Political Quotes

“I want to thank Chairman Huizenga for his work on this and so many other important things on the Financial Services Committee and the Capital Markets, Securities, and Investment Subcommittee. I also want to begin by giving special thanks to Leader McCarthy for providing time for consideration of the Options Markets Stability Act. This legislation is very important to a number of stakeholders in Illinois, but also to market stability as a whole and the investors who depend on having access to reliable products. I also do want to thank Chairman Hensarling and Ranking Member Waters. Without their support, my legislation would not have received a unanimous vote in the Financial Services Committee, and I am grateful for their help; and my colleague, Bill Foster, as well, for his help. Title VII of the Dodd-Frank Act requires derivatives, including options, to be centrally cleared in order to take advantage of the risk-mitigating benefits. Liquidity providers, many of which are in Illinois, can trade only through a clearing member; they cannot access clearinghouses directly. As a result, the role of clearing members and the amount of transactions cleared by these institutions has expanded significantly. The risk-based and leverage-based capital requirements for bank clearing members makes it cost prohibitive to provide clearing services for listed options. This is especially acute when there is higher than expected volume.…”