Options Market Stability Act of 2019

Bill: 116-hr-4233
Sponsor: full_name: Rep. Gooden, Lance [R-TX-5]
Introduced: 2019-09-06
Policy area: Finance and Financial Sector
Subjects: Administrative law and regulatory procedures

Banking and financial institutions regulation

Department of the Treasury

Federal Deposit Insurance Corporation (FDIC)

Federal Reserve System

Financial services and investments

Securities
Latest action: action_date: 2019-09-06
text: Referred to the House Committee on Financial Services.

Summaries:
action_date: 2019-09-06
action_desc: Introduced in House
text: <p><b>Options Market Stability Act</b> <b>of 2019</b></p> <p>This bill directs the Federal Reserve Board, the Federal Deposit Insurance Corporation, and the Office of the Comptroller of the Currency to jointly issue a final rule addressing the method of calculating the risk, for purposes of&nbsp;satisfying capital rules applicable to depository institutions and depository institution holding companies,&nbsp;of&nbsp;certain options cleared through a central counterparty. </p>

tv_txt: I 116th CONGRESS 1st Session H. R. 4233 IN THE HOUSE OF REPRESENTATIVES September 6, 2019 Mr. Gooden introduced the following bill; which was referred to the Committee on Financial Services A BILL To require the Federal banking agencies to increase the risk-sensitivity of the capital treatment of certain centrally cleared exchange-listed derivatives, and for other purposes.

1. Short title This Act may be cited as the Options Market Stability Act of 2019 . 2. Derivative contracts (a) Definitions In this section, the terms depository institution and depository institution holding company have the meanings given those terms in section 3 of the Federal Deposit Insurance Act ( 12 U.S.C. 1813 ). (b) Requirement Not later than December 31, 2019, the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, and the Comptroller of the Currency shall— (1) jointly issue a final rule relating to the notice of proposed rule making entitled Standardized Approach for Calculating the Exposure Amount of Derivative Contracts (83 Fed. Reg. 64660; December 17, 2018); or (2) implement relief that allows for the adoption of a methodology for calculating the counterparty credit risk exposure, at default, of a depository institution, depository institution holding company, or affiliate thereof to a client arising from a guarantee provided by the depository institution, depository institution holding company, or affiliate thereof to a central counterparty in respect of the client’s performance under an exchange-listed derivative contract cleared through that central counterparty pursuant to the risk-based and leverage-based capital rules applicable to depository institutions and depository institution holding companies under parts 3, 217, and 324 of title 12, Code of Federal Regulations, that reflects the economic value of delta weighting and netting.