Page 338 — Public Law 111-203 including PTFA amendments

124 STAT. 1712 PUBLIC LAW 111–203—JULY 21, 2010

‘‘(G) establish and follow appropriate procedures for
the handling, management response, remediation, re-
testing, and closing of noncompliance issues.
‘‘(3) ANNUAL REPORTS.—
‘‘(A) IN GENERAL.—In accordance with rules prescribed
by the Commission, the chief compliance officer shall
annually prepare and sign a report that contains a descrip-
tion of—
‘‘(i) the compliance of the swap dealer or major
swap participant with respect to this Act (including
regulations); and
‘‘(ii) each policy and procedure of the swap dealer
or major swap participant of the chief compliance
officer (including the code of ethics and conflict of
interest policies).
‘‘(B) REQUIREMENTS.—A compliance report under
subparagraph (A) shall—
‘‘(i) accompany each appropriate financial report
of the swap dealer or major swap participant that
is required to be furnished to the Commission pursuant
to this section; and
Certification. ‘‘(ii) include a certification that, under penalty of
law, the compliance report is accurate and complete.’’.

SEC. 732. CONFLICTS OF INTEREST.
Section 4d of the Commodity Exchange Act (7 U.S.C. 6d) is
amended—
(1) by redesignating subsection (c) as subsection (e); and
(2) by inserting after subsection (b) the following:
Procedures. ‘‘(c) CONFLICTS OF INTEREST.—The Commission shall require
that futures commission merchants and introducing brokers imple-
ment conflict-of-interest systems and procedures that—
‘‘(1) establish structural and institutional safeguards to
ensure that the activities of any person within the firm relating
to research or analysis of the price or market for any commodity
are separated by appropriate informational partitions within
the firm from the review, pressure, or oversight of persons
whose involvement in trading or clearing activities might poten-
tially bias the judgment or supervision of the persons; and
‘‘(2) address such other issues as the Commission deter-
mines to be appropriate.
Regulations. ‘‘(d) DESIGNATION OF CHIEF COMPLIANCE OFFICER.—Each
futures commission merchant shall designate an individual to serve
as its Chief Compliance Officer and perform such duties and respon-
sibilities as shall be set forth in regulations to be adopted by
the Commission or rules to be adopted by a futures association
registered under section 17.’’.

SEC. 733. SWAP EXECUTION FACILITIES.
The Commodity Exchange Act is amended by inserting after
section 5g (7 U.S.C. 7b–2) the following:

7 USC 7b–3. ‘‘SEC. 5h. SWAP EXECUTION FACILITIES. ‘‘(a) REGISTRATION.— ‘‘(1) IN GENERAL.—No person may operate a facility for LAWS the trading or processing of swaps unless the facility is reg- istered as a swap execution facility or as a designated contract market under this section.PUBLIC with on anorris VerDate Nov 24 2008 12:08 Aug 19, 2010 Jkt 089139 PO 00000 Frm 00338 Fmt 6580 Sfmt 6581 E:\PUBLAW\PUBL203.111 GPO1 PsN: PUBL203