Page:United States Statutes at Large Volume 124.djvu/1813

 124 STAT. 1787 PUBLIC LAW 111–203—JULY 21, 2010 participant, for which there is not a prudential regulator imposing— ‘‘(i) capital requirements; and ‘‘(ii) both initial and variation margin requirements on all swaps that are not cleared by a registered clearing agency. ‘‘(C) CAPITAL.—In setting capital requirements for a person that is designated as a security-based swap dealer or a major security-based swap participant for a single type or single class or category of security-based swap or activities, the prudential regulator and the Commission shall take into account the risks associated with other types of security-based swaps or classes of security-based swaps or categories of security-based swaps engaged in and the other activities conducted by that person that are not otherwise subject to regulation applicable to that person by virtue of the status of the person. ‘‘(3) STANDARDS FOR CAPITAL AND MARGIN.— ‘‘(A) IN GENERAL.—To offset the greater risk to the security-based swap dealer or major security-based swap participant and the financial system arising from the use of security-based swaps that are not cleared, the require- ments imposed under paragraph (2) shall — ‘‘(i) help ensure the safety and soundness of the security-based swap dealer or major security-based swap participant; and ‘‘(ii) be appropriate for the risk associated with the non-cleared security-based swaps held as a secu- rity-based swap dealer or major security-based swap participant. ‘‘(B) RULE OF CONSTRUCTION.— ‘‘(i) IN GENERAL.—Nothing in this section shall limit, or be construed to limit, the authority— ‘‘(I) of the Commission to set financial respon- sibility rules for a broker or dealer registered pursuant to section 15(b) (except for section 15(b)(11) thereof) in accordance with section 15(c)(3); or ‘‘(II) of the Commodity Futures Trading Commission to set financial responsibility rules for a futures commission merchant or introducing broker registered pursuant to section 4f(a) of the Commodity Exchange Act (except for section 4f(a)(3) thereof) in accordance with section 4f(b) of the Commodity Exchange Act. ‘‘(ii) FUTURES COMMISSION MERCHANTS AND OTHER DEALERS.—A futures commission merchant, intro- ducing broker, broker, or dealer shall maintain suffi- cient capital to comply with the stricter of any applicable capital requirements to which such futures commission merchant, introducing broker, broker, or dealer is subject to under this title or the Commodity Exchange Act. ‘‘(C) MARGIN REQUIREMENTS.—In prescribing margin requirements under this subsection, the prudential regu- lator with respect to security-based swap dealers and major security-based swap participants that are depository