Page:United States Statutes at Large Volume 124.djvu/1818

 124 STAT. 1792 PUBLIC LAW 111–203—JULY 21, 2010 ‘‘(7) APPLICABILITY.—This subsection shall not apply with respect to a transaction that is— ‘‘(A) initiated by a special entity on an exchange or security-based swaps execution facility; and ‘‘(B) the security-based swap dealer or major security- based swap participant does not know the identity of the counterparty to the transaction.’’ ‘‘(i) DOCUMENTATION STANDARDS.— ‘‘(1) IN GENERAL.—Each registered security-based swap dealer and major security-based swap participant shall conform with such standards as may be prescribed by the Commission, by rule or regulation, that relate to timely and accurate con- firmation, processing, netting, documentation, and valuation of all security-based swaps. ‘‘(2) RULES.—The Commission shall adopt rules governing documentation standards for security-based swap dealers and major security-based swap participants. ‘‘(j) DUTIES.—Each registered security-based swap dealer and major security-based swap participant shall, at all times, comply with the following requirements: ‘‘(1) MONITORING OF TRADING.—The security-based swap dealer or major security-based swap participant shall monitor its trading in security-based swaps to prevent violations of applicable position limits. ‘‘(2) RISK MANAGEMENT PROCEDURES.—The security-based swap dealer or major security-based swap participant shall establish robust and professional risk management systems adequate for managing the day-to-day business of the security- based swap dealer or major security-based swap participant. ‘‘(3) DISCLOSURE OF GENERAL INFORMATION.—The security- based swap dealer or major security-based swap participant shall disclose to the Commission and to the prudential regulator for the security-based swap dealer or major security-based swap participant, as applicable, information concerning— ‘‘(A) terms and conditions of its security-based swaps; ‘‘(B) security-based swap trading operations, mecha- nisms, and practices; ‘‘(C) financial integrity protections relating to security- based swaps; and ‘‘(D) other information relevant to its trading in secu- rity-based swaps. ‘‘(4) ABILITY TO OBTAIN INFORMATION.—The security-based swap dealer or major security-based swap participant shall— ‘‘(A) establish and enforce internal systems and proce- dures to obtain any necessary information to perform any of the functions described in this section; and ‘‘(B) provide the information to the Commission and to the prudential regulator for the security-based swap dealer or major security-based swap participant, as applicable, on request. ‘‘(5) CONFLICTS OF INTEREST.—The security-based swap dealer and major security-based swap participant shall imple- ment conflict-of-interest systems and procedures that— ‘‘(A) establish structural and institutional safeguards to ensure that the activities of any person within the firm relating to research or analysis of the price or market for any security-based swap or acting in a role of providing Procedures. Compliance.