Financial Market Utilities
Financial market utilities (FMUs) are multilateral systems that provide the essential infrastructure for transferring, clearing, and settling payments, securities, and other financial transactions among financial institutions or between financial institutions and within those systems. FMUs and financial institutions participating in payment, clearance, and settlement activities comprise the nation's financial infrastructure. The smooth and reliable functioning of this financial infrastructure at all times is vitally important to the stability of the financial system and the health of the broader economy. The Federal Reserve supervises FMUs that have been designated as systemically important by the Financial Stability Oversight Council.
Regulation HH establishes standards and procedures related to the supervision of financial market utilities that are designated as systemically important by the Financial Stability Oversight Council.
The Federal Reserve Policy on Payment System Risk addresses the risks that payment, clearing, settlement, and recording activities present to the financial system and to the Federal Reserve Banks.