124 STAT. 1708 PUBLIC LAW 111–203—JULY 21, 2010 ‘‘(D) such other matters as the Commission determines to be appropriate. ‘‘(2) RESPONSIBILITIES WITH RESPECT TO SPECIAL ENTITIES.— ‘‘(A) ADVISING SPECIAL ENTITIES.—A swap dealer or major swap participant that acts as an advisor to a special entity regarding a swap shall comply with the requirements of subparagraph (4) with respect to such Special Entity. ‘‘(B) ENTERING OF SWAPS WITH RESPECT TO SPECIAL ENTITIES.—A swap dealer that enters into or offers to enter into swap with a Special Entity shall comply with the requirements of subparagraph (5) with respect to such Special Entity. ‘‘(C) SPECIAL ENTITY DEFINED.—For purposes of this subsection, the term ‘special entity’ means— ‘‘(i) a Federal agency; ‘‘(ii) a State, State agency, city, county, munici- pality, or other political subdivision of a State; ‘‘(iii) any employee benefit plan, as defined in sec- tion 3 of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1002); ‘‘(iv) any governmental plan, as defined in section 3 of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1002); or ‘‘(v) any endowment, including an endowment that is an organization described in section 501(c)(3) of the Internal Revenue Code of 1986. ‘‘(3) BUSINESS CONDUCT REQUIREMENTS.—Business conduct requirements adopted by the Commission shall— ‘‘(A) establish a duty for a swap dealer or major swap participant to verify that any counterparty meets the eligi- bility standards for an eligible contract participant; ‘‘(B) require disclosure by the swap dealer or major swap participant to any counterparty to the transaction (other than a swap dealer, major swap participant, security- based swap dealer, or major security-based swap partici- pant) of— ‘‘(i) information about the material risks and characteristics of the swap; ‘‘(ii) any material incentives or conflicts of interest that the swap dealer or major swap participant may have in connection with the swap; and ‘‘(iii)(I) for cleared swaps, upon the request of the counterparty, receipt of the daily mark of the trans- action from the appropriate derivatives clearing organization; and ‘‘(II) for uncleared swaps, receipt of the daily mark of the transaction from the swap dealer or the major swap participant; ‘‘(C) establish a duty for a swap dealer or major swap participant to communicate in a fair and balanced manner based on principles of fair dealing and good faith; and ‘‘(D) establish such other standards and requirements as the Commission may determine are appropriate in the public interest, for the protection of investors, or otherwise in furtherance of the purposes of this Act. ‘‘(4) SPECIAL REQUIREMENTS FOR SWAP DEALERS ACTING AS ADVISORS.— Compliance.
