DemocracyRules.org - Pledging Issues
Pledging
These are the original issues in this subcategory
  • SECURITIES AND EXCHANGE COMMISSION
  • GLASS-STEAGALL ACT
  • DERIVATIVES
Winning Issue » DERIVATIVES


A derivative has no intrinsic value in itself. Derivatives are an arrangement or instrument (such as a future, option, warrant and swaps) whose value is dependent on the value of an underlying asset such as commodities, precious metals, currency, bonds, stocks, stocks indices, etc. They usually take the form of contracts under which the parties agree to payments between themselves based upon the value of the underlying asset at a particular point in time. For example: Choose something valuable such as soy beans, petroleum or government bonds, make bets on its future worth, add a contract, and you have a derivative.

Derivatives have been called the unregulated global casino for banks. The 2008 financial crisis showed that derivatives make the system much more dangerous by encouraging banks and investors to pile up more and more risk. A derivative contract loses or gains value as the price it tracks changes. When it loses enough value, the bank will demand that the owner pay some money, the dreaded “margin call.” This was exactly what brought down AIG, a bailed-out insurance company, and nearly did the same to our global economy in 2008. Advocates say legislation is needed to reduce the impacts of market volatility on everyday investors so they can better calculate risk in our options markets.

Proposed Legislation: H.R.4233 - Options Market Stability Act of 2019
Prospective Sponsor: Rep. Lance Gooden (TX)



Polling Options

  • I oppose reforming current derivatives policy and wish to donate resources to the campaign committee of Speaker Nancy Pelosi (CA).
  • I support directing the Federal Reserve Board, the Federal Deposit Insurance Corporation, and the Office of the Comptroller of the Currency to jointly issue a final rule addressing the method of calculating the risk, for purposes of satisfying capital rules applicable to depository institutions and depository institution holding companies, of certain options cleared through a central counterparty, and wish to donate resources to the campaign committee of Rep. Lance Gooden (TX) and/or to an advocate group currently working with this issue.


Winning Option

  • I support directing the Federal Reserve Board, the Federal Deposit Insurance Corporation, and the Office of the Comptroller of the Currency to jointly issue a final rule addressing the method of calculating the risk, for purposes of satisfying capital rules applicable to depository institutions and depository institution holding companies, of certain options cleared through a central counterparty, and wish to donate resources to the campaign committee of Rep. Lance Gooden (TX) and/or to an advocate group currently working with this issue.
You May Pledge Your Support For This Issue With A Monetary
Donation And By Writing A Letter To Your Representatives
Please login to pledge


Pledge Period - Opening Date
September 19, 2022
Pledge Period - Closing Date
September 25, 2022
Trustee Election - Begins
September 26, 2022


Suggest a Trustee for this Presentation Cycle


Suggest a worthy trustee for consideration before Day 16 of this presentation cycle. (Maximum 60 Characters)
Trustee Name