The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
Advanced Search About the Fed News & Events Monetary Policy Supervision & Regulation Payment Systems Economic Research Data Consumers & Communities Board of Governors of the Federal Reserve System The Federal Reserve, the central bank of the United States, provides the nation with a safe, flexible, and stable monetary and financial system. Home > News & Events > Press Releases Joint Press Release December 16, 2014 Agencies announce rules to reflect ISDA protocol in regulatory capital and liquidity coverage ratio rules Board of Governors of the Federal Reserve System Office of the Comptroller of the Currency For immediate release Share The Board of Governors of the Federal Reserve System and Office of the Comptroller of the Currency today issued an interim final rule to ensure that the treatment of over-the-counter (OTC) derivatives, eligible margin loans, and repo-style transactions under the two agencies' regulatory capital and liquidity coverage ratio rules would be unaffected by the implementation of certain foreign special resolution regimes for financial companies or by a banking organization's adherence to the International Swaps and Derivatives Association's Resolution Stay Protocol. In addition, the interim final rule ensures that the lending limits of affected national banks and Federal savings association would be unchanged. The regulatory capital and liquidity coverage ratio rules for banking organizations recognize netting or collateral agreements for OTC derivatives and certain securities financing transactions, so long as the banking organization may terminate positions upon an event of default of the counterparty. The rules provide that the transactions may receive this treatment even though certain U.S. laws, including Title II of the Dodd-Frank Wall Street Reform and Consumer Protection Act and the Federal Deposit Insurance Act, may temporarily stay the termination rights. The interim final rule ensures that these transactions may continue to qualify for the current treatment under the two agencies' capital and liquidity rules if the transactions become subject to potential stays under foreign special resolution regimes similar to those of the United States or under contractual provisions that incorporate stays of special resolution regimes. The interim final rule, which applies to banking organizations other than state nonmember banks, will be effective as of January 1, 2015. Federal Register notice: HTML | PDF Media Contacts: Federal Reserve Board OCC Eric Kollig Bryan Hubbard 202-4522955 202-6496870 Board Votes Last Update: December 16, 2014 BOARD OF GOVERNORS of the FEDERAL RESERVE SYSTEM About the Fed News & Events Monetary Policy Supervision & Regulation Payment Systems Economic Research Data Consumers & Communities Financial Stability TOOLS AND INFORMATION STAY CONNECTED Contact Publications Freedom of Information (FOIA) Office of Inspector General Budget & Performance | Audit No FEAR Act Español Website Policies | Privacy Program Accessibility BOARD OF GOVERNORS of the FEDERAL RESERVE SYSTEM 20th Street and Constitution Avenue N.W., Washington, DC 20551