To provide end user exemptions from certain provisions of the Commodity Exchange Act and the Securities Exchange Act of 1934, and for other purposes.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Business Risk Mitigation and Price 
Stabilization Act of 2011''.

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 participant;
                    ``(B) an investment fund that--
                            ``(i) has issued securities, other than 
                        debt securities, to greater than five 
                        unaffiliated 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 commercial 
                        real estate) directly or through interest 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 entered 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.''.
    (b) Securities Exchange Act of 1934 Amendments.--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 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) directly 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 Accountability Act of 2010 are exempt from the 
        margin 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.

Summary: Business Risk Mitigation and Price Stabilization Act of 2011 - Amends the Commodity Exchange Act (CEA) and the Securities Exchange Act of 1934 to revise the element of the definition of a major swap participant which states that the participant's outstanding swaps create substantial counterparty exposure that could have serious adverse effects on the financial stability of the U.S. banking system or financial markets. Specifies "net" counterparty exposure, thus stating that the major swap participant's outstanding swaps create substantial net counterparty exposure that could have serious adverse effects on the financial stability of the U.S. banking system or financial markets.

Declares capital and margin requirements governing swap dealers and major swap participants inapplicable to swaps in which one of the counterparties is not: (1) a swap dealer or major swap participant; (2) a specified kind of investment fund; (3) a commodity pool; or (4) the Federal National Mortgage Association (Fannie Mae) or any affiliate, the Federal Home Loan Mortgage Corporation (Freddie Mac) or any affiliate, or a Federal Home Loan Bank.

Exempts from margin requirements under the CEA and the Securities Exchange Act of 1934 any swaps entered into before the date upon which specified final rules must be published under the Wall Street Transparency and Accountability Act of 2010, title VII of the Dodd-Frank Wall Street Reform and Consumer Protection Act.