Treasury recommends that U.S. regulators that supervise systemically important financial market utilities (SIFMUs) bolster resources for their supervision and regulation, and that the CFTC be allocated greater resources for its review of CCPs. Treasury also recommends that the agencies study how they can streamline the existing advance notice review process to be more efficient and appropriately tailored to the risk that a particular change presented by a SIFMU may pose.
Treasury recommends that the Federal Reserve review: (1) what risks are posed to U.S. financial stability by the lack of Federal Reserve Bank deposit account access for financial market utilities (FMUs) with significant shares of U.S. clearing business and an appropriate way to address such risks; and (2) whether the rate of interest paid on SIFMUs’ deposits at the Federal Reserve Banks should be adjusted based on market-based evaluation of comparable private sector opportunities.
Treasury recommends that future central counterparty (CCP) stress testing exercises by the CFTC incorporate additional products, different stress scenarios, liquidity risk, and operational and cyber risks, which can also pose potential risks to U.S. financial stability.
Treasury recommends that U.S. regulators continue to take part in crisis management groups (CMGs) to share relevant data and consider the coordination challenges that domestic and foreign regulators and resolution authorities may encounter during cross-border resolution of CCPs.
Treasury recommends that U.S. regulators continue to advance American interests abroad when engaging with international standard setting bodies such as The Committee on Payments and Market Infrastructures of the International Organization of Securities Commissions (CPMIIOSCO) and Financial Stability Board’s (FSB’s) work streams.