12 USC 5465 - Operations of designated financial market utilities

U.S Code last checked for updates: May 01, 2024

§ 5465.

Operations of designated financial market utilities

(a)

Federal Reserve account and services

(b)

Advances

(c)

Earnings on Federal Reserve balances

(d)

Reserve requirements

(e)

Changes to rules, procedures, or operations

(1)

Advance notice

(A)

Advance notice of proposed changes required

(B)

Terms and standards prescribed by the Supervisory Agencies

(C)

Contents of notice

The notice of a proposed change shall describe—

(i)

the nature of the change and expected effects on risks to the designated financial market utility, its participants, or the market; and

(ii)

how the designated financial market utility plans to manage any identified risks.

(D)

Additional information

(E)

Notice of objection

The Supervisory Agency shall notify the designated financial market utility of any objection regarding the proposed change within 60 days from the later of—

(i)

the date that the notice of the proposed change is received; or

(ii)

the date any further information requested for consideration of the notice is received.

(F)

Change not allowed if objection

(G)

Change allowed if no objection within 60 days

A designated financial market utility may implement a change if it has not received an objection to the proposed change within 60 days of the later of—

(i)

the date that the Supervisory Agency receives the notice of proposed change; or

(ii)

the date the Supervisory Agency receives any further information it requests for consideration of the notice.

(H)

Review extension for novel or complex issues

(I)

Change allowed earlier if notified of no objection

(2)

Emergency changes

(A)

In general

A designated financial market utility may implement a change that would otherwise require advance notice under this subsection if it determines that—

(i)

an emergency exists; and

(ii)

immediate implementation of the change is necessary for the designated financial market utility to continue to provide its services in a safe and sound manner.

(B)

Notice required within 24 hours

(C)

Contents of emergency notice

In addition to the information required for changes requiring advance notice, the notice of an emergency change shall describe—

(i)

the nature of the emergency; and

(ii)

the reason the change was necessary for the designated financial market utility to continue to provide its services in a safe and sound manner.

(D)

Modification or rescission of change may be required

(3)

Copying the Board of Governors

(4)

Consultation with Board of Governors

(Pub. L. 111–203, title VIII, § 806, July 21, 2010, 124 Stat. 1811.)

cite as: 12 USC 5465