IB 
Union Calendar No. 97 
114TH CONGRESS 
1ST SESSION H. R. 2289 
[Report No. 114–134] 
To reauthorize the Commodity Futures Trading Commission, to better protect 
futures customers, to provide end-users with market certainty, to make 
basic reforms to ensure transparency and accountability at the Commis-
sion, to help farmers, ranchers, and end-users manage risks, to help 
keep consumer costs low, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
MAY 13, 2015 
Mr. CONAWAY (for himself, Mr. AUSTIN SCOTT of Georgia, and Mr. DAVID 
SCOTT of Georgia) introduced the following bill; which was referred to the 
Committee on Agriculture 
MAY 29, 2015 
Additional sponsor: Mr. SESSIONS 
MAY 29, 2015 
Committed to the Committee of the Whole House on the State of the Union 
and ordered to be printed 
[Strike out all after the enacting clause and insert the part printed in italic] 
[For text of introduced bill, see copy of bill as introduced on May 13, 2005] 
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A BILL 
To reauthorize the Commodity Futures Trading Commission, 
to better protect futures customers, to provide end-users 
with market certainty, to make basic reforms to ensure 
transparency and accountability at the Commission, to 
help farmers, ranchers, and end-users manage risks, to 
help keep consumer costs low, and for other purposes. 
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Sec. 308. Relief for grain elevator operators, farmers, agricultural counterparties, 
and commercial market participants. 
Sec. 309. Relief for end-users who use physical contracts with volumetric 
optionality. 
Sec. 310. Commission vote required before automatic change of swap dealer de 
minimis level. 
Sec. 311. Capital requirements for non-bank swap dealers. 
Sec. 312. Harmonization with the Jumpstart Our Business Startups Act. 
Sec. 313. Bona fide hedge defined to protect end-user risk management needs. 
Sec. 314. Cross-border regulation of derivatives transactions. 
Sec. 315. Exemption of qualified charitable organizations from designation and 
regulation as commodity pool operators. 
Sec. 316. Small bank holding company clearing exemption. 
Sec. 317. Core principle certainty. 
Sec. 318. Treatment of Federal Home Loan Bank products. 
Sec. 319. Treatment of certain funds. 
TITLE IV—TECHNICAL CORRECTIONS 
Sec. 401. Correction of references. 
Sec. 402. Elimination of obsolete references to dealer options. 
Sec. 403. Updated trade data publication requirement. 
Sec. 404. Flexibility for registered entities. 
Sec. 405. Elimination of obsolete references to electronic trading facilities. 
Sec. 406. Elimination of obsolete reference to alternative swap execution facilities. 
Sec. 407. Elimination of redundant references to types of registered entities. 
Sec. 408. Clarification of Commission authority over swaps trading. 
Sec. 409. Elimination of obsolete reference to the Commodity Exchange Commis-
sion. 
Sec. 410. Elimination of obsolete references to derivative transaction execution fa-
cilities. 
Sec. 411. Elimination of obsolete references to exempt boards of trade. 
Sec. 412. Elimination of report due in 1986. 
Sec. 413. Compliance report flexibility. 
Sec. 414. Miscellaneous corrections. 
TITLE I—CUSTOMER 
PROTECTIONS 
SEC. 101. ENHANCED PROTECTIONS FOR FUTURES CUS-
TOMERS. 
Section 17 of the Commodity Exchange Act (7 U.S.C. 
21) is amended by adding at the end the following: 
‘‘(s) A registered futures association shall— 
‘‘(1) require each member of the association that 
is a futures commission merchant to maintain writ-
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ten policies and procedures regarding the mainte-
nance of— 
‘‘(A) the residual interest of the member, as 
described in section 1.23 of title 17, Code of Fed-
eral Regulations, in any customer segregated 
funds account of the member, as identified in 
section 1.20 of such title, and in any foreign fu-
tures and foreign options customer secured 
amount funds account of the member, as identi-
fied in section 30.7 of such title; and 
‘‘(B) the residual interest of the member, as 
described in section 22.2(e)(4) of such title, in 
any cleared swaps customer collateral account of 
the member, as identified in section 22.2 of such 
title; and 
‘‘(2) establish rules to govern the withdrawal, 
transfer or disbursement by any member of the asso-
ciation, that is a futures commission merchant, of the 
member’s residual interest in customer segregated 
funds as provided in such section 1.20, in foreign fu-
tures and foreign options customer secured amount 
funds, identified as provided in such section 30.7, and 
from a cleared swaps customer collateral, identified as 
provided in such section 22.2.’’. 
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SEC. 102. ELECTRONIC CONFIRMATION OF CUSTOMER 
FUNDS. 
