S.Amdt. 3934

SA 3934. Mr. SCHUMER (for himself and Mrs. Gillibrand) submitted an
amendment intended to be proposed to amendment SA 3739 proposed by Mr.
Reid (for Mr. Dodd (for himself and Mrs. Lincoln)) to the bill S. 3217,
to promote the financial stability of the United States by improving
accountability and transparency in the financial system, to end ``too
big to fail'', to protect the American taxpayer by ending bailouts, to
protect consumers from abusive financial services practices, and for
other purposes; which was ordered to lie on the table; as follows:

On page 567, lines 7 and 8, strike ``, subject to the
requirements of section 5(b)''.
On page 727, after line 25, insert the following:
(C) Prior approval required.--Notwithstanding any other
provision of this section, a derivatives clearing
organization shall submit to the Commission for prior
approval each proposed new rule, or amendment or
interpretation of an existing rule, that materially changes
the terms and conditions, as determined by the Commission,
of--
(i) admission and continuing eligibility standards for
members of and participants in the derivatives clearing
organization, including the financial resources required for
a member of a derivatives clearing organization;
(ii) management of the risks associated with discharging
the responsibilities of a derivatives clearing organization;
and
(iii) management of events when members or participants
become insolvent or otherwise default on their obligations to
a derivatives clearing organization.
On page 728, line 1, strike ``(C)'' and insert ``(D)''.
On page 783, lines 5 and 6, strike ``, subject to the
requirements of section 5(b)''.
On page 881, between lines 6 and 7, insert the following:
(c) Prior Approval Required.--Notwithstanding any other
provision of this title or of the Securities Exchange Act of
1934, and for purposes of clarification, each proposed new
rule, or amendment or interpretation of an existing rule, of
a registered clearing agency, as that term is defined in
section 3(a)(23) of the Securities Exchange Act of 1934,
shall be filed with the Securities and Exchange Commission
for approval in accordance with section 19(b) of such Act,
and

[[Page S3485]]

shall not become effective unless such approval is obtained,
to the extent such proposal, amendment, or interpretation
would change, in a manner not provided for under section
19(b)(3)(A) of such Act, as determined by the Commission, the
terms and conditions of--
(1) admission and continuing eligibility standards for
members of and participants in a registered clearing agency,
including the financial obligations of a member of a
registered clearing agency;
(2) management of the risks associated with the discharge
of the responsibilities of a registered clearing agency; or
(3) management of events when members or participants
become insolvent or otherwise default on their obligations to
a registered clearing agency.
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