodity Exchange Act (7 
U.S.C. 1a(50)) is amended— 
(1) by striking ‘‘The term’’ and insert-
ing the following: 
‘‘(A) IN GENERAL.—The term’’; 
(2) by redesignating subparagraphs 
(A) and (B) as clauses (i) and (ii), respec-
tively, and increasing the indentation of 
each such provision by 2 ems; and 
(3) by adding at the end the fol-
lowing: 
‘‘(B) 
INTERPRETATION.—In 
inter-
preting or further defining the term 
‘swap execution facility’, the Commis-
sion shall not require a swap execu-
tion facility to— 
‘‘(i) have a minimum number 
of participants receive a bid or 
offer or respond to any method of 
trading functionality; 
‘‘(ii) delay bids or offers for 
any period of time; or 
‘‘(iii) limit the means of inter-
state commerce utilized by mar-
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ket participants to enter into and 
execute any swap transactions on 
the 
method 
of 
trading 
functionality.’’. 
(b) SECURITIES EXCHANGE ACT OF 1934.— 
Section 3(a)(77) of the Securities Exchange 
Act of 1934 (15 U.S.C. 78c(a)(77)), as added by 
section 761(a)(6) of the Dodd-Frank Wall 
Street Reform and Consumer Protection Act, 
is amended— 
(1) by striking ‘‘The term’’ and insert-
ing the following: 
‘‘(A) IN GENERAL.—The term’’; 
(2) by redesignating subparagraphs 
(A) and (B) as clauses (i) and (ii), respec-
tively, and increasing the indentation of 
each such provision by 2 ems; and 
(3) by adding at the end the fol-
lowing: 
‘‘(B) 
INTERPRETATION.—In 
inter-
preting or further defining the term 
‘security-based swap execution facil-
ity’, the Commission shall not require 
a security-based swap execution facil-
ity to— 
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‘‘(i) have a minimum number 
of participants receive a bid or 
offer or respond to any trading 
system or platform functionality; 
‘‘(ii) display or delay bids or 
offers for any period of time; 
‘‘(iii) limit the means of inter-
state commerce utilized by mar-
ket participants to enter into and 
execute any security-based swap 
transactions on the trading sys-
tem or platform; or 
‘‘(iv) require bids or offers on 
one trading system or platform 
operated by the swap execution 
facility to interact with bids or of-
fers on another trading system or 
platform operated by the swap 
execution facility.’’. 
SEC. 3. IMPLEMENTATION. 
The amendments made by this Act shall 
be implemented— 
(1) without regard to— 
(A) chapter 35 of title 44, United 
States Code; and 
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(B) the notice and comment provi-
sions of section 553 of title 5, United 
States Code; and 
(2) through the promulgation of an 
interim final rule. 
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