Section 17 of the Commodity Exchange Act (7 U.S.C. 
21), as amended by section 101 of this Act, is amended by 
adding at the end the following: 
‘‘(t) A registered futures association shall require any 
member of the association that is a futures commission mer-
chant to— 
‘‘(1) use an electronic system or systems to report 
financial and operational information to the associa-
tion or another party designated by the registered fu-
tures association, including information related to 
customer segregated funds, foreign futures and foreign 
options customer secured amount funds accounts, and 
cleared swaps customer collateral, in accordance with 
such terms, conditions, documentation standards, and 
regular time intervals as are established by the reg-
istered futures association; 
‘‘(2) instruct each depository, including any 
bank, trust company, derivatives clearing organiza-
tion, or futures commission merchant, holding cus-
tomer segregated funds under section 1.20 of title 17, 
Code of Federal Regulations, foreign futures and for-
eign options customer secured amount funds under 
section 30.7 of such title, or cleared swap customer 
funds under section 22.2 of such title, to report bal-
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ances in the futures commission merchant’s section 
1.20 customer segregated funds, section 30.7 foreign 
futures and foreign options customer secured amount 
funds, and section 22.2 cleared swap customer funds, 
to the registered futures association or another party 
designated by the registered futures association, in the 
form, manner, and interval prescribed by the reg-
istered futures association; and 
‘‘(3) hold section 1.20 customer segregated funds, 
section 30.7 foreign futures and foreign options cus-
tomer secured amount funds and section 22.2 cleared 
swaps customer funds in a depository that reports the 
balances in these accounts of the futures commission 
merchant held at the depository to the registered fu-
tures association or another party designated by the 
registered futures association in the form, manner, 
and interval prescribed by the registered futures asso-
ciation.’’. 
SEC. 103. NOTICE AND CERTIFICATIONS PROVIDING ADDI-
TIONAL CUSTOMER PROTECTIONS. 
Section 17 of the Commodity Exchange Act (7 U.S.C. 
21), as amended by sections 101 and 102 of this Act, is 
amended by adding at the end the following: 
‘‘(u) A futures commission merchant that has adjusted 
net capital in an amount less than the amount required 
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by regulations established by the Commission or a self-regu-
latory organization of which the futures commission mer-
chant is a member shall immediately notify the Commission 
and the self-regulatory organization of this occurrence. 
‘‘(v) A futures commission merchant that does not hold 
a sufficient amount of funds in segregated accounts for fu-
tures customers under section 1.20 of title 17, Code of Fed-
eral Regulations, in foreign futures and foreign options se-
cured amount accounts for foreign futures and foreign op-
tions secured amount customers under section 30.7 of such 
title, or in segregated accounts for cleared swap customers 
under section 22.2 of such title, as required by regulations 
established by the Commission or a self-regulatory organiza-
tion of which the futures commission merchant is a member, 
shall immediately notify the Commission and the self-regu-
latory organization of this occurrence. 
‘‘(w) Within such time period established by the Com-
mission after the end of each fiscal year, a futures commis-
sion merchant shall file with the Commission a report from 
the chief compliance officer of the futures commission mer-
chant containing an assessment of the internal compliance 
programs of the futures commission merchant.’’. 
SEC. 104. FUTURES COMMISSION MERCHANT COMPLIANCE. 
(a) IN GENERAL.—Section 4d(a) of the Commodity 
Exchange Act (7 U.S.C. 6d(a)) is amended— 
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(1) by redesignating paragraphs (1) and (2) as 
subparagraphs (A) and (B); 
(2) by inserting ‘‘(1)’’ before ‘‘It shall be unlaw-
ful’’; and 
(3) by adding at the end the following new para-
graph: 
‘‘(2) Any rules or regulations requiring a futures 
commission merchant to maintain a residual interest 
in accounts held for the benefit of customers in 
amounts at least sufficient to exceed the sum of all 
uncollected margin deficits of such customers shall 
provide that a futures commission merchant shall 
meet its residual interest requirement as of the end of 
each business day calculated as of the close of business 
on the previous business day.’’. 
(b) CONFORMING AMENDMENT.—Section 4d(h) of such 
Act (7 U.S.C. 6d(h)) is amended by striking ‘‘Notwith-
standing subsection (a)(2)’’ and inserting ‘‘Notwith-
standing subsection (a)(1)(B)’’. 
SEC. 105. CERTAINTY FOR FUTURES CUSTOMERS AND MAR-
KET PARTICIPANTS. 
