Advancing U.S. systemic regulation, the FSOC has finalized a rule on the criteria by which financial market utilities (FMUs) will be designated as systemic and, thus, subjected to regulation under Title VIII of the Dodd-Frank Act. The rule covers FMUs other than those in the payment, settlement and clearing arena (which will be addressed in a subsequent rulemaking). However, the criteria selected will affect both those FMUs and other systemic-risk designation criteria still being created by U.S. and global regulators, thus giving this FMU framework broad financial-market impact.
The full report is available to subscription clients. To find out how you can sign up for the service, click here