SIFMA Statement on Rules Finalized by Federal Reserve

Washington, D.C., October 10, 2019 – SIFMA released the following statement from Kenneth E. Bentsen, Jr., SIFMA president and CEO, regarding rules finalized by the Federal Reserve today:

“SIFMA appreciates the Federal Reserve’s continued willingness to examine and refine the prudential regulatory framework with the goal of making it more efficient, effective and reflective of today’s market realities. We are encouraged by the actions taken today to reduce burdens on domestic banking organizations who pose reduced risk to the financial system, but remain concerned that the tailoring rule does not address many of the punitive requirements that impact non-systemically important foreign banks operating in the U.S.

“SIFMA believes additional enhancements must be made to recognize FBOs as active and critical members of the U.S. capital markets, as they are key participants in facilitating efficient capital markets.  FBOs comprise 65% of primary dealers, helping the Federal Reserve and financial services firms access the U.S. Treasury Market. FBOs annually provide over $800 billion dollars of credit to the U.S. economy via debt capital markets activities. Additionally, revisions to the resolution planning process rationalizes past guidance with current best practices, which will enhance transparency, streamline the content of submissions and allow more proactive engagement with non-U.S. regulators. We look forward to closely reviewing the details of the rules finalized today.”

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Note to editors:

For further information on foreign banking organizations, please see SIFMA Insights:  The Importance of FBOs to U.S. Capital Markets

SIFMA is the leading trade association for broker-dealers, investment banks and asset managers operating in the U.S. and global capital markets. On behalf of our industry’s nearly 1 million employees, we advocate for legislation, regulation and business policy, affecting retail and institutional investors, equity and fixed income markets and related products and services. We serve as an industry coordinating body to promote fair and orderly markets, informed regulatory compliance, and efficient market operations and resiliency. We also provide a forum for industry policy and professional development. SIFMA, with offices in New York and Washington, D.C., is the U.S. regional member of the Global Financial Markets Association (GFMA). For more information, visit http://www.sifma.org.