Section 20(a) of the Commodity Exchange Act (7 
U.S.C. 24(a)) is amended— 
(1) by striking ‘‘and’’ at the end of paragraph 
(4); 
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SEC. 202. CONSIDERATION BY THE COMMODITY FUTURES 
TRADING COMMISSION OF THE COSTS AND 
BENEFITS OF ITS REGULATIONS AND OR-
DERS. 
Section 15(a) of the Commodity Exchange Act (7 
U.S.C. 19(a)) is amended— 
(1) by striking paragraphs (1) and (2) and in-
serting the following: 
‘‘(1) IN GENERAL.—Before promulgating a regu-
lation under this Act or issuing an order (except as 
provided in paragraph (3)), the Commission, through 
the Office of the Chief Economist, shall assess and 
publish in the regulation or order the costs and bene-
fits, both qualitative and quantitative, of the proposed 
regulation or order, and the proposed regulation or 
order shall state its statutory justification. 
‘‘(2) CONSIDERATIONS.—In making a reasoned 
determination of the costs and the benefits, the Com-
mission shall evaluate— 
‘‘(A) considerations of protection of market 
participants and the public; 
‘‘(B) considerations of the efficiency, com-
petitiveness, and financial integrity of futures 
and swaps markets; 
‘‘(C) considerations of the impact on market 
liquidity in the futures and swaps markets; 
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‘‘(D) considerations of price discovery; 
‘‘(E) considerations of sound risk manage-
ment practices; 
‘‘(F) available alternatives to direct regula-
tion; 
‘‘(G) the degree and nature of the risks 
posed by various activities within the scope of its 
jurisdiction; 
‘‘(H) the costs of complying with the pro-
posed regulation or order by all regulated enti-
ties, including a methodology for quantifying the 
costs (recognizing that some costs are difficult to 
quantify); 
‘‘(I) whether the proposed regulation or 
order is inconsistent, incompatible, or duplica-
tive of other Federal regulations or orders; 
‘‘(J) the cost to the Commission of imple-
menting the proposed regulation or order by the 
Commission staff, including a methodology for 
quantifying the costs; 
‘‘(K) whether, in choosing among alter-
native regulatory approaches, those approaches 
maximize net benefits (including potential eco-
nomic and other benefits, distributive impacts, 
and equity); and 
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‘‘(L) other public interest considerations.’’; 
and 
(2) by adding at the end the following: 
‘‘(4) JUDICIAL
REVIEW.—Notwithstanding sec-
tion 24(d), a court shall affirm a Commission assess-
ment of costs and benefits under this subsection, un-
less the court finds the assessment to be an abuse of 
discretion.’’. 
SEC. 203. DIVISION DIRECTORS. 
Section 2(a)(6)(C) of the Commodity Exchange Act (7 
U.S.C. 2(a)(6)(C)) is amended by inserting ‘‘, and the heads 
of the units shall serve at the pleasure of the Commission’’ 
before the period. 
SEC. 204. OFFICE OF THE CHIEF ECONOMIST. 
(a) IN GENERAL.—Section 2(a) of the Commodity Ex-
change Act (7 U.S.C. 2(a)) is amended by adding at the 
end the following: 
‘‘(16) OFFICE OF THE CHIEF ECONOMIST.— 
‘‘(A) ESTABLISHMENT.—There is estab-
lished in the Commission the Office of the Chief 
Economist. 
‘‘(B) HEAD.—The Office of the Chief Econo-
mist shall be headed by the Chief Economist, who 
shall be appointed by the Commission and serve 
at the pleasure of the Commission. 
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‘‘(C) FUNCTIONS.—The Chief Economist 
shall report directly to the Commission and per-
form such functions and duties as the Commis-
sion may prescribe. 
‘‘(D) PROFESSIONAL STAFF.—The Commis-
sion shall appoint such other economists as may 
be necessary to assist the Chief Economist in 
performing such economic analysis, regulatory 
cost-benefit analysis, or research any member of 
the Commission may request.’’. 
(b) CONFORMING AMENDMENT.—Section 2(a)(6)(A) of 
such Act (7 U.S.C. 2(a)(6)(A)) is amended by striking ‘‘(4) 
and (5) of this subsection’’ and inserting ‘‘(4), (5), and 
(16)’’. 
SEC. 205. PROCEDURES GOVERNING ACTIONS TAKEN BY 
COMMISSION STAFF. 
