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Can you summarize 12 USC Chapter 53, Subchapter IV?
WALL STREET REFORM AND CONSUMER PROTECTION > PAYMENT, CLEARING, AND SETTLEMENT SUPERVISION
Short Summary
This legal document, found in the United States Code under the section on payment, clearing, and settlement supervision, governs the clearing and settlement of payment, securities, and other financial transactions, as well as the conduct of systemically important payment, clearing, and settlement activities by financial institutions. It emphasizes the importance of safe and efficient arrangements for these activities, while acknowledging the risks they may pose. The document aims to enhance the regulation and supervision of systemically important financial market utilities and payment, clearing, and settlement activities by financial institutions. Its purpose is to mitigate systemic risk in the financial system, promote financial stability, and provide consistency, robust risk management, safety and soundness, and reduction of systemic risks. The document provides definitions for various terms related to payment, clearing, and settlement supervision. It also outlines the process for designating financial market utilities or payment, clearing, or settlement activities as systemically important, considering factors such as transaction value, exposure, relationships, and potential impact of failure. The document further specifies the authority of the Board of Governors to prescribe risk management standards, the operations of designated financial market utilities, examination and enforcement actions, and the consultation process between regulatory agencies. No specific exemptions or penalties are mentioned in these documents.
Whom does it apply to?
Financial institutions engaged in payment, clearing, or settlement activities, designated financial market utilities
What does it govern?
Clearing and settlement of payment, securities, and other financial transactions, conduct of systemically important payment, clearing, and settlement activities by financial institutions
What are exemptions?
No specific exemptions are mentioned.
What are the Penalties?
No specific penalties are mentioned.
Jurisdiction
U.S. Federal Government