Supervision and Regulation Letters

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SR 17-7:

Regulatory Capital Treatment of Certain Centrally-cleared Derivative Contracts under the Board's Capital Rule

BOARD OF GOVERNORS
OF THE FEDERAL RESERVE SYSTEM
WASHINGTON, D.C. 20551