Section 2(a)(12) of the Commodity Exchange Act (7 
U.S.C. 2(a)(12)) is amended— 
(1) by striking ‘‘(12) The’’ and inserting the fol-
lowing: 
‘‘(12) RULES AND REGULATIONS.— 
‘‘(A) IN
GENERAL.—Subject to the other 
provisions of this paragraph, the’’; and 
(2) by adding after and below the end the fol-
lowing new subparagraph: 
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‘‘(B) NOTICE
TO
COMMISSIONERS.—The 
Commission shall develop and publish internal 
procedures governing the issuance by any divi-
sion or office of the Commission of any response 
to a formal, written request or petition from any 
member of the public for an exemptive, a no-ac-
tion, or an interpretive letter and such proce-
dures shall provide that the commissioners be 
provided with the final version of the matter to 
be issued with sufficient notice to review the 
matter prior to its issuance.’’. 
SEC. 206. STRATEGIC TECHNOLOGY PLAN. 
Section 2(a) of the Commodity Exchange Act (7 U.S.C. 
2(a)), as amended by section 204(a) of this Act, is amended 
by adding at the end the following: 
‘‘(17) STRATEGIC TECHNOLOGY PLAN.— 
‘‘(A) IN
GENERAL.—Every 5 years, the 
Commission shall develop and submit to the 
Committee on Agriculture of the House of Rep-
resentatives and the Committee on Agriculture, 
Nutrition, and Forestry of the Senate a detailed 
plan focused on the acquisition and use of tech-
nology by the Commission. 
‘‘(B) CONTENTS.—The plan shall— 
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‘‘(i) include for each related division or 
office a detailed technology strategy focused 
on market surveillance and risk detection, 
market data collection, aggregation, inter-
pretation, standardization, harmonization, 
normalization, validation, streamlining or 
other data analytic processes, and internal 
management and protection of data col-
lected by the Commission, including a de-
tailed accounting of how the funds provided 
for technology will be used and the prior-
ities that will apply in the use of the funds; 
and 
‘‘(ii) set forth annual goals to be ac-
complished and annual budgets needed to 
accomplish the goals.’’. 
SEC. 207. INTERNAL RISK CONTROLS. 
Section 2(a)(12) of the Commodity Exchange Act (7 
U.S.C. 2(a)(12)), as amended by section 205 of this Act, 
is amended by adding at the end the following: 
‘‘(C) INTERNAL RISK CONTROLS.—The Com-
mission, in consultation with the Chief Econo-
mist, shall develop comprehensive internal risk 
control mechanisms to safeguard and govern the 
storage of all market data by the Commission, 
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SEC. 209. APPLICABILITY OF NOTICE AND COMMENT RE-
QUIREMENTS OF THE ADMINISTRATIVE PRO-
CEDURE ACT TO GUIDANCE VOTED ON BY 
THE COMMISSION. 
Section 2(a)(12) of the Commodity Exchange Act (7 
U.S.C. 2(a)(12)), as amended by sections 205 and 207 of 
this Act, is amended by adding at the end the following: 
‘‘(D) APPLICABILITY OF NOTICE AND COM-
MENT RULES TO GUIDANCE VOTED ON BY THE 
COMMISSION.—The notice and comment require-
ments of section 553 of title 5, United States 
Code, shall also apply with respect to any Com-
mission statement or guidance, including inter-
pretive rules, general statements of policy, or 
rules of Commission organization, procedure, or 
practice, that has the effect of implementing, in-
terpreting or prescribing law or policy and that 
is voted on by the Commission.’’. 
SEC. 210. JUDICIAL REVIEW OF COMMISSION RULES. 
The Commodity Exchange Act (7 U.S.C. 1 et seq.) is 
amended by adding at the end the following: 
‘‘SEC. 24. JUDICIAL REVIEW OF COMMISSION RULES. 
‘‘(a) A person adversely affected by a rule of the Com-
mission promulgated under this Act may obtain review of 
the rule in the United States Court of Appeals for the Dis-
trict of Columbia Circuit or the United States Court of Ap-
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peals for the circuit where the party resides or has the prin-
cipal place of business, by filing in the court, within 60 
days after publication in the Federal Register of the entry 
of the rule, a written petition requesting that the rule be 
set aside. 
‘‘(b) A copy of the petition shall be transmitted forth-
with by the clerk of the court to an officer designated by 
the Commission for that purpose. Thereupon the Commis-
sion shall file in the court the record on which the rule com-
plained of is entered, as provided in section 2112 of title 
28, United States Code, and the Federal Rules of Appellate 
Procedure. 
‘‘(c) On the filing of the petition, the court has juris-
diction, which becomes exclusive on the filing of the record, 
to affirm and enforce or to set aside the rule in whole or 
in part. 
‘‘(d) The court shall affirm and enforce the rule unless 
the Commission’s action in promulgating the rule is found 
to be arbitrary, capricious, an abuse of discretion, or other-
wise not in accordance with law; contrary to constitutional 
right, power, privilege, or immunity; in excess of statutory 
jurisdiction, authority, or limitations, or short of statutory 
right; or without observance of procedure required by law.’’. 
