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![handle is hein.congrecreports/crptxabqf0001 and id is 1 raw text is: AUTHENTICATEO
U.S. GOVERNMENT
INFORMATION
Op
115TH CONGRESS REPORT
2d Session HOUSE OF REPRESENTATIVES 115-893
DERIVATIVES FAIRNESS ACT
AUGUST 7, 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
together with
MINORITY VIEWS
[To accompany H.R. 5323]
[Including cost estimate of the Congressional Budget Office]
The Committee on Financial Services, to whom was referred the
bill (H.R. 5323) to amend the Dodd-Frank Wall Street Reform and
Consumer Protection Act to establish an exemption from the credit
valuation adjustment calculation for uncleared derivatives trans-
actions with end-users so that United States companies are not dis-
advantaged, and for other purposes, having considered 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 Derivatives Fairness Act.
SEC. 2. CREDIT VALUATION ADJUSTMENT RELIEF.
(a) IN GENERAL.-The Dodd-Frank Wall Street Reform and Consumer Protection
Act (12 U.S.C. 5361 et seq.), is amended by inserting after section 176 the following
new section:
SEC. 177. CREDIT VALUATION ADJUSTMENT.
Prudential risk-based capital requirements and generally applicable risk-based
capital requirements established by the appropriate Federal banking agencies shall
not apply a fair value adjustment to reflect counterparty credit risk in valuation of
over-the-counter derivative contracts with respect to transactions with a
counterparty that-
(1) is described under section 2(h)(7)(A) of the Commodity Exchange Act;
79-006](ViewImageLocal?handle=hein.congrecreports/crptxabqf0001&div=1&collection=&method=preview&ext=.png&size=3)