Page:United States Statutes at Large Volume 124.djvu/1794

 124 STAT. 1768 PUBLIC LAW 111–203—JULY 21, 2010 ‘‘(C) be responsible for administering each policy and procedure that is required to be established pursuant to this section; ‘‘(D) ensure compliance with this title (including regula- tions issued under this title) relating to agreements, con- tracts, or transactions, including each rule prescribed by the Commission under this section; ‘‘(E) establish procedures for the remediation of non- compliance issues identified by the compliance officer through any— ‘‘(i) compliance office review; ‘‘(ii) look-back; ‘‘(iii) internal or external audit finding; ‘‘(iv) self-reported error; or ‘‘(v) validated complaint; and ‘‘(F) establish and follow appropriate procedures for the handling, management response, remediation, re- testing, and closing of noncompliance issues. ‘‘(3) ANNUAL REPORTS.— ‘‘(A) IN GENERAL.—In accordance with rules prescribed by the Commission, the chief compliance officer shall annually prepare and sign a report that contains a descrip- tion of— ‘‘(i) the compliance of the registered clearing agency or security-based swap execution facility of the compliance officer with respect to this title (including regulations under this title); and ‘‘(ii) each policy and procedure of the registered clearing agency of the compliance officer (including the code of ethics and conflict of interest policies of the registered clearing agency). ‘‘(B) REQUIREMENTS.—A compliance report under subparagraph (A) shall— ‘‘(i) accompany each appropriate financial report of the registered clearing agency that is required to be furnished to the Commission pursuant to this sec- tion; and ‘‘(ii) include a certification that, under penalty of law, the compliance report is accurate and complete.’’. (b) CLEARING AGENCY REQUIREMENTS.—Section 17A of the Securities Exchange Act of 1934 (15 U.S.C. 78q–1) is amended by adding at the end the following: ‘‘(g) REGISTRATION REQUIREMENT.—It shall be unlawful for a clearing agency, unless registered with the Commission, directly or indirectly to make use of the mails or any means or instrumen- tality of interstate commerce to perform the functions of a clearing agency with respect to a security-based swap. ‘‘(h) VOLUNTARY REGISTRATION.—A person that clears agree- ments, contracts, or transactions that are not required to be cleared under this title may register with the Commission as a clearing agency. ‘‘(i) STANDARDS FOR CLEARING AGENCIES CLEARING SECURITY- BASED SWAP TRANSACTIONS.—To be registered and to maintain registration as a clearing agency that clears security-based swap transactions, a clearing agency shall comply with such standards as the Commission may establish by rule. In establishing any such standards, and in the exercise of its oversight of such a