[Federal Register Volume 86, Number 37 (Friday, February 26, 2021)]
[Rules and Regulations]
[Pages 11618-11622]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-03596]
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FEDERAL RESERVE SYSTEM
12 CFR Part 231
[Regulation EE; Docket No. R-1661]
RIN 7100-AF 48
Netting Eligibility for Financial Institutions
AGENCY: Board of Governors of the Federal Reserve System.
ACTION: Final rule.
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SUMMARY: The Board of Governors (Board) is publishing a final rule that
amends Regulation EE to include additional entities in the definition
of ``financial institution'' contained in section 402 of the Federal
Deposit Insurance Corporation Improvement Act of 1991 (FDICIA) so that
they are covered by FDICIA's netting protections. The final rule also
clarifies certain aspects of the existing activities-based test in
Regulation EE.
DATES: The final rule is effective March 29, 2021.
FOR FURTHER INFORMATION CONTACT: Evan Winerman, Senior Counsel (202-
872-7578), Legal Division. Users of Telecommunication Device for Deaf
(TDD) only, call (202) 263-4869.
SUPPLEMENTARY INFORMATION:
I. Background
Sections 401-407 of FDICIA \1\ provide certainty that netting
contracts will be enforced, even in the event of the insolvency of one
of the parties. These netting provisions apply to bilateral netting
contracts between two financial institutions and multilateral netting
contracts among members of a clearing organization.\2\ FDICIA defines
``financial
[[Page 11619]]
institution'' as a broker or dealer, a depository institution, a
futures commission merchant, or any other institution as determined by
the Board.
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\1\ Public Law 102-242; 105 Stat. 2236, 2372-3; 12 U.S.C. 4401-
4407.
\2\ FDICIA section 402(2) generally defines ``clearing
organization'' to include entities that provide clearing, netting,
and settlement services to their members and in which all members of
the entity are themselves financial institutions or clearing
organizations. However, certain entities qualify as clearing
organizations under FDICIA section 402(2)--and are therefore
eligible for the multilateral netting protections under FDICIA
section 404--without regard to whether all of their members qualify
as financial institutions or clearing organizations. Specifically,
an entity automatically qualifies as a clearing organization if it
is (1) registered with the Securities and Exchange Commission (SEC)
as a clearing agency or has been exempted from registration by the
SEC or (2) registered with the Commodity Futures Trading Commission
(CFTC) as a derivatives clearing organization or has been exempted
from registration by the CFTC.
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Regulation EE expands the FDICIA definition of ``financial
institution''--and therefore expands FDICIA's netting protections--
using an activities-based test that includes a qualitative component
and a quantitative component. The qualitative component requires that
the person ``represent, orally or in writing, that it will engage in
financial contracts as a counterparty on both sides of one or more
financial markets.'' \3\ A person that makes this representation
demonstrates that it is willing to engage in transactions on both sides
of the market and is, in effect, holding itself out as a market
intermediary.\4\ The quantitative component requires that the person
have either (1) one or more financial contracts of a total gross dollar
value of at least $1 billion in notional principal amount outstanding
on any day during the previous 15-month period with counterparties that
are not its affiliates or (2) total gross mark-to-market positions of
at least $100 million (aggregated across counterparties) in one or more
financial contracts on any day during the previous 15-month period with
counterparties that are not its affiliates.\5\
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\3\ 12 CFR 231.3(a). Regulation EE generally defines the term
``financial contract'' by reference to the term ``qualified
financial contract'' under section 11(e)(8)(D) of the Federal
Deposit Insurance Act, 12 U.S.C. 1821(e)(8)(D). 12 CFR 231.2(c).
\4\ 59 FR 4780, 4782 (February 2, 1994).
\5\ Id.
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On May 2, 2019, consistent with the purposes of FDICIA's netting
provisions, and in order to reduce systemic risk and increase
efficiency in the financial markets, the Board proposed to amend
Regulation EE to include additional categories of entities in the
definition of financial institution.\6\ The Board also proposed to
clarify certain aspects of Regulation EE's existing activities-based
test for qualifying as a financial institution.
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\6\ 84 FR 18741 (May 2, 2019). FDICIA section 402(9) defines the
term ``financial institution'' to include an enumerated list of
entities and ``any other institution as determined by the Board of
Governors of the Federal Reserve System.''
