IB 

Union Calendar No. 691 

115TH CONGRESS 

2D SESSION H. R. 5323 

[Report No. 115–893] 

To amend the Dodd-Frank Wall Street Reform and Consumer Protection 

Act to establish an exemption from the credit valuation adjustment 

calculation for uncleared derivatives transactions with end-users so that 

United States companies are not disadvantaged, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

MARCH 19, 2018 

Mr. DAVIDSON introduced the following bill; which was referred to the 

Committee on Financial Services 

AUGUST 7, 2018 

Reported with an amendment, committed to the Committee of the Whole 

House on the State of the Union, and ordered to be printed 

[Strike out all after the enacting clause and insert the part printed in italic] 

[For text of introduced bill, see copy of bill as introduced on March 19, 2018] 


pamtmann on DSKBFK8HB2PROD with BILLS
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•HR 5323 RH

A BILL 

To amend the Dodd-Frank Wall Street Reform and Consumer Protection Act to establish an exemption from 

the credit valuation adjustment calculation for uncleared 

derivatives transactions with end-users so that United 

States companies are not disadvantaged, and for other 

purposes. 


pamtmann on DSKBFK8HB2PROD with BILLS
3 

•HR 5323 RH

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 ‘‘Derivatives Fairness 

5 Act’’. 

6 SEC. 2. CREDIT VALUATION ADJUSTMENT RELIEF. 

7 (a) IN GENERAL.—The Dodd-Frank Wall Street Re8 form and Consumer Protection Act (12 U.S.C. 5361 et seq.), 

9 is amended by inserting after section 176 the following new 

10 section: 

11 ‘‘SEC. 177. CREDIT VALUATION ADJUSTMENT. 

12 ‘‘Prudential risk-based capital requirements and gen13 erally applicable risk-based capital requirements established 

14 by the appropriate Federal banking agencies shall not 

15 apply a fair value adjustment to reflect counterparty credit 

16 risk in valuation of over-the-counter derivative contracts 

17 with respect to transactions with a counterparty that— 

18 ‘‘(1) is described under section 2(h)(7)(A) of the 

19 Commodity Exchange Act; 

20 ‘‘(2) is a person or class of persons that meets 

21 any qualifications required by a regulation issued by 

22 the Commodity Futures Trading Commission with re23 spect to such person or class of persons qualifying for 

24 an exemption under section 4(c)(1) of the Commodity 


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•HR 5323 RH

1 Exchange Act from the requirements of section 

2 2(h)(1)(A) of such Act; or 

3 ‘‘(3) is an affiliate that meets the requirements 

4 for an exception under section 2(h)(7)(D) of the Com5 modity Exchange Act.’’. 

6 (b) CONFORMING AMENDMENT.—The table of contents 

7 in section 1(b) of the Dodd-Frank Wall Street Reform and 

8 Consumer Protection Act (12 U.S.C. 5301 note) is amended 

9 by inserting after the item relating to section 176 the fol10 lowing new item: 

‘‘Sec. 177. Credit valuation adjustment.’’. 


pamtmann on DSKBFK8HB2PROD with BILLS

pamtmann on DSKBFK8HB2PROD with BILLS
Union Calendar No. 691 

115TH CONGRESS 

2D SESSION H. R. 5323 

[Report No. 115–893] 

A BILL 

To amend the Dodd-Frank Wall Street Reform and 

are not disadvantaged, and for other purposes. with end-users so that United States companies culation for uncleared derivatives transactions tion from the credit valuation adjustment calConsumer Protection Act to establish an exempAUGUST 7, 2018 

Reported with an amendment, committed to the Comand ordered to be printed mittee of the Whole House on the State of the Union, 


pamtmann on DSKBFK8HB2PROD with BILLS