FRB Issues Revision of Policy on Payment System Risk and Requests Comment (Fed. Reg.)

The Board of Governors of the Federal Reserve System ("FRB") proposed to revise Part I of its Federal Reserve Policy on Payment System Risk ("PSR Policy"). The proposed changes were published in the Federal Register with a request for comments due on March 31, 2014.

According to the release, the revisions to the PSR Policy are proposed in light of the Principles for Financial Market Infrastructures ("PFMI") published in 2012, as well as the enhanced supervisory framework for designated financial market utilities as set forth in Dodd-Frank Title VIII. The proposed changes to the PSR Policy include:

• revisions to the FRB's existing minimum risk-management standards to reflect the PFMI's relevant set of international standards;
• the addition of all central securities depositories, securities settlement systems and central counterparties to the scope of Part I of the PSR Policy;
• introducing trade repositories to the scope of the policy;
• clarifying the FRB's risk-management expectations for six mutually exclusive categories of financial market infrastructures; and
• replacing the existing self-assessment framework with a broader disclosure expectation.

See: 79 FR 2838.