Congress introduced a bill designed to “exempt inter-affiliate swaps from most of the new swap regulatory requirements under the Dodd-Frank Act (Dodd-Frank). The bill (H.R. 2779) would exclude from the definition of “swap” or “security-based swap,” swap contracts that are, “entered into by a party that is controlling, controlled by, or under common control with its counterparty.”

However, these inter-affiliate swaps would still need to be reported to either a swap data repository, the Securities and Exchange Commission (SEC) or the Commodity Futures Trading Commission (CFTC), as applicable. The bill was referred to the House Committee on Financial Services and the Committee on Agriculture. A copy of the bill is available by clicking here.