Supervisory Rating System for Financial Market Infrastructures

Title VIII of the Dodd-Frank Wall Street Reform and Consumer Protection Act (``Dodd-Frank Act'') granted the Board of Governors of the Federal Reserve System (``Board'') enhanced authority to supervise ``financial market utilities'' that are designated as systemically important by the Financial Stability Oversight Council (financial market utilities are defined to comprise a subset of the entities that, outside the United States, are generally called ``financial market infrastructures'' or ``FMIs''). In addition, the Board may have direct supervisory authority over other FMIs subject to its jurisdiction. The Board and, under delegated authority, the Federal Reserve Banks (collectively, the ``Federal Reserve'') propose to use the ORSOM (Organization; Risk Management; Settlement; Operational Risk and Information Technology (IT); and Market Support, Access, and Transparency) rating system in reviews of FMIs. The Board is seeking comment on this system for rating FMIs. The Federal Reserve anticipates implementing the ORSOM rating system in 2016.