Statements on House Financial Services Committee Passage of HR 4790

Kenneth E. Bentsen, Jr. President & CEO of SIFMA released the following statement today regarding passage of H.R. 4790, the Volcker Rule Regulatory Harmonization Act by the House Financial Services Committee, which would designate the Federal Reserve Board as the lead regulator for the Volcker Rule with all rulemaking and interpretive authority.

“This bipartisan legislation appropriately provides for consistent implementation of the Volcker rule and resolves the problem of having five different regulators opining on the same issue. As Congress considers revisions to financial regulation, this bill will provide greater certainty to market participants to the benefit of investors, capital formation and economic growth.”

Meanwhile, FIA President and CEO Walt Lukken also made the following statement after the House Financial Services Committee passed H.R. 4659 to properly calibrate the capital charges contained in the Supplementary Leverage Ratio (SLR) for clearing services:

“I thank the Financial Services Committee for working on a bipartisan basis to recognize the exposure reducing nature of initial client margin in implementation of the leverage ratio rule. This legislation will provide a long-called for offset, which will lower clearing costs for end-users and provide them with greater choice of clearing services. I hope this legislation will be considered by the House of Representatives very soon.”

“FIA has determined that enacting an offset would have an inconsequential impact on overall capital levels. Further, lack of such an offset would place U.S. market participants at a disadvantage to their foreign competitors, given that many other jurisdictions have already offered or plan to offer an offset for client margin in the very near future.”