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PUBLIC LAW 111–203—JULY 21, 2010 124 STAT. 1651

(5) Systems for controlling the swaps entity’s participation
or entry into in new markets and products.
(l) AUTHORITY OF THE FINANCIAL STABILITY OVERSIGHT
COUNCIL.—The Financial Stability Oversight Council may deter-
mine that, when other provisions established by this Act are insuffi-
cient to effectively mitigate systemic risk and protect taxpayers,
that swaps entities may no longer access Federal assistance with
respect to any swap, security-based swap, or other activity of the
swaps entity. Any such determination by the Financial Stability
Oversight Council of a prohibition of federal assistance shall be
made on an institution-by-institution basis, and shall require the
vote of not fewer than two-thirds of the members of the Financial
Stability Oversight Council, which must include the vote by the
Chairman of the Council, the Chairman of the Board of Governors
of the Federal Reserve System, and the Chairperson of the Federal
Deposit Insurance Corporation. Notice and hearing requirements
for such determinations shall be consistent with the standards
provided in title I.
(m) BAN ON PROPRIETARY TRADING IN DERIVATIVES.—An
insured depository institution shall comply with the prohibition
on proprietary trading in derivatives as required by section 619
of the Dodd-Frank Wall Street Reform and Consumer Protection
Act.

SEC. 717. NEW PRODUCT APPROVAL CFTC—SEC PROCESS.
(a) AMENDMENTS TO THE COMMODITY EXCHANGE ACT.—Section
2(a)(1)(C) of the Commodity Exchange Act (7 U.S.C. 2(a)(1)(C))
is amended—
(1) in clause (i) by striking ‘‘This’’ and inserting ‘‘(I) Except
as provided in subclause (II), this’’; and
(2) by adding at the end of clause (i) the following:
‘‘(II) This Act shall apply to and the Commis-
sion shall have jurisdiction with respect to
accounts, agreements, and transactions involving,
and may permit the listing for trading pursuant
to section 5c(c) of, a put, call, or other option
on 1 or more securities (as defined in section 2(a)(1)
of the Securities Act of 1933 or section 3(a)(10)
of the Securities Exchange Act of 1934 on the
date of enactment of the Futures Trading Act of
1982), including any group or index of such securi-
ties, or any interest therein or based on the value
thereof, that is exempted by the Securities and
Exchange Commission pursuant to section 36(a)(1)
of the Securities Exchange Act of 1934 with the
condition that the Commission exercise concurrent
jurisdiction over such put, call, or other option;
provided, however, that nothing in this paragraph
shall be construed to affect the jurisdiction and
authority of the Securities and Exchange Commis-
sion over such put, call, or other option.’’.
(b) AMENDMENTS TO THE SECURITIES EXCHANGE ACT OF 1934.—
The Securities Exchange Act of 1934 is amended by adding the
following section after section 3A (15 U.S.C. 78c–1):

‘‘SEC. 3B. SECURITIES-RELATED DERIVATIVES. 15 USC 78c–2.

LAWS ‘‘(a) Any agreement, contract, or transaction (or class thereof) that is exempted by the Commodity Futures Trading CommissionPUBLIC with on anorris VerDate Nov 24 2008 12:15 Aug 04, 2010 Jkt 089139 PO 00203 Frm 00277 Fmt 6580 Sfmt 6581 E:\PUBLAW\PUBL203.111 APPS06 PsN: PUBL203