§6t — Title 7 Agriculture | U.S. Code

Summary

People must not enter into large swaps that the Commission finds help set prices for registered markets if both of these are true: they trade that kind of swap in one day at or above a threshold the Commission sets, and they hold or get a position in that swap at or above that same threshold. The rule does not apply if the person files the reports the Commission requires and keeps full books and records of those swaps, related futures or exchange trades, and any cash or spot trades, inventories, or buy/sell commitments in the same commodity. Those records must show the details the Commission requires and be open for inspection by the Commission and by the Securities and Exchange Commission when they relate to swaps, following disclosure and confidentiality rules. Trades and positions of any entities the person controls are counted. When deciding if a swap helps set prices, the Commission must use the factors listed in section 6a(a)(3).

Title 7, §6t

Agriculture — Source: USLM XML via OLRC

(a)(1)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)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)(1)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)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)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)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