For immediate release

The Federal Reserve Board today requested public comment on a proposal to integrate its policies on Privately Operated Large-Dollar Multilateral Netting Systems and Private Small-Dollar Clearing and Settlement Systems into a single, comprehensive policy statement on Privately Operated Multilateral Settlement Systems. Comment is requested by February 10, 1998. The proposed policy statement would apply to privately operated multilateral settlement systems or arrangements that settle U.S. dollar payments, including but not limited to systems for the settlement of checks, automated clearing house (ACH) transfers, credit, debit, and other card transactions, large-value interbank transfers, or foreign exchange contracts involving the U.S. dollar. The proposed policy statement also would require multilateral settlement systems to address credit, liquidity, operational, legal, and systemic risks if these risks are material in the particular system. The proposal is not intended to alter the Board's policy with respect to existing privately operated large-dollar multilateral netting systems, but rather to integrate it within a a more consistent policy framework. The Board is also proposing to repeal its exiting policies for certain "small-dollar" payments clearing and settlement arrangements. The Board's notice is attached. Summary and proposed notice (49 KB PDF)

1997 Banking and consumer regulatory policy