SILVER Act aims to reduce systemic risk by increasing geographical diversity and competition in precious metals depositories.
The SILVER Act amends the Commodity Exchange Act to enhance system integrity by expanding and diversifying the locations of precious metals depositories. It mandates that derivatives clearing organizations develop transparent criteria for selecting depositories, considering factors like geographic diversity, competition, and systemic risk. The bill requires these organizations to approve at least two depositories in each U.S. time zone, aiming to reduce systemic risk vulnerabilities, increase liquidity, and lower costs for market participants.
The filed bill text is too short for analysis.