Page:United States Statutes at Large Volume 124.djvu/1683

 124 STAT. 1657 PUBLIC LAW 111–203—JULY 21, 2010 (D) a description of the various systems used for estab- lishing margin on individual swaps, security-based swaps, and swap portfolios. (d) STABLE VALUE CONTRACTS.— (1) DETERMINATION.— (A) STATUS.—Not later than 15 months after the date of the enactment of this Act, the Securities and Exchange Commission and the Commodity Futures Trading Commis- sion shall, jointly, conduct a study to determine whether stable value contracts fall within the definition of a swap. In making the determination required under this subpara- graph, the Commissions jointly shall consult with the Department of Labor, the Department of the Treasury, and the State entities that regulate the issuers of stable value contracts. (B) REGULATIONS.—If the Commissions determine that stable value contracts fall within the definition of a swap, the Commissions jointly shall determine if an exemption for stable value contracts from the definition of swap is appropriate and in the public interest. The Commissions shall issue regulations implementing the determinations required under this paragraph. Until the effective date of such regulations, and notwithstanding any other provi- sion of this title, the requirements of this title shall not apply to stable value contracts. (C) LEGAL CERTAINTY.—Stable value contracts in effect prior to the effective date of the regulations described in subparagraph (B) shall not be considered swaps. (2) DEFINITION.—For purposes of this subsection, the term ‘‘stable value contract’’ means any contract, agreement, or trans- action that provides a crediting interest rate and guaranty or financial assurance of liquidity at contract or book value prior to maturity offered by a bank, insurance company, or other State or federally regulated financial institution for the benefit of any individual or commingled fund available as an investment in an employee benefit plan (as defined in section 3(3) of the Employee Retirement Income Security Act of 1974, including plans described in section 3(32) of such Act) subject to participant direction, an eligible deferred compensation plan (as defined in section 457(b) of the Internal Revenue Code of 1986) that is maintained by an eligible employer described in section 457(e)(1)(A) of such Code, an arrangement described in section 403(b) of such Code, or a qualified tuition program (as defined in section 529 of such Code). SEC. 720. MEMORANDUM. (a)(1) The Commodity Futures Trading Commission and the Federal Energy Regulatory Commission shall, not later than 180 days after the date of the enactment of this Act, negotiate a memo- randum of understanding to establish procedures for— (A) applying their respective authorities in a manner so as to ensure effective and efficient regulation in the public interest; (B) resolving conflicts concerning overlapping jurisdiction between the 2 agencies; and (C) avoiding, to the extent possible, conflicting or duplica- tive regulation. Deadline. 15 USC 8308. Deadline. Study.