Over-the-Counter Derivatives Markets Act of 2009
Latest action · Oct 21, 2009 Ordered to be Reported by Voice Vote.
Progress
Where this bill reached, and when. A stage with no date was not reached; one that failed a vote and later carried shows the date it carried.
- IntroducedOct 13, 2009
- Passed HouseNot reached
- Passed SenateNot reached
- To the PresidentNot reached
- Became lawNot reached
Summary
Over-the-Counter Derivatives Markets Act of 2009 - Amends the Commodity Exchange Act (CEA) to place specified derivatives, swaps, securities-based swaps, swap dealers, and swap participants under the jurisdiction of a Prudential Regulator, which may be: (1) the Board of Governors of the Federal Reserve System; (2) the Office of the Comptroller of the Currency; and (3) the Federal Deposit Insurance Corporation (FDIC).
Directs the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC) to promulgate jointly uniform implementing regulations.
Repeals the exclusion from CFTC regulation of: (1) derivative transactions; (2) electronic trading facilities; (3) swap transactions; and (4) certain transactions in exempt commodities.
Makes unlawful for any person, other than an eligible contract participant, to enter into a swap unless it is subject to the rules of a board of trade designated as a contract market.
Directs the CFTC to: (1) monitor swap activity and transaction data; and (2) identify specific swap contracts which are required to be cleared.
Prescribes trade execution rules. Revises registration (including voluntary registration) requirements and core principles for derivatives clearing organizations (DCOs). Requires each DCO to designate a compliance officer.
Amends the Legal Certainty for Bank Products Act of 2000 to authorize a federal banking agency to subject to its oversight any identified banking product that is a swap or security-based swap.
Requires the CFTC to make aggregate swap data on swap trading volumes and positions available to the public.
Sets forth registration requirements and standards for: (1) swap repositories; (2) swap dealers and major swap participants; and (3) swap execution facilities.
Requires a swap dealer, futures commission merchant, or DCO by or through which funds or other property are held as margin or collateral to secure the obligations of a counterparty under a swap (which is to be cleared by or through a DCO) to segregate, maintain, and use the funds or other property for the counterparty's benefit. Prescribes a similar assets segregation requirement in the case of a swap that is not submitted to a DCO for clearing (over-the-counter swap).
Amends the CEA to repeal authority for: (1) a board of trade to elect to operate as a registered derivatives transaction execution facility; and (2) exemption from CFTC regulation for certain boards of trade.
Requires the market and mechanism for executing transactions provided by a board of trade designated as a contract market to protect the price discovery process of trading in the board's centralized market.
Authorizes the CFTC to set limits on the aggregate number or amount of positions in contracts based upon the same underlying commodity that may be held by any person, including any group or class of traders, for each month across various specified kinds of contracts, including swap contracts.
Extends CFTC regulatory authority over foreign boards of trade.
Grants the CFTC primary enforcement authority over swap markets regulation.
Amends the Federal Deposit Insurance Act to apply its cease and desist proceedings to specified parties in swap transactions.
Amends the CEA to subject retail commodity transactions to CFTC jurisdiction.
Prescribes reporting and recordkeeping requirements for certain large swap transactions.
Authorizes the CFTC and the SEC to ban swap transactions detrimental to financial market stability.
Directs the SEC, CFTC, the Prudential Regulators, the financial stability regulator, and the Office of Derivatives Supervision to coordinate with foreign regulatory authorities regarding establishment of consistent international standards for the regulation of swaps and information-sharing arrangements.
Authorizes the Secretary of the Treasury to prohibit certain foreign domiciliaries from participating in financial activities in the United States.
Repeals the prohibition against regulation of security-based swaps.
Amends the Securities Exchange Act of 1934 to set forth: (1) a clearing requirement for security-based swaps; (2) requirements for security-based swaps and alternative swap execution facilities; and (3) position limits and position accountability for security-based swaps and large trader reporting.
Requires registration of security-based swap repositories, security-based swap dealers, and major security-based swap participants.
Requires a security-based swap dealer or clearing agency by or through which funds or other property are held as margin or collateral to secure the obligations of a counterparty under a security-based swap (which is to be cleared by or through a derivatives clearing agency) to segregate, maintain, and use the funds or other property for the counterparty's benefit. Prescribes a similar assets segregation requirement in the case of a security-based swap that is not submitted to a derivatives clearing agency for clearing (over-the-counter swap).
Sets forth recordkeeping and reporting requirements for certain security-based swaps.
Amends the Securities Exchange Act of 1933 with respect to security-based swaps.
