The House Agriculture Committee approved seven legislative proposals amending Dodd-Frank Title VII. All but one of the bills advanced on a voice vote; the Swaps Regulatory Improvement Act (H.R. 992) was approved by a vote of 31-14. H.R. 634, the Business Risk Mitigation and Price Stabilization Act, allows end users to use derivatives for hedging without being subject to margin requirements. H.R. 677, the Inter-Affiliate Swap Clarification Act, provides that certain transactions between affiliates within a single corporate group are not regulated as swaps, subject to a variety of conditions
Trade associations urged U.S. regulators to provide guidance on implementing BCBS-IOSCO recommended exemptions from swaps margin requirements where the amounts to be transferred are below relevant thresholds.
The Comptroller of the Currency, the Federal Reserve Board and the Federal Deposit Insurance Corporation proposed an alternative approach for calculating derivative exposures under regulatory capital rules.
The Board of Governors of the Federal Reserve System, the FDIC, the Office of the Comptroller of the Currency, the Farm Credit Administration and the Federal Housing Finance Authority, (the "Prudential Regulators") voted to establish minimum margin and capital requirements for registered swap dealers, major swap participants, security-based swap dealers and major security-based swap participants for which one of the Prudential Regulators has primary margin authority. The proposed rules implement Dodd-Frank Sections 731 and 764, which requires the Prudential Regulators to adopt rules jointly to
The OCC, the Federal Reserve Board and the FDIC will implement a standardized approach to calculating the exposure amount of derivative contracts under the "regulatory capital rule."