7 U.S.C. § 6t — Large swap trader reporting
submitted 104 years ago by Pub. L. 111-203 to r/title-7-AGRICULTURE · 433 words · no verdicts yet
It's illegal to enter certain large swaps that the Commission finds affect price discovery, once you cross size or position thresholds the Commission sets, unless you file the required reports and keep detailed records. These records must stay open to Commission and SEC inspection. A trader's swaps and positions include those of anyone they control.
(a) Prohibition
(1) In general. Unless the exception in paragraph (2) applies, it's illegal to enter a swap that the Commission* has determined performs a significant price discovery function for registered entities, once you cross two thresholds the Commission sets periodically: (A) entering that swap in an amount equal to or above a limit the Commission sets, in a single day; and (B) holding a position in that swap equal to or above a limit the Commission sets.
(2) Exception. Paragraph (1) doesn't apply if: (A) you file the reports the Commission requires about those trades and positions; and (B) following Commission rules, you keep books and records of all such swaps, plus related trades and positions in that commodity* on any designated contract market or swap execution facility, and your cash or spot trades, inventories, and purchase-and-sale commitments in that commodity.
(b) Requirements
(1) Those books and records must: (A) show whatever complete details the Commission requires; (B) always be open to inspection by any Commission representative; and (C) always be open to inspection by the SEC, to the extent they relate to swaps defined in section 1a(47)(A)(v), consistent with section 12's confidentiality rules.
(2) Jurisdiction. This doesn't take away the Commission's exclusive power to set recordkeeping and reporting rules for large swap traders under this section.
(c) Applicability
Your swaps, futures, and cash or spot trades and positions include those of anyone you control, directly or indirectly.
(d) Significant price discovery function
When deciding whether a swap performs or affects a significant price discovery function for registered entities, the Commission must consider the factors listed in section 6a(a)(3).
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—
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
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.
Paragraph (1) shall not apply if—
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
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.
Books and records described in subsection (a)(2)(B) shall—
show such complete details concerning all transactions and positions as the Commission may prescribe by rule or regulation;
be open at all times to inspection and examination by any representative of the Commission; and
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.
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.
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.
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.
Source credit: (Sept. 21, 1922, ch. 369, § 4t, as added Pub. L. 111–203, title VII, § 730, July 21, 2010, 124 Stat. 1702.)
- 1922Enacted · Pub. L. 111-203 · 124 Stat. 1702
A history note hasn’t been published yet. The record shows enactment by Pub. L. 111-203 on 1922-09-21.
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