Options Markets Stability Act
This bill revises the method of calculating the risk, for purposes of satisfying capital rules applicable to depository institutions and depository institution holding companies, of certain options cleared through a central counterparty.
[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5749 Introduced in House (IH)]
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115th CONGRESS
2d Session
H. R. 5749
To require the appropriate Federal banking agencies to increase the
risk-sensitivity of the capital treatment of certain centrally cleared
options, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
May 10, 2018
Mr. Hultgren introduced the following bill; which was referred to the
Committee on Financial Services
_______________________________________________________________________
A BILL
To require the appropriate Federal banking agencies to increase the
risk-sensitivity of the capital treatment of certain centrally cleared
options, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Options Markets Stability Act''.
SEC. 2. CREDIT EXPOSURE FOR GUARANTEES OF CENTRALLY CLEARED OPTIONS.
(a) Definitions.--In this section, the terms ``affiliate'',
``appropriate Federal banking agency'', ``depository institution'', and
``depository institution holding company'' have the meanings given
those terms, respectively, in section 3 of the Federal Deposit
Insurance Act (12 U.S.C. 1813).
(b) Treatment of Certain Centrally Cleared Option Derivatives
Exposures.--For purposes of calculating the counterparty credit risk
exposure of a depository institution, depository institution holding
company, or affiliate thereof, to a client arising from a guarantee
provided by the depository institution, depository institution holding
company, or affiliate thereof to a central counterparty in respect of
the client's performance under a derivative contract cleared through
that central counterparty pursuant to the risk-based and leverage-based
capital rules applicable to depository institutions and depository
institution holding companies under parts 3, 217, and 324 of title 12,
Code of Federal Regulations, the term ``effective notional principal
amount'' with respect to such centrally cleared derivative contract
means the hypothetical on-balance sheet position in the underlying
asset that would evidence the same change in fair value (measured in
dollars) given a small change in the price of the underlying asset.
(c) Calculation of Exposure for Centrally Cleared Derivatives.--For
purposes of calculating the counterparty credit risk exposure of a
depository institution, depository institution holding company, or
affiliate thereof to a client arising from a guarantee provided by the
depository institution, depository institution holding company, or
affiliate thereof to a central counterparty in respect of the client's
performance under a derivative contract cleared through that central
counterparty pursuant to the risk-based and leverage-based capital
rules applicable to depository institutions and depository institution
holding companies under parts 3, 217 and 324 of title 12, Code of
Federal Regulations, the offsetting nature of significantly and
reliably correlated positions within a netting set must be reflected in
a manner consistent with the risk offsets provided by the central
counterparty.
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Introduced in House
Introduced in House
Referred to the House Committee on Financial Services.
Committee Consideration and Mark-up Session Held.
Ordered to be Reported (Amended) by the Yeas and Nays: 54 - 0.
Reported (Amended) by the Committee on Financial Services. H. Rept. 115-810.
Reported (Amended) by the Committee on Financial Services. H. Rept. 115-810.
Placed on the Union Calendar, Calendar No. 629.
Mr. Huizenga moved to suspend the rules and pass the bill, as amended.
Considered under suspension of the rules. (consideration: CR H6000-6002)
DEBATE - The House proceeded with forty minutes of debate on H.R. 5749.
At the conclusion of debate, the Yeas and Nays were demanded and ordered. Pursuant to the provisions of clause 8, rule XX, the Chair announced that further proceedings on the motion would be postponed.
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Considered as unfinished business. (consideration: CR H6027-6028)
Passed/agreed to in House: On motion to suspend the rules and pass the bill, as amended Agreed to by the Yeas and Nays: (2/3 required): 385 - 0 (Roll no. 315).(text: CR H6000-6001)
Roll Call #315 (House)On motion to suspend the rules and pass the bill, as amended Agreed to by the Yeas and Nays: (2/3 required): 385 - 0 (Roll no. 315). (text: CR H6000-6001)
Roll Call #315 (House)Motion to reconsider laid on the table Agreed to without objection.
The title of the measure was amended. Agreed to without objection.
Received in the Senate and Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.