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H. Rept. 115-810 1 (2018-07-10)

handle is hein.congrecreports/crptxaitb0001 and id is 1 raw text is: AUTHENTICATED r U.S. GOVERNMENT INFORMATION 4 115TH CONGRESS REPORT 2d Session J HOUSE OF REPRESENTATIVES 115-810 OPTIONS MARKETS STABILITY ACT JULY 10, 2018.-Committed to the Committee of the Whole House on the State of the Union and ordered to be printed Mr. HENSARLING, from the Committee on Financial Services, submitted the following REPORT [To accompany H.R. 5749] The Committee on Financial Services, to whom was referred the bill (H.R. 5749) to require the appropriate Federal banking agen- cies to increase the risk-sensitivity of the capital treatment of cer- tain centrally cleared options, and for other purposes, having con- sidered the same, report favorably thereon with an amendment and recommend that the bill as amended do pass. The amendment is as follows: Strike all after the enacting clause and insert the following: SECTION 1. SHORT TITLE. This Act may be cited as the Options Markets Stability 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 Comptroller of the Currency shall, jointly, issue a proposed rule, and finalize such rule within 360 days of the date of enactment of this Act, to adopt a methodology for calculating the counterparty credit risk exposure, at default, of a depository in- stitution, depository institution holding company, or affiliate thereof to a client aris- ing from a guarantee provided by the depository institution, depository institution holding company, or affiliate thereof to a central counterparty in respect of the cli- ent'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 depository 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 System, the Federal Deposit Insurance Corporation, and the Comptroller of the Currency shall consider- (1) the availability of liquidity provided by market makers during times of high volatility in the capital markets; (2) the spread between the bid and the quote offered by market makers; (3) the preference for clearing through central counterparties; (4) the safety and soundness of the financial system and financial stability, including the benefits of central clearing; 79-006