Risk Management for Derivatives Clearing Organizations Act

Bill: 116-hr-8914
Sponsor: full_name: Rep. Cleaver, Emanuel [D-MO-5]
Introduced: 2020-12-09
Policy area: Finance and Financial Sector
Subjects: Bank accounts, deposits, capital

Banking and financial institutions regulation

Federal Reserve System

Securities
Latest action: action_date: 2020-12-09
text: Referred to the House Committee on Financial Services.

Summaries:
action_date: 2020-12-09
action_desc: Introduced in House
text: <p><b>Risk Management for Derivatives Clearing Organizations Act </b></p> <p>This bill allows derivatives clearing organizations and clearing agencies to maintain accounts at a Federal Reserve Bank. </p>

tv_txt: I 116th CONGRESS 2d Session H. R. 8914 IN THE HOUSE OF REPRESENTATIVES December 9, 2020 Mr. Cleaver 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 permit certain non-designated clearinghouses access to a deposit account at a Federal reserve bank, to apply certain risk management standards to non-designated clearinghouses receiving certain services from a Federal reserve bank, and for other purposes.

1. Short title This Act may be cited as the Risk Management for Derivatives Clearing Organizations Act . 2. Access to Federal reserve bank accounts and services Section 806 of the Dodd-Frank Wall Street Reform and Consumer Protection Act ( 12 U.S.C. 5465 ) is amended— (1) in subsection (a)— (A) by striking a designated financial market utility and and inserting a designated financial market utility, a derivatives clearing organization registered with the Commodity Futures Trading Commission under the Commodity Exchange Act that has been approved to hold such an account by the Commodity Futures Trading Commission, or a clearing agency registered with the Commission under the Securities Exchange Act of 1934 that has been approved to hold such an account by the Commission, and ; (B) by striking designated financial market utility that and inserting financial market utility that ; and (C) by inserting after by the Board of Governors the following: , as well as any applicable rules, orders, standards, or guidelines, including, in particular, liquidity requirements, prescribed by the financial market utility’s primary financial regulatory agency. Access to discount and borrowing privileges may only be provided to a financial market utility in accordance with subsection (b) ; (2) in subsection (c), by striking designated financial market utility and inserting financial market utility ; and (3) in subsection (d), by striking designated financial market utility each place such term appears and inserting financial market utility .