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SEC. 211. GAO STUDY ON USE OF COMMISSION RESOURCES. 
(a) STUDY.—The Comptroller General of the United 
States shall conduct a study of the resources of the Com-
modity Futures Trading Commission that— 
(1) assesses whether the resources of the Commis-
sion are sufficient to enable the Commission to effec-
tively carry out the duties of the Commission; 
(2) examines the expenditures of the Commission 
on hardware, software, and analytical processes de-
signed to protect customers in the areas of— 
(A) market surveillance and risk detection; 
and 
(B) market data collection, aggregation, in-
terpretation, 
standardization, 
harmonization, 
and streamlining; 
(3) analyzes the additional workload undertaken 
by the Commission, and ascertains where self-regu-
latory organizations could be more effectively utilized; 
and 
(4) examines existing and emerging post-trade 
risk reduction services in the swaps market, the no-
tional amount of risk reduction transactions provided 
by the services, and the effects the services have on fi-
nancial stability, including— 
(A) market surveillance and risk detection; 
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(B) market data collection, aggregation, in-
terpretation, 
standardization, 
harmonization, 
and streamlining; and 
(C) oversight and compliance work by mar-
ket participants and regulators. 
(b) REPORT.—Not later than 180 days after the date 
of the enactment of this Act, the Comptroller General of the 
United States shall submit to the Committee on Agriculture 
of the House of Representatives and the Committee on Agri-
culture, Nutrition, and Forestry of the Senate a report that 
contains the results of the study required by subsection (a). 
SEC. 212. DISCLOSURE OF REQUIRED DATA OF OTHER REG-
ISTERED ENTITIES. 
Section 8 of the Commodity Exchange Act (7 U.S.C. 
12) is amended by adding at the end the following: 
‘‘(j) DISCLOSURE
OF REQUIRED DATA
OF OTHER 
REGISTERED ENTITIES.— 
‘‘(1) Except as provided in this subsection, the 
Commission may not be compelled to disclose any 
proprietary information provided to the Commission, 
except that nothing in this subsection— 
‘‘(A) authorizes the Commission to withhold 
information from Congress; or 
‘‘(B) prevents the Commission from— 
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‘‘(i) complying with a request for in-
formation from any other Federal depart-
ment or agency, any State or political sub-
division thereof, or any foreign government 
or any department, agency, or political sub-
division thereof requesting the report or in-
formation for purposes within the scope of 
its jurisdiction, upon an agreement of con-
fidentiality to protect the information in a 
manner consistent with this paragraph and 
subsection (e); or 
‘‘(ii) making a disclosure made pursu-
ant to a court order in connection with an 
administrative 
or 
judicial 
proceeding 
brought under this Act, in any receivership 
proceeding involving a receiver appointed 
in a judicial proceeding brought under this 
Act, or in any bankruptcy proceeding in 
which the Commission has intervened or in 
which the Commission has the right to ap-
pear and be heard under title 11 of the 
United States Code. 
‘‘(2) Any proprietary information of a com-
modity trading advisor or commodity pool operator 
ascertained by the Commission in connection with 
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Form CPO-PQR, Form CTA-PR, and any successor 
forms thereto, shall be subject to the same limitations 
on public disclosure, as any facts ascertained during 
an investigation, as provided by subsection (a); pro-
vided, however, that the Commission shall not be pre-
cluded from publishing aggregate information com-
piled from such forms, to the extent such aggregate in-
formation does not identify any individual person or 
firm, or such person’s proprietary information. 
‘‘(3) For purposes of section 552 of title 5, 
United States Code, this subsection, and the informa-
tion contemplated herein, shall be considered a statute 
described in subsection (b)(3)(B) of such section 552. 
‘‘(4) For purposes of the definition of propri-
etary information in paragraph (5), the records and 
reports of any client account or commodity pool to 
which a commodity trading advisor or commodity 
pool operator registered under this title provides serv-
ices that are filed with the Commission on Form 
CPO-PQR, CTA-PR, and any successor forms thereto, 
shall be deemed to be the records and reports of the 
commodity trading advisor or commodity pool oper-
ator, respectively. 
‘‘(5) For purposes of this section, proprietary in-
formation of a commodity trading advisor or com-
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modity pool operator includes sensitive, non-public 
information regarding— 
‘‘(A) the commodity trading advisor, com-
modity pool operator or the trading strategies of 
the commodity trading advisor or commodity 
pool operator; 
‘‘(B) analytical or research methodologies of 
a commodity trading advisor or commodity pool 
operator; 
‘‘(C) trading data of a commodity trading 
advisor or commodity pool operator; and 
‘‘(D) computer hardware or software con-
taining intellectual property of a commodity 
trading advisor or commodity pool operator;’’. 
