I 

113TH CONGRESS 

1ST SESSION H. R. 1341 

To require the Financial Stability Oversight Council to conduct a study 

of the likely effects of the differences between the United States and 

other jurisdictions in implementing the derivatives credit valuation adjustment capital requirement. 

IN THE HOUSE OF REPRESENTATIVES 

MARCH 21, 2013 

Mr. FINCHER introduced the following bill; which was referred to the Committee on Financial Services, and in addition to the Committee on Agriculture, 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 

A BILL 

To require the Financial Stability Oversight Council to conduct a study of the likely effects of the differences between the United States and other jurisdictions in implementing the derivatives credit valuation adjustment capital requirement. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Financial Competitive 

5 Act of 2013’’. 


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1 SEC. 2. STUDY OF IMPLEMENTATION OF BASEL III CAPITAL 

2 REQUIREMENTS RELATED TO DERIVATIVES 

3 EXPOSURES. 

4 (a) STUDY.—The Financial Stability Oversight Coun5 cil shall conduct a study of the likely effects that dif6 ferences between the United States and other jurisdictions 

7 in implementing the derivatives credit valuation adjust8 ment (in this section referred to as ‘‘CVA’’) capital re9 quirement would have on— 

10 (1) United States financial institutions that 

11 conduct derivatives transactions and participate in 

12 derivatives markets; 

13 (2) end users of derivatives; and 

14 (3) international derivatives markets. 

15 (b) CONTENT.—The study required by subsection (a) 

16 shall include— 

17 (1) an assessment of— 

18 (A) the extent to which there are dif19 ferences in the approaches that the United 

20 States and other jurisdictions are taking re21 garding implementation of the CVA capital re22 quirement, and the nature of the differences; 

23 (B) the impact that the differences would 

24 have on— 

25 (i) United States financial institutions 

26 that conduct derivatives transactions and 


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1 participate in derivatives markets, includ2 ing their ability to serve end users of de3 rivatives; 

4 (ii) pricing and other costs of, and 

5 services available to, end users of deriva6 tives in the United States and other juris7 dictions; and 

8 (iii) the competitiveness of United 

9 States financial institutions and United 

10 States derivatives markets, including the 

11 extent to which differences in the CVA 

12 capital requirement could shift derivatives 

13 business among jurisdictions; and 

14 (C) the interaction between differing CVA 

15 capital requirements and margin rules; and 

16 (2) recommendations regarding steps that the 

17 Congress and the Federal financial regulatory agen18 cies that comprise the Financial Stability Oversight 

19 Council should take to— 

20 (A) minimize any expected negative effects 

21 on United States financial institutions, deriva22 tives markets, and end users; and 

23 (B) encourage greater international con24 sistency in implementation of internationally 


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1 agreed capital, liquidity, and other prudential 

2 standards. 

3 (c) REPORT.—No later than 90 days after the date 

4 of the enactment of this Act, the Financial Stability Over5 sight Council shall submit a written report containing the 

6 results of the study to the Chairman and ranking minority 

7 member of the Committees on Agriculture and Financial 

8 Services of the House of Representatives, and the Chair9 man and ranking minority member of the Committees on 

10 Agriculture, Nutrition, and Forestry, and Banking, Hous11 ing, and Urban Affairs of the Senate. 

Æ 


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