SILVER Act

This bill amends the Commodity Exchange Act to reduce systemic risk and increase geographic diversity and competition for depositories storing precious metals used in futures contracts. It requires systemically important derivatives clearing organizations to adopt transparent criteria for selecting precious metals depositories and to ensure depositories are located in multiple U.S. time zones.

Sec. 3, Precious metals depositories used in connection with futures contracts: The bill amends the Commodity Exchange Act to require systemically important derivatives clearing organizations to develop and publish objective criteria for selecting precious metals depositories, provide a formal application process, and consider geographic diversity, competition, risk management, storage costs, and systemic risk. They must select at least two depositories in each of the Eastern, Central, Mountain, and Pacific time zones. The bill also requires periodic assessment of market participant access to physical settlement regardless of location, and adds conditions for applying to become a metal service provider, including depositories.