---
kind: "section"
citation: "12 U.S.C. § 5463"
title: "12"
title_heading: "Banks and Banking"
number: "5463"
heading: "Designation of systemic importance"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/12/5463"
units:
  - "Chapter 53 — Wall Street Reform and Consumer Protection"
  - "Subchapter IV — Payment, Clearing, and Settlement Supervision"
---

# §5463. Designation of systemic importance

- (a) **Designation—**
  - (1) **Financial stability oversight council—** The [Council](/usc/12/5301.md?p=8), on a nondelegable basis and by a vote of not fewer than ⅔ of members then serving, [including](/usc/12/5301.md?p=18-A) an affirmative vote by the [Chairperson](/usc/12/5311.md?p=a-2) of the [Council](/usc/12/5301.md?p=8), shall designate those [financial market utilities](/usc/12/5462.md?p=6-A) or [payment, clearing, or settlement activities](/usc/12/5462.md?p=7-A) that the [Council](/usc/12/5301.md?p=8) determines are, or are likely to become, [systemically important](/usc/12/5462.md?p=9).
  - (2) **Considerations—** In determining whether a [financial market utility](/usc/12/5462.md?p=6-A) or [payment, clearing, or settlement activity](/usc/12/5462.md?p=7-A) is, or is likely to become, [systemically important](/usc/12/5462.md?p=9), the [Council](/usc/12/5301.md?p=8) shall take into consideration the following:
    - (A) The aggregate monetary value of transactions processed by the [financial market utility](/usc/12/5462.md?p=6-A) or carried out through the [payment, clearing, or settlement activity](/usc/12/5462.md?p=7-A).
    - (B) The aggregate exposure of the [financial market utility](/usc/12/5462.md?p=6-A) or a [financial institution](/usc/12/5462.md?p=5-A) engaged in [payment, clearing, or settlement activities](/usc/12/5462.md?p=7-A) to its counterparties.
    - (C) The relationship, interdependencies, or other interactions of the [financial market utility](/usc/12/5462.md?p=6-A) or [payment, clearing, or settlement activity](/usc/12/5462.md?p=7-A) with other [financial market utilities](/usc/12/5462.md?p=6-A) or [payment, clearing, or settlement activities](/usc/12/5462.md?p=7-A).
    - (D) The effect that the failure of or a disruption to the [financial market utility](/usc/12/5462.md?p=6-A) or [payment, clearing, or settlement activity](/usc/12/5462.md?p=7-A) would have on critical markets, [financial institutions](/usc/12/5462.md?p=5-A), or the broader financial system.
    - (E) Any other factors that the [Council](/usc/12/5301.md?p=8) deems appropriate.
- (b) **Rescission of designation—**
  - (1) **In general—** The [Council](/usc/12/5301.md?p=8), on a nondelegable basis and by a vote of not fewer than ⅔ of members then serving, [including](/usc/12/5301.md?p=18-A) an affirmative vote by the [Chairperson](/usc/12/5311.md?p=a-2) of the [Council](/usc/12/5301.md?p=8), shall rescind a designation of [systemic importance](/usc/12/5462.md?p=9) for a [designated financial market utility](/usc/12/5462.md?p=4) or [designated activity](/usc/12/5462.md?p=2) if the [Council](/usc/12/5301.md?p=8) determines that the utility or activity no longer meets the standards for [systemic importance](/usc/12/5462.md?p=9).
  - (2) **Effect of rescission—** Upon rescission, the [financial market utility](/usc/12/5462.md?p=6-A) or [financial institutions](/usc/12/5462.md?p=5-A) conducting the activity will no longer be subject to the provisions of this subchapter or any rules or orders prescribed under this subchapter.
- (c) **Consultation and notice and opportunity for hearing—**
  - (1) **Consultation—** Before making any determination under subsection [(a)](#a) or [(b)](#b), the [Council](/usc/12/5301.md?p=8) shall consult with the relevant [Supervisory Agency](/usc/12/5462.md?p=8-A) and the [Board of Governors](/usc/12/5301.md?p=3).
  - (2) **Advance notice and opportunity for hearing—**
    - (A) **In general—** Before making any determination under subsection [(a)](#a) or [(b)](#b), the [Council](/usc/12/5301.md?p=8) shall provide the [financial market utility](/usc/12/5462.md?p=6-A) or, in the case of a [payment, clearing, or settlement activity](/usc/12/5462.md?p=7-A), [financial institutions](/usc/12/5462.md?p=5-A) with advance notice of the proposed determination of the [Council](/usc/12/5301.md?p=8).
