In order to mitigate conflicts of interest, not later than 180 days after July 21,
2010, the Commodity Futures Trading Commission shall adopt rules which may include
numerical limits on the control of, or the voting rights with respect to, any derivatives
clearing organization that clears swaps, or swap execution facility or board of trade
designated as a contract market that posts swaps or makes swaps available for trading,
by a bank holding company (as defined in section 1841 of Title 12) with total consolidated assets of $50,000,000,000 or more, a nonbank financial company
(as defined in section 5311 of Title 12) supervised by the Board, an affiliate of such a bank holding company or nonbank
financial company, a swap dealer, major swap participant, or associated person of
a swap dealer or major swap participant.
The Commission shall adopt rules if it determines, after the review described in subsection
(a), that such rules are necessary or appropriate to improve the governance of, or
to mitigate systemic risk, promote competition, or mitigate conflicts of interest
in connection with a swap dealer or major swap participant's conduct of business with,
a derivatives clearing organization, contract market, or swap execution facility that
clears or posts swaps or makes swaps available for trading and in which such swap
dealer or major swap participant has a material debt or equity investment.
In adopting rules pursuant to this section, the Commodity Futures Trading Commission
shall consider any conflicts of interest arising from the amount of equity owned by
a single investor, the ability to vote, cause the vote of, or withhold votes entitled
to be cast on any matters by the holders of the ownership interest, and the governance
arrangements of any derivatives clearing organization that clears swaps, or swap execution
facility or board of trade designated as a contract market that posts swaps or makes
swaps available for trading.
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