The U.S. Federal Reserve said on Tuesday it has revised its policy which sets the risk management standards for the country’s largest clearing, payment and settlement firms.
The policy change brings the Fed’s standards in line with international rules for clearing agencies, such as rules on governance, credit risk and collateral.
The 2010 Dodd-Frank Wall Street reform law heightened the importance of clearing and settlement operations run by companies such as CME Group and Intercontinental Exchange.
The law requires over-the-counter derivatives to be centrally cleared, a process in which a clearinghouse stands in between two parties to guarantee trades.
via Reuters
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