    - (B) **Notice in Federal Register—** The [Council](/usc/12/5301.md?p=8) shall provide such advance notice to [financial institutions](/usc/12/5462.md?p=5-A) by publishing a notice in the Federal Register.
    - (C) **Requests for hearing—** Within 30 days from the date of any notice of the proposed determination of the [Council](/usc/12/5301.md?p=8), the [financial market utility](/usc/12/5462.md?p=6-A) or, in the case of a [payment, clearing, or settlement activity](/usc/12/5462.md?p=7-A), a [financial institution](/usc/12/5462.md?p=5-A) engaged in the [designated activity](/usc/12/5462.md?p=2) may request, in writing, an opportunity for a written or oral hearing before the [Council](/usc/12/5301.md?p=8) to demonstrate that the proposed designation or rescission of designation is not supported by substantial evidence.
    - (D) **Written submissions—** Upon receipt of a timely request, the [Council](/usc/12/5301.md?p=8) shall fix a time, not more than 30 days after receipt of the request, unless extended at the request of the [financial market utility](/usc/12/5462.md?p=6-A) or [financial institution](/usc/12/5462.md?p=5-A), and place at which the [financial market utility](/usc/12/5462.md?p=6-A) or [financial institution](/usc/12/5462.md?p=5-A) may appear, personally or through counsel, to submit written materials, or, at the sole discretion of the [Council](/usc/12/5301.md?p=8), oral testimony or oral argument.
  - (3) **Emergency exception—**
    - (A) **Waiver or modification by vote of the Council—** The [Council](/usc/12/5301.md?p=8) may waive or modify the requirements of [paragraph (2)](#c-2) if the [Council](/usc/12/5301.md?p=8) determines, by an affirmative vote of not fewer than ⅔ of members then serving, [including](/usc/12/5301.md?p=18-A) an affirmative vote by the [Chairperson](/usc/12/5311.md?p=a-2) of the [Council](/usc/12/5301.md?p=8), that the waiver or modification is necessary to prevent or mitigate an immediate threat to the financial system posed by the [financial market utility](/usc/12/5462.md?p=6-A) or the [payment, clearing, or settlement activity](/usc/12/5462.md?p=7-A).
    - (B) **Notice of waiver or modification—** The [Council](/usc/12/5301.md?p=8) shall provide notice of the waiver or modification to the [financial market utility](/usc/12/5462.md?p=6-A) concerned or, in the case of a [payment, clearing, or settlement activity](/usc/12/5462.md?p=7-A), to [financial institutions](/usc/12/5462.md?p=5-A), as soon as practicable, which shall be no later than 24 hours after the waiver or modification in the case of a [financial market utility](/usc/12/5462.md?p=6-A) and 3 business days in the case of [financial institutions](/usc/12/5462.md?p=5-A). The [Council](/usc/12/5301.md?p=8) shall provide the notice to [financial institutions](/usc/12/5462.md?p=5-A) by posting a notice on the website of the [Council](/usc/12/5301.md?p=8) and by publishing a notice in the Federal Register.
- (d) **Notification of final determination—**
  - (1) **After hearing—** Within 60 days of any hearing under [subsection (c)(2)](#c-2), the [Council](/usc/12/5301.md?p=8) shall notify the [financial market utility](/usc/12/5462.md?p=6-A) or [financial institutions](/usc/12/5462.md?p=5-A) of the final determination of the [Council](/usc/12/5301.md?p=8) in writing, which shall include findings of fact upon which the determination of the [Council](/usc/12/5301.md?p=8) is based.
  - (2) **When no hearing requested—** If the [Council](/usc/12/5301.md?p=8) does not receive a timely request for a hearing under [subsection (c)(2)](#c-2), the [Council](/usc/12/5301.md?p=8) shall notify the [financial market utility](/usc/12/5462.md?p=6-A) or [financial institutions](/usc/12/5462.md?p=5-A) of the final determination of the [Council](/usc/12/5301.md?p=8) in writing not later than 30 days after the expiration of the date by which a [financial market utility](/usc/12/5462.md?p=6-A) or a [financial institution](/usc/12/5462.md?p=5-A) could have requested a hearing. All notices to [financial institutions](/usc/12/5462.md?p=5-A) under this subsection shall be published in the Federal Register.
- (e) **Extension of time periods—** The [Council](/usc/12/5301.md?p=8) may extend the time periods established in subsections [(c)](#c) and [(d)](#d) as the [Council](/usc/12/5301.md?p=8) determines to be necessary or appropriate.

## Source credit

(Pub. L. 111–203, title VIII, § 804, July 21, 2010, 124 Stat. 1807.)