Derivatives Oversight and Taxpayer Protection Act

3.0.0 5592 2023-01-11T13:32:43Z 2023-01-11T13:32:43Z House HR 2016-06-28 114 [Congressional Record Volume 162, Number 104 (Tuesday, June 28, 2016)][Pages H4186-H4187]From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]By Mr. CUMMINGS:H.R. 5592.Congress has the power to enact this legislation pursuantto the following:Article I, Section VIII, Clause XVIII. The Congress shallhave Power . . . To make all Laws which shall be necessaryand proper for carrying into Execution the foregoing Powers,and all other Powers vested by this Constitution in theGovernment of the United[[Page H4187]]States, or in any Department or Officer thereof.]]> hsag00 Agriculture Committee House Standing hsag22 Commodity Markets, Digital Assets, and Rural Development Subcommittee Referred to 2016-07-14T19:18:06Z Referred to 2016-06-28T21:01:25Z hsju00 Judiciary Committee House Standing Referred to 2016-06-28T21:01:35Z hsba00 Financial Services Committee House Standing Referred to 2016-06-28T21:01:30Z Derivatives Oversight and Taxpayer Protection Act 114 3118 S 2016-06-29 Read twice and referred to the Committee on Agriculture, Nutrition, and Forestry. Identical bill CRS 2016-07-14 hsag22 Commodity Markets, Digital Assets, and Rural Development Subcommittee 1 House committee actions Referred to the Subcommittee on Commodity Exchanges, Energy, and Credit. Committee 2016-06-28 Referred to the Committee on Agriculture, and in addition to the Committees on Financial Services, and the Judiciary, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned. IntroReferral H11100 2 House floor actions hsju00 Judiciary Committee 2016-06-28 Referred to the Committee on Agriculture, and in addition to the Committees on Financial Services, and the Judiciary, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned. IntroReferral H11100 2 House floor actions hsba00 Financial Services Committee 2016-06-28 Referred to the Committee on Agriculture, and in addition to the Committees on Financial Services, and the Judiciary, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned. IntroReferral H11100-A 9 Library of Congress 2016-06-28 Referred to the Committee on Agriculture, and in addition to the Committees on Financial Services, and the Judiciary, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned. IntroReferral H11100 2 House floor actions hsag00 Agriculture Committee 2016-06-28 Introduced in House IntroReferral Intro-H 9 Library of Congress 2016-06-28 Introduced in House IntroReferral 1000 9 Library of Congress C000984 Rep. Cummings, Elijah E. [D-MD-7] ELIJAH CUMMINGS D MD E. 7 N N000147 Del. Norton, Eleanor Holmes [D-DC-At Large] ELEANOR NORTON D DC HOLMES 0 2016-07-05 False Finance and Financial Sector Administrative law and regulatory procedures Appropriations Banking and financial institutions regulation Bankruptcy Civil actions and liability Commodities markets Commodity Futures Trading Commission Congressional oversight Executive agency funding and structure Fraud offenses and financial crimes Government information and archives International monetary system and foreign exchange Securities User charges and fees Finance and Financial Sector

00 2016-06-28 Introduced in House 2017-05-30T16:19:02Z Derivatives Oversight and Taxpayer Protection Act

This bill amends the Commodity Exchange Act (CEA) to require the Commodity Futures Trading Commission (CFTC) to collect fees to recover the costs of its regulatory services and its annual appropriation from Congress.

The bill increases penalties for CEA violations, removes the Department of the Treasury's authority to exempt foreign exchange swaps or forwards from CFTC regulation, and requires collection of margin on inter-affiliate swaps.

Swaps requirements enacted by the Wall Street Transparency and Accountability Act of 2010 that ordinarily do not apply to activities outside the United States are made applicable to swaps transactions in which a financial entity domiciled or organized in the United States bears swaps-related risks. But the CFTC may allow a swaps transaction involving a subsidiary entity that is majority owned or controlled by a financial entity domiciled or organized in the United States to be conducted under a foreign jurisdiction's rules and oversight if the foreign rules are no less stringent than U.S. rules.

The CFTC must: (1) make data concerning swap data repository registrations available to other financial regulatory agencies, and (2) revoke the license of swap dealers that the CFTC and the Securities and Exchange Commission have found are not providing accurate data in standardized formats that allow aggregated analysis by regulators.

The bill repeals a safe harbor provision under federal bankruptcy law that protects a contractual right to liquidate the amount due on a swap agreement because of a debtor's bankruptcy case. The removal of this safe harbor subjects swap agreements to the regular bankruptcy procedures that automatically stay claims against a debtor.

The bill amends the Financial Stability Act of 2010 to require Federal Reserve Board (FRB) risk-based capital requirements and leverage limits for nonbank financial companies supervised by the FRB and bank holding companies with total consolidated assets of $50 billion or more to include the fair value and potential future exposure of derivatives exposures, without recognizing the benefits of netting arrangements. Exceptions are provided for certain formal netting agreements with counterparties or with clearing organizations that meet financial standards approved by the FRB and the Federal Deposit Insurance Corporation (FDIC).

The CFTC, the Comptroller of the Currency, the FDIC, and the FRB must report on the ability of clearinghouses to endure systemic stress events.

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Derivatives Oversight and Taxpayer Protection Act Display Title Derivatives Oversight and Taxpayer Protection Act Official Title as Introduced To amend the Commodity Exchange Act to clarify which fees the Commodity Futures Trading Commission may assess and collect, and for other purposes. Introduced in House IH Short Titles as Introduced Derivatives Oversight and Taxpayer Protection Act Introduced in House 2016-06-28T04:00:00Z https://www.govinfo.gov/content/pkg/BILLS-114hr5592ih/xml/BILLS-114hr5592ih.xml 2016-07-14 Referred to the Subcommittee on Commodity Exchanges, Energy, and Credit. text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. Congressional Research Service, Library of Congress This file contains bill summaries and statuses for federal legislation. A bill summary describes the most significant provisions of a piece of legislation and details the effects the legislative text may have on current law and federal programs. Bill summaries are authored by the Congressional Research Service (CRS) of the Library of Congress. As stated in Public Law 91-510 (2 USC 166 (d)(6)), one of the duties of CRS is "to prepare summaries and digests of bills and resolutions of a public general nature introduced in the Senate or House of Representatives". For more information, refer to the User Guide that accompanies this file.