I 
★
116TH CONGRESS 
1ST SESSION H. R. 4717 
To improve swap execution facility administration, swap entity compliance, 
and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
OCTOBER 17, 2019 
Mr. CRAWFORD (for himself and Mr. AUSTIN SCOTT of Georgia) introduced 
the following bill; which was referred to the Committee on Agriculture 
A BILL 
To improve swap execution facility administration, swap 
entity compliance, 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 ‘‘Swap Trading Im-
provement Act’’. 
SEC. 2. SIMPLIFICATION OF SWAP DATA AGGREGATION RE-
QUIREMENTS. 
(a) OBLIGATIONS FOR DESIGNATED CONTRACT MAR-
KETS.—Section 5(d)(5) of the Commodity Exchange Act 
(7 U.S.C. 7(d)(5)) is amended— 
VerDate Sep 11 2014 
19:28 Dec 30, 2019
Jkt 099200
PO 00000
Frm 00001
Fmt 6652
Sfmt 6201
E:\BILLS\H4717.IH
H4717
pamtmann on DSKBC07HB2PROD with BILLS
HR 4717 IH1S 
(1) in subparagraph (A), by inserting ‘‘that is 
not a swap contract’’ after ‘‘for each contract of the 
board of trade’’; and 
(2) in subparagraph (B), by inserting ‘‘that is 
not a swap contract’’ after ‘‘contract’’. 
(b) OBLIGATIONS FOR SWAP EXECUTION FACILI-
TIES.—Section 5h(f)(4)(B) of such Act (7 U.S.C. 7b– 
3(f)(4)(B)) is amended by striking ‘‘in swaps’’ and insert-
ing ‘‘activity in swaps occurring on the swap execution fa-
cility’’. 
(c) CROSS-FACILITY DATA AGGREGATION RELIEF.— 
Section 5h(f) of such Act (7 U.S.C. 7b–3(f)) is amended 
by striking paragraph (6). 
SEC. 3. SWAP ENTITY ADMINISTRATIVE IMPROVEMENTS. 
(a) AUTHORITY OF REGISTERED ENTITIES TO USE 
THIRD-PARTY SERVICE PROVIDERS.—Section 5c(b) of the 
Commodity Exchange Act (7 U.S.C. 7a–2(b)) is amended 
to read as follows: 
‘‘(b) DELEGATION
OF FUNCTIONS UNDER CORE 
PRINCIPLES.— 
‘‘(1) IN
GENERAL.—A registered entity may 
comply with any applicable core principle through 
delegation of any relevant function to a third-party 
service provider. 
VerDate Sep 11 2014 
19:28 Dec 30, 2019
Jkt 099200
PO 00000
Frm 00002
Fmt 6652
Sfmt 6201
E:\BILLS\H4717.IH
H4717
pamtmann on DSKBC07HB2PROD with BILLS
HR 4717 IH1S 
‘‘(2) RESPONSIBILITY.—A registered entity that 
delegates a function under paragraph (1) shall re-
main responsible for carrying out the function. 
‘‘(3) NONCOMPLIANCE.—If a registered entity 
that delegates a function under paragraph (1) be-
comes aware that the function is not being per-
formed as required under this Act, the registered en-
tity shall promptly take steps to address the non-
compliance.’’. 
(b) REGISTRATION
OF SWAP EXECUTION FACILI-
TIES.—Section 5h(a)(1) of such Act (7 U.S.C. 7b–3(a)(1)) 
is amended by striking ‘‘or processing’’. 
(c) CORE PRINCIPLES FOR SWAP EXECUTION FA-
CILITIES.— 
(1) MODIFICATION OF EMERGENCY AUTHORITY 
REQUIREMENTS.—Section 5h(f)(8) of such Act (7 
U.S.C. 7b–3(f)(8)) is amended by striking all that 
follows ‘‘cooperation with the Commission’’ and in-
serting ‘‘or other registered entities, as is necessary 
and appropriate, to facilitate the liquidation or 
transfer of open positions in any swap, or to suspend 
or curtail trading in a swap.’’. 
(2) REDUCTION
OF
OPERATING
CAPITAL
RE-
QUIREMENT.—Section 5h(f)(13)(B) of such Act (7 
U.S.C. 7b–3(f)(13)(B)) is amended by striking ‘‘1- 
VerDate Sep 11 2014 
19:28 Dec 30, 2019
Jkt 099200
PO 00000
Frm 00003
Fmt 6652
Sfmt 6201
E:\BILLS\H4717.IH
H4717
pamtmann on DSKBC07HB2PROD with BILLS
HR 4717 IH1S 
year period, as calculated on a rolling basis,’’ and in-
serting ‘‘90-day period, as calculated on a rolling 
basis, or conduct an orderly wind-down of its oper-
ations, whichever is greater.’’. 
SEC. 4. SIMPLIFICATION OF SWAP EXECUTION FACILITY 
CHIEF COMPLIANCE OFFICER OBLIGATIONS. 
Section 5h(f)(15) of the Commodity Exchange Act (7 
U.S.C. 7b–3(f)(15)) is amended— 
(1) in subparagraph (A), by adding at the end 
the following: ‘‘The individual may also perform 
other responsibilities for the swap execution facil-
ity.’’; 
(2) in subparagraph (B)— 
(A) in clause (i), by inserting ‘‘, to a com-
mittee of the board,’’ after ‘‘directly to the 
board’’; 
(B) by striking clauses (iii) through (v) 
and inserting the following: 
‘‘(iii) establish and administer policies 
and procedures that are reasonably de-
signed to resolve any conflicts of interest 
that may arise; 
‘‘(iv) establish and administer policies 
and procedures that reasonably ensure 
compliance with this Act and the rules and 
VerDate Sep 11 2014 
19:28 Dec 30, 2019
Jkt 099200
PO 00000
Frm 00004
Fmt 6652
Sfmt 6201
E:\BILLS\H4717.IH
H4717
pamtmann on DSKBC07HB2PROD with BILLS
HR 4717 IH1S 
regulations issued under this Act, includ-
ing rules prescribed by the Commission 
pursuant to this section; and’’; and 
(C) by redesignating clause (vi) as clause 
(v); 
(3) in subparagraph (C), by striking ‘‘(B)(vi)’’ 
and inserting ‘‘(B)(v)’’; and 
(4) in subparagraph (D)— 
(A) in clause (i)— 
(i) by striking ‘‘In accordance with 
rules prescribed by the Commission, the’’ 
and inserting ‘‘The’’; and 
(ii) by striking ‘‘and sign’’; and 
(B) in clause (ii)— 
(i) in the matter preceding subclause 
(I), by inserting ‘‘or senior officer’’ after 
‘‘officer’’; 
(ii) by amending subclause (I) to read 
as follows: 
‘‘(I) submit each report described 
in clause (i) to the Commission; and’’; 
and 
(iii) in subclause (II), by inserting 
‘‘materially’’ before ‘‘accurate’’. 
VerDate Sep 11 2014 
19:28 Dec 30, 2019
Jkt 099200
PO 00000
Frm 00005
Fmt 6652
Sfmt 6201
E:\BILLS\H4717.IH
H4717
pamtmann on DSKBC07HB2PROD with BILLS