Bill > HR5471

This bill amends the Commodity Exchange Act and the Securities Exchange Act of 1934 to clarify when certain transactions between affiliated companies, meaning companies that are part of the same corporate group, can be exempt from mandatory clearing requirements. Currently, these exemptions exist for companies that are not considered "financial entities" and use these transactions to manage their business risks. The bill specifies that an affiliate can only qualify for this exemption if the transaction is used to hedge or mitigate the commercial risk of a non-financial entity within the same group. Furthermore, if this risk mitigation involves entering into a swap (a type of derivative contract) with a "swap dealer" (a firm that deals in swaps) or a "major swap participant" (a firm with significant swap activity), or a similar transaction for securities, then an appropriate credit support measure or other mechanism must be in place to protect against potential losses, unless the transaction was entered into before the bill's enactment.