REPEAL OF PROHIBITION ON REGULATION OF SECURITY-BASED SWAP AGREEMENTS.

SEC. 762. REPEAL OF PROHIBITION ON REGULATION OF SECURITY-BASED SWAP AGREEMENTS.(a) Repeal.—Sections 206B and 206C of the Gramm-Leach-Bliley Act (Public Law 106–102; 15 U.S.C. 78c note) are repealed.(b) Conforming Amendments to Gramm-Leach-Bliley.—Section 206A(a) of the Gramm-Leach-Bliley Act (15 U.S.C. 78c note) is amended in the material preceding paragraph (1), by striking “Except as” and all that follows through “that—” and inserting the following: “Except as provided in subsection (b), as used in this section, the term ‘swap agreement’ means any agreement, contract, or transaction that—”.(c) Conforming Amendments to the Securities Act of 1933.—(1) Section 2A of the Securities Act of 1933 (15 U.S.C. 77b–1) is amended—(A) by striking subsection (a) and reserving that subsection; and(B) by striking “(as defined in section 206B of the Gramm-Leach-Bliley Act)” each place that such term appears and inserting “(as defined in section 3(a)(78) of the Securities Exchange Act of 1934)”.(2) Section 17 of the Securities Act of 1933 (15 U.S.C. 77q) is amended—(A) in subsection (a)—124 STAT. 1760(i) by inserting “(including security-based swaps)” after “securities”; and(ii) by striking “(as defined in section 206B of the Gramm-Leach-Bliley Act)” and inserting “(as defined in section 3(a)(78) of the Securities Exchange Act)”; and(B) in subsection (d), by striking “206B of the Gramm-Leach-Bliley Act” and inserting “3(a)(78) of the Securities Exchange Act of 1934”.(d) Conforming Amendments to the Securities Exchange Act of 1934.—The Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.) is amended—(1) in section 3A (15 U.S.C. 78c–1)—(A) by striking subsection (a) and reserving that subsection; and(B) by striking “(as defined in section 206B of the Gramm-Leach-Bliley Act)” each place that the term appears;(2) in section 9 (15 U.S.C. 78i)—(A) in subsection (a), by striking paragraphs (2) through (5) and inserting the following:“(2) To effect, alone or with 1 or more other persons, a series of transactions in any security registered on a national securities exchange, any security not so registered, or in connection with any security-based swap or security-based swap agreement with respect to such security creating actual or apparent active trading in such security, or raising or depressing the price of such security, for the purpose of inducing the purchase or sale of such security by others.“(3) If a dealer, broker, security-based swap dealer, major security-based swap participant, or other person selling or offering for sale or purchasing or offering to purchase the security, a security-based swap, or a security-based swap agreement with respect to such security, to induce the purchase or sale of any security registered on a national securities exchange, any security not so registered, any security-based swap, or any security-based swap agreement with respect to such security by the circulation or dissemination in the ordinary course of business of information to the effect that the price of any such security will or is likely to rise or fall because of market operations of any 1 or more persons conducted for the purpose of raising or depressing the price of such security.“(4) If a dealer, broker, security-based swap dealer, major security-based swap participant, or other person selling or offering for sale or purchasing or offering to purchase the security, a security-based swap, or security-based swap agreement with respect to such security, to make, regarding any security registered on a national securities exchange, any security not so registered, any security-based swap, or any security-based swap agreement with respect to such security, for the purpose of inducing the purchase or sale of such security, such security-based swap, or such security-based swap agreement any statement which was at the time and in the light of the circumstances under which it was made, false or misleading with respect to any material fact, and which that person knew or had reasonable ground to believe was so false or misleading.124 STAT. 1761“(5) For a consideration, received directly or indirectly from a broker, dealer, security-based swap dealer, major security-based swap participant, or other person selling or offering for sale or purchasing or offering to purchase the security, a security-based swap, or security-based swap agreement with respect to such security, to induce the purchase of any security registered on a national securities exchange, any security not so registered, any security-based swap, or any security-based swap agreement with respect to such security by the circulation or dissemination of information to the effect that the price of any such security will or is likely to rise or fall because of the market operations of any 1 or more persons conducted for the purpose of raising or depressing the price of such security.”; and(B) in subsection (i), by striking “(as defined in section 206B of the Gramm-Leach-Bliley Act)”;(3) in section 10 (15 U.S.C. 78j)—(A) in subsection (b), by striking “(as defined in section 206B of the Gramm-Leach-Bliley Act),” each place that term appears; and(B) in the matter following subsection (b), by striking “(as defined in section 206B of the Gramm-Leach-Bliley Act), in each place that such terms appear”;(4) in section 15 (15 U.S.C. 78o)—(A) in subsection (c)(1)(A), by striking “(as defined in section 206B of the Gramm-Leach-Bliley Act),”;(B) in subparagraphs (B) and (C) of subsection (c)(1), by striking “(as defined in section 206B of the Gramm-Leach-Bliley Act)” each place that term appears;(C) by redesignating subsection (i), as added by section 303(f) of the Commodity Futures Modernization Act of 2000 (Public Law 106–554; 114 Stat. 2763A–455)), as subsection (j); and(D) in subsection (j), as redesignated by subparagraph (C), by striking “(as defined in section 206B of the Gramm-Leach-Bliley Act)”;(5) in section 16 (15 U.S.C. 78p)—(A) in subsection (a)(2)(C), by striking “(as defined in section 206(b) of the Gramm-Leach-Bliley Act (15 U.S.C. 78c note))”;(B) in subsection (a)(3)(B), by inserting “or security-based swaps” after “security-based swap agreement”;(C) in the first sentence of subsection (b), by striking “(as defined in section 206B of the Gramm-Leach-Bliley Act)”;(D) in the third sentence of subsection (b), by striking “(as defined in section 206B of the Gramm-Leach Bliley Act)” and inserting “or a security-based swap”; and(E) in subsection (g), by striking “(as defined in section 206B of the Gramm-Leach-Bliley Act)”;(6) in section 20 (15 U.S.C. 78t),(A) in subsection (d), by striking “(as defined in section 206B of the Gramm-Leach-Bliley Act)”; and(B) in subsection (f), by striking “(as defined in section 206B of the Gramm-Leach-Bliley Act)”; and(7) in section 21A (15 U.S.C. 78u–1)—(A) in subsection (a)(1), by striking “(as defined in section 206B of the Gramm-Leach-Bliley Act)”; and124 STAT. 1762(B) in subsection (g), by striking “(as defined in section 206B of the Gramm-Leach-Bliley Act)”.