(This measure has not been amended since it was reported to the House as amended, Part I, on June 10, 2013. The summary of that version is repeated here.)
Swap Jurisdiction Certainty Act - Directs the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) to issue jointly rules governing the application of swaps requirements of the Securities Exchange Act of 1934 and the Commodity Exchange Act, relating to cross-border swaps and security-based swaps transactions involving U.S. persons or non-U.S. persons.
Requires such rules to be identical (except to the extent necessary to accommodate differences in other underlying statutory requirements), and to address: (1) the nature of the connections to the United States that require a non-U.S. person to register as a swap dealer, major swap participant, security-based swap dealer, or security-based swap participant under each Commission's respective Acts and related regulations; (2) the extent to which U.S. swaps requirements shall apply to the swap and security-based swap activities of non-U.S. persons, U.S. persons, and their branches, agencies, subsidiaries, and affiliates outside the United States; and (3) the circumstances under which a non-U.S. person in compliance with the regulatory requirements of a foreign jurisdiction shall be exempt from U.S. swaps requirements.
Directs the Commissions to exempt from U.S. swaps requirements any non-U.S. person in compliance with the swaps regulatory requirements of a country or administrative region having one of the nine largest combined swap and security-based swap markets by notional amount in the calendar year preceding issuance of such rules (unless the Commissions jointly determine that such requirements are not broadly equivalent to U.S. swaps requirements).
Requires the Commissions to report to Congress if they determine jointly that the regulatory requirements of such foreign jurisdictions are not broadly equivalent to U.S. swaps requirements.
[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1256 Introduced in House (IH)]
113th CONGRESS
1st Session
H. R. 1256
To direct the Securities and Exchange Commission and the Commodity
Futures Trading Commission to jointly adopt rules setting forth the
application to cross-border swaps transactions of certain provisions
relating to swaps that were enacted as part of the Dodd-Frank Wall
Street Reform and Consumer Protection Act.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
March 19, 2013
Mr. Garrett (for himself, Mr. Conaway, Mr. Carney, and Mr. David Scott
of Georgia) introduced the following bill; which was 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
_______________________________________________________________________
A BILL
To direct the Securities and Exchange Commission and the Commodity
Futures Trading Commission to jointly adopt rules setting forth the
application to cross-border swaps transactions of certain provisions
relating to swaps that were enacted as part of the Dodd-Frank Wall
Street Reform and Consumer Protection Act.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Swap Jurisdiction Certainty Act''.
SEC. 2. JOINT RULEMAKING ON CROSS-BORDER SWAPS.
(a) Joint Rulemaking Required.--
(1) In general.--Not later than 180 days after the date of
enactment of this Act, the Securities and Exchange Commission
and the Commodity Futures Trading Commission shall jointly
issue rules setting forth the application of United States
swaps requirements of the Securities Exchange Act of 1934 and
the Commodity Exchange Act relating to swaps and security-based
swaps transacted between U.S. persons and non-U.S. persons.
(2) Construction.--The Commissions shall jointly issue the
rules required under paragraph (1) notwithstanding any
difference in the authorities granted the Commissions in
sections 30(c) and 36(c) of the Securities Exchange Act of 1934
(15 U.S.C. 78dd(c); 78mm(c)) and section 2(i) of the Commodity
Exchange Act (7 U.S.C. 2(i)), respectively.
(b) Considerations.--The Commissions shall jointly issue rules that
address--
(1) the nature of the connections to the United States that
require a non-U.S. person to register as a swap dealer, major
swap participant, security-based swap dealer, or security-based
swap participant under each Commission's respective Acts and
the regulations issued under such Acts;
(2) which of the United States swaps requirements shall
apply to the swap and security-based swap activities of non-
U.S. persons, U.S. persons, and their branches, agencies,
subsidiaries, and affiliates outside of the United States and
the extent to which such requirements shall apply; and
(3) the circumstances under which a non-U.S. person in
compliance with the regulatory requirements of a foreign
jurisdiction shall be exempt from United States swaps
requirements.
(c) Rule in Accordance With APA Required.--No guidance, memorandum
of understanding, or any such other agreement may satisfy the
requirement to issue a joint rule from the Commissions in accordance
with section 553 of title 5, United States Code.
(d) General Application to G20 Member Nations.--
(1) General application.--In issuing rules under this
section, the Commissions shall provide that a non-U.S. person
in compliance with the swaps regulatory requirements of a G20
member nation, or other foreign jurisdiction as jointly
determined by the Commissions, shall be exempt from United
States swaps requirements in accordance with the schedule set
forth in paragraph (2), unless the Commissions jointly
determine that the regulatory requirements of the G20 member
nation or other foreign jurisdiction are not broadly equivalent
to United States swaps requirements.
(2) Effective date schedule.--The exemption described in
paragraph (1) and set forth under the rules required by this
section shall apply to persons or transactions relating to or
involving--
(A) G20 member nations, or any other foreign
jurisdiction as jointly determined by the Commissions,
accounting for the five largest combined swap and
security-based swap markets by notional amount in the
calendar year preceding issuance of such rules, on the
date on which final rules are issued under this
section;
(B) G20 member nations, or any other foreign
jurisdiction as jointly determined by the Commissions,
accounting for the next five largest combined swap and
security-based swap markets by notional amount in the
calendar year preceding issuance of such rules, 1 year
after the date on which such rules are issued; and
(C) the remaining G20 member nations, and any other
foreign jurisdiction as jointly determined by the
Commissions, 18 months after the date on which such
rules are issued.
