Page:United States Statutes at Large Volume 124.djvu/1707

124 STAT. 1681 PUBLIC LAW 111–203—JULY 21, 2010 ‘‘(i) SWAPS REQUIRED TO BE CLEARED.—With respect to any swap that is subject to the mandatory clearing requirement under this subsection and entered into by a swap dealer or a major swap participant with a counterparty that is not a swap dealer, major swap participant, security-based swap dealer, or major security-based swap participant, the counterparty shall have the sole right to select the derivatives clearing organization at which the swap will be cleared. ‘‘(ii) SWAPS NOT REQUIRED TO BE CLEARED.—With respect to any swap that is not subject to the manda- tory clearing requirement under this subsection and entered into by a swap dealer or a major swap partici- pant with a counterparty that is not a swap dealer, major swap participant, security-based swap dealer, or major security-based swap participant, the counterparty— ‘‘(I) may elect to require clearing of the swap; and ‘‘(II) shall have the sole right to select the derivatives clearing organization at which the swap will be cleared. ‘‘(F) ABUSE OF EXCEPTION.—The Commission may pre- scribe such rules or issue interpretations of the rules as the Commission determines to be necessary to prevent abuse of the exceptions described in this paragraph. The Commission may also request information from those per- sons claiming the clearing exception as necessary to prevent abuse of the exceptions described in this paragraph. ‘‘(8) TRADE EXECUTION.— ‘‘(A) IN GENERAL.—With respect to transactions involving swaps subject to the clearing requirement of para- graph (1), counterparties shall— ‘‘(i) execute the transaction on a board of trade designated as a contract market under section 5; or ‘‘(ii) execute the transaction on a swap execution facility registered under 5h or a swap execution facility that is exempt from registration under section 5h(f) of this Act. ‘‘(B) EXCEPTION.—The requirements of clauses (i) and (ii) of subparagraph (A) shall not apply if no board of trade or swap execution facility makes the swap available to trade or for swap transactions subject to the clearing exception under paragraph (7).’’. (b) COMMODITY EXCHANGE ACT.—Section 2 of the Commodity Exchange Act (7 U.S.C. 2) is amended by adding at the end the following: ‘‘(j) COMMITTEE APPROVAL BY BOARD.—Exemptions from the requirements of subsection (h)(1) to clear a swap and subsection (h)(8) to execute a swap through a board of trade or swap execution facility shall be available to a counterparty that is an issuer of securities that are registered under section 12 of the Securities Exchange Act of 1934 (15 U.S.C. 78l) or that is required to file reports pursuant to section 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78o) only if an appropriate committee of the issuer’s board or governing body has reviewed and approved its decision to enter into swaps that are subject to such exemptions.’’.