---
kind: "section"
citation: "12 U.S.C. § 5464"
title: "12"
title_heading: "Banks and Banking"
number: "5464"
heading: "Standards for systemically important financial market utilities and payment, clearing, or settlement activities"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/12/5464"
units:
  - "Chapter 53 — Wall Street Reform and Consumer Protection"
  - "Subchapter IV — Payment, Clearing, and Settlement Supervision"
---

# §5464. Standards for systemically important financial market utilities and payment, clearing, or settlement activities

- (a) **Authority to prescribe standards—**
  - (1) **Board of Governors—** Except as provided in [paragraph (2)](#a-2), the [Board of Governors](/usc/12/5301.md?p=3), by rule or order, and in consultation with the [Council](/usc/12/5301.md?p=8) and the [Supervisory Agencies](/usc/12/5462.md?p=8-A), shall prescribe risk management standards, taking into consideration relevant international standards and existing prudential requirements, governing—
    - (A) the operations related to the payment, clearing, and settlement activities of [designated financial market utilities](/usc/12/5462.md?p=4); and
    - (B) the conduct of [designated activities](/usc/12/5462.md?p=2) by [financial institutions](/usc/12/5462.md?p=5-A).
  - (2) **Special procedures for designated clearing entities and designated activities of certain financial institutions—**
    - (A) **CFTC and Commission—** The Commodity Futures Trading [Commission](/usc/12/5301.md?p=5) and the [Commission](/usc/12/5301.md?p=5) may each prescribe regulations, in consultation with the [Council](/usc/12/5301.md?p=8) and the [Board of Governors](/usc/12/5301.md?p=3), containing risk management standards, taking into consideration relevant international standards and existing prudential requirements, for those [designated clearing entities](/usc/12/5462.md?p=3) and [financial institutions](/usc/12/5462.md?p=5-A) engaged in [designated activities](/usc/12/5462.md?p=2) for which each is the [Supervisory Agency](/usc/12/5462.md?p=8-A) or the [appropriate financial regulator](/usc/12/5462.md?p=1), governing—
      - (i) the operations related to payment, clearing, and settlement activities of such [designated clearing entities](/usc/12/5462.md?p=3); and
      - (ii) the conduct of [designated activities](/usc/12/5462.md?p=2) by such [financial institutions](/usc/12/5462.md?p=5-A).
    - (B) **Review and determination—** The [Board of Governors](/usc/12/5301.md?p=3) may determine that existing prudential requirements of the Commodity Futures Trading [Commission](/usc/12/5301.md?p=5), the [Commission](/usc/12/5301.md?p=5), or both ([including](/usc/12/5301.md?p=18-A) requirements prescribed pursuant to [subparagraph (A)](#a-2-A)) with respect to [designated clearing entities](/usc/12/5462.md?p=3) and [financial institutions](/usc/12/5462.md?p=5-A) engaged in [designated activities](/usc/12/5462.md?p=2) for which the [Commission](/usc/12/5301.md?p=5) or the Commodity Futures Trading [Commission](/usc/12/5301.md?p=5) is the [Supervisory Agency](/usc/12/5462.md?p=8-A) or the [appropriate financial regulator](/usc/12/5462.md?p=1) are insufficient to prevent or mitigate significant liquidity, [credit](/usc/12/5481.md?p=7), operational, or other risks to the financial markets or to the financial stability of the United States.
    - (C) **Written determination—** Any determination by the [Board of Governors](/usc/12/5301.md?p=3) under [subparagraph (B)](#a-2-B) shall be provided in writing to the Commodity Futures Trading [Commission](/usc/12/5301.md?p=5) or the [Commission](/usc/12/5301.md?p=5), as applicable, and the [Council](/usc/12/5301.md?p=8), and shall explain why existing prudential requirements, considered as a whole, are insufficient to ensure that the operations and activities of the [designated clearing entities](/usc/12/5462.md?p=3) or the activities of [financial institutions](/usc/12/5462.md?p=5-A) described in [subparagraph (B)](#a-2-B) will not pose significant liquidity, [credit](/usc/12/5481.md?p=7), operational, or other risks to the financial markets or to the financial stability of the United States. The [Board of Governors](/usc/12/5301.md?p=3)’ determination shall contain a detailed analysis supporting its findings and identify the specific prudential requirements that are insufficient.
