Cboe Global Markets, Inc. (Nasdaq: CBOE), the exchange holding company, has just announced that Senator Mike Rounds (R-SD) and Senator Tammy Duckworth (D-IL) today introduced S. 3283, The Options Markets Stability Act.
The legislation is identical to H.R. 5749, which the U.S. House of Representatives unanimously passed earlier in July and was included as part of the JOBS Act 3.0. The legislation aims to facilitate liquidity in options markets by calling on bank regulators to correct certain risk-insensitive capital requirements.
Edward T. Tilly
Ed Tilly, Chairman and CEO of Cboe Global Markets, said:
Cboe commends Senator Rounds for leading this important effort in the Senate Banking Committee, and Senator Duckworth for working across the aisle to jointly introduce this legislation in the Senate so quickly after House approval. We are pleased that the soundness of centrally-cleared options markets continues to garner bipartisan support from our lawmakers and plan to continue leading the advocacy efforts for this issue and our industry.
Presently, market-makers who provide liquidity for exchange-listed options are indirectly constrained by bank capital rules from fulfilling their role in maintaining price stability.
The Options Market Stability Act is expected to modify current bank capital counterparty credit risk requirements that are adversely impacting the options markets by mandating agency rulemaking that considers the actual risk associated with options positions within one year of enactment.