Page:United States Statutes at Large Volume 124.djvu/1699

124 STAT. 1673 PUBLIC LAW 111–203—JULY 21, 2010 (b) REGULATION OF SWAPS UNDER FEDERAL AND STATE LAW.— Section 12 of the Commodity Exchange Act (7 U.S.C. 16) is amended by adding at the end the following: ‘‘(h) REGULATION OF SWAPS AS INSURANCE UNDER STATE LAW.— A swap— ‘‘(1) shall not be considered to be insurance; and ‘‘(2) may not be regulated as an insurance contract under the law of any State.’’. (c) AGREEMENTS, CONTRACTS, AND TRANSACTIONS TRADED ON AN ORGANIZED EXCHANGE.—Section 2(c)(2)(A) of the Commodity Exchange Act (7 U.S.C. 2(c)(2)(A)) is amended— (1) in clause (i), by striking ‘‘or’’ at the end; (2) by redesignating clause (ii) as clause (iii); and (3) by inserting after clause (i) the following: ‘‘(ii) a swap; or’’. (d) APPLICABILITY.—Section 2 of the Commodity Exchange Act (7 U.S.C. 2) (as amended by section 723(a)(3)) is amended by adding at the end the following: ‘‘(i) APPLICABILITY.—The provisions of this Act relating to swaps that were enacted by the Wall Street Transparency and Account- ability Act of 2010 (including any rule prescribed or regulation promulgated under that Act), shall not apply to activities outside the United States unless those activities— ‘‘(1) have a direct and significant connection with activities in, or effect on, commerce of the United States; or ‘‘(2) contravene such rules or regulations as the Commission may prescribe or promulgate as are necessary or appropriate to prevent the evasion of any provision of this Act that was enacted by the Wall Street Transparency and Accountability Act of 2010.’’. (e) FEDERAL ENERGY REGULATORY COMMISSION.—Section 2(a)(1) of the Commodity Exchange Act (7 U.S.C. 2(a)(1)) is amended by adding at the end the following: ‘‘(I)(i) Nothing in this Act shall limit or affect any statutory authority of the Federal Energy Regulatory Commission or a State regulatory authority (as defined in section 3(21) of the Federal Power Act (16 U.S.C. 796(21)) with respect to an agreement, contract, or transaction that is entered into pursuant to a tariff or rate schedule approved by the Federal Energy Regulatory Commission or a State regulatory authority and is— ‘‘(I) not executed, traded, or cleared on a registered entity or trading facility; or ‘‘(II) executed, traded, or cleared on a registered entity or trading facility owned or operated by a regional transmission organization or independent system operator. ‘‘(ii) In addition to the authority of the Federal Energy Regulatory Commission or a State regulatory authority described in clause (i), nothing in this subparagraph shall limit or affect— ‘‘(I) any statutory authority of the Commission with respect to an agreement, contract, or transaction described in clause (i); or ‘‘(II) the jurisdiction of the Commission under subparagraph (A) with respect to an agreement, con- tract, or transaction that is executed, traded, or cleared