Sec. 320. Treatment of transactions between affiliates
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Section 1a(48) of the Commodity Exchange Act ( 7 U.S.C. 1a(47) ), as so redesignated by section 304(b)(1) of this Act, is amended by adding at the end the following: An agreement, contract, or transaction described in subparagraphs
(A)through
(F)shall not be regulated as a swap under this Act if all of the following apply with respect to the agreement, contract, or transaction: One counterparty, directly or indirectly, holds a majority ownership interest in the other counterparty, or a third party, directly or indirectly, holds a majority ownership interest in both counterparties. The affiliated counterparty that holds the majority interest in the other counterparty or the third party that, directly or indirectly, holds the majority interests in both affiliated counterparties, reports its financial statements on a consolidated basis under generally accepted accounting principles or International Financial Reporting Standards, or other similar standards, and the financial statements include the financial results of the majority-owned affiliated counterparty or counterparties. If at least one counterparty to an agreement, contract, or transaction that meets the requirements of clause
(i)is a swap dealer or major swap participant, that counterparty shall report the agreement, contract, or transaction pursuant to section 4r, within such time period as the Commission may by rule or regulation prescribe— to a swap data repository; or if there is no swap data repository that would accept the agreement, contract or transaction, to the Commission . If at least one counterparty to an agreement, contract, or transaction that meets the requirements of clause
(i)is a swap dealer or major swap participant, the agreement, contract, or transaction shall be subject to a centralized risk management program pursuant to section 4s(j) that is reasonably designed to monitor and to manage the risks associated with the agreement, contract, or transaction. Affiliated counterparties to an agreement, contract, or transaction that meets the requirements of clause
(i)shall exchange variation margin to the extent prescribed under any rule promulgated by the Commission or any prudential regulator pursuant to section 4s(e). An agreement, contract, or transaction that meets the requirements of clause
(i)shall not be structured to evade the Dodd-Frank Wall Street Reform and Consumer Protection Act in violation of any rule promulgated by the Commission pursuant to section 721(c) of such Act. .
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Sec. 320
Treatment of transactions between affiliates
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