---
kind: "section"
citation: "12 U.S.C. § 5466"
title: "12"
title_heading: "Banks and Banking"
number: "5466"
heading: "Examination of and enforcement actions against designated financial market utilities"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/12/5466"
units:
  - "Chapter 53 — Wall Street Reform and Consumer Protection"
  - "Subchapter IV — Payment, Clearing, and Settlement Supervision"
---

# §5466. Examination of and enforcement actions against designated financial market utilities

- (a) **Examination—** Notwithstanding any other provision of law and subject to [subsection (d)](#d), the [Supervisory Agency](/usc/12/5462.md?p=8-A) shall conduct examinations of a [designated financial market utility](/usc/12/5462.md?p=4) at least once annually in order to determine the following:
  - (1) The nature of the operations of, and the risks borne by, the [designated financial market utility](/usc/12/5462.md?p=4).
  - (2) The financial and operational risks presented by the [designated financial market utility](/usc/12/5462.md?p=4) to [financial institutions](/usc/12/5462.md?p=5-A), critical markets, or the broader financial system.
  - (3) The resources and capabilities of the [designated financial market utility](/usc/12/5462.md?p=4) to monitor and [control](/usc/12/5301.md?p=18-A) such risks.
  - (4) The safety and soundness of the [designated financial market utility](/usc/12/5462.md?p=4).
  - (5) The [designated financial market utility](/usc/12/5462.md?p=4)’s compliance with—
    - (A) this subchapter; and
    - (B) the rules and orders prescribed under this subchapter.
- (b) **Service providers—** Whenever a service integral to the operation of a [designated financial market utility](/usc/12/5462.md?p=4) is performed for the [designated financial market utility](/usc/12/5462.md?p=4) by another entity, whether an [affiliate](/usc/12/5301.md?p=1) or non-[affiliate](/usc/12/5301.md?p=1) and whether on or off the premises of the [designated financial market utility](/usc/12/5462.md?p=4), the [Supervisory Agency](/usc/12/5462.md?p=8-A) may examine whether the provision of that service is in compliance with applicable law, rules, orders, and standards to the same extent as if the [designated financial market utility](/usc/12/5462.md?p=4) were performing the service on its own premises.
- (c) **Enforcement—** For purposes of enforcing the provisions of this subchapter, a [designated financial market utility](/usc/12/5462.md?p=4) shall be subject to, and the appropriate [Supervisory Agency](/usc/12/5462.md?p=8-A) shall have authority under the provisions of subsections (b) through (n) of [section 1818 of this title](/usc/12/1818.md) in the same manner and to the same extent as if the [designated financial market utility](/usc/12/5462.md?p=4) was an [insured depository institution](/usc/12/5301.md?p=18-A) and the [Supervisory Agency](/usc/12/5462.md?p=8-A) was the [appropriate Federal banking agency](/usc/12/5301.md?p=2) for such [insured depository institution](/usc/12/5301.md?p=18-A).
- (d) **Board of Governors involvement in examinations—**
  - (1) **Board of Governors consultation on examination planning—** The [Supervisory Agency](/usc/12/5462.md?p=8-A) shall consult annually with the [Board of Governors](/usc/12/5301.md?p=3) regarding the scope and methodology of any examination conducted under subsections [(a)](#a) and [(b)](#b). The [Supervisory Agency](/usc/12/5462.md?p=8-A) shall lead all examinations conducted under subsections [(a)](#a) and [(b)](#b)[^1]
  - (2) **Board of Governors participation in examination—** The [Board of Governors](/usc/12/5301.md?p=3) may, in its discretion, participate in any examination led by a [Supervisory Agency](/usc/12/5462.md?p=8-A) and conducted under subsections [(a)](#a) and [(b)](#b).
- (e) **Board of Governors enforcement recommendations—**
