Page:United States Statutes at Large Volume 124.djvu/1738

124 STAT. 1712 PUBLIC LAW 111–203—JULY 21, 2010 ‘‘(G) establish and follow appropriate procedures for the handling, management response, remediation, re- testing, and closing of noncompliance issues. ‘‘(3) ANNUAL REPORTS.— ‘‘(A) IN GENERAL.—In accordance with rules prescribed by the Commission, the chief compliance officer shall annually prepare and sign a report that contains a descrip- tion of— ‘‘(i) the compliance of the swap dealer or major swap participant with respect to this Act (including regulations); and ‘‘(ii) each policy and procedure of the swap dealer or major swap participant of the chief compliance officer (including the code of ethics and conflict of interest policies). ‘‘(B) REQUIREMENTS.—A compliance report under subparagraph (A) shall— ‘‘(i) accompany each appropriate financial report of the swap dealer or major swap participant that is required to be furnished to the Commission pursuant to this section; and ‘‘(ii) include a certification that, under penalty of law, the compliance report is accurate and complete.’’. SEC. 732. CONFLICTS OF INTEREST. Section 4d of the Commodity Exchange Act (7 U.S.C. 6d) is amended— (1) by redesignating subsection (c) as subsection (e); and (2) by inserting after subsection (b) the following: ‘‘(c) CONFLICTS OF INTEREST.—The Commission shall require that futures commission merchants and introducing brokers imple- ment conflict-of-interest systems and procedures that— ‘‘(1) establish structural and institutional safeguards to ensure that the activities of any person within the firm relating to research or analysis of the price or market for any commodity are separated by appropriate informational partitions within the firm from the review, pressure, or oversight of persons whose involvement in trading or clearing activities might poten- tially bias the judgment or supervision of the persons; and ‘‘(2) address such other issues as the Commission deter- mines to be appropriate. ‘‘(d) DESIGNATION OF CHIEF COMPLIANCE OFFICER.—Each futures commission merchant shall designate an individual to serve as its Chief Compliance Officer and perform such duties and respon- sibilities as shall be set forth in regulations to be adopted by the Commission or rules to be adopted by a futures association registered under section 17.’’. SEC. 733. SWAP EXECUTION FACILITIES. The Commodity Exchange Act is amended by inserting after section 5g (7 U.S.C. 7b–2) the following: ‘‘SEC. 5h. SWAP EXECUTION FACILITIES. ‘‘(a) REGISTRATION.— ‘‘(1) IN GENERAL.—No person may operate a facility for the trading or processing of swaps unless the facility is reg- istered as a swap execution facility or as a designated contract market under this section. 7 USC 7b–3. Regulations. Procedures. Certification.