SEC. 213. REPORT ON STATUS OF ANY APPLICATION OF 
METALS EXCHANGE TO REGISTER AS A FOR-
EIGN BOARD OF TRADE; DEADLINE FOR AC-
TION ON APPLICATION. 
(a) REPORT TO CONGRESS.—Within 90 days after the 
date of the enactment of this section, the Commodity Fu-
tures Trading Commission shall submit to the Congress a 
written report on— 
(1) the status of the review by the Commission 
of any application submitted by a metals exchange to 
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register with the Commission under section 4(b)(1) of 
the Commodity Exchange Act; and 
(2) the status of Commission negotiations with 
foreign regulators regarding aluminum warehousing. 
(b) DEADLINE
FOR ACTION.—Not later than Sep-
tember 30, 2016, the Commission shall take action on any 
such application submitted to the Commission on or before 
August 14, 2012. 
TITLE III—END-USER RELIEF 
SEC. 301. RELIEF FOR HEDGERS UTILIZING CENTRALIZED 
RISK MANAGEMENT PRACTICES. 
(a) IN GENERAL.— 
(1) COMMODITY EXCHANGE ACT AMENDMENT.— 
Section 2(h)(7)(D)(i) of the Commodity Exchange Act 
(7 U.S.C. 2(h)(7)(D)(i)) is amended to read as fol-
lows: 
‘‘(i) IN GENERAL.—An affiliate of a 
person that qualifies for an exception under 
subparagraph (A) (including an affiliate 
entity predominantly engaged in providing 
financing for the purchase of the merchan-
dise or manufactured goods of the person) 
may qualify for the exception only if the af-
filiate enters into the swap to hedge or miti-
gate the commercial risk of the person or 
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other affiliate of the person that is not a fi-
nancial entity, provided that if the hedge or 
mitigation of such commercial risk is ad-
dressed by entering into a swap with a 
swap dealer or major swap participant, an 
appropriate 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, as amended by subsection 
(a), requiring that a credit support measure or other mecha-
nism be utilized if the transfer of commercial risk referred 
to in such section is addressed by entering into a swap with 
a swap dealer or major swap participant shall not apply 
with respect to swaps entered into before the date of the 
enactment of this Act. 
SEC. 302. INDEMNIFICATION REQUIREMENTS. 
(a) DERIVATIVES CLEARING ORGANIZATIONS.—Sec-
tion 5b(k)(5) of the Commodity Exchange Act (7 U.S.C. 7a- 
1(k)(5)) is amended to read as follows: 
‘‘(5) CONFIDENTIALITY AGREEMENT.—Before the 
Commission may share information with any entity 
described in paragraph (4), the Commission shall re-
ceive a written agreement from each entity stating 
that the entity shall abide by the confidentiality re-
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quirements described in section 8 relating to the in-
formation on swap transactions that is provided.’’. 
(b) SWAP DATA REPOSITORIES.—Section 21(d) of such 
Act (7 U.S.C. 24a(d)) is amended to read as follows: 
‘‘(d) CONFIDENTIALITY AGREEMENT.—Before the swap 
data repository may share information with any entity de-
scribed in subsection (c)(7), the swap data repository shall 
receive a written agreement from each entity stating that 
the entity shall abide by the confidentiality requirements 
described in section 8 relating to the information on swap 
transactions that is provided.’’. 
SEC. 303. TRANSACTIONS WITH UTILITY SPECIAL ENTITIES. 
Section 1a(49) of the Commodity Exchange Act (7 
U.S.C. 1a(49)) is amended by adding at the end the fol-
lowing: 
‘‘(E) CERTAIN TRANSACTIONS WITH A UTIL-
ITY SPECIAL ENTITY.— 
‘‘(i) Transactions in utility operations- 
related swaps shall be reported pursuant to 
section 4r. 
‘‘(ii) In making a determination to ex-
empt pursuant to subparagraph (D), the 
Commission shall treat a utility operations- 
related swap entered into with a utility spe-
cial 
entity, 
as 
defined 
in 
section 
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4s(h)(2)(D), as if it were entered into with 
an entity that is not a special entity, as de-
fined in section 4s(h)(2)(C).’’. 
SEC. 304. UTILITY SPECIAL ENTITY DEFINED. 
