Federal Reserve System January 16, 2014 – Federal Register Recent Federal Regulation Documents

The Board of Governors of the Federal Reserve System (Board) is proposing to revise part I of its Federal Reserve Policy on Payment System Risk (PSR policy), which sets forth the Board's views, and related principles and minimum standards, regarding the management of risk in payment, clearing, and settlement systems. These revisions are proposed in light of the Principles for Financial Market Infrastructures (PFMI), the international risk-management standards for financial market infrastructures (FMIs) published in 2012.\1\ These revisions are also proposed in light of the enhanced supervisory framework for designated financial market utilities as set forth in Title VIII of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (``Dodd-Frank Act'' or ``Act''). In particular, certain revisions are intended to clarify that designated financial market utilities for which the Board is the Supervisory Agency under Title VIII of the Act are required to comply with Regulation HH and not the risk-management or transparency expectations set out in the policy.