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II. Public Comments
The Board received five responsive comments from private-sector
financial institutions, industry associations, and an international
organization. Commenters supported the proposed revisions to Regulation
EE and, in some cases, suggested additional revisions. Several
commenters suggested that the Board extend the financial institution
definition to additional categories of entities. One commenter
suggested that the Board make two minor clarifications related to the
proposed changes to the activities-based test.
A. Qualification as a Financial Institution Based on Type of Entity
The Board is amending Regulation EE to include in the definition of
financial institution the entities identified in the proposal.
Additionally, the Board is including two other categories of entities,
as well as the Bank for International Settlements (BIS), in the
definition of financial institution.
The Board proposed to define the following entities as financial
institutions: Swap dealers and security-based swap dealers; \7\ major
swap participants (MSPs) and major security-based swap participants
(MSBSPs); \8\ nonbank financial companies that the Financial Stability
Oversight Council (FSOC) has determined shall be supervised by the
Board and subject to prudential standards (nonbank systemically
important financial institutions, or SIFIs); \9\ derivatives clearing
organizations (DCOs) that are registered with the CFTC or have been
exempted from registration by the CFTC; \10\ clearing agencies that are
registered with the SEC or have been exempted from registration by the
SEC; \11\ financial market utilities that the FSOC has designated as,
or as likely to become, systemically important (designated financial
market utilities, or DFMUs); \12\ foreign banks as defined in the
International Banking Act; \13\ bridge institutions established for the
purpose of resolving financial institutions; and Federal Reserve Banks.
Commenters supported extending the financial institution definition to
the entities identified in the proposal.
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\7\ See 7 U.S.C. 6s (swap dealer registration requirement) and
17 CFR 1.3 (swap dealer definition and de minimis thresholds); 15
U.S.C. 78o-10 (security-based swap dealer registration requirement)
and 17 CFR 240.3a71-1 and 240.3a71-2 (security-based swap dealer
definition and de minimis thresholds).
\8\ See 7 U.S.C. 6s (MSP registration requirement) and 15 U.S.C.
78o-10 (MSBSP registration requirement).
\9\ 12 U.S.C. 5323.
\10\ See 7 U.S.C. 7a-1(a) and (h).
\11\ See 15 U.S.C. 78q-1(b) and (k).
\12\ 12 U.S.C. 5463.
\13\ 12 U.S.C. 3101. As described in the proposal, the Board
believes that foreign banks qualify as financial institutions under
FDICIA's statutory definition.
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The Board believes that adding these entities to the definition of
financial institution would promote the purposes of FDICIA's netting
provisions--namely to reduce systemic risk and increase efficiency in
the financial markets. The Board recognizes that Congress has imposed
or expanded federal supervision and regulation for many of these
entities since the Board first promulgated Regulation EE. In subjecting
these entities to higher levels of regulation and supervision due to
their activities, transaction volumes, and risks presented to the
financial markets, Congress indicated the importance of the smooth
functioning of these entities to the financial markets. Accordingly,
the Board is finalizing its proposal to extend the financial
institution definition to include swap dealers, security-based swap
dealers, MSPs, MSBSPs, nonbank SIFIs, DCOs, clearing agencies, DFMUs,
foreign banks, bridge institutions established for the purpose of
resolving financial institutions, and Federal Reserve Banks.
The Board is also amending Regulation EE to define qualifying
central counterparties (QCCPs), foreign central banks, and the BIS as
financial institutions.
1. QCCPs
In the preamble to the proposed rule, the Board requested comment
on whether it should include in the definition of financial institution
an entity that is a QCCP under the Board's Regulation Q.\14\ One
industry association supported this addition.
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\14\ 12 CFR 217.2.
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The Board's Regulation Q establishes criteria for identifying
QCCPs. Generally, a Board-supervised institution that clears financial
transactions through a QCCP can receive preferential capital treatment
for those transactions.\15\ To qualify as a QCCP, an entity based
outside the United States must generally (among other things) be
subject to home-country risk-management standards that are comparable
to those that apply to DFMUs.
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\15\ Exposures to a QCCP are risk-weighted at either 2 or 4
percent (see 12 CFR 217.35(b)(3) and (c)(3)), whereas exposures to a
CCP that is not a QCCP are risk-weighted based on the risk weight
otherwise assignable to the CCP.
