Risk Management for Derivatives Clearing Organizations Act

I 116TH CONGRESS 2D SESSION H. R. 8914 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. 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 Con- sumer Protection Act to permit certain non-designated clearinghouses access to a deposit account at a Federal reserve bank, to apply certain risk management stand- ards to non-designated clearinghouses receiving certain services from a Federal reserve bank, and for other pur- poses. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘Risk Management for 4 Derivatives Clearing Organizations Act’’. 5 VerDate Sep 11 2014 23:16 Dec 21, 2020 Jkt 019200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H8914.IH H8914 kjohnson on DSK79L0C42PROD with BILLS 2 •HR 8914 IH SEC. 2. ACCESS TO FEDERAL RESERVE BANK ACCOUNTS 1 AND SERVICES. 2 Section 806 of the Dodd-Frank Wall Street Reform 3 and Consumer Protection Act (12 U.S.C. 5465) is amend- 4 ed— 5 (1) in subsection (a)— 6 (A) by striking ‘‘a designated financial 7 market utility and’’ and inserting ‘‘a designated 8 financial market utility, a derivatives clearing 9 organization registered with the Commodity Fu- 10 tures Trading Commission under the Com- 11 modity Exchange Act that has been approved to 12 hold such an account by the Commodity Fu- 13 tures Trading Commission, or a clearing agency 14 registered with the Commission under the Secu- 15 rities Exchange Act of 1934 that has been ap- 16 proved to hold such an account by the Commis- 17 sion, and’’; 18 (B) by striking ‘‘designated financial mar- 19 ket utility that’’ and inserting ‘‘financial market 20 utility that’’; and 21 (C) by inserting after ‘‘by the Board of 22 Governors’’ the following: ‘‘, as well as any ap- 23 plicable rules, orders, standards, or guidelines, 24 including, in particular, liquidity requirements, 25 prescribed by the financial market utility’s pri- 26 VerDate Sep 11 2014 23:16 Dec 21, 2020 Jkt 019200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H8914.IH H8914 kjohnson on DSK79L0C42PROD with BILLS 3 •HR 8914 IH mary financial regulatory agency. Access to dis- 1 count and borrowing privileges may only be pro- 2 vided to a financial market utility in accordance 3 with subsection (b)’’; 4 (2) in subsection (c), by striking ‘‘designated fi- 5 nancial market utility’’ and inserting ‘‘financial mar- 6 ket utility’’; and 7 (3) in subsection (d), by striking ‘‘designated fi- 8 nancial market utility’’ each place such term appears 9 and inserting ‘‘financial market utility’’. 10 Æ VerDate Sep 11 2014 23:16 Dec 21, 2020 Jkt 019200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6301 E:\BILLS\H8914.IH H8914 kjohnson on DSK79L0C42PROD with BILLS