October 2016 K ey US Financial Market Regulators PreDoddFrank Bank Regulators Board of Governors of the Federal Reserve System Fed Comptroller of the Currency OCC Federal Deposit Insurance Corporation FDIC ID: 815984
Download The PPT/PDF document "Overview of Financial Market Regulation:..." is the property of its rightful owner. Permission is granted to download and print the materials on this web site for personal, non-commercial use only, and to display it on your personal computer provided you do not modify the materials and that you retain all copyright notices contained in the materials. By downloading content from our website, you accept the terms of this agreement.
Slide1
Overview of Financial Market Regulation: The Impact of Dodd-Frank
October
2016
Slide2Key U.S. Financial Market Regulators Pre-Dodd-Frank
Bank Regulators
Board of Governors of the Federal Reserve System (Fed)
Comptroller of the Currency (OCC) Federal Deposit Insurance Corporation (FDIC)Office of Thrift Supervision (OTS)Securities RegulatorsSecurities and Exchange Commission (SEC)Commodity Futures Trading Commission (CFTC)Self Regulatory Organizations (SROs)Financial Industry Regulatory Authority (FINRA) National Futures Association (NFA)Municipal Securities Rulemaking Board (MSRB)Other RegulatorsPublic Company Accounting Oversight Board (PCAOB)Treasury DepartmentJustice Department (DOJ)
State Banking Regulators State Securities RegulatorsState Insurance RegulatorsState Consumer Protection AgenciesState Attorneys General
Federal Regulators
State Regulators
Slide3Dodd-Frank: Significant Changes to Regulatory Structure
Enacted in July 2010
Created several new entities
Financial Stability Oversight CouncilOffice of Financial ResearchConsumer Financial Protection BureauFederal Insurance OfficeMandated a number of joint agency rulemakingsMerged the Office of Thrift Supervision into the Office of the Comptroller of the CurrencyMandated certain restructuring within agencies (e.g., established the Office of Credit Ratings within SEC)
Slide4Review of Selected Changes in Banking and Derivatives Regulation
Banking Regulation
Orderly Liquidation Authority and living wills
Volcker RuleConsumer Financial Protection BureauDurbin Amendment – Interchange FeesDerivatives RegulationSwap Clearing and TransparencyRegistration of Swap DealersRegistration of Major Swap ParticipantsExtraterritorial Implications
Slide5Systemic Risk – Selected Issues
Role of Financial Stability Oversight
Council
Office of Financial ResearchWhat is a “SIFI”?A Systemically Important Financial Institution, or “SIFI”, is a bank or a firm primarily engaged in financial activities, such as an insurance company or investment bank, whose collapse or “material financial distress” could “pose a threat to the financial stability of the United States.” Who is a SIFI?Who decides and how?Should the large insurance company MetLife be designated as a SIFI?State regulation of insurance companiesMoney Market fundsSEC efforts at regulationFSOC role
Slide6Dodd-Frank after Six Years
Dodd-Frank mandated 390 agency rulemakings
As of July 19, 2016, the six year anniversary of Dodd-Frank
274 final rules adopted36 rules proposed but not adopted80 rules yet to be proposedSEC has adopted rules for over 75% of the mandatory Dodd-Frank rulemaking provisionsSEC rulemakings not yet completed includeSecurity-based swapsExecutive compensationAsset-backed securities conflicts of interestStress testsOLA (regulations under proposal)
Slide7Regulation of Securities Market Structure
Role of SEC: National Market
System
Role of Exchanges and other SROsClearing CorporationsTransfer AgentsATSs (Automated Trading Systems)Equity Market Structure Concept ReleaseFlash Crash High Frequency and Algorithmic TradingControls governing sponsored accessCo-location Supervisory controls and market impactShort Sale Regulation
Slide8