A BILL 
To require the appropriate Federal banking agencies to in-
crease the risk-sensitivity of the capital treatment of 
certain centrally cleared options, and for other purposes. 
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Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Options Markets Sta-
bility 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 Comp-
troller of the Currency shall, jointly, issue a proposed rule, 
and finalize such rule within 360 days of the date of enact-
ment of this Act, to adopt a methodology for calculating 
the counterparty credit risk exposure, at default, of a depos-
itory institution, depository institution holding company, 
or affiliate thereof to a client arising from a guarantee pro-
vided 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 de-
pository 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 
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System, the Federal Deposit Insurance Corporation, and 
the Comptroller of the Currency shall consider— 
(1) the availability of liquidity provided by mar-
ket makers during times of high volatility in the cap-
ital markets; 
(2) the spread between the bid and the quote of-
fered by market makers; 
(3) the preference for clearing through central 
counterparties; 
(4) the safety and soundness of the financial sys-
tem and financial stability, including the benefits of 
central clearing; 
(5) the safety and soundness of individual insti-
tutions that may centrally clear derivatives or options 
on behalf of a client, including concentration of mar-
ket share; 
(6) the economic value of delta weighting a 
counterparty’s position and netting of a counter-
party’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 
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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, includ-
ing 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 Gov-
ernors of the Federal Reserve System shall submit to the 
Committee on Financial Services of the House of Represent-
atives 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. 
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Union Calendar No. 629 
115TH CONGRESS 
2D SESSION 
H. R. 5749 
[Report No. 115–810] 
A BILL 
To require the appropriate Federal banking agen-
cies 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 Com-
mittee of the Whole House on the State of the Union, 
and ordered to be printed 
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