H.R. 5471, To amend the Commodity Exchange Act and the Securities Exchange Act of 1934 to specify how clearing requirements apply to certain affiliate transactions, and for other purposes

H.R. 5471

To amend the Commodity Exchange Act and the Securities Exchange Act of 1934 to specify how clearing requirements apply to certain affiliate transactions, and for other purposes

Sponsor
Rep. Gwen Moore

Date
December 2, 2014 (113th Congress, 2nd Session)

Staff Contact
Communications

Floor Situation

On Tuesday, December 2, 2014, the House will consider H.R. 5471, a bill to amend the Commodity Exchange Act and the Securities Exchange Act of 1934 to specify how clearing requirements apply to certain affiliate transactions, and for other purposes, under a suspension of the rules.  H.R. 5471 was introduced on September 15, 2014 by Rep. Gwen Moore (D-WI) and referred to the Committee on Financial Services.

Bill Summary

H.R. 5471 amends the Commodity Exchange Act and the Securities Exchange Act of 1934 to revise the treatment of affiliate transactions that are exempt from clearing requirements.  This legislation authorizes an exemption if the affiliate enters into the swap to hedge or mitigate commercial risk.

Background

Title VII of the Dodd-Frank Wall Street Reform and Consumer Protection Act amended the Commodity Exchange Act (CEA) to establish a new regulatory framework for swaps.[1]  The Commodity Futures Trading Commission (CFTC) issued final rules relating to the clearing requirement determination under Dodd-Frank.[2]  This legislation revises these requirements to exempt affiliates who enter into swaps to mitigate commercial risk.

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[1] http://www.cftc.gov/ucm/groups/public/@newsroom/documents/letter/14-26.pdf
[2] http://www.cftc.gov/LawRegulation/DoddFrankAct/Rulemakings/ClearingRequirement/index.htm

Cost

A CBO cost estimate is currently unavailable.

Additional Information

For questions or further information contact the GOP Conference at 5-5107.