Skip to Navigation
Skip to Main content
OIG Home
OIG Home


Skip SHARE THIS PAGE section Skip STAY CONNECTED section

Board Report: 2020-FMIC-B-005 March 18, 2020

The Board's Oversight of Its Designated Financial Market Utility Supervision Program Is Generally Effective, but Certain Program Aspects Can Be Improved

available formats

Financial market utilities—systems that transfer, clear, or settle payments and other transactions among financial institutions—may be designated by the Financial Stability Oversight Council as systematically important. A failure or disruption of a designated financial market utility could affect the smooth functioning of financial markets or financial stability. As such, the Dodd-Frank Act allows for enhanced federal supervision of DFMUs. We assessed the effectiveness of the Board's oversight of its DFMU supervision program.

The Board has implemented practices and processes for its DFMU supervision program governance, its collaboration with other supervisory agencies, and its reviews of material changes filed by DFMUs. However, it can make enhancements in these areas, such as by fully defining certain roles and responsibilities related to governance, focusing on and tracking key issues when collaborating with other authorities, and better preparing for emergency changes filed by DFMUs.

This report contains recommendations.