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PUBLIC LAW 111–203—JULY 21, 2010 124 STAT. 1729

SEC. 739. LEGAL CERTAINTY FOR SWAPS. Section 22(a) of the Commodity Exchange Act (7 U.S.C. 25(a)) is amended by striking paragraph (4) and inserting the following: ‘‘(4) CONTRACT ENFORCEMENT BETWEEN ELIGIBLE COUNTERPAR- TIES.— ‘‘(A) IN GENERAL.—No hybrid instrument sold to any investor shall be void, voidable, or unenforceable, and no party to a hybrid instrument shall be entitled to rescind, or recover any payment made with respect to, the hybrid instrument under this section or any other provision of Federal or State law, based solely on the failure of the hybrid instrument to comply with the terms or conditions of section 2(f) or regulations of the Commission. ‘‘(B) SWAPS.—No agreement, contract, or transaction between eligible contract participants or persons reasonably believed to be eligible contract participants shall be void, void- able, or unenforceable, and no party to such agreement, con- tract, or transaction shall be entitled to rescind, or recover any payment made with respect to, the agreement, contract, or transaction under this section or any other provision of Federal or State law, based solely on the failure of the agree- ment, contract, or transaction— ‘‘(i) to meet the definition of a swap under section 1a; or ‘‘(ii) to be cleared in accordance with section 2(h)(1). ‘‘(5) LEGAL CERTAINTY FOR LONG-TERM SWAPS ENTERED INTO BEFORE THE DATE OF ENACTMENT OF THE WALL STREET TRANS- PARENCY AND ACCOUNTABILITY ACT OF 2010.— ‘‘(A) EFFECT ON SWAPS.—Unless specifically reserved in the applicable swap, neither the enactment of the Wall Street Transparency and Accountability Act of 2010, nor any require- ment under that Act or an amendment made by that Act, shall constitute a termination event, force majeure, illegality, increased costs, regulatory change, or similar event under a swap (including any related credit support arrangement) that would permit a party to terminate, renegotiate, modify, amend, or supplement 1 or more transactions under the swap. ‘‘(B) POSITION LIMITS.—Any position limit established under the Wall Street Transparency and Accountability Act of 2010 shall not apply to a position acquired in good faith prior to the effective date of any rule, regulation, or order under the Act that establishes the position limit; provided, however, that such positions shall be attributed to the trader if the trader’s position is increased after the effective date of such position limit rule, regulation, or order.’’.

SEC. 740. MULTILATERAL CLEARING ORGANIZATIONS.
Sections 408 and 409 of the Federal Deposit Insurance Corpora- Repeal.
tion Improvement Act of 1991 (12 U.S.C. 4421, 4422) are repealed.

SEC. 741. ENFORCEMENT.
(a) ENFORCEMENT AUTHORITY.—The Commodity Exchange Act
is amended by inserting after section 4b (7 U.S.C. 6b) the following:

‘‘SEC. 4b–1. ENFORCEMENT AUTHORITY. 7 USC 6b–1.

LAWS ‘‘(a) COMMODITY FUTURES TRADING COMMISSION.—Except as provided in subsections (b), (c), and (d), the Commission shall have exclusive authority to enforce the provisions of subtitle A of thePUBLIC with on anorris VerDate Nov 24 2008 12:08 Aug 19, 2010 Jkt 089139 PO 00000 Frm 00355 Fmt 6580 Sfmt 6581 E:\PUBLAW\PUBL203.111 GPO1 PsN: PUBL203