PUBLIC LAW 106-554—APPENDIX E 114 STAT. 2763A-377 "(III) an associated person of a broker or dealer registered under section 15(b) or 15C of the Securities Exchange Act of 1934 (15 U.S.C. 78o(b), 78o- 5), or an affiHated person of a futures commission merchant registered under this Act, concerning the financial or securities activities of which the registered person makes and keeps records under section 15C(b) or 17(h) of the Securities Exchange Act of 1934 (15 U.S.C. 78o-5(b). 78q(h)) or section 4f(c)(2)(B)of thisAct; "(IV) an insurance company described in section la(12)(A)(ii) of this Act, or a regulated subsidiary or affiliate of such an insurance company; "(V) a financial holding company (as defined in section 2 of the Bank Holding Company Act of 1956); or "(VI) an investment bank holding company (as defined in section 17(i) of the Securities Exchange Act of 1934). "(C) Notwithstanding subclauses (II) and (III) of subparagraph (B)(ii), agreements, contracts, or transactions described in subparagraph (B) shall be subject to sections 4b, 4c(b), 6(c) and 6(d) (to the extent that sections 6(c) and 6(d) prohibit manipulation of the market price of any commodity, in interstate commerce, or for future delivery on or subject to the rules of any market), 6c, 6d, and 8(a) if they are entered into by a futures commission merchant or an afiiliate of a futures commission merchant that is not also an entity described in subparagraph (B)(ii) of this paragraph.". SEC. 103. LEGAL CERTAINTY FOR EXCLUDED DERIVATIVE TRANS- ACTIONS. Section 2 of the Commodity Exchange Act (7 U.S.C. 2, 2a, 3, 4, 4a) is further amended by adding at the end the following: "(d) EXCLUDED DERIVATIVE TRANSACTIONS. — "(1) IN GENERAL.—Nothing in this Act (other than section 5b or 12(e)(2)(B) governs or applies to an agreement, contract, or transaction in an excluded commodity if— "(A) the agreement, contract, or transaction is entered into only between persons that are eligible contract participants at the time at which the persons enter into the agreement, contract, or transaction; and "(B) the agreement, contract, or transaction is not executed or traded on a trading facility. "(2) ELECTRONIC TRADING FACILITY EXCLUSION.— Nothing in this Act (other than section 5a (to the extent provided in section 5a(g)), 5b, 5d, or 12(e)(2)(B)) governs or applies to an agreement, contract, or transaction in an excluded commodity if— "(A) the agreement, contract, or transaction is entered into on a principal-to-principal basis between parties trading for their own accounts or as described in section la(12)(B)(ii); 79-194O-00A14:QL3Part5
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