United States Government Publishing Office publisher pbl distributor dst United States National Archives and Records Administration Office of the Federal Register author aut Government Organization text government publication eng FR Regulatory Information 2017_register executive 2018-10-24 article Part II Rules and Regulations D09002ee1c7f0fde0 D09002ee1c7f0fee2 United States Federal Reserve System originator org United States Government Agency or Subagency The Board is adopting a final rule to promote U.S. financial stability by improving the resolvability and resilience of systemically important U.S. banking organizations and systemically important foreign banking organizations pursuant to section 165 of the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act). Under the final rule, any U.S. top-tier bank holding company identified by the Board as a global systemically important banking organization (GSIB), the subsidiaries of any U.S. GSIB (other than national banks, federal savings associations, state nonmember banks, and state savings associations), and the U.S. operations of any foreign GSIB (other than national banks, federal savings associations, state nonmember banks, and state savings associations) would be subjected to restrictions regarding the terms of their non-cleared qualified financial contracts (QFCs). First, a covered entity generally is required to ensure that QFCs to which it is party provide that any default rights and restrictions on the transfer of the QFCs are limited to the same extent as they would be under the Dodd-Frank Act and the Federal Deposit Insurance Act. Second, a covered entity generally is prohibited from being party to QFCs that would allow a QFC counterparty to exercise default rights against the covered entity, directly or indirectly, based on the entry into a resolution proceeding under the Dodd-Frank Act or Federal Deposit Insurance Act, or any other resolution proceeding, of an affiliate of the covered entity. The final rule also amends certain definitions in the Board's capital and liquidity rules; these amendments are intended to ensure that the regulatory capital and liquidity treatment of QFCs to which a covered entity is party is not affected by the final rule's restrictions on such QFCs. The Office of the Comptroller of the Currency (OCC) and the Federal Deposit Insurance Corporation (FDIC) are expected to issue final rules that would subject GSIB subsidiaries for which the OCC and FDIC are the appropriate Federal banking agency to requirements substantively identical to those in this final rule. 82 FR 42882 https://www.govinfo.gov/app/details/FR-2017-09-12/2017-19053 2017-19053 fr12se17-10 RIN 7100-AE52 P Regulations Q, WW, and YY Docket No. R-1538 https://www.govinfo.gov/app/details/FR-2017-09-12/2017-19053 https://www.govinfo.gov/content/pkg/FR-2017-09-12/html/2017-19053.htm https://www.govinfo.gov/content/pkg/FR-2017-09-12/pdf/2017-19053.pdf Administrative Practice and Procedure Banks Banking Federal Reserve System Holding Companies Reporting and Recordkeeping Requirements Securities 45 p. 42882 42926 82 FR 42882 Title 12 Part 217 12 CFR Part 217 Title 12 Part 249 12 CFR Part 249 Title 12 Part 252 12 CFR Part 252 RIN 7100-AE52 Restrictions on Qualified Financial Contracts of Systemically Important U.S. Banking Organizations and the U.S. Operations of Systemically Important Foreign Banking Organizations; Revisions to the Definition of Qualifying Master Netting Agreement and Related Definitions; Federal Register Vol. 82, Issue RULE 2017-19053 II FEDERAL RESERVE SYSTEM 2017-11-13 Regulations Q, WW, and YY Docket No. R-1538 P 2017-19053 Final rule.

The Board is adopting a final rule to promote U.S. financial stability by improving the resolvability and resilience of systemically important U.S. banking organizations and systemically important foreign banking organizations pursuant to section 165 of the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act). Under the final rule, any U.S. top-tier bank holding company identified by the Board as a global systemically important banking organization (GSIB), the subsidiaries of any U.S. GSIB (other than national banks, federal savings associations, state nonmember banks, and state savings associations), and the U.S. operations of any foreign GSIB (other than national banks, federal savings associations, state nonmember banks, and state savings associations) would be subjected to restrictions regarding the terms of their non-cleared qualified financial contracts (QFCs). First, a covered entity generally is required to ensure that QFCs to which it is party provide that any default rights and restrictions on the transfer of the QFCs are limited to the same extent as they would be under the Dodd-Frank Act and the Federal Deposit Insurance Act. Second, a covered entity generally is prohibited from being party to QFCs that would allow a QFC counterparty to exercise default rights against the covered entity, directly or indirectly, based on the entry into a resolution proceeding under the Dodd-Frank Act or Federal Deposit Insurance Act, or any other resolution proceeding, of an affiliate of the covered entity. The final rule also amends certain definitions in the Board's capital and liquidity rules; these amendments are intended to ensure that the regulatory capital and liquidity treatment of QFCs to which a covered entity is party is not affected by the final rule's restrictions on such QFCs. The Office of the Comptroller of the Currency (OCC) and the Federal Deposit Insurance Corporation (FDIC) are expected to issue final rules that would subject GSIB subsidiaries for which the OCC and FDIC are the appropriate Federal banking agency to requirements substantively identical to those in this final rule.

