Derivatives Fairness Act

Bill: 115-hr-5323
Sponsor: full_name: Rep. Davidson, Warren [R-OH-8]
Introduced: 2018-03-19
Policy area: Finance and Financial Sector
Subjects: Banking and financial institutions regulation

Commodities markets

Financial services and investments

Securities
Latest action: action_date: 2018-08-07
text: Placed on the Union Calendar, Calendar No. 691.

Summaries:
action_date: 2018-03-19
action_desc: Introduced in House
text: <p><b>Derivatives Fairness Act </b></p> <p>This bill prohibits federal banking agencies from requiring banking institutions, for the purposes of risk-based capital requirements, to hold capital against certain derivative contracts.</p>

tv_txt: I 115th CONGRESS 2d Session H. R. 5323 IN THE HOUSE OF REPRESENTATIVES March 19, 2018 Mr. Davidson introduced the following bill; which was referred to the Committee on Financial Services 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.

1. Short title This Act may be cited as the Derivatives Fairness Act . 2. Credit valuation adjustment relief (a) In general The Dodd-Frank Wall Street Reform and Consumer Protection Act ( 12 U.S.C. 5361 et seq.), is amended by inserting after section 176 the following new section: 177. Credit valuation adjustment Prudential risk-based capital requirements and generally applicable risk-based capital requirements established by the appropriate Federal banking agencies shall not apply a fair value adjustment to reflect counterparty credit risk in valuation of over-the-counter derivative contracts with respect to transactions with a counterparty that— (1) is described under section 2(h)(7)(A) of the Commodity Exchange Act; (2) is a person or class of persons that meets any qualifications required by a regulation issued by the Commodity Futures Trading Commission with respect to such person or class of persons qualifying for an exemption under section 4(c)(1) of the Commodity Exchange Act from the requirements of section 2(h)(1)(A) of such Act; or (3) is an affiliate that meets the requirements for an exception under section 2(h)(7)(D) of the Commodity Exchange Act. . (b) Conforming amendment The table of contents in section 1(b) of the Dodd-Frank Wall Street Reform and Consumer Protection Act ( 12 U.S.C. 5301 note) is amended by inserting after the item relating to section 176 the following new item: Sec. 177. Credit valuation adjustment. .

tv_txt: IB Union Calendar No. 691 115th CONGRESS 2d Session H. R. 5323 [Report No. 115–893] 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 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.

1. Short title This Act may be cited as the Derivatives Fairness Act . 2. Credit valuation adjustment relief (a) In general The Dodd-Frank Wall Street Reform and Consumer Protection Act ( 12 U.S.C. 5361 et seq.), is amended by inserting after section 176 the following new section: 177. Credit valuation adjustment Prudential risk-based capital requirements and generally applicable risk-based capital requirements established by the appropriate Federal banking agencies shall not apply a fair value adjustment to reflect counterparty credit risk in valuation of over-the-counter derivative contracts with respect to transactions with a counterparty that— (1) is described under section 2(h)(7)(A) of the Commodity Exchange Act; (2) is a person or class of persons that meets any qualifications required by a regulation issued by the Commodity Futures Trading Commission with respect to such person or class of persons qualifying for an exemption under section 4(c)(1) of the Commodity Exchange Act from the requirements of section 2(h)(1)(A) of such Act; or (3) is an affiliate that meets the requirements for an exception under section 2(h)(7)(D) of the Commodity Exchange Act. . (b) Conforming amendment The table of contents in section 1(b) of the Dodd-Frank Wall Street Reform and Consumer Protection Act ( 12 U.S.C. 5301 note) is amended by inserting after the item relating to section 176 the following new item: Sec. 177. Credit valuation adjustment. .

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