House bill would provide framework to calculate risk in the options markets

Legislation recently introduced in the U.S. House of Representatives seeks to require regulatory agencies to develop a framework to better calculate risk in the options markets.© Shutterstock The bill – the Options Market Stability Act of 2019 (H.R. 4233) – is designed to reduce the impacts of market volatility on everyday investors. “Recent options volatility […]

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Legislation recently introduced in the U.S. House of Representatives seeks to require regulatory agencies to develop a framework to better calculate risk in the options markets.

© Shutterstock

The bill – the Options Market Stability Act of 2019 (H.R. 4233) – is designed to reduce the impacts of market volatility on everyday investors.

“Recent options volatility has indicated the immediate need for adjustments to existing regulations over these markets. We cannot ask investors to stand by as government bureaucrats drag their feet to modernize outdated rules,” U.S. Rep. Lance Gooden (R-TX), who introduced the bill, said. “My legislation, the Options Market Stability Act of 2019, will require federal regulators to issue a final rule establishing a system to better calculate and account for risk in the options markets. The rules over our financial system must be accurate in their targeting and agile when change is needed.”

Rep. Patrick McHenry (R-N.C.), ranking member on the House Financial Services Committee, supports the legislation.

“Committee Republicans are committed to supporting everyday investors as they save for retirement, their child’s education, or a home for their family,” McHenry said. “I am glad to see Congressman Gooden take action to modernize the regulatory framework for calculating risk in the options markets, which will provide stability and protection for these folks. I appreciate his leadership on the Financial Services Committee and his work in Congress to build on the gains Republicans have achieved for the American people.”

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