Page:United States Statutes at Large Volume 124.djvu/1690

 124 STAT. 1664 PUBLIC LAW 111–203—JULY 21, 2010 by rule or regulation the term ‘substantial position’ at the threshold that the Commission determines to be pru- dent for the effective monitoring, management, and over- sight of entities that are systemically important or can significantly impact the financial system of the United States. In setting the definition under this subparagraph, the Commission shall consider the person’s relative position in uncleared as opposed to cleared swaps and may take into consideration the value and quality of collateral held against counterparty exposures. ‘‘(C) SCOPE OF DESIGNATION.—For purposes of subpara- graph (A), a person may be designated as a major swap participant for 1 or more categories of swaps without being classified as a major swap participant for all classes of swaps. ‘‘(D) EXCLUSIONS.—The definition under this paragraph shall not include an entity whose primary business is pro- viding financing, and uses derivatives for the purpose of hedging underlying commercial risks related to interest rate and foreign currency exposures, 90 percent or more of which arise from financing that facilitates the purchase or lease of products, 90 percent or more of which are manufactured by the parent company or another subsidiary of the parent company.’’; (17) by inserting after paragraph (38) (as redesignated by paragraph (1)) the following: ‘‘(39) PRUDENTIAL REGULATOR.—The term ‘prudential regu- lator’ means— ‘‘(A) the Board in the case of a swap dealer, major swap participant, security-based swap dealer, or major security-based swap participant that is— ‘‘(i) a State-chartered bank that is a member of the Federal Reserve System; ‘‘(ii) a State-chartered branch or agency of a foreign bank; ‘‘(iii) any foreign bank which does not operate an insured branch; ‘‘(iv) any organization operating under section 25A of the Federal Reserve Act or having an agreement with the Board under section 225 of the Federal Reserve Act; ‘‘(v) any bank holding company (as defined in sec- tion 2 of the Bank Holding Company Act of 1965 (12 U.S.C. 1841)), any foreign bank (as defined in section 1(b)(7) of the International Banking Act of 1978 (12 U.S.C. 3101(b)(7)) that is treated as a bank holding company under section 8(a) of the International Banking Act of 1978 (12 U.S.C. 3106(a)), and any sub- sidiary of such a company or foreign bank (other than a subsidiary that is described in subparagraph (A) or (B) or that is required to be registered with the Commission as a swap dealer or major swap partici- pant under this Act or with the Securities and Exchange Commission as a security-based swap dealer or major security-based swap participant);