§ 5461. Findings and purposes

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(a)Findings Congress finds the following:

(1)The proper functioning of the financial markets is dependent upon safe and efficient arrangements for the clearing and settlement of payment, securities, and other financial transactions.

(2)Financial market utilities that conduct or support multilateral payment, clearing, or settlement activities may reduce risks for their participants and the broader financial system, but such utilities may also concentrate and create new risks and thus must be well designed and operated in a safe and sound manner.

(3)Payment, clearing, and settlement activities conducted by financial institutions also present important risks to the participating financial institutions and to the financial system.

(4)Enhancements to the regulation and supervision of systemically important financial market utilities and the conduct of systemically important payment, clearing, and settlement activities by financial institutions are necessary—

(A)to provide consistency;

(B)to promote robust risk management and safety and soundness;

(C)to reduce systemic risks; and

(D)to support the stability of the broader financial system.

(b)Purpose The purpose of this subchapter is to mitigate systemic risk in the financial system and promote financial stability by—

(1)authorizing the Board of Governors to promote uniform standards for the—

(A)management of risks by systemically important financial market utilities; and

(B)conduct of systemically important payment, clearing, and settlement activities by financial institutions;

(2)providing the Board of Governors an enhanced role in the supervision of risk management standards for systemically important financial market utilities;

(3)strengthening the liquidity of systemically important financial market utilities; and

(4)providing the Board of Governors an enhanced role in the supervision of risk management standards for systemically important payment, clearing, and settlement activities by financial institutions.

(Pub. L. 111–203, title VIII, § 802, July 21, 2010, 124 Stat. 1802.)

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James M. Inhofe National Defense Authorization Act for Fiscal Year 2023

U.S. Code

§ 253
Open data publication by the Board of Governors

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U.S. Code

Definitions
§ 5301

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Pub. L. 111–203, title VIII, § 802
124 Stat. 1802
Pub. L. 111–203, title VIII, § 814
124 Stat. 1822

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§ 5461

Findings and purposes

Fed. Reg.×387

Bills×16

C.F.R.×4

Stat. Comp.×4

Stat.×3

Pub. L.×1

U.S.C.×1

U.S.C.§ 5301

Pub. L.Pub. L. 111–203, title VIII, § 802

Stat.124 Stat. 1802

Pub. L.Pub. L. 111–203, title VIII, § 814

Stat.124 Stat. 1822

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