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As noted above, the Board is amending the definition of financial
institution to include DCOs and clearing agencies that are registered
with, or have been exempted from registration by, the CFTC or SEC. All
domestic QCCPs and many foreign-based QCCPs are registered or exempt
DCOs/clearing agencies. To ensure that all foreign-
[[Page 11620]]
based QCCPs qualify as financial institutions for purposes of FDICIA's
netting provisions, the Board is amending Regulation EE to extend the
financial institution definition to QCCPs. The Board believes that
defining QCCPs to be financial institutions would benefit financial
markets that rely on FDICIA's netting provisions by ensuring that
foreign-based QCCPs can participate in other financial market utilities
that require participants to be financial institutions and that
including QCCPs would meet the statutory objectives of reducing
systemic risk and increasing efficiency in those financial markets.
Additionally, the Board believes that it is appropriate to extend the
financial institution definition to QCCPs because Regulation Q (1)
establishes criteria for identifying QCCPs and (2) provides that an
entity must meet heightened risk-management standards to qualify as a
QCCP.
2. Foreign Central Banks
A private-sector financial institution and an international
organization suggested that the Board include foreign central banks in
the definition of financial institution. These commenters stated that
foreign central banks are systemically important and that extending the
financial institution definition to cover foreign central banks would
reduce systemic risk and increase efficiency in the financial markets,
consistent with the purpose of the proposal.
The Board understands that foreign central banks, like Federal
Reserve Banks, may participate in financial markets through various
types of transactions that are used to implement monetary policy. The
Board believes that including foreign central banks categorically in
the definition of financial institution may benefit financial markets
that rely on FDICIA and would meet the statutory objectives of reducing
systemic risk and increasing efficiency in those financial markets.
Furthermore, given that the Board is amending Regulation EE to define
Federal Reserve Banks as financial institutions, the Board believes
that a parallel addition of foreign central banks would be appropriate.
Accordingly, the Board is amending Regulation EE to define foreign
central banks as financial institutions.
3. The BIS
Multiple commenters suggested that the Board include the BIS in the
definition of financial institution. The BIS's shareholders are central
banks and monetary authorities that are members of the BIS.\16\ The BIS
engages in financial contracts (e.g., foreign exchange derivatives) to
help central banks and other official monetary institutions manage
their foreign exchange reserves.\17\ Because the BIS engages in market-
facing financial contracts and has characteristics similar to those of
the Federal Reserve Banks and foreign central banks, the Board believes
that the BIS should receive financial institution status, which is also
being extended to the Federal Reserve Banks and foreign central banks.
The Board believes that extending financial institution status to the
BIS would meet the statutory objectives of reducing systemic risk and
increasing efficiency in the financial markets. Accordingly, the Board
is amending Regulation EE to define the BIS as a financial institution.
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\16\ See https://www.bis.org/about/index.htm.
\17\ See https://www.bis.org/banking/finserv.htm.
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4. Other Categories of Entities
Two private-sector financial institutions and one international
organization requested that the Board add the following categories of
entities to the definition of financial institution: (i) Supranational
institutions, such as multilateral development banks; (ii) foreign
systemically important financial market infrastructures that are
subject to the Principles for Financial Market Infrastructures \18\ as
implemented in their respective jurisdictions, and their operators;
(iii) sovereign wealth funds; and (iv) electronic money institutions
and payment institutions. The commenters did not provide detailed
explanations for why the Board should extend financial institution
status to these categories of entities.
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\18\ See https://www.bis.org/cpmi/publ/d101.htm.
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As discussed above, the domestic and global landscape for financial
regulation has changed dramatically since the Board promulgated
Regulation EE. In particular, several types of entities are now subject
to expanded federal supervision and regulation. In subjecting these
types of entities to higher levels of regulation and supervision due to
their activities, transaction volumes, and risks presented to the
financial markets, Congress indicated the importance of the smooth
functioning of these entities to the financial markets.
The Board is not extending the financial institution definition to
include the four categories of entities suggested by commenters. It is
not clear the extent to which these types of entities, as categories,
are active in financial contract netting such that the smooth
functioning of their netting contracts is important for reducing
systemic risk within the U.S. banking system or financial markets.
Additionally, it is not clear the extent to which some of these
entities function as market intermediaries. The Board notes that some
foreign systemically important financial market infrastructures may be
captured by other newly-added categories in the definition of financial
institution, including DCOs, clearing agencies, and QCCPs.
As the Board noted in the proposed rule, it has the authority to
issue case-by-case determinations for individual entities seeking
financial institution status. Further, while the Board is not
categorically defining all of the entities described above as financial
institutions, individual entities in these categories might
independently qualify as financial institutions under Regulation EE's
activities-based test.
