[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5749 Engrossed in House (EH)]

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115th CONGRESS
  2d Session
                                H. R. 5749

_______________________________________________________________________

                                 AN ACT


 
  To require the appropriate Federal banking agencies to increase the 
risk-sensitivity of the capital treatment of certain centrally cleared 
    exchange-listed options and derivatives, 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. RULEMAKING.

    Within 180 days of the date of enactment of this Act, the Board of 
Governors of the Federal Reserve System, the Federal Deposit Insurance 
Corporation, and the Comptroller of the Currency shall, jointly, issue 
a proposed rule, and finalize such rule within 360 days of the date of 
enactment of this Act, to adopt a methodology for calculating the 
counterparty credit risk exposure, at default, 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 an exchange-listed 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. In issuing such rule, the Board 
of Governors of the Federal Reserve System, the Federal Deposit 
Insurance Corporation, and the Comptroller of the Currency shall 
consider--
            (1) the availability of liquidity provided by market makers 
        during times of high volatility in the capital markets;
            (2) the spread between the bid and the quote offered by 
        market makers;
            (3) the preference for clearing through central 
        counterparties;
            (4) the safety and soundness of the financial system and 
        financial stability, including the benefits of central 
        clearing;
            (5) the safety and soundness of individual institutions 
        that may centrally clear exchange-listed derivatives or options 
        on behalf of a client, including concentration of market share;
            (6) the economic value of delta weighting a counterparty's 
        position and netting of a counterparty's position;
            (7) the inherent risk of the positions;
            (8) barriers to entry for depository institutions, 
        depository institution holding companies, affiliates thereof, 
        and entities not affiliated with a depository institution or 
        depository institution holding company to centrally clear 
        exchange-listed derivatives or options on behalf of market 
        makers;
            (9) the impact any changes may have on the broader capital 
        regime and aggregate capital in the system; and
            (10) consideration of other potential factors that impact 
        market making in the exchange-listed options market, including 
        changes in market structure.

SEC. 3. REPORT TO CONGRESS.

    At the end of the 5-year period beginning on the date the final 
rule is issued under section 2, the Board of Governors of the Federal 
Reserve System shall submit to the Committee on Financial Services of 
the House of Representatives and the Committee on Banking, Housing, and 
Urban Affairs of the Senate a report detailing the impact of the final 
rule during such period on the factors described under paragraphs (1) 
through (10) of section 2.

            Passed the House of Representatives July 10, 2018.

            Attest:

                                                                 Clerk.
115th CONGRESS

  2d Session

                               H. R. 5749

_______________________________________________________________________

                                 AN ACT

  To require the appropriate Federal banking agencies to increase the 
risk-sensitivity of the capital treatment of certain centrally cleared 
    exchange-listed options and derivatives, and for other purposes.