```

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

<DOC>

                                                 Union Calendar No. 629
115th CONGRESS
  2d Session
                                H. R. 5749

                          [Report No. 115-810]

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

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                              May 10, 2018

 Mr. Hultgren introduced the following bill; which was referred to the 
                    Committee on Financial Services

                             July 10, 2018

                     Additional sponsor: Mr. Foster

                             July 10, 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 May 10, 
                                 2018]

_______________________________________________________________________

                                 A BILL

 
  To require the appropriate Federal banking agencies to increase the 
risk-sensitivity of the capital treatment of certain centrally cleared 
                    options, 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''.

SECTION 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 a 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 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 
        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 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 1, 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.
                                                 Union Calendar No. 629

115th CONGRESS

  2d Session

                               H. R. 5749

                          [Report No. 115-810]

_______________________________________________________________________

                                 A BILL

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

_______________________________________________________________________

                             July 10, 2018

  Reported with an amendment, committed to the Committee of the Whole 
       House on the State of the Union, and ordered to be printed
```