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Recital 14

Recital 14

(14)Finally, with regard to the effective supervision and enforcement of the legal arrangements in the USA, the US prudential regulators have broad investigative and surveillance powers to assess compliance of Covered Swap Entities with the Swap Margin Rule. The US prudential regulators can take a wide range of supervisory measures to stop any breach of the applicable requirements. Moreover, the USA legal framework provides for civil penalties, including temporary or permanent restraining orders or injunctions, and fines, as well as criminal penalties, for breaches of the applicable requirements. Those measures should therefore be considered to provide for the effective application of the relevant legal, regulatory and enforcement arrangements under the Dodd-Frank Act, the Commodity Exchange Act, the Securities Exchange Act, the Swap Margin Rule as well as CFTC and SEC Regulations where applicable in an equitable and non-distortive manner so as to ensure effective supervision and enforcement.

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