Page:United States Statutes at Large Volume 124.djvu/1710

124 STAT. 1684 PUBLIC LAW 111–203—JULY 21, 2010 of title 11, United States Code, with regard to all money, securities, and property of any swaps customer received by a futures commission merchant or a derivatives clearing organization to margin, guarantee, or secure the swap (including money, securities, or property accruing to the cus- tomer as the result of the swap). ‘‘(6) PROHIBITION.—It shall be unlawful for any person, including any derivatives clearing organization and any deposi- tory institution, that has received any money, securities, or property for deposit in a separate account or accounts as pro- vided in paragraph (2) to hold, dispose of, or use any such money, securities, or property as belonging to the depositing futures commission merchant or any person other than the swaps customer of the futures commission merchant.’’. (b) BANKRUPTCY TREATMENT OF CLEARED SWAPS.—Section 761 of title 11, United States Code, is amended— (1) in paragraph (4), by striking subparagraph (F) and inserting the following: ‘‘(F)(i) any other contract, option, agreement, or trans- action that is similar to a contract, option, agreement, or transaction referred to in this paragraph; and ‘‘(ii) with respect to a futures commission merchant or a clearing organization, any other contract, option, agree- ment, or transaction, in each case, that is cleared by a clearing organization;’’; and (2) in paragraph (9)(A)(i), by striking ‘‘the commodity futures account’’ and inserting ‘‘a commodity contract account’’. (c) SEGREGATION REQUIREMENTS FOR UNCLEARED SWAPS.—Sec- tion 4s of the Commodity Exchange Act (as added by section 731) is amended by adding at the end the following: ‘‘(l) SEGREGATION REQUIREMENTS.— ‘‘(1) SEGREGATION OF ASSETS HELD AS COLLATERAL IN UNCLEARED SWAP TRANSACTIONS.— ‘‘(A) NOTIFICATION.—A swap dealer or major swap participant shall be required to notify the counterparty of the swap dealer or major swap participant at the begin- ning of a swap transaction that the counterparty has the right to require segregation of the funds or other property supplied to margin, guarantee, or secure the obligations of the counterparty. ‘‘(B) SEGREGATION AND MAINTENANCE OF FUNDS.—At the request of a counterparty to a swap that provides funds or other property to a swap dealer or major swap participant to margin, guarantee, or secure the obligations of the counterparty, the swap dealer or major swap partici- pant shall— ‘‘(i) segregate the funds or other property for the benefit of the counterparty; and ‘‘(ii) in accordance with such rules and regulations as the Commission may promulgate, maintain the funds or other property in a segregated account sepa- rate from the assets and other interests of the swap dealer or major swap participant. ‘‘(2) APPLICABILITY.—The requirements described in para- graph (1) shall— 7 USC 6s.