B. Activities-Based Test
The quantitative component of the activities-based test requires
that a person have either (1) one or more financial contracts of a
total gross dollar value of at least $1 billion in notional principal
amount outstanding on any day during the previous 15-month period with
counterparties that are not its affiliates or (2) total gross mark-to-
market positions of at least $100 million (aggregated across
counterparties) in one or more financial contracts on any day during
the previous 15-month period with counterparties that are not its
affiliates.\19\
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\19\ 12 CFR 231.3(a). The Bankruptcy Code includes a test for
identifying ``financial participants'' that is substantively
identical to the quantitative test in Regulation EE. 11 U.S.C.
101(22A). Under the Bankruptcy Code, financial participants that
enter into certain types of financial contracts and master netting
agreements for those financial contracts are exempt from provisions
of the Bankruptcy Code that might otherwise delay or prevent netting
related to those contracts. See, e.g., 11 U.S.C. 362(b)(6), (7),
(17), and (27) (specifying that the Bankruptcy Code's automatic stay
does not prevent a financial participant from exercising a
contractual right to, inter alia, ``offset or net out any
termination value, payment amount, or other transfer obligation
arising under or in connection with'' certain types of financial
contracts and master netting agreements for those financial
contracts).
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The Board proposed to clarify how the quantitative component of the
activities-based test would apply following a consolidation of legal
entities. Specifically, the Board proposed that, upon the consolidation
of two or more entities, the surviving entity may aggregate the total
gross dollar value of notional principal amounts outstanding or the
total gross mark-to-market positions of both
[[Page 11621]]
entities on each calendar day during the previous 15-month period, and
such total amounts would be used to determine whether the surviving
entity meets the quantitative thresholds of the activities-based test.
The Board did not receive any responsive comments on this clarification
and is adopting the clarification as proposed.
The Board also proposed to add language to clarify, consistent with
its current understanding, that the ``previous 15-month period''
described in the activities-based test includes the day on which a
person evaluates whether it meets the relevant thresholds in the
quantitative component of the activities-based test. Specifically, the
Board proposed to add the words ``at such time'' to proposed Sec. Sec.
231.3(a)(1) and (a)(2) to clarify that a person can qualify as a
financial institution under the activities-based test if (1) the
person's positions exceeded one of the quantitative threshold on any
prior day within the previous 15-month period or (2) the person's
positions exceed one of the quantitative thresholds on the day the
person evaluates its status as a financial institution. One commenter
requested that the Board confirm that the proposed clarification is not
intended to modify the settled understanding that the ``previous 15-
month period'' includes the day on which a party evaluates its status
as a financial institution. The Board is adopting the proposed
clarification, and confirms that a person can qualify as a financial
institution under the activities-based test if the person's positions
exceed one of the quantitative thresholds on the day the person
evaluates its status as a financial institution.
A commenter also requested clarification that satisfying the
qualitative component of the activities-based test (which requires that
a person ``represent[ ], orally or in writing, that it will engage in
financial contracts as a counterparty on both sides of one or more
financial markets'') \20\ does not affect a person's regulatory status
for any other purpose. The Board confirms that satisfying the
qualitative component of the activities-based test does not affect a
person's regulatory status for any other purpose.
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\20\ 12 CFR 231.3(a). Regulation EE generally defines the term
``financial contract'' by reference to the term ``qualified
financial contract'' under section 11(e)(8)(D) of the Federal
Deposit Insurance Act, 12 U.S.C. 1821(e)(8)(D). 12 CFR 231.2(c).
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IV. Regulatory Analysis
A. Paperwork Reduction Act
In accordance with the Paperwork Reduction Act (PRA) of 1995 (44
U.S.C. 3506; 5 CFR part 1320, Appendix A.1), the Board may not conduct
or sponsor, and a respondent is not required to respond to, an
information collection unless it displays a valid Office of Management
and Budget (OMB) control number. The Board reviewed the final rule
under the authority delegated to the Board by the OMB and determined
that it contains no collections of information under the PRA.\21\
Accordingly, there is no paperwork burden associated with the rule.
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\21\ See 44 U.S.C. 3502(3).
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B. Regulatory Flexibility Act
In accordance with section 4 of the Regulatory Flexibility Act
(RFA), 5 U.S.C. 601 et seq., the Board is publishing a final regulatory
flexibility analysis for the final rule. The RFA generally requires an
agency to assess the impact a rule is expected to have on small
entities. The RFA requires an agency either to provide a regulatory
flexibility analysis or to certify that the final rule will not have a
significant economic impact on a substantial number of small entities.
