Page:United States Statutes at Large Volume 114 Part 5.djvu/431

 PUBLIC LAW 106-554—APPENDIX E 114 STAT. 2763A-391 of the customer that are carried with the futures commission merchant for purposes of trading on or through the facihties of the registered derivatives transaction execution facility. " (g) ELECTION TO TRADE EXCLUDED AND EXEMPT COMMOD- ITIES. — "(1) IN GENERAL.— Notwithstanding subsection (b)(2) of this section, a board of trade that is or elects to become a registered derivatives transaction execution facihty may trade on the facility any agreements, contracts, or transactions involving excluded or exempt commodities other than securities, except contracts of sale for future delivery of exempt securities under section 3(a)(12) of the Securities Exchange Act of 1934 as in effect on the date of the enactment of the Futures Trading Act of 1982, that are otherwise excluded from this Act under section 2(c), 2(d), or 2(g) of this Act, or exempt under section 2(h) of this Act. "(2) EXCLUSIVE JURISDICTION OF THE COMMISSION,—The Commission shall have exclusive jurisdiction over agreements, contracts, or transactions described in paragraph (1) to the extent that the agreements, contracts, or transactions are traded on a derivatives transaction execution facility.". SEC. 112. DERIVATIVES CLEARING. (a) IN GENERAL.— Subtitle A of title IV of the Federal Deposit Insurance Corporation Improvement Act of 1991 is amended— (1) by inserting before the section heading for section 401, the following new heading: "CHAPTER 1—BILATERAL AND CLEARING ORGANIZATION NETTING"; (2) in section 402, by striking "this subtitle" and inserting "this chapter"; and (3) by inserting after section 407, the following new chapter: "CHAPTER 2—MULTILATERAL CLEARING ORGANIZATIONS "SEC. 408. DEFINITIONS. For purposes of this chapter, the following definitions shall apply: "(1) MULTILATERAL CLEARING ORGANIZATION. — The term 'multilateral clearing organization' means a system utilized by more than two participants in which the bilateral credit exposures of participants arising from the transactions cleared are effectively eliminated and replaced by a system of guarantees, insurance, or mutualized risk of loss. " (2) OVER-THE -COUNTER DERIVATIVE INSTRUMENT.—The term 'over-the-counter derivative instrument' includes— "(A) any agreement, contract, or transaction, including the terms and conditions incorporated by reference in any such agreement, contract, or transaction, which is an interest rate swap, option, or forward agreement, including a rate floor, rate cap, rate collar, cross-currency rate swap, basis swap, and forward rate agreement; a same day-tomorrow, tomorrow-next, forward, or other foreign exchange or precious metals agreement; a currency swap, option, or forward agreement; an equity index or equity swap,

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