Section 4s(h)(2) of the Commodity Exchange Act (7 
U.S.C. 6s(h)(2)) is amended by adding at the end the fol-
lowing: 
‘‘(D) UTILITY SPECIAL ENTITY.—For pur-
poses of this Act, the term ‘utility special entity’ 
means a special entity, or any instrumentality, 
department, or corporation of or established by a 
State or political subdivision of a State, that— 
‘‘(i) owns or operates, or anticipates 
owning or operating, an electric or natural 
gas facility or an electric or natural gas op-
eration; 
‘‘(ii) supplies, or anticipates sup-
plying, natural gas and or electric energy to 
another utility special entity; 
‘‘(iii) has, or anticipates having, pub-
lic service obligations under Federal, State, 
or local law or regulation to deliver electric 
energy or natural gas service to customers; 
or 
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‘‘(i) an interest rate, credit, equity, or 
currency asset class; 
‘‘(ii) except as used for fuel for electric 
energy generation, a metal, agricultural 
commodity, or crude oil or gasoline com-
modity of any grade; or 
‘‘(iii) any other commodity or category 
of commodities identified for this purpose in 
a rule or order adopted by the Commission 
in consultation with the appropriate Fed-
eral and State regulatory commissions; and 
‘‘(C) is associated with— 
‘‘(i) the generation, production, pur-
chase, or sale of natural gas or electric en-
ergy, the supply of natural gas or electric 
energy to a utility, or the delivery of nat-
ural gas or electric energy service to utility 
customers; 
‘‘(ii) fuel supply for the facilities or 
operations of a utility; 
‘‘(iii) compliance with an electric sys-
tem reliability obligation; 
‘‘(iv) compliance with an energy, en-
ergy efficiency, conservation, or renewable 
energy or environmental statute, regulation, 
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or government order applicable to a utility; 
or 
‘‘(v) any other electric energy or nat-
ural gas swap to which a utility is a 
party.’’. 
SEC. 306. END-USERS NOT TREATED AS FINANCIAL ENTI-
TIES. 
(a) IN GENERAL.—Section 2(h)(7)(C)(iii) of the Com-
modity Exchange Act (7 U.S.C. 2(h)(7)(C)(iii)) is amended 
to read as follows: 
‘‘(iii) LIMITATION.—Such definition 
shall not include an entity— 
‘‘(I) whose primary business is 
providing financing, and who uses de-
rivatives for the purpose of hedging un-
derlying commercial risks related to 
interest rate and foreign currency ex-
posures, 90 percent or more of which 
arise from financing that facilitates the 
purchase or lease of products, 90 per-
cent or more of which are manufac-
tured by the parent company or an-
other subsidiary of the parent com-
pany; or 
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‘‘(II) who is not supervised by a 
prudential regulator, and is not de-
scribed in any of subclauses (I) 
through (VII) of clause (i), and— 
‘‘(aa) is a commercial mar-
ket participant; or 
‘‘(bb) enters into swaps, con-
tracts for future delivery, and 
other derivatives on behalf of, or 
to hedge or mitigate the commer-
cial risk of, whether directly or in 
the aggregate, affiliates that are 
not so supervised or described.’’. 
(b) COMMERCIAL MARKET PARTICIPANT DEFINED.— 
(1) IN
GENERAL.—Section 1a of such Act (7 
U.S.C. 1a), as amended by section 305(b) of this Act, 
is amended by redesignating paragraphs (8) through 
(52) as paragraphs (9) through (53), respectively, and 
by inserting after paragraph (6) the following: 
‘‘(8) COMMERCIAL MARKET PARTICIPANT.—The 
term ‘commercial market participant’ means any 
producer, processor, merchant, or commercial user of 
an exempt or agricultural commodity, or the products 
or byproducts of such a commodity.’’. 
(2) CONFORMING AMENDMENTS.— 
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(A) Section 1a of such Act (7 U.S.C. 1a) is 
amended— 
(i) in subparagraph (A) of paragraph 
(18) (as so redesignated by paragraph (1) of 
this subsection), in the matter preceding 
clause (i), by striking ‘‘(18)(A)’’ and insert-
ing ‘‘(19)(A)’’; and 
(ii) in subparagraph (A)(vii) of para-
graph (19) (as so redesignated by para-
graph (1) of this subsection), in the matter 
following 
subclause 
(III), 
by 
striking 
‘‘(17)(A)’’ and inserting ‘‘(18)(A)’’. 
(B) Section 4(c)(1)(A)(i)(I) of such Act (7 
U.S.C. 6(c)(1)(A)(i)(I)) is amended by striking 
‘‘(7), paragraph (18)(A)(vii)(III), paragraphs 
(23), (24), (31), (32), (38), (39), (41), (42), (46), 
(47), (48), and (49)’’ and inserting ‘‘(8), para-
graph (19)(A)(vii)(III), paragraphs (24), (25), 
(32), (33), (39), (40), (42), (43), (47), (48), (49), 
and (50)’’. 
