Systemically Important Financial Market Utility

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Title VII of the Dodd-Frank act created the designation of Systemically Important Financial Market Utility (SIFMU). SIFMUs are vital components of the financial system that deal in transfer, clearing, or settlement of payments and securities.[1] The designation, given by the Financial Stability Oversight Council, imposes more regulatory scrutiny on the designated intuitions.

Background

The Dodd-Frank Act created the designation of Systemically Important Financial Market Utility to promote resilience and better risk management.[2] This designation enhances regulatory scrutiny on the organizations risk management systems.[3] The regulator for the designated SIFMU are instructed to create new risk management rules. The CFTC, SEC,and the Federal Reserve Bank each have either proposed, or finalized rules for these organizations.[4]

List of SIFMU organizations

References

  1. Financial Market Utilities: Is the System Safer?. Harvard University.
  2. Financial Stability Oversight Council Makes First Designations in Effort to Protect Against Future Financial Crises. Financial Security Oversight Committee.
  3. Financial Market Utilities: Is the System Safer?. Harvard University.
  4. Financial Market Utilities: Is the System Safer?. Harvard University.
  5. Financial Stability Oversight Council Makes First Designations in Effort to Protect Against Future Financial Crises. Financial Security Oversight Committee.