(3) Criteria.--In such rules, the Commissions shall jointly
establish criteria for determining that one or more categories
of regulatory requirements of a G20 member nation or other
foreign jurisdiction is not broadly equivalent to United States
swaps requirements and shall jointly determine the appropriate
application of certain United States swap requirements to
persons or transactions relating to or involving that G20
member nation or other foreign jurisdiction. Such criteria
shall include the scope and objectives of the regulatory
requirements of a G20 member nation or other foreign
jurisdiction as well as the effectiveness of the supervisory
compliance program administered, and the enforcement authority
exercised, by such G20 member nation or other foreign
jurisdiction, and such other factors as the Commissions, by
rule, jointly determine to be necessary or appropriate in the
public interest.
(4) Required assessment.--Beginning on after the date on
which final rules are issued under this section, the
Commissions shall begin to jointly assess the regulatory
requirements of G20 member nations, as the Commissions jointly
determine appropriate, in accordance with the criteria
established pursuant to paragraph (3), to determine if one or
more categories of regulatory requirements of a G20 member
nation or other foreign jurisdiction is not broadly equivalent
to United States swaps requirements
(e) Report to Congress.--If the Commissions make the joint
determination described in subsection (d)(1) that the regulatory
requirements of the G20 member nation or other foreign jurisdiction are
not broadly equivalent to United States swaps requirements, the
Commissions shall articulate the basis for such a determination in a
written report transmitted to the Committee on Financial Services and
the Committee on Agriculture of the House of Representatives and the
Committee on Banking, Housing, and Urban Affairs and the Committee on
Agriculture, Nutrition, and Forestry of the Senate within 30 days of
the determination. The determination shall not be effective until the
transmission of such report.
(f) Definitions.--As used in this Act and for purposes of the rules
issued pursuant to this Act, the following definitions apply:
(1) The term ``G20 member nation'' refers to a nation that
is a member nation of the Group of Twenty Finance Ministers and
Central Bank Governors.
(2) The term ``U.S. person'' has the meaning given such
term in section 230.902(k) of title 17, Code of Federal
Regulations. The Commissions may, by rule, jointly revise the
definition of U.S. person for purposes of the rules required
under this section as they determine appropriate to more
effectively carry out the purposes of this Act.
(3) The term ``United States swaps requirements'' means the
provisions relating to swaps and security-based swaps contained
in the Commodity Exchange Act (7 U.S.C. 1a et seq.) and the
Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.) that
were added by title VII of the Dodd-Frank Wall Street Reform
and Consumer Protection Act (15 U.S.C. 8301 et seq.) and any
rules or regulations prescribed by the Securities and Exchange
Commission and the Commodity Futures Trading Commission
pursuant to such provisions.
(g) Conforming Amendments.--
(1) Securities exchange act of 1934.--Section 36(c) of the
Securities Exchange Act of 1934 (15 U.S.C. 78mm(c)) is amended
by inserting ``or except as necessary to effectuate the
purposes of the Swap Jurisdiction Certainty Act,'' after ``to
grant exemptions,''.
(2) Commodity exchange act.--Section 4(c)(1)(A) of the
Commodity Exchange Act (7 U.S.C. 6(c)(1)(A)) is amended by
inserting ``or except as necessary to effectuate the purposes
of the Swap Jurisdiction Certainty Act,'' after ``to grant
exemptions,''.
<all>
Committee Consideration and Mark-up Session Held.
Ordered to be Reported (Amended) by the Yeas and Nays: 48 - 11.
Reported (Amended) by the Committee on Financial Services. H. Rept. 113-103, Part I.
Reported (Amended) by the Committee on Financial Services. H. Rept. 113-103, Part I.
Reported by the Committee on Agriculture. H. Rept. 113-103, Part II.
Reported by the Committee on Agriculture. H. Rept. 113-103, Part II.
Placed on the Union Calendar, Calendar No. 72.
Rules Committee Resolution H. Res. 256 Reported to House. Resolution provides for one hour of general debate on H.R. 1960. Resolution also provides for one hour of general debate on H.R. 1256 under a closed rule.
Rule H. Res. 256 passed House.
Considered under the provisions of rule H. Res. 256. (consideration: CR H3317-3332)
Resolution provides for one hour of general debate on H.R. 1960. Resolution also provides for one hour of general debate on H.R. 1256 under a closed rule.
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DEBATE - The House proceeded with one hour of debate on H.R. 1256.
The previous question was ordered pursuant to the rule. (consideration: CR H3330)
Mr. Maloney, Sean moved to recommit with instructions to Financial Services. (consideration: CR H3330-3332; text: CR H3330-3331)
DEBATE - The House proceeded with 10 minutes of debate on the Sean Maloney motion to recommit with instructions. The instructions contained in the motion seek to report the same back to the House forthwith with an amendment to require the Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC) to rule that foreign entities are not broadly equivalent to U.S. swaps requirements if they: (1) engage in cyber attacks against the U.S. (including U.S. persons and businesses), do not have or enforce laws to deter cyber attacks, or have ever been the subject of a civil or criminal proceeding for cyber attacks; or (2) are in violation of, do not enforce comparable restrictions to, or have ever been the subject of a civil or criminal proceeding for violating Iran Sanctions.
On motion to recommit with instructions Failed by the Yeas and Nays: 194 - 230 (Roll no. 217). (consideration: CR H3332)
Roll Call #217 (House)Passed/agreed to in House: On passage Passed by recorded vote: 301 - 124 (Roll no. 218).(text: CR H3318)
Roll Call #218 (House)On passage Passed by recorded vote: 301 - 124 (Roll no. 218). (text: CR H3318)
Roll Call #218 (House)Motion to reconsider laid on the table Agreed to without objection.
Received in the Senate and Read twice and referred to the Committee on Agriculture, Nutrition, and Forestry.