Cosponsors 1
Members who signed on, in the order they did. All signed on Nov 2, 2009.
| Seat | Cosponsor | Signed on | |
|---|---|---|---|
| D-CA | Brad Sherman | Nov 2, 2009 |
Committees 2
Where it was sent and what each committee and subcommittee did with it, in order.
| Chamber | Committee | What it did |
|---|---|---|
| House | Financial Services Committee | Referred Oct 13, 2009Markup Oct 15, 2009 |
| House | Agriculture Committee | Referred Oct 13, 2009Markup Oct 21, 2009 |
Actions 8
Everything that happened, newest first.
- Oct 21, 2009Committee Consideration and Mark-up Session Held.
- Oct 21, 2009Ordered to be Reported by Voice Vote.
- Oct 15, 2009Committee Consideration and Mark-up Session Held.
- Oct 15, 2009Ordered to be Reported (Amended) by the Yeas and Nays: 43 - 26.
- Oct 13, 2009Introduced in House
In the Congressional Record 1
Days the Record’s own index lists this bill, newest first, with the pages and the members it names. Pages starting H are the House, S the Senate, E Extensions of Remarks.
| Where | In the Record | Members | Date |
|---|---|---|---|
| Extensions | Debate and remarks E2705 | Brad Sherman D-CA | Nov 4, 2009 |
Research
What has been written about this bill: committee reports, cost estimates, the sponsor’s authority statement, printed hearings and the Congressional Research Service’s work.
Congressional Budget Office cost estimates 4
- Nov 6, 2009H.R. 3795, Derivative Markets Transparency and Accountability Act of 2009<p>Cost estimate for the bill as ordered reported by the House Committee on Agriculture on October 21, 2009</p>
- Nov 6, 2009H.R. 3795, Derivative Markets Transparency and Accountability Act of 2009Cost estimate for the bill as ordered reported by the House Committee on Agriculture on October 21, 2009
- Nov 3, 2009H.R. 3795, Over-the-Counter Derivatives Markets Act of 2009<p>Cost estimate for the bill as ordered reported by the House Committe on Financial Servies on October 15, 2009</p>
- Nov 3, 2009H.R. 3795, Over-the-Counter Derivatives Markets Act of 2009Cost estimate for the bill as ordered reported by the House Committe on Financial Servies on October 15, 2009
Printed hearings 2
Hearings whose printed record names this bill, newest first: hearings on it, and wider hearings where it came up.
| Number | Hearing | Committee | Held |
|---|---|---|---|
| S. Hrg. 111-752 | FINANCIAL DERIVATIVES ON ENERGY MARKETS94 pages | Energy and Natural Resources Committee | Mar 9, 2010 |
| Serial No. 111-84 | IMPACTS OF H.R. 3795, ``THE OVER-THE-COUNTER DERIVATIVES MARKET ACT OF 2009,'' ON ENERGY MARKETS125 pages | Energy and Commerce Committee | Dec 2, 2009 |
CRS reports 1
Congressional Research Service work that CRS links to this bill or the law it became, newest first.
Cite it 1
Products on other subjects that cite it, usually among other measures.
| Product | Title | Kind | Published |
|---|---|---|---|
| R46484 | Understanding Federal Legislation: A Sectionby-Section Guide to Key Legal Considerations | Report | May 19, 2022 |
Titles 2
Every title it has carried, official and short, at each stage.
- Official Title as Introduced
- To enact the Over-the-Counter Derivatives Markets Act of 2009.
- Short Titles as Introduced
- Over-the-Counter Derivatives Markets Act of 2009
Subjects
Assigned by the Library of Congress. Policy area: Finance and Financial Sector.
- Administrative law and regulatory procedures
- Banking and financial institutions regulation
- Commodities markets
- Commodity Futures Trading Commission
- Contracts and agency
- Department of the Treasury
- Federal Deposit Insurance Corporation (FDIC)
- Federal Reserve System
- Finance and Financial Sector
- Financial services and investments
- Government information and archives
- Licensing and registrations
- Securities
- Securities and Exchange Commission (SEC)
- U.S. and foreign investments
Text 1
Each version as it was printed, newest first.
- Oct 13, 2009Introduced in House
Everything here is as published by Congress: the summary is the Congressional Research Service's, the action wording is the clerks', and the subjects are the Library of Congress's. How far it got is read from the actions themselves, taking the most recent one of each kind, so a bill that failed a vote and later passed is shown as having passed. Records come from this bill on Congress.gov and govinfo.gov; cost estimates are the Congressional Budget Office's, and the hearings are the printed hearings GovInfo publishes, which can appear months after the hearing.
