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Oversight Council Holds Meeting Ahead of Anniversary of Dodd-Frank Act
the first anniversary of the enactment of the Dodd-Frank Wall Street
Reform and Consumer Protection Act approaches, the Financial Stability
Oversight Council (Council) convened its seventh meeting at the U.S.
Department of the Treasury and approved the following documents and
resolutions put forward during the session: a final rule on the
Councilís authority to designate financial market utilities as
systemically important; a secured creditor haircut study pursuant to
section 215 of the Dodd-Frank Act; and the minutes of the May 24, 2011
and July 13, 2011 Council meetings. At todayís meeting, members also
discussed the Councilís 2011 Annual Report, which will be finalized and
released in the coming days.
Section 804 of the Dodd-Frank Act gives the Council the authority to designate as systemically important a financial market utility (FMU) if the Council determines that its failure or a disruption to its operations could create or increase the risk of significant liquidity or credit problems spreading among financial institutions or markets and thereby threaten the stability of the U.S. financial system. An FMU designated by the Council as systemically important would become subject to the requirements of Title VIII of the Dodd-Frank Act, including risk management standards and additional examinations.
An advance notice of
proposed rulemaking (ANPR) on FMU designations was approved for public
comment at the Councilís November 2010 meeting. Additionally, the
Council approved a Notice of Proposed Rulemaking (NPR) on FMU
designations for public comment at its March 2011 meeting.