; (B) at least one of which shall have knowledge of smaller financial institutions; and (C) at least one of which shall have knowledge of residential mortgage securitization investing. (4) Selection of applicant The Director shall select the applicant to establish the Exchange that the Director determines, in the Director’s sole discretion, has the managerial, financial, and operational resources to succeed, consistent with the purposes of this subtitle (c) Status (1) Not a Federal Government instrumentality The Exchange is not, and shall not be deemed to be, a department, agency, or instrumentality of the United States Government. (2) Supervision Notwithstanding any other provision of law— (A) the Exchange shall be subject to exclusive supervision by the Agency, and the Agency shall have sole enforcement authority with respect to the Exchange for any violation of Federal law; (B) the Exchange shall not be subject to designation under the Payment, Clearing, and Settlement Supervision Act of 2010; and (C) the Exchange is authorized to conduct its business without regard to any qualification or similar statute in any State. (3) Exemption from taxation The Exchange shall be exempt from all taxation imposed by the United States, any territory, dependency, or possession of the United States or any State, county, municipality, or local taxing authority, except that any real property of the Repository shall be subject to State, territorial, county, municipal, or local taxation to the same extent according to its value as other real property. (d) Reports to Congress Commencing with the first annual report of the Director following the date of the enactment of this Act, the annual report of the Director under section 1319B of the Federal Housing Enterprises Financial Safety and Soundness Act of 1992 ( 12 U.S.C. 4521 ) shall include a description of the Agency’s activities with regard to organization, incorporation, examination, operation, and regulation of the Exchange. 312. General powers