15 U.S.C. § 77b–1 — Swap agreements

submitted 93 years ago by Pub. L. 106-554 to r/title-15-COMMERCE-AND-TRADE · 235 words · no verdicts yet

in plain englishAI-generated · not legal advice

This law says security-based swap agreements are not "securities" under the Securities Act. The SEC cannot require these swap agreements to be registered. The SEC also cannot make anti-fraud rules that impose reporting or recordkeeping duties on these swaps.

(a) [Reserved] -- this subsection is left empty. It holds a place in the law but currently sets no rule. (b) Security-based swap agreements (1) The definition of "security" in section 77b(a)(1) does not include a "security-based swap agreement," as that term is defined in section 78c(a)(78). (2) The Commission cannot register, or require, recommend, or suggest registering, a security-based swap agreement under this subchapter. If the Commission learns that someone has filed a registration statement for such a swap agreement, it must promptly notify that registrant. Any such registration statement is void and has no legal effect. (3) The Commission cannot make, interpret, or enforce rules, or issue orders of general applicability, under this subchapter that impose reporting or recordkeeping requirements, procedures, or standards meant to guard against fraud, manipulation, or insider trading involving a security-based swap agreement. (4) When this subchapter refers to the "purchase" or "sale" of a security-based swap agreement, that means executing it, ending it early, assigning it, exchanging it, or otherwise transferring, conveying, or extinguishing rights or obligations under it, as the context requires.

the actual law source: uscode.house.gov ↗public domain

(a) [Reserved]

(b) Security-based swap agreements

(1)

The definition of “security” in section 77b(a)(1) of this title does not include any security-based swap agreement (as defined in section 78c(a)(78) of this title).

(2)

The Commission is prohibited from registering, or requiring, recommending, or suggesting, the registration under this subchapter of any security-based swap agreement (as defined in section 78c(a)(78) of this title). If the Commission becomes aware that a registrant has filed a registration statement with respect to such a swap agreement, the Commission shall promptly so notify the registrant. Any such registration statement with respect to such a swap agreement shall be void and of no force or effect.

(3)

The Commission is prohibited from—

(A)

promulgating, interpreting, or enforcing rules; or

(B)

issuing orders of general applicability;

under this subchapter in a manner that imposes or specifies reporting or recordkeeping requirements, procedures, or standards as prophylactic measures against fraud, manipulation, or insider trading with respect to any security-based swap agreement (as defined in section 78c(a)(78) of this title).

(4)

References in this subchapter to the “purchase” or “sale” of a security-based swap agreement shall be deemed to mean the execution, termination (prior to its scheduled maturity date), assignment, exchange, or similar transfer or conveyance of, or extinguishing of rights or obligations under, a security-based swap agreement (as defined in section 78c(a)(78) of this title), as the context may require.

Source credit: (May 27, 1933, ch. 38, title I, § 2A, as added Pub. L. 106–554, § 1(a)(5) [title III, § 302(a)], Dec. 21, 2000, 114 Stat. 2763, 2763A–451; amended Pub. L. 111–203, title VII, § 762(c)(1), July 21, 2010, 124 Stat. 1759.)

history & why it existsrecord from the source credit

1933Enacted · Pub. L. 106-554 · 114 Stat. 2763, 2763
2010Amended · Pub. L. 111-203 · 124 Stat. 1759

A history note hasn’t been published yet. The record shows enactment by Pub. L. 106-554 on 1933-05-27.

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