  - (1) **Recommendation—** The [Board of Governors](/usc/12/5301.md?p=3) may, after consulting with the [Council](/usc/12/5301.md?p=8) and the [Supervisory Agency](/usc/12/5462.md?p=8-A), at any time recommend to the [Supervisory Agency](/usc/12/5462.md?p=8-A) that such agency take enforcement action against a [designated financial market utility](/usc/12/5462.md?p=4) in order 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. Any such recommendation for enforcement action shall provide a detailed analysis supporting the recommendation of the [Board of Governors](/usc/12/5301.md?p=3).
  - (2) **Consideration—** The [Supervisory Agency](/usc/12/5462.md?p=8-A) shall consider the recommendation of the [Board of Governors](/usc/12/5301.md?p=3) and submit a response to the [Board of Governors](/usc/12/5301.md?p=3) within 60 days.
  - (3) **Binding arbitration—** If the [Supervisory Agency](/usc/12/5462.md?p=8-A) rejects, in whole or in part, the recommendation of the [Board of Governors](/usc/12/5301.md?p=3), the [Board of Governors](/usc/12/5301.md?p=3) may refer the recommendation to the [Council](/usc/12/5301.md?p=8) for a binding decision on whether an enforcement action is warranted.
  - (4) **Enforcement action—** Upon an affirmative vote by a majority of the [Council](/usc/12/5301.md?p=8) in favor of the [Board of Governors](/usc/12/5301.md?p=3)’ recommendation under [paragraph (3)](#e-3), the [Council](/usc/12/5301.md?p=8) may require the [Supervisory Agency](/usc/12/5462.md?p=8-A) to—
    - (A) exercise the enforcement authority referenced in [subsection (c)](#c); and
    - (B) take enforcement action against the [designated financial market utility](/usc/12/5462.md?p=4).
- (f) **Emergency enforcement actions by the Board of Governors—**
  - (1) **Imminent risk of substantial harm—** The [Board of Governors](/usc/12/5301.md?p=3) may, after consulting with the [Supervisory Agency](/usc/12/5462.md?p=8-A) and upon an affirmative vote by a majority the [Council](/usc/12/5301.md?p=8), take enforcement action against a [designated financial market utility](/usc/12/5462.md?p=4) if the [Board of Governors](/usc/12/5301.md?p=3) has reasonable cause to conclude that—
    - (A) either—
      - (i) an action engaged in, or contemplated by, a [designated financial market utility](/usc/12/5462.md?p=4) ([including](/usc/12/5301.md?p=18-A) any change proposed by the [designated financial market utility](/usc/12/5462.md?p=4) to its rules, procedures, or operations that would otherwise be subject to [section 5465(e) of this title](/usc/12/5465.md?p=e)) poses an imminent risk of substantial harm to [financial institutions](/usc/12/5462.md?p=5-A), critical markets, or the broader financial system of the United States; or
      - (ii) the condition of a [designated financial market utility](/usc/12/5462.md?p=4) poses an imminent risk of substantial harm to [financial institutions](/usc/12/5462.md?p=5-A), critical markets, or the broader financial system; and
    - (B) the imminent risk of substantial harm precludes the [Board of Governors](/usc/12/5301.md?p=3)’ use of the procedures in [subsection (e)](#e).
  - (2) **Enforcement authority—** For purposes of taking enforcement action under [paragraph (1)](#f-1), a [designated financial market utility](/usc/12/5462.md?p=4) shall be subject to, and the [Board of Governors](/usc/12/5301.md?p=3) shall have authority under[^2] the provisions of subsections (b) through (n) of [section 1818 of this title](/usc/12/1818.md) in the same manner and to the same extent as if the [designated financial market utility](/usc/12/5462.md?p=4) was an [insured depository institution](/usc/12/5301.md?p=18-A) and the [Board of Governors](/usc/12/5301.md?p=3) was the [appropriate Federal banking agency](/usc/12/5301.md?p=2) for such [insured depository institution](/usc/12/5301.md?p=18-A).

## Footnotes

[^1]: So in original. Probably should be followed by a period.
[^2]: So in original. Probably should be followed by a comma.

## Source credit

(Pub. L. 111–203, title VIII, § 807, July 21, 2010, 124 Stat. 1814.)