15 U.S.C. § 78c–1 — Swap agreements

submitted 92 years ago by Pub. L. 106-554 to r/title-15-COMMERCE-AND-TRADE · 212 words · no verdicts yet

in plain englishAI-generated · not legal advice

This law says a security-based swap agreement is not a "security" under this chapter's usual definition. The Commission cannot register such agreements or make rules policing them for fraud, except for specific reporting duties. Buying or selling one means ending, transferring, or exchanging it.

(a) [Reserved] — This subsection is marked reserved. It does not contain any current rule. (b) Security-based swap agreements The word "security," as defined in section 78c(a)(10), does not include a security-based swap agreement. The Commission cannot register a security-based swap agreement, and it cannot require, recommend, or even suggest that anyone register one under this chapter. If the Commission finds out that someone has filed a registration application for such a swap agreement anyway, it must promptly tell that person. Any registration made this way is void — it has no legal force or effect. Except for the reporting duties in section 78p(a), the Commission also cannot write, interpret, or enforce rules, or issue broadly applicable orders, under this chapter that impose reporting or recordkeeping requirements, procedures, or standards on security-based swap agreements as a way to guard against fraud, manipulation, or insider trading. When this chapter talks about "purchasing" or "selling" a security-based swap agreement, that means executing it, ending it early before its scheduled end date, assigning it, exchanging it, transferring or conveying it in a similar way, or wiping out rights or duties under it — whichever fits the situation.

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

(a) [Reserved]

(b) Security-based swap agreements

(1)

The definition of “security” in section 78c(a)(10) of this title does not include any security-based swap agreement.

(2)

The Commission is prohibited from registering, or requiring, recommending, or suggesting, the registration under this chapter of any security-based swap agreement. If the Commission becomes aware that a registrant has filed a registration application with respect to such a swap agreement, the Commission shall promptly so notify the registrant. Any such registration with respect to such a swap agreement shall be void and of no force or effect.

(3)

Except as provided in section 78p(a) of this title with respect to reporting requirements, the Commission is prohibited from—

(A)

promulgating, interpreting, or enforcing rules; or

(B)

issuing orders of general applicability;

under this chapter 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.

(4)

References in this chapter 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 the context may require.

Source credit: (June 6, 1934, ch. 404, title I, § 3A, as added Pub. L. 106–554, § 1(a)(5) [title III, § 303(a)], Dec. 21, 2000, 114 Stat. 2763, 2763A–452; amended Pub. L. 111–203, title VII, § 762(d)(1), July 21, 2010, 124 Stat. 1760.)

history & why it existsrecord from the source credit

1934Enacted · Pub. L. 106-554 · 114 Stat. 2763, 2763
2010Amended · Pub. L. 111-203 · 124 Stat. 1760

A history note hasn’t been published yet. The record shows enactment by Pub. L. 106-554 on 1934-06-06.

all 0 arguments · sorted by: best

no arguments yet — make the first case