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Press Release
October 28, 2014

Federal Reserve Board issues final rule to
amend Regulation HH and Payment System
Risk policy
For release at 12:30 p.m. EDT
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The Federal Reserve Board on Tuesday issued a final rule that amends
the Regulation HH risk-management standards for financial market
utilities that have been designated as systemically important by the
Financial Stability Oversight Council and for which the Board has
standard-setting authority pursuant to Title VIII of the Dodd-Frank Wall
Street Reform and Consumer Protection Act. The Board also announced
final revisions to part I of the Federal Reserve Policy on Payment
System Risk, which is applicable to financial market infrastructures more
generally, including those operated by the Federal Reserve Banks.
The amendments and revisions are based on and generally consistent
with the international risk-management standards in the April 2012
Principles for Financial Market Infrastructures developed jointly by the
Committee on Payment and Settlement Systems and the International
Organization of Securities Commissions.1 Key amendments to the rule
and revisions to the policy include establishing separate standards to
address credit risk and liquidity risk, new requirements on recovery and
orderly wind-down planning, a new standard on general business risk, a
new standard on tiered participation arrangements, and heightened
requirements on transparency and disclosure.
The final rule and policy will become effective on December 31, 2014.
Institutions subject to the rule or policy will be expected to be in

compliance with the requirements by the effective date. Later
compliance dates apply to several new or heightened requirements as
explained in the Federal Register notices.
Federal Register notice: PDF | HTML
Policy on Payment System Risk: PDF | HTML
For media inquiries, call 202-452-2955
Board Votes

1. Effective September 1, 2014, the Committee on Payment and
Settlement Systems changed its name to the Committee on Payments
and Market Infrastructures. Return to text

Last Update: October 28, 2014

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