Dodd-Frank 30 Day Countdown: Day 21

Federal Reserve Board Aids in Implementing Title VII

The Federal Reserve Board is taking seriously its share of responsibility under the Dodd-Frank Act. Michael Gibson, the Senior Associate Director of the Division of Research and Statistics on the Federal Reserve Board spoke before members of Congress last week (June 15, 2011) to communicate the Board’s views on implementing Title VII.

Gibson began his speech by stating that the Board has gathered its most qualified members across the Federal Reserve System and has enacted a system to comment on the proposed rules sent down by the various commissions (SEC and CFTC). The Board has also been facilitating the efforts across the G20 countries so that a comprehensive global system for trading OTC derivatives will allow fair competition among markets. Members of the Board also help facilitate among those working on the Basel III legislation in the U.K.

Gibson discussed the infrastructure of the OTC derivatives market and how members of the Federal Reserve Board are working to develop and expand the use of central clearing methods and trade repositories in order to achieve regulatory oversight. Furthermore, he also announced that the Board’s proposed rule on capital and margin requirements is available for public comment.

Gibson reiterated that the Board’s focus and efforts remain the enactment of a comprehensive risk-management system to regulating OTC derivatives.

http://www.federalreserve.gov/newsevents/testimony/gibson20110615a.htm

-Stephanie Kane co-authored this post