07.19.2018

QUICK TAKE: OCC Likes Passage of H.R. 5749

07.19.2018

As sportscaster Marv Albert might say, “Yesssss!”

David Prosperi, Senior Vice President Communications for The Options Industry Council shared the positive sentiment with Traders Magazine as H.R.  5749 – the Options Markets Stability Act – has passed.

H.R. 5749 requires the appropriate U.S. federal banking agencies to increase the risk-sensitivity of the capital treatment of centrally cleared options.

“OCC and the U.S. Securities Markets Coalition applaud passage of H.R. 5749, the Options Markets Stability Act,” Prosperi said. “Passage of this legislation, sponsored by Representatives Randy Hultgren (R-IL) and Bill Foster (D-IL), is an important step forward in helping ensure that market makers can provide vital liquidity for investors who use the U.S. equity options markets to help manage their financial risk. OCC appreciates the leadership of Representatives Hultgren, Foster, House Financial Services Committee Chairman Jeb Hensarling (R-TX), Ranking Member Maxine Waters (D-CA) and the other members of the Committee for securing passage of H.R. 5749.”

The legislation is consistent with the U.S. Treasury Department’s October 2017 Report on Capital Markets which recommends, “that regulators properly balance the post-crisis goal of moving more derivatives into central clearing with appropriately tailored and targeted capital requirements.”

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