The Small Business Administration (SBA) has adopted small entity size
standards which generally provide that financial entities are ``small
entities'' only if they have (1) at most, $41.5 million or less in
annual receipts or (2) for depository institutions and credit card
issuers, $600 million or less in assets.\22\
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\22\ 13 CFR 121.201, sector 52 (SBA small entity size standards
for finance and insurance entities).
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The Board did not receive any comments on its initial regulatory
flexibility analysis. The Board certifies that the final rule will not
have a significant economic impact on a substantial number of small
entities. The final rule extends the ``financial institution''
definition to swap dealers, security-based swap dealers, MSPs, MSBSPs,
DCOs, clearing agencies, QCCPs, bridge institutions, Federal Reserve
Banks, foreign central banks, and the BIS.\23\
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\23\ As explained above, the final rule also codifies the
Board's existing view that foreign banks are financial institutions.
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The Board has previously determined that designated financial
market utilities are not small entities; \24\ the CFTC has previously
determined that swap dealers, MSPs, and DCOs are not small entities;
\25\ and the SEC has previously determined that security-based swap
dealers, MSBSPs, and clearing agencies are not small entities.\26\ The
Federal Reserve Banks are not small entities.\27\ Similarly, the Board
does not believe that foreign central banks or the BIS would be small
entities. All domestic QCCPs are registered as DCOs and/or clearing
agencies and, accordingly, are not small entities. Certain foreign-
based QCCPs are not registered as DCOs or clearing agencies, but these
foreign-based QCCPs function similarly to DCOs and clearing agencies
and--like DCOs and clearing agencies--are unlikely to be small
entities.
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\24\ 79 FR 65543, 65556 (Nov. 5, 2014).
\25\ See, e.g., 81 FR 80563, 80565 (Nov. 16, 2016); 76 FR 69334,
69428 (Nov. 8, 2011).
\26\ See, e.g., 81 FR 29959, 30142 (May 3, 2016); 81 FR 70744,
70784 (Oct. 13, 2016).
\27\ None of the industry codes in the SBA's small entity size
standards necessarily apply to the Federal Reserve Banks per se, but
the SBA's size standards for commercial depository institutions are
instructive. Generally, the SBA's size standards provide that
depository institutions are small entities if they have $600 million
or less in assets. 13 CFR 121.201, sector 52. Each of the Federal
Reserve Banks holds significantly more than $600 million in assets.
See the Statement of Condition of Each Federal Reserve Bank, https://www.federalreserve.gov/releases/h41/current/h41.htm#h41tab10a.
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Similarly, a bridge financial company would not be a small
entity.\28\ Under U.S. law, the Federal Deposit Insurance Corporation
(FDIC) can establish a bridge financial company when it acts as
receiver for a failing financial company. In order for the FDIC to be
appointed as receiver for a financial company, the Secretary of the
Treasury must determine that, inter alia, ``the failure of the
financial company and its resolution under otherwise applicable Federal
or State law would have serious adverse effects on financial stability
in the United States.'' \29\ The failure of a financial company that is
a ``small entity'' would not affect financial stability in the United
States.\30\ Accordingly, the FDIC would not act as receiver--and would
not form a bridge financial company--for a small entity. It is
therefore unlikely that a bridge financial company would be a small
entity. Similarly, it is unlikely that a foreign bridge institution
established to facilitate the resolution of a foreign
[[Page 11622]]
nonbank financial institution would be a small entity.
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\28\ A bridge depository institution might be a small entity,
but this final rule would not affect the status of bridge depository
institutions under FDICIA because (as noted above) such institutions
qualify as ``financial institutions'' under FDICIA's statutory
definition.
\29\ 12 U.S.C. 5383(b)(2).
\30\ See 13 CFR 121.201, sector 52 (Small Business
Administration small entity size standards for finance and insurance
entities), which generally provides that financial entities are
``small entities'' only if they have (1) at most, $41.5 million or
less in annual receipts or (2) for depository institutions and
credit card issuers, $600 million or less in assets.
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Foreign banks (including bridge banks) are already covered by
FDICIA's statutory definition of financial institution. Accordingly,
while this final rule clarifies that foreign banks are financial
institutions, it will not have any economic impact on foreign banks.