(C) Section 4q(a)(1) of such Act (7 U.S.C. 
6o-1(a)(1)) is amended by striking ‘‘1a(9)’’ and 
inserting ‘‘1a(10)’’. 
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(D) Section 4s(f)(1)(D) of such Act (7 
U.S.C. 6s(f)(1)(D)) is amended by striking 
‘‘1a(47)(A)(v)’’ and inserting ‘‘1a(48)(A)(v)’’. 
(E) Section 4s(h)(5)(A)(i) of such Act (7 
U.S.C. 6s(h)(5)(A)(i)) is amended by striking 
‘‘1a(18)’’ and inserting ‘‘1a(19)’’. 
(F) Section 4t(b)(1)(C) of such Act (7 
U.S.C. 6t(b)(1)(C)) is amended by striking 
‘‘1a(47)(A)(v)’’ and inserting ‘‘1a(48)(A)(v)’’. 
(G) Section 5(d)(23) of such Act (7 U.S.C. 
7(d)(23)) is amended by striking ‘‘1a(47)(A)(v)’’ 
and inserting ‘‘1a(48)(A)(v)’’. 
(H) Section 5(e)(1) of such Act (7 U.S.C. 
7(e)(1)) is amended by striking ‘‘1a(9)’’ and in-
serting ‘‘1a(10)’’. 
(I) Section 5b(k)(3)(A) of such Act (7 
U.S.C. 7a-1(k)(3)(A)) is amended by striking 
‘‘1a(47)(A)(v)’’ and inserting ‘‘1a(48)(A)(v)’’. 
(J) Section 5h(f)(10)(A)(iii) of such Act (7 
U.S.C. 7b-3(f)(10)(A)(iii)) is amended by strik-
ing 
‘‘1a(47)(A)(v)’’ 
and 
inserting 
‘‘1a(48)(A)(v)’’. 
(K) Section 21(f)(4)(C) of such Act (7 
U.S.C. 24a(f)(4)(C)) is amended by striking 
‘‘1a(48)’’ and inserting ‘‘1a(49)’’. 
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SEC. 307. REPORTING OF ILLIQUID SWAPS SO AS TO NOT 
DISADVANTAGE 
CERTAIN 
NON-FINANCIAL 
END-USERS. 
Section 2(a)(13) of the Commodity Exchange Act (7 
U.S.C. 2(a)(13)) is amended— 
(1) in subparagraph (C), by striking ‘‘The Com-
mission’’ and inserting ‘‘Except as provided in sub-
paragraph (D), the Commission’’; and 
(2) by redesignating subparagraphs (D) through 
(G) as subparagraphs (E) through (H), respectively, 
and inserting after subparagraph (C) the following: 
‘‘(D) REQUIREMENTS
FOR
SWAP
TRANS-
ACTIONS
IN
ILLIQUID
MARKETS.—Notwith-
standing subparagraph (C): 
‘‘(i) The Commission shall provide by 
rule for the public reporting of swap trans-
actions, including price and volume data, 
in illiquid markets that are not cleared and 
entered into by a non-financial entity that 
is hedging or mitigating commercial risk in 
accordance with subsection (h)(7)(A). 
‘‘(ii) The Commission shall ensure that 
the swap transaction information referred 
to in clause (i) of this subparagraph is 
available to the public no sooner than 30 
days after the swap transaction has been ex-
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ecuted or at such later date as the Commis-
sion determines appropriate to protect the 
identity of participants and positions in il-
liquid markets and to prevent the elimi-
nation or reduction of market liquidity. 
‘‘(iii) In this subparagraph, the term 
‘illiquid markets’ means any market in 
which the volume and frequency of trading 
in swaps is at such a level as to allow iden-
tification of individual market partici-
pants.’’. 
SEC. 308. RELIEF FOR GRAIN ELEVATOR OPERATORS, 
FARMERS, AGRICULTURAL COUNTERPARTIES, 
AND COMMERCIAL MARKET PARTICIPANTS. 
The Commodity Exchange Act (7 U.S.C. 1 et seq.) is 
amended by inserting after section 4t the following: 
‘‘SEC. 4u. RECORDKEEPING REQUIREMENTS APPLICABLE 
TO NON-REGISTERED MEMBERS OF CERTAIN 
REGISTERED ENTITIES. 
‘‘Except as provided in section 4(a)(3), a member of 
a designated contract market or a swap execution facility 
that is not registered with the Commission and not required 
to be registered with the Commission in any capacity shall 
satisfy the recordkeeping requirements of this Act and any 
recordkeeping rule, order, or regulation under this Act by 
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