Financial Competitive Act of 2013

(This measure has not been amended since it was reported to the House on June 28, 2013. The summary of that version is repeated here.)

Financial Competitive Act of 2013 - Directs the Financial Stability Oversight Council (FSOC) to study and report to Congress on the likely effects that differences between the United States and other jurisdictions in implementing the derivatives credit valuation adjustment capital requirement would have upon: (1) U.S. financial institutions that conduct derivatives transactions and participate in derivatives markets, (2) end users of derivatives, and (3) international derivatives markets.

Requires the study to recommend steps Congress and the constituent agencies of the FSOC should take to: (1) minimize any expected negative effects on U.S. financial institutions, derivatives markets, and end users; (2) encourage greater international consistency in implementation of internationally agreed capital, liquidity, and other prudential standards; and (3) ensure that the FSOC fulfills its statutory mandate to identify risks and respond to emerging threats to financial stability.

[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1341 Introduced in House (IH)]

113th CONGRESS
  1st Session
                                H. R. 1341

To require the Financial Stability Oversight Council to conduct a study 
of the likely effects of the differences between the United States and 
 other jurisdictions in implementing the derivatives credit valuation 
                    adjustment capital requirement.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             March 21, 2013

 Mr. Fincher introduced the following bill; which was referred to the 
 Committee on Financial Services, and in addition to the Committee on 
Agriculture, for a period to be subsequently determined by the Speaker, 
 in each case for consideration of such provisions as fall within the 
                jurisdiction of the committee concerned

_______________________________________________________________________

                                 A BILL


 
To require the Financial Stability Oversight Council to conduct a study 
of the likely effects of the differences between the United States and 
 other jurisdictions in implementing the derivatives credit valuation 
                    adjustment capital requirement.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Financial Competitive Act of 2013''.

SEC. 2. STUDY OF IMPLEMENTATION OF BASEL III CAPITAL REQUIREMENTS 
              RELATED TO DERIVATIVES EXPOSURES.

    (a) Study.--The Financial Stability Oversight Council shall conduct 
a study of the likely effects that differences between the United 
States and other jurisdictions in implementing the derivatives credit 
valuation adjustment (in this section referred to as ``CVA'') capital 
requirement would have on--
            (1) United States financial institutions that conduct 
        derivatives transactions and participate in derivatives 
        markets;
            (2) end users of derivatives; and
            (3) international derivatives markets.
    (b) Content.--The study required by subsection (a) shall include--
            (1) an assessment of--
                    (A) the extent to which there are differences in 
                the approaches that the United States and other 
                jurisdictions are taking regarding implementation of 
                the CVA capital requirement, and the nature of the 
                differences;
                    (B) the impact that the differences would have on--
                            (i) United States financial institutions 
                        that conduct derivatives transactions and 
                        participate in derivatives markets, including 
                        their ability to serve end users of 
                        derivatives;
                            (ii) pricing and other costs of, and 
                        services available to, end users of derivatives 
                        in the United States and other jurisdictions; 
                        and
                            (iii) the competitiveness of United States 
                        financial institutions and United States 
                        derivatives markets, including the extent to 
                        which differences in the CVA capital 
                        requirement could shift derivatives business 
                        among jurisdictions; and
                    (C) the interaction between differing CVA capital 
                requirements and margin rules; and
            (2) recommendations regarding steps that the Congress and 
        the Federal financial regulatory agencies that comprise the 
        Financial Stability Oversight Council should take to--
                    (A) minimize any expected negative effects on 
                United States financial institutions, derivatives 
                markets, and end users; and
                    (B) encourage greater international consistency in 
                implementation of internationally agreed capital, 
                liquidity, and other prudential standards.
    (c) Report.--No later than 90 days after the date of the enactment 
of this Act, the Financial Stability Oversight Council shall submit a 
written report containing the results of the study to the Chairman and 
ranking minority member of the Committees on Agriculture and Financial 
Services of the House of Representatives, and the Chairman and ranking 
minority member of the Committees on Agriculture, Nutrition, and 
Forestry, and Banking, Housing, and Urban Affairs of the Senate.
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