Bill: Draft Federal Reserve Exchange Listing Amendment Act

[ToadKing]

CONGRESS OF THE
COMMONWEALTH OF REDMONT
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A BILL TO

AMEND THE FEDERAL RESERVE ACT TO PERMIT EXCHANGE LISTING, INDEMNIFICATION, AND FIX SECTION NUMBERING

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The people of the Commonwealth of Redmont, through their elected Representatives in the Congress and the force of law ordained to that Congress by the people through the constitution, do hereby enact the following provisions into law:
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PART I — PRELIMINARIES​

1. Short Title and Enactment

(1) This Act may be cited as the 'Federal Reserve Exchange Listing Amendment Act.'

(2) This Act shall be enacted immediately upon its signage.

(3) This Act has been authored by Rep. ToadKing.

(4) This Act has been co-sponsored by Rep. IgnitedTnT.

(5) This Act amends the following acts:

(a) Federal Reserve Act

2. Reasons and Intent

(1) To correct the section numbering of the Federal Reserve Act, which contains a duplicate section number and a resulting numbering gap.

(2) To provide statutory authority for the FRB to list its financial instruments on a registered Stock Exchange.

(3) To permit the FRB to enter into listing agreements with registered Stock Exchanges and provide indemnification to those exchanges against losses arising solely from FRB default or non-payment on its instruments.

PART II — AMENDMENTS​

3. Amendments

(1) The section heading of the Federal Reserve Act, currently titled "2 - Rule Making Authority", shall be renumbered as follows:

"26 - Rule Making Authority"

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(2) The section heading of the Federal Reserve Act, currently titled "6 - Economic Powers", shall be renumbered as follows:

"67 - Economic Powers"

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(3) Section 7 of the Federal Reserve Act shall be amended by adding the following new subsections:

"(14) Exchange Listing Authority​

(a) The FRB may list any financial instrument it is authorised to issue, including but not limited to Treasury Bills, Treasury Bonds, and other securities, on any Stock Exchange registered with the Department of Commerce.​

(b) The FRB may enter into a listing agreement with a registered Stock Exchange governing the terms and conditions of such listing.​

(c) A listing agreement under this subsection shall be made publicly available in accordance with Section 8 of this Act.​

(15) Indemnification of Exchange Partners​

(a) The FRB may, by majority Board vote, agree to indemnify a registered Stock Exchange against losses arising directly and solely from the FRB's failure to make payment on a listed instrument at maturity or upon redemption.​

(b) Any indemnification agreed under this subsection shall:​

(i) Be limited in scope to losses directly caused by FRB non-payment and shall not extend to trading losses, market losses, or losses arising from the conduct of any third party;​

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(ii) Be approved by majority Board vote and recorded in a Board motion filed publicly in accordance with Section 8 of this Act; and​

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(iii) Not exceed the total face value of the instruments in respect of which the indemnification is given.​

(c) An indemnification under this subsection shall not be construed as a waiver of the FRB's sovereign or governmental status, nor shall it impose personal liability on any Board Member.​

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(d) Nothing in this subsection shall be construed as guaranteeing the profitability of any instrument listed on an exchange or as providing indemnification for any loss other than that arising from direct FRB non-payment."​