Page:United States Statutes at Large Volume 124.djvu/1701

 124 STAT. 1675 PUBLIC LAW 111–203—JULY 21, 2010 ‘‘(5) the use of a potential exemption of foreign exchange swaps and foreign exchange forwards to evade otherwise applicable regulatory requirements. ‘‘(b) DETERMINATION.—If the Secretary makes a determination to exempt foreign exchange swaps and foreign exchange forwards from the definition of the term ‘swap’, the Secretary shall submit to the appropriate committees of Congress a determination that contains— ‘‘(1) an explanation regarding why foreign exchange swaps and foreign exchange forwards are qualitatively different from other classes of swaps in a way that would make the foreign exchange swaps and foreign exchange forwards ill-suited for regulation as swaps; and ‘‘(2) an identification of the objective differences of foreign exchange swaps and foreign exchange forwards with respect to standard swaps that warrant an exempted status. ‘‘(c) EFFECT OF DETERMINATION.—A determination by the Sec- retary under subsection (b) shall not exempt any foreign exchange swaps and foreign exchange forwards traded on a designated con- tract market or swap execution facility from any applicable anti- fraud and antimanipulation provision under this title.’’. SEC. 723. CLEARING. (a) CLEARING REQUIREMENT.— (1) IN GENERAL.—Section 2 of the Commodity Exchange Act (7 U.S.C. 2) is amended— (A) by striking subsections (d), (e), (g), and (h); and (B) by redesignating subsection (i) as subsection (g). (2) SWAPS; LIMITATION ON PARTICIPATION.—Section 2 of the Commodity Exchange Act (7 U.S.C. 2) (as amended by para- graph (1)) is amended by inserting after subsection (c) the following: ‘‘(d) SWAPS.—Nothing in this Act (other than subparagraphs (A), (B), (C), (D), (G), and (H) of subsection (a)(1), subsections (f) and (g), sections 1a, 2(a)(13), 2(c)(2)(A)(ii), 2(e), 2(h), 4(c), 4a, 4b, and 4b–1, subsections (a), (b), and (g) of section 4c, sections 4d, 4e, 4f, 4g, 4h, 4i, 4j, 4k, 4l, 4m, 4n, 4o, 4p, 4r, 4s, 4t, 5, 5b, 5c, 5e, and 5h, subsections (c) and (d) of section 6, sections 6c, 6d, 8, 8a, and 9, subsections (e)(2), (f), and (h) of section 12, subsections (a) and (b) of section 13, sections 17, 20, 21, and 22(a)(4), and any other provision of this Act that is applicable to registered entities or Commission registrants) governs or applies to a swap. ‘‘(e) LIMITATION ON PARTICIPATION.—It shall be unlawful for any person, other than an eligible contract participant, to enter into a swap unless the swap is entered into on, or subject to the rules of, a board of trade designated as a contract market under section 5.’’. (3) MANDATORY CLEARING OF SWAPS.—Section 2 of the Com- modity Exchange Act (7 U.S.C. 2) is amended by inserting after subsection (g) (as redesignated by paragraph (1)(B)) the following: ‘‘(h) CLEARING REQUIREMENT.— ‘‘(1) IN GENERAL.— ‘‘(A) STANDARD FOR CLEARING.—It shall be unlawful for any person to engage in a swap unless that person submits such swap for clearing to a derivatives clearing