Page:United States Statutes at Large Volume 124.djvu/1803

124 STAT. 1777 PUBLIC LAW 111–203—JULY 21, 2010 of the terms ‘purchase’ and ‘sale’ in section 3(a)(13) and (14) shall be applied to the terms ‘purchase’ and ‘sale’, as used in section 741 of title 11, United States Code. The term ‘customer’, as defined in section 741 of title 11, United States Code, excludes any person, to the extent that such person has a claim based on any open repurchase agreement, open reverse repurchase agreement, stock borrowed agreement, non-cleared option, or non-cleared security- based swap except to the extent of any margin delivered to or by the customer with respect to which there is a customer protection requirement under section 15(c)(3) or a segregation requirement.’’. (e) TRADING IN SECURITY-BASED SWAPS.—Section 6 of the Secu- rities Exchange Act of 1934 (15 U.S.C. 78f) is amended by adding at the end the following: ‘‘(l) SECURITY-BASED SWAPS.—It shall be unlawful for any per- son to effect a transaction in a security-based swap with or for a person that is not an eligible contract participant, unless such transaction is effected on a national securities exchange registered pursuant to subsection (b).’’. (f) ADDITIONS OF SECURITY-BASED SWAPS TO CERTAIN ENFORCE- MENT PROVISIONS.—Section 9(b) of the Securities Exchange Act of 1934 (15 U.S.C. 78i(b)) is amended by striking paragraphs (1) through (3) and inserting the following: ‘‘(1) any transaction in connection with any security whereby any party to such transaction acquires— ‘‘(A) any put, call, straddle, or other option or privilege of buying the security from or selling the security to another without being bound to do so; ‘‘(B) any security futures product on the security; or ‘‘(C) any security-based swap involving the security or the issuer of the security; ‘‘(2) any transaction in connection with any security with relation to which such person has, directly or indirectly, any interest in any— ‘‘(A) such put, call, straddle, option, or privilege; ‘‘(B) such security futures product; or ‘‘(C) such security-based swap; or ‘‘(3) any transaction in any security for the account of any person who such person has reason to believe has, and who actually has, directly or indirectly, any interest in any— ‘‘(A) such put, call, straddle, option, or privilege; ‘‘(B) such security futures product with relation to such security; or ‘‘(C) any security-based swap involving such security or the issuer of such security.’’. (g) RULEMAKING AUTHORITY TO PREVENT FRAUD, MANIPULA- TION AND DECEPTIVE CONDUCT IN SECURITY-BASED SWAPS.—Section 9 of the Securities Exchange Act of 1934 (15 U.S.C. 78i) is amended by adding at the end the following: ‘‘(j) It shall be unlawful for any person, directly or indirectly, by the use of any means or instrumentality of interstate commerce or of the mails, or of any facility of any national securities exchange, to effect any transaction in, or to induce or attempt to induce the purchase or sale of, any security-based swap, in connection with which such person engages in any fraudulent, deceptive, or manipulative act or practice, makes any fictitious quotation, or engages in any transaction, practice, or course of business which operates as a fraud or deceit upon any person. The Commission Regulations.