List of Subjects in 12 CFR Part 231
Banks, Banking, Financial institutions, Netting.
For the reasons set forth in the preamble, the Board amends
Regulation EE, 12 CFR part 231, as follows:
PART 231--NETTING ELIGIBILITY FOR FINANCIAL INSTITUTIONS
(REGULATION EE)
0
1. The authority citation for part 231 continues to read as follows:
Authority: 12 U.S.C. 4402(1)(B) and 4402(9).
0
2. In Sec. 231.2, redesignate paragraphs (c) through (f) as paragraphs
(d) through (g), and add new paragraph (c) to read as follows:
Sec. 231.2 Definitions.
* * * * *
(c) Bridge institution means a legal entity that has been
established by a governmental authority to take over, transfer, or
continue operating critical functions and viable operations of an
entity in resolution. A bridge institution could include a bridge
depository institution or a bridge financial company organized by the
Federal Deposit Insurance Corporation in accordance with 12 U.S.C.
1821(n) or 5390(h), respectively, or a similar entity organized under
foreign law.
0
3. Amend Sec. 231.3 by:
0
a. Revising paragraph (a);
0
b. Redesignating paragraphs (b) and (c) as paragraphs (c) and (d);
0
c. Adding new paragraphs (b) and (e).
The revision and additions read as follows:
Sec. 231.3 Qualification as a financial institution.
(a) A person qualifies as a financial institution for purposes of
sections 401-407 of the Act if it represents, orally or in writing,
that it will engage in financial contracts as a counterparty on both
sides of one or more financial markets and either--
(1) Had one or more financial contracts of a total gross dollar
value of at least $1 billion in notional principal amount outstanding
at such time or on any day during the previous 15-month period with
counterparties that are not its affiliates; or
(2) Had total gross mark-to-market positions of at least $100
million (aggregated across counterparties) in one or more financial
contracts at such time or on any day during the previous 15-month
period with counterparties that are not its affiliates.
(b) After two or more persons consolidate, such as through a merger
or acquisition, the surviving person meets the quantitative thresholds
under paragraphs (a)(1) and (a)(2) if, on the same, single calendar day
during the previous 15-month period, the aggregate financial contracts
of the consolidated persons would have met such quantitative
thresholds.
* * * * *
(e) A person qualifies as a financial institution for purposes of
sections 401-407 of the Act if it is--
(1) A swap dealer or major swap participant registered with the
Commodity Futures Trading Commission pursuant to section 4s of the
Commodity Exchange Act (7 U.S.C. 6s);
(2) A security-based swap dealer or major security-based swap
participant registered with the U.S. Securities and Exchange Commission
pursuant to section 15F of the Securities Exchange Act of 1934 (15
U.S.C. 78o-10);
(3) A derivatives clearing organization registered with the
Commodity Futures Trading Commission pursuant to section 5b(a) of the
Commodity Exchange Act (7 U.S.C. 7a-1(a)) or a derivatives clearing
organization that the Commodity Futures Trading Commission has exempted
from registration by rule or order pursuant to section 5b(h) of the
Commodity Exchange Act (7 U.S.C. 7a-1(h));
(4) A clearing agency registered with the U.S. Securities and
Exchange Commission pursuant to section 17A(b) of the Securities
Exchange Act of 1934 (15 U.S.C. 78q-1(b)) or a clearing agency that the
U.S. Securities and Exchange Commission has exempted from registration
by rule or order pursuant to section 17A(k) of the Securities Exchange
Act of 1934 (15 U.S.C. 78q-1(k));
(5) A financial market utility that the Financial Stability
Oversight Council has designated as, or as likely to become,
systemically important pursuant to 12 U.S.C. 5463;
(6) A qualifying central counterparty under 12 CFR 217.2;
(7) A nonbank financial company that the Financial Stability
Oversight Council has determined shall be supervised by the Board and
subject to prudential standards, pursuant to 12 U.S.C. 5323;
(8) A foreign bank as defined in section 1(b) of the International
Banking Act of 1978 (12 U.S.C. 3101), including a foreign bridge bank;
(9) A bridge institution established for the purpose of resolving a
financial institution;
(10) A Federal Reserve Bank or a foreign central bank; or
(11) The Bank for International Settlements.
By order of the Board of Governors of the Federal Reserve
System, February 17, 2021.
Ann Misback,
Secretary of the Board.
[FR Doc. 2021-03596 Filed 2-25-21; 8:45 am]
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