    - (D) **CFTC and Commission response—** The Commodity Futures Trading [Commission](/usc/12/5301.md?p=5) or the [Commission](/usc/12/5301.md?p=5), as applicable, shall within 60 days either object to the [Board of Governors](/usc/12/5301.md?p=3)’ determination with a detailed analysis as to why existing prudential requirements are sufficient, or submit an explanation to the [Council](/usc/12/5301.md?p=8) and the [Board of Governors](/usc/12/5301.md?p=3) describing the actions to be taken in response to the [Board of Governors](/usc/12/5301.md?p=3)’ determination.
    - (E) **Authorization—** Upon an affirmative vote by not fewer than 2/3 of members then serving on the [Council](/usc/12/5301.md?p=8), the [Council](/usc/12/5301.md?p=8) shall either find that the response submitted under [subparagraph (D)](#a-2-D) is sufficient, or require the Commodity Futures Trading [Commission](/usc/12/5301.md?p=5), or the [Commission](/usc/12/5301.md?p=5), as applicable, to prescribe such risk management standards as the [Council](/usc/12/5301.md?p=8) determines is necessary to address the specific prudential requirements that are determined to be insufficient.”[^1]
- (b) **Objectives and principles—** The objectives and principles for the risk management standards prescribed under [subsection (a)](#a) shall be to—
  - (1) promote robust risk management;
  - (2) promote safety and soundness;
  - (3) reduce systemic risks; and
  - (4) support the stability of the broader financial system.
- (c) **Scope—** The standards prescribed under [subsection (a)](#a) may address areas such as—
  - (1) risk management policies and procedures;
  - (2) margin and collateral requirements;
  - (3) participant or counterparty default policies and procedures;
  - (4) the ability to complete timely clearing and settlement of [financial transactions](/usc/12/5462.md?p=7-B);
  - (5) capital and financial resource requirements for [designated financial market utilities](/usc/12/5462.md?p=4); and
  - (6) other areas that are necessary to achieve the objectives and principles in [subsection (b)](#b).
- (d) **Limitation on scope—** Except as provided in subsections (e) and (f) of [section 5466 of this title](/usc/12/5466.md), nothing in this subchapter shall be construed to permit the [Council](/usc/12/5301.md?p=8) or the [Board of Governors](/usc/12/5301.md?p=3) to take any action or exercise any authority granted to the Commodity Futures Trading [Commission](/usc/12/5301.md?p=5) under [section 2(h) of title 7](/usc/7/2.md?p=h) or the Securities and Exchange [Commission](/usc/12/5301.md?p=5) under [section 78c–3(a) of title 15](/usc/15/78c–3.md?p=a), [including](/usc/12/5301.md?p=18-A)—
  - (1) the approval of, disapproval of, or stay of the clearing requirement for any group, category, type, or class of [swaps](/usc/12/5301.md?p=6) that a [designated clearing entity](/usc/12/5462.md?p=3) may accept for clearing;
  - (2) the determination that any group, category, type, or class of [swaps](/usc/12/5301.md?p=6) shall be subject to the mandatory clearing requirement of [section 2(h)(1) of title 7](/usc/7/2.md?p=h-1) or [section 78c–3(a)(1) of title 15](/usc/15/78c–3.md?p=a-1);
  - (3) the determination that any [person](/usc/12/5481.md?p=19) is exempt from the mandatory clearing requirement of [section 2(h)(1) of title 7](/usc/7/2.md?p=h-1) or [section 78c–3(a)(1) of title 15](/usc/15/78c–3.md?p=a-1); or
  - (4) any authority granted to the Commodity Futures Trading [Commission](/usc/12/5301.md?p=5) or the Securities and Exchange [Commission](/usc/12/5301.md?p=5) with respect to transaction reporting or trade execution.
- (e) **Threshold level—** The standards prescribed under [subsection (a)](#a) governing the conduct of [designated activities](/usc/12/5462.md?p=2) by [financial institutions](/usc/12/5462.md?p=5-A) shall, where appropriate, establish a threshold as to the level or significance of engagement in the activity at which a [financial institution](/usc/12/5462.md?p=5-A) will become subject to the standards with respect to that activity.
- (f) **Compliance required—** [Designated financial market utilities](/usc/12/5462.md?p=4) and [financial institutions](/usc/12/5462.md?p=5-A) subject to the standards prescribed under [subsection (a)](#a) for a [designated activity](/usc/12/5462.md?p=2) shall conduct their operations in compliance with the applicable risk management standards.

## Footnotes

[^1]: So in original. The closing quotation marks probably should not appear.

## Source credit

(Pub. L. 111–203, title VIII, § 805, July 21, 2010, 124 Stat. 1809.)