Rep. Scott Garrett (R-NJ), Chairman of the Financial Services Subcommittee on Capital Markets and Government-Sponsored Enterprises, and Rep. Mike Conaway (R-TX) applauded passage of H.R. 1256, the Swap Jurisdictional Certainty Act, by the House of Representatives. The Swap Jurisdictional Certainty Act, a bipartisan piece of legislation, brings additional transparency and clarity to the swaps market to benefit American consumers and taxpayers. Specifically, the bill would require the SEC and CFTC to have identical cross-border rules; it would require a formal rule to be issued; and finally, it would authorize the SEC and CFTC to regulate swaps transactions between U.S. and foreign entities, if the regulators are concerned about the importation of systemic risk.
"I'm very pleased that the House passed our commonsense legislation," Rep. Garrett said. "As indicated by its broad bipartisan support, Members from both sides of the aisle recognize that we need to restore much-needed sanity to the swaps market. American job creators are looking for more transparency and less arbitrage. Today's vote marks another important step in the achieving these goals. I now encourage the Senate to act quickly in advancing this bill to the President's desk."
"If we get the cross-border application of Dodd-Frank wrong, the swaps trade could move permanently to foreign jurisdictions, and American end users could see the costs of the financial tools they need to compete in a global marketplace dramatically increase. The Swap Jurisdiction Certainty Act will ensure that domestic and global swaps regulations are coherent and complementary, and it offers a common-sense approach with broad bipartisan support," Rep. Conaway said.