Swaps Regulatory Improvement Act

Bill 113 HR 992, also known as the Swaps Regulatory Improvement Act, is a piece of legislation that aims to make changes to the regulation of swaps in the United States. Swaps are financial agreements between two parties to exchange cash flows or other financial instruments.

The main goal of this bill is to provide relief to end-users of swaps, such as non-financial companies that use swaps to hedge against risks in their business operations. The bill seeks to exempt these end-users from certain regulatory requirements that were put in place by the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010.

Specifically, the Swaps Regulatory Improvement Act would exempt end-users from having to clear their swaps through a central clearinghouse, as long as they are not considered "financial entities" under the law. This exemption is intended to reduce the regulatory burden on these end-users and allow them to continue using swaps as a risk management tool without facing unnecessary costs and complexities. Additionally, the bill includes provisions to improve the transparency and efficiency of the swap market, such as requiring the Commodity Futures Trading Commission (CFTC) to conduct a study on the impact of clearing requirements on end-users and to report its findings to Congress. Overall, the Swaps Regulatory Improvement Act is aimed at striking a balance between ensuring the stability and integrity of the swap market while also providing relief to end-users who rely on swaps for risk management purposes. It is important to note that this bill has received support from some industry groups and lawmakers who believe that it will help promote economic growth and job creation.