IIB 

113TH CONGRESS 

1ST SESSION H. R. 1341 

IN THE SENATE OF THE UNITED STATES 

JULY 9, 2013 

Received; read twice and referred to the Committee on Banking, Housing, and 

Urban Affairs 

AN ACT 

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, 


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HR 1341 RFS

1 SECTION 1. SHORT TITLE. 

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

3 Act of 2013’’. 

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

5 REQUIREMENTS RELATED TO DERIVATIVES 

6 EXPOSURES. 

7 (a) STUDY.—The Financial Stability Oversight Coun8 cil shall conduct a study of the likely effects that dif9 ferences between the United States and other jurisdictions 

10 in implementing the derivatives credit valuation adjust11 ment (in this section referred to as ‘‘CVA’’) capital re12 quirement would have on— 

13 (1) United States financial institutions that 

14 conduct derivatives transactions and participate in 

15 derivatives markets; 

16 (2) end users of derivatives; and 

17 (3) international derivatives markets. 

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

19 shall include— 

20 (1) an assessment of— 

21 (A) the extent to which there are dif22 ferences in the approaches that the United 

23 States and other jurisdictions are taking re24 garding implementation of the CVA capital re25 quirement, and the nature of the differences; 


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HR 1341 RFS

1 (B) the impact that the differences would 

2 have on— 

3 (i) United States financial institutions 

4 that conduct derivatives transactions and 

5 participate in derivatives markets, includ6 ing their ability to serve end users of de7 rivatives; 

8 (ii) pricing and other costs of, and 

9 services available to, end users of deriva10 tives in the United States and other juris11 dictions; and 

12 (iii) the competitiveness of United 

13 States financial institutions and United 

14 States derivatives markets, including the 

15 extent to which differences in the CVA 

16 capital requirement could shift derivatives 

17 business among jurisdictions; and 

18 (C) the interaction between differing CVA 

19 capital requirements and margin rules; and 

20 (2) recommendations regarding steps that the 

21 Congress and the Federal financial regulatory agen22 cies that comprise the Financial Stability Oversight 

23 Council should take to— 


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1 (A) minimize any expected negative effects 

2 on United States financial institutions, deriva3 tives markets, and end users; 

4 (B) encourage greater international con5 sistency in implementation of internationally 

6 agreed capital, liquidity, and other prudential 

7 standards; and 

8 (C) ensure that the Financial Stability 

9 Oversight Council fulfills its statutory mandate 

10 to identify risks and respond to emerging 

11 threats to financial stability. 

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

13 of the enactment of this Act, the Financial Stability Over14 sight Council shall submit a written report containing the 

15 results of the study to the Chairman and ranking minority 

16 member of the Committees on Agriculture and Financial 

17 Services of the House of Representatives, and the Chair18 man and ranking minority member of the Committees on 

19 Agriculture, Nutrition, and Forestry, and Banking, Hous20 ing, and Urban Affairs of the Senate. 

Passed the House of Representatives July 8, 2013. 

Attest: KAREN L. HAAS, 

Clerk. 


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