A bill to amend the Commodity Exchange Act to exempt certain small entities dealing in foreign exchange that serve small- and medium-sized businesses from certain capital and margin requirements, and for other purposes.

Bill: 115-s-2428
Sponsor: full_name: Sen. Hatch, Orrin G. [R-UT]
Introduced: 2018-02-14
Policy area: Finance and Financial Sector
Subjects: Currency

International monetary system and foreign exchange
Latest action: action_date: 2018-02-14
text: Read twice and referred to the Committee on Agriculture, Nutrition, and Forestry.

Summaries:
action_date: 2018-02-14
action_desc: Introduced in Senate
text: <p>This bill amends the Commodity Exchange Act to exempt certain money transmitters from specified capital and margin requirements that otherwise apply to counterparty swaps. </p>

tv_txt: II 115th CONGRESS 2d Session S. 2428 IN THE SENATE OF THE UNITED STATES February 14, 2018 Mr. Hatch introduced the following bill; which was read twice and referred to the Committee on Agriculture, Nutrition, and Forestry A BILL To amend the Commodity Exchange Act to exempt certain small entities dealing in foreign exchange that serve small- and medium-sized businesses from certain capital and margin requirements, and for other purposes.

1. Applicability of capital and margin requirements to counterparties Section 4s(e)(4) of the Commodity Exchange Act ( 7 U.S.C. 6s(e)(4) ) is amended— (1) by striking counterparty qualifies and inserting the following: “counterparty— (A) qualifies ; (2) in subparagraph (A) (as so designated), by striking the period at the end and inserting ; or ; and (3) by adding at the end the following: (B) (i) is a money transmitter (as defined in section 1010.100(ff)(5) of title 31, Code of Federal Regulations) (or any successor regulation)) that— (I) is regulated by a State, the District of Columbia, or a territory or possession of the United States for financial adequacy; (II) is registered in accordance with section 1022.380 of title 31, Code of Federal Regulations (or any successor regulation); and (III) enters only into swaps exclusively for the purpose of offsetting risks generated from foreign currency contracts with an entity that is not a financial end user (as defined in section 23.151 of title 17, Code of Federal Regulations (or any successor regulation)); and (ii) has total assets of $1,000,000,000 or less on the last day of its most recent fiscal year. .