To exempt inter-affiliate swaps from certain regulatory requirements put in place by the Dodd-Frank Wall Street Reform and Consumer Protection Act.

Bill: 112-hr-2779
Sponsor: Rep. Stivers, Steve [R-OH-15]
Introduced: 2011-08-01 in the House
Policy area: Finance and Financial Sector
Subjects: Banking and financial institutions regulation
Commodities markets
Financial services and investments
Government information and archives
Securities

Summary:
action_date: 2011-08-01
text: 
Amends the Commodity Exchange Act and the Securities Exchange Act of 1934, as amended by the Dodd-Frank Wall Street Reform and Consumer Protection Act, to exempt from certain regulatory requirements swaps and security-based swaps entered into by a party that is controlling, controlled by, or under common control with its counterparty.
 
Requires that such exempted agreements, contracts, or transactions be reported to an appropriate data repository, or, if there is no such repository that would accept them, to: (1) the Commodity Futures Trading Commission (CFTC) in the case of exempted swaps, or (2) the Securities and Exchange Commission (SEC) in the case of exempted security-based swaps.

action_date: 2011-12-23
text: 
 Amends the Commodity Exchange Act and the Securities Exchange Act of 1934, as amended by the Dodd-Frank Wall Street Reform and Consumer Protection Act, to exempt from certain regulatory requirements swaps and security-based swaps entered into by a party that is controlling, controlled by, or under common control with its counterparty.
 
Excludes from the meaning of the term &quot;security-based swap,&quot; for purposes of clearing and execution requirements, capital and margin requirements, and for defining a security-based swap dealer or a major security-based swap participant, any agreement, contract, or transaction that: (1) would otherwise be included as a &quot;security-based swap&quot;; and (2) is entered into by parties that report information or prepare financial statements on a consolidated basis, or for which an affiliated company reports information or prepares financial statements on a consolidated basis for both parties.
 
Requires that such exempted agreements, contracts, or transactions be reported to an appropriate data repository, or, if there is no such repository that would accept them, to: (1) the Commodity Futures Trading Commission (CFTC) in the case of exempted swaps, or (2) the Securities and Exchange Commission (SEC) in the case of exempted security-based swaps. 
 
Prohibits a federal or state regulator of an insurance fund or guaranty fund from subjecting security-based swap transactions between affiliated companies to certain: (1) clearing and execution requirements, (2) margin and capital requirements, or (3) reporting requirements (other than those prescribed under this Act). 
 Authorizes the SEC to prescribe rules it deems necessary to include in the definition of &quot;security-based swap&quot; any agreement, contract, or transaction that has been structured as an affiliate transaction to evade the requirements of this Act regarding security-based swaps. 
Extends the exemptions, exclusions, requirements, and prohibitions of this Act to affiliate swap and security-based swap transactions.
action_date: 2012-02-08
text: 
Amends the Commodity Exchange Act as amended by the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank), to exclude from the meaning of the term &quot;swap,&quot; for purposes of clearing and execution requirements, capital and margin requirements, and for purposes of defining a swap dealer or major swap participant, any agreement, contract, or transaction that: (1) would otherwise be included as a &quot;swap&quot;; and (2) is entered into by parties that report information or prepare financial statements on a consolidated basis, or for which an affiliated company reports information or prepares financial statements on a consolidated basis.
 
Requires that such exempted agreements, contracts, or transactions be reported to either a swap data repository, or, if no such repository would accept them, to the Commodity Futures Trading Commission (CFTC) within the time period prescribed by the CFTC.
 
Permits a swap data repository to report publically the information submitted.
 
Retains federal or state regulatory authority to protect the integrity of an insurance fund or guaranty fund. Prohibits the regulator of such a fund, however, from subjecting agreements, contracts, or transactions between affiliated companies to specified clearing, capital and margin requirements, or reporting requirements of the Wall Street Transparency and Accountability Act of 2010 (WSTAA) (title VII of Dodd-Frank). 
 
Preserves the safety-and-soundness authorities of the federal banking agencies, other than the authorities set forth in WSTAA.
 
Amends the Securities Exchange Act of 1934, as amended by Dodd-Frank, to exempt from certain regulatory requirements security-based swaps entered into by a party that is controlling, controlled by, or under common control with its counterparty.
 
Requires that such exempted agreements, contracts, or transactions be reported to either a security-based swap data repository or, if no such repository would accept them, to the Securities and Exchange Commission (SEC) within the time period prescribed by the SEC.

action_date: 2012-03-26
text: 
(Sec. 1) Amends the Commodity Exchange Act (CEA), as amended by the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank), to exclude from the meaning of the term &quot;swap,&quot; for purposes of clearing and execution requirements, capital and margin requirements, and for purposes of defining a swap dealer or major swap participant, any agreement, contract, or transaction that: (1) would otherwise be included as a &quot;swap&quot;; and (2) is entered into by parties that report information or prepare financial statements on a consolidated basis, or for which a company affiliated with both parties reports information or prepares financial statements on a consolidated basis.
 
Requires that such exempted agreements, contracts, or transactions be reported to either a swap data repository, or, if no such repository would accept them, to the Commodity Futures Trading Commission (CFTC) within the time period prescribed by the CFTC.
 
Retains federal or state regulatory authority to protect the integrity of an insurance fund or guaranty fund. Prohibits the regulator of such a fund, however, from subjecting agreements, contracts, or transactions between affiliated companies to specified clearing, capital and margin requirements, or reporting requirements of the Wall Street Transparency and Accountability Act of 2010 (WSTAA) (title VII of Dodd-Frank). 
 
States that such transactions, however, are not exempt from regulation under the Federal Reserve Act (FRA) with respect to transactions among banking affiliates.
 
Preserves the safety-and-soundness authorities of the federal banking agencies, other than the authorities set forth in WSTAA.
 
