7 U.S.C. § 6t: Large swap trader reporting

Summary

You must not enter into or hold a swap that the Commission finds plays an important role in setting prices for entities registered with the Commission if, in any one day, you enter into swaps at or above an amount the Commission sets, and you have or get a position at or above that amount. You can do those swaps only if you file the reports the Commission requires and keep full books and records of the swaps and any related futures, cash or spot trades, inventories, and purchase or sale commitments. Those records must show the details the Commission requires and must be open for Commission review (and for the SEC when they relate to swaps, under confidentiality rules). The rules also cover trades by persons you control. The Commission will use the factors in section 6a(a)(3) to decide if a swap has a significant price discovery function.

Title 7, §6t

Agriculture, Source: USLM XML via OLRC

(a)Prohibition

(1)In general

Except as provided in paragraph (2), it shall be unlawful for any person to enter into any swap that the Commission determines to perform a significant price discovery function with respect to registered entities if—

(A)the person directly or indirectly enters into the swap during any 1 day in an amount equal to or in excess of such amount as shall be established periodically by the Commission; and

(B)the person directly or indirectly has or obtains a position in the swap equal to or in excess of such amount as shall be established periodically by the Commission.

(2)Exception

Paragraph (1) shall not apply if—

(A)the person files or causes to be filed with the properly designated officer of the Commission such reports regarding any transactions or positions described in subparagraphs (A) and (B) of paragraph (1) as the Commission may require by rule or regulation; and

(B)in accordance with the rules and regulations of the Commission, the person keeps books and records of all such swaps and any transactions and positions in any related commodity traded on or subject to the rules of any designated contract market or swap execution facility, and of cash or spot transactions in, inventories of, and purchase and sale commitments of, such a commodity.

(b)Requirements

(1)In general

Books and records described in subsection (a)(2)(B) shall—

(A)show such complete details concerning all transactions and positions as the Commission may prescribe by rule or regulation;

(B)be open at all times to inspection and examination by any representative of the Commission; and

(C)be open at all times to inspection and examination by the Securities and Exchange Commission, to the extent such books and records relate to transactions in swaps (as that term is defined in section 1a(47)(A)(v) of this title), and consistent with the confidentiality and disclosure requirements of section 12 of this title.

(2)Jurisdiction

Nothing in paragraph (1) shall affect the exclusive jurisdiction of the Commission to prescribe recordkeeping and reporting requirements for large swap traders under this section.

(c)Applicability

For purposes of this section, the swaps, futures, and cash or spot transactions and positions of any person shall include the swaps, futures, and cash or spot transactions and positions of any persons directly or indirectly controlled by the person.

(d)Significant price discovery function

In making a determination as to whether a swap performs or affects a significant price discovery function with respect to registered entities, the Commission shall consider the factors described in section 6a(a)(3) of this title.

Notes & Related Subsidiaries

Statutory Notes and Related Subsidiaries

Effective Date

Section effective on the later of 360 days after July 21, 2010, or, to the extent a provision of subtitle A (§§ 711–754) of title VII of Pub. L. 111–203 requires a rulemaking, not less than 60 days after publication of the final rule or regulation implementing such provision of subtitle A, see section 754 of Pub. L. 111–203, set out as an

Effective Date

of 2010 Amendment note under section 1a of this title.

§6t Large Swap Trader Reporting

Summary

Title 7, §6t

Notes & Related Subsidiaries

Statutory Notes and Related Subsidiaries

Effective Date

Effective Date

Citations & Metadata