124 STAT. 1663 PUBLIC LAW 111–203—JULY 21, 2010 ‘‘(bb) any agreement, contract, or trans- action described in section 2(c)(2)(C)(i) or sec- tion 2(c)(2)(D)(i); ‘‘(cc) any commodity option authorized under section 4c; or ‘‘(dd) any leverage transaction authorized under section 19; and ‘‘(II) does not accept any money, securities, or property (or extend credit in lieu thereof) to margin, guarantee, or secure any trades or con- tracts that result or may result therefrom; or ‘‘(ii) who is registered with the Commission as an introducing broker. ‘‘(B) FURTHER DEFINITION.—The Commission, by rule or regulation, may include within, or exclude from, the term ‘introducing broker’ any person who engages in solic- iting or accepting orders for any agreement, contract, or transaction subject to this Act, and who does not accept any money, securities, or property (or extend credit in lieu thereof) to margin, guarantee, or secure any trades or contracts that result or may result therefrom, if the Commission determines that the rule or regulation will effectuate the purposes of this Act.’’; (16) by inserting after paragraph (31) (as redesignated by paragraph (1)) the following: ‘‘(32) MAJOR SECURITY-BASED SWAP PARTICIPANT.—The term ‘major security-based swap participant’ has the meaning given the term in section 3(a) of the Securities Exchange Act of 1934 (15 U.S.C. 78c(a)). ‘‘(33) MAJOR SWAP PARTICIPANT.— ‘‘(A) IN GENERAL.—The term ‘major swap participant’ means any person who is not a swap dealer, and— ‘‘(i) maintains a substantial position in swaps for any of the major swap categories as determined by the Commission, excluding— ‘‘(I) positions held for hedging or mitigating commercial risk; and ‘‘(II) positions maintained by any employee benefit plan (or any contract held by such a plan) as defined in paragraphs (3) and (32) of section 3 of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1002) for the primary pur- pose of hedging or mitigating any risk directly associated with the operation of the plan; ‘‘(ii) whose outstanding swaps create substantial counterparty exposure that could have serious adverse effects on the financial stability of the United States banking system or financial markets; or ‘‘(iii)(I) is a financial entity that is highly leveraged relative to the amount of capital it holds and that is not subject to capital requirements established by an appropriate Federal banking agency; and ‘‘(II) maintains a substantial position in out- standing swaps in any major swap category as deter- mined by the Commission. ‘‘(B) DEFINITION OF SUBSTANTIAL POSITION.—For pur- poses of subparagraph (A), the Commission shall define Regulations.
