Press Release

July 19, 2012 Federal Reserve Board reaffirms long-standing policy of applying relevant international risk-management standards to Fedwire funds and Fedwire securities services For immediate release Share The Federal Reserve Board on Thursday reaffirmed its long-standing policy of applying relevant international risk-management standards to the Federal Reserve Banks' Fedwire funds and Fedwire securities services. These services play a critical role in the financial system and in facilitating the safe and efficient settlement of private-sector financial market utilities. The Board's announcement follows the Financial Stability Oversight Council's (FSOC) final designation of eight financial market utilities as systemically important for purposes of implementing the Dodd-Frank Wall Street Reform and Consumer Protection Act. Under the Federal Reserve Act, the Board has supervisory authority over the Reserve Banks, including the Reserve Banks' provision of payment and settlement services. The Board is committed to the strong and effective supervision of the Reserve Banks and recognizes that critical Reserve Bank payment and settlement services should be subject to rigorous and comprehensive supervision that is comparable to or exceeds the supervision of similar private-sector payment and settlement arrangements. The Board's examination framework for Fedwire is consistent with the framework that will be used by the Federal Reserve for financial market utilities designated as systemically important by the FSOC and supervised by the Board. In addition, the Board is ensuring that the Reserve Banks are held to procedural requirements with respect to Board review of proposed material changes to Fedwire rules, procedures, and operations that are the same as, or higher than, the requirements for designated financial market utilities. In the coming months, the Board will be seeking comment on revisions to its Payments System Risk (PSR) policy to take into account the new Principles for Financial Market Infrastructures that were issued in April by the Committee on Payment and Settlement Systems and the Technical Committee of the International Organization of Securities Commissions. The PSR policy, among other things, sets forth the Board's views and risk-management expectations for various payment and settlement systems, including those operated by the Reserve Banks. For media inquiries, call 202-452-2955.

Federal Reserve (2012, July 18). Press Release. Press Releases, Federal Reserve. https://whenthefedspeaks.com/doc/press_release_20120719_federal_reserve_board_announces_termination_of

@misc{wtfs_press_release_20120719_federal_reserve_board_announces_termination_of,
  author = {Federal Reserve},
  title = {Press Release},
  year = {2012},
  month = {Jul},
  howpublished = {Press Releases, Federal Reserve},
  url = {https://whenthefedspeaks.com/doc/press_release_20120719_federal_reserve_board_announces_termination_of},
  note = {Retrieved via When the Fed Speaks corpus}
}