Fed seeks comments on U.S. clearinghouse rules

WASHINGTON, March 30 (Reuters) – The Federal Reserve on
Wednesday said it was requesting comment on proposed rules to
tighten supervision of clearinghouses to better manage risks in
the U.S. financial system.

The proposed rules stem from the Dodd-Frank regulatory
overhaul that became law last year and specified that so-called
“financial market utilities” seen as systemically important
under supervision of the Financial Stability Oversight
Council.

The utilities include payments systems, central securities
depositories and central counterparties that banks use.
Together, banks and the utilities manage basic risks like
credit, liquidity and settlement risks to keep the financial
system operating smoothly.

The Fed rules would set risk-management standards to cover
the operation of payment, clearing and settlement activities
for designated utilities, except those registered as a clearing
agency with the Securities and Exchange Commission or as a
derivatives clearing organization with the Commodity Futures
Trading Commission.

In addition, the proposed rules set requirements for
utilities to provide advance notice of any changes in their
rules or procedures if the Fed is their primary supervisor.
(Reporting by Glenn Somerville, editing by Kenneth Barry)

Fed seeks comments on U.S. clearinghouse rules