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 con-
duct a study of the likely effects of the differences be-
tween the United States and other jurisdictions in imple-
menting the derivatives credit valuation adjustment cap-
ital requirement. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
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SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Financial Competitive 
Act of 2013’’. 
SEC. 2. STUDY OF IMPLEMENTATION OF BASEL III CAPITAL 
REQUIREMENTS RELATED TO DERIVATIVES 
EXPOSURES. 
(a) STUDY.—The Financial Stability Oversight Coun-
cil shall conduct a study of the likely effects that dif-
ferences between the United States and other jurisdictions 
in implementing the derivatives credit valuation adjust-
ment (in this section referred to as ‘‘CVA’’) capital re-
quirement would have on— 
(1) United States financial institutions that 
conduct derivatives transactions and participate in 
derivatives markets; 
(2) end users of derivatives; and 
(3) international derivatives markets. 
(b) CONTENT.—The study required by subsection (a) 
shall include— 
(1) an assessment of— 
(A) the extent to which there are dif-
ferences in the approaches that the United 
States and other jurisdictions are taking re-
garding implementation of the CVA capital re-
quirement, and the nature of the differences; 
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(B) the impact that the differences would 
have on— 
(i) United States financial institutions 
that conduct derivatives transactions and 
participate in derivatives markets, includ-
ing their ability to serve end users of de-
rivatives; 
(ii) pricing and other costs of, and 
services available to, end users of deriva-
tives in the United States and other juris-
dictions; and 
(iii) the competitiveness of United 
States financial institutions and United 
States derivatives markets, including the 
extent to which differences in the CVA 
capital requirement could shift derivatives 
business among jurisdictions; and 
(C) the interaction between differing CVA 
capital requirements and margin rules; and 
(2) recommendations regarding steps that the 
Congress and the Federal financial regulatory agen-
cies that comprise the Financial Stability Oversight 
Council should take to— 
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(A) minimize any expected negative effects 
on United States financial institutions, deriva-
tives markets, and end users; 
(B) encourage greater international con-
sistency in implementation of internationally 
agreed capital, liquidity, and other prudential 
standards; and 
(C) ensure that the Financial Stability 
Oversight Council fulfills its statutory mandate 
to identify risks and respond to emerging 
threats to financial stability. 
(c) REPORT.—No later than 90 days after the date 
of the enactment of this Act, the Financial Stability Over-
sight Council shall submit a written report containing the 
results of the study to the Chairman and ranking minority 
member of the Committees on Agriculture and Financial 
Services of the House of Representatives, and the Chair-
man and ranking minority member of the Committees on 
Agriculture, Nutrition, and Forestry, and Banking, Hous-
ing, and Urban Affairs of the Senate. 
Passed the House of Representatives July 8, 2013. 
Attest: 
KAREN L. HAAS, 
Clerk. 
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