The final rule is effective on November 13, 2017. Anna Harrington, Senior Supervisory Financial Analyst (202) 452-6406, or Sean Campbell, Associate Director, (202) 452-3760, Division of Supervision and Regulation; or Will Giles, Senior Counsel, (202) 452-3351, or Lucy Chang, Senior Attorney, (202) 475-6331, Legal Division, Board of Governors of the Federal Reserve System, 20th and C Streets NW., Washington, DC 20551. For the hearing impaired only, Telecommunications Device for the Deaf (TDD) users may contact (202) 263-4869. Administrative Practice and Procedure Banks Banking Federal Reserve System Holding Companies Reporting and Recordkeeping Requirements Securities Restrictions on Qualified Financial Contracts of Systemically Important U.S. Banking Organizations and U.S. Operations of Systemically Important Foreign Banking Organizations: Revisions to Definition of Qualifying Master Netting Agreement and Related Definitions , oira_submission@omb.eop.gov http://assets.isda.org/media/ac6b533f-3/5a7c32f8-pdf/ http://www.bankofengland.co.uk/pra/Documents/publications/ps/2015/ps2515.pdf http://www.bankofengland.co.uk/pra/Documents/publications/ps/2015/ps2515app1.pdf http://www.bis.org/publ/bcbs207.htm http://www.bis.org/publ/bcbs255.htm http://www.federalreserve.gov/newsevents/press/bcreg/20140805a.htm http://www.federalreserve.gov/newsevents/press/bcreg/20150323a.htm http://www.federalreserve.gov/newsevents/press/bcreg/bcreg20130415c2.pdf http://www.fsa.go.jp/common/law/guide/city.pdf http://www.fsb.org http://www.fsb.org/wp-content/uploads/2016-list-of-global-systemically-important-banks-G-SIBs.pdf http://www.fsb.org/wp-content/uploads/Principles-for-Cross-border-Effectiveness-of-Resolution-Actions.pdf http://www.news.admin.ch/NSBSubscriber/message/attachments/42659.pdf http://www.newyorkfed.org/medialibrary/media/research/epr/2014/1412kirk.pdf https://www.fdic.gov/bank/analytical/quarterly/2011_vol5_2/lehman.pdf https://www.federalreserve.gov/newsevents/pressreleases/files/bcreg20160413a1.pdf https://www.federalreserve.gov/newsevents/pressreleases/files/bcreg20170324a21.pdf https://www.federalreserve.gov/reportforms/forms/FR_2052a20161231_f.pdf https://www.federalreserve.gov/supervisionreg/regulation-yy-foreign-banking-organization-requests.htm https://www.gesetze-im-internet.de/bundesrecht/sag/gesamt.pdf https://www.newyorkfed.org/medialibrary/media/research/epr/2014/1412flem.pdf Vol. 82, no. 175 Office of the Federal Register, National Archives and Records Administration 2017-09-12 continuing daily deposited born digital 210 p. Table of Contents: AE 2.7: GS 4.107: AE 2.106: KF70.A2 https://www.govinfo.gov/app/details/FR-2017-09-12 P0b002ee19d795e17 0097-6326 0042-1219 0364-1406 769-004-00000-9 000582072 f:fr12se17 https://www.govinfo.gov/app/details/FR-2017-09-12 https://www.govinfo.gov/content/pkg/FR-2017-09-12/pdf/FR-2017-09-12.pdf https://www.govinfo.gov/content/pkg/FR-2017-09-12/xml/FR-2017-09-12.xml fdlp 42727 42926 DGPO 2018-10-24 2024-06-01 FR-2017-09-12 machine generated eng FR FR-2017-09-12 82 175