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124 STAT. 1774 PUBLIC LAW 111–203—JULY 21, 2010

‘‘(I) the compliance of the security-based swap
execution facility with this title; and
‘‘(II) the policies and procedures, including the
code of ethics and conflict of interest policies, of
the security-based security-based swap execution
facility.
‘‘(ii) REQUIREMENTS.—The chief compliance officer
shall—
‘‘(I) submit each report described in clause
(i) with the appropriate financial report of the
security-based swap execution facility that is
required to be submitted to the Commission pursu-
ant to this section; and
‘‘(II) include in the report a certification that,
under penalty of law, the report is accurate and
complete.
‘‘(e) EXEMPTIONS.—The Commission may exempt, conditionally
or unconditionally, a security-based swap execution facility from
registration under this section if the Commission finds that the
facility is subject to comparable, comprehensive supervision and
regulation on a consolidated basis by the Commodity Futures
Trading Commission.
‘‘(f) RULES.—The Commission shall prescribe rules governing
the regulation of security-based swap execution facilities under
this section.’’.
(d) SEGREGATION OF ASSETS HELD AS COLLATERAL IN SECURITY-
BASED SWAP TRANSACTIONS.—The Securities Exchange Act of 1934
(15 U.S.C. 78a et seq.) is amended by inserting after section 3D
(as added by subsection (b)) the following:

15 USC 78c–5. ‘‘SEC. 3E. SEGREGATION OF ASSETS HELD AS COLLATERAL IN SECU-
RITY-BASED SWAP TRANSACTIONS.
‘‘(a) REGISTRATION REQUIREMENT.—It shall be unlawful for any
person to accept any money, securities, or property (or to extend
any credit in lieu of money, securities, or property) from, for, or
on behalf of a security-based swaps customer to margin, guarantee,
or secure a security-based swap cleared by or through a clearing
agency (including money, securities, or property accruing to the
customer as the result of such a security-based swap), unless the
person shall have registered under this title with the Commission
as a broker, dealer, or security-based swap dealer, and the registra-
tion shall not have expired nor been suspended nor revoked.
‘‘(b) CLEARED SECURITY-BASED SWAPS.—
‘‘(1) SEGREGATION REQUIRED.—A broker, dealer, or security-
based swap dealer shall treat and deal with all money, securi-
ties, and property of any security-based swaps customer
received to margin, guarantee, or secure a security-based swap
cleared by or though a clearing agency (including money, securi-
ties, or property accruing to the security-based swaps customer
as the result of such a security-based swap) as belonging to
the security-based swaps customer.
‘‘(2) COMMINGLING PROHIBITED.—Money, securities, and
property of a security-based swaps customer described in para-

LAWS graph (1) shall be separately accounted for and shall not be commingled with the funds of the broker, dealer, or security- based swap dealer or be used to margin, secure, or guaranteePUBLIC with on anorris VerDate Nov 24 2008 12:08 Aug 19, 2010 Jkt 089139 PO 00000 Frm 00400 Fmt 6580 Sfmt 6581 E:\PUBLAW\PUBL203.111 GPO1 PsN: PUBL203