Authorizes the CFTC to prescribe rules that include in the definition of swaps any agreement, contract, or transaction that has been structured to evade CEA requirements applicable to swaps.
 
Amends the Securities Exchange Act of 1934 (SEA), as amended by Dodd-Frank, to exclude from the meaning of the term &quot;security-based swap,&quot; for purposes of clearing and execution requirements, capital and margin requirements, and for purposes of defining a security-based swap dealer or major security-based swap participant, any agreement, contract, or transaction that: (1) would otherwise be included as a &quot;security-based swap&quot;; and (2) is entered into by parties that report information or prepare financial statements on a consolidated basis, or for which a company affiliated with both parties reports information or prepares financial statements on a consolidated basis.
 
Requires that such exempted agreements, contracts, or transactions be reported to either a security-based swap data repository, or, if no such repository would accept them, to the Securities and Exchange Commission (SEC) within the time period prescribed by the SEC.
 
States that such transactions, however, are not exempt from regulation under the FRA with respect to transactions among banking affiliates.
 
Retains federal or state regulatory authority to protect the integrity of an insurance fund or guaranty fund. Prohibits the regulator of such a fund, however, from subjecting security-based swap transactions between affiliated companies to specified clearing and execution requirements, capital and margin requirements, or reporting requirements of the WSTAA. 
 
Preserves the safety-and-soundness authorities of the federal banking agencies or state insurance regulators to impose capital requirements with regard to security-based swaps, other than the authorities set forth in WSTAA.
 
Authorizes the SEC to prescribe rules that include in the definition of security-based swaps any agreement, contract, or transaction that has been structured to evade SEA requirements applicable to security-based swaps.
 
(Sec. 2) Requires that the amendments to CEA made by this Act be implemented: (1) without regard to federal information policy requirements or the notice and comment requirements of federal administrative procedure; and (2) through promulgation of an interim final rule, pursuant to which public comment will be sought before a final rule is issued. 
 
Limits the disregard of such federal information policy and notice and comment requirements solely to changes to rules and regulations, or proposed rule and regulations, that are limited to, and directly a consequence of, the amendments to CEA made by this Act.
 


Legislative actions:
action_date: 2012-03-28
text: Read the second time. Placed on Senate Legislative Calendar under General Orders. Calendar No. 343.
action_date: 2012-03-27
text: Received in the Senate. Read the first time. Placed on Senate Legislative Calendar under Read the First Time.
action_date: 2012-03-26
text: Motion to reconsider laid on the table Agreed to without objection.
action_date: 2012-03-26
text: On motion to suspend the rules and pass the bill, as amended Agreed to by the Yeas and Nays: (2/3 required): 357 - 36 (Roll no. 127). (text: CR H1548-1549)
action_date: 2012-03-26
text: Passed/agreed to in House: On motion to suspend the rules and pass the bill, as amended Agreed to by the Yeas and Nays: (2/3 required): 357 - 36 (Roll no. 127).(text: CR H1548-1549)
action_date: 2012-03-26
text: Considered as unfinished business. (consideration: CR H1556-1557)
action_date: 2012-03-26
text: At the conclusion of debate, the Yeas and Nays were demanded and ordered. Pursuant to the provisions of clause 8, rule XX, the Chair announced that further proceedings on the motion would be postponed.
action_date: 2012-03-26
text: DEBATE - The House proceeded with forty minutes of debate on H.R. 2779.
action_date: 2012-03-26
text: Considered under suspension of the rules. (consideration: CR H1548-1551)
action_date: 2012-03-26
text: Mr. Garrett moved to suspend the rules and pass the bill, as amended.
action_date: 2012-02-08
text: Placed on the Union Calendar, Calendar No. 268.
action_date: 2012-02-08
text: Reported (Amended) by the Committee on Agriculture. H. Rept. 112-344, Part II.
action_date: 2012-02-08
text: Reported (Amended) by the Committee on Agriculture. H. Rept. 112-344, Part II.
action_date: 2012-02-01
text: House Committee on Agriculture Granted an extension for further consideration ending not later than Feb. 8, 2012.
action_date: 2012-01-25
text: Ordered to be Reported (Amended) by Voice Vote.
action_date: 2012-01-25
text: Committee Consideration and Mark-up Session Held.
action_date: 2012-01-25
text: Subcommittee on General Farm Commodities and Risk Management Discharged.
action_date: 2011-12-23
text: House Committee on Agriculture Granted an extension for further consideration ending not later than Feb. 1, 2012.
action_date: 2011-12-23
text: Reported (Amended) by the Committee on Financial Services. H. Rept. 112-344, Part I.
action_date: 2011-12-23
text: Reported (Amended) by the Committee on Financial Services. H. Rept. 112-344, Part I.
action_date: 2011-11-30
text: Ordered to be Reported (Amended) by the Yeas and Nays: 53 - 0.
action_date: 2011-11-30
text: Committee Consideration and Mark-up Session Held.
action_date: 2011-11-15
text: Forwarded by Subcommittee to Full Committee by the Yeas and Nays: 23 - 6 .
action_date: 2011-11-15
text: Subcommittee Consideration and Mark-up Session Held.
action_date: 2011-10-14
text: Subcommittee Hearings Held.
action_date: 2011-09-13
text: Referred to the Subcommittee on General Farm Commodities and Risk Management.
action_date: 2011-08-22
text: Referred to the Subcommittee on Capital Markets and Government Sponsored Enterprises.
action_date: 2011-08-01
text: Referred to the Committee on Financial 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 committee concerned.
action_date: 2011-08-01
text: Referred to the Committee on Financial 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 committee concerned.
action_date: 2011-08-01
text: Introduced in House
action_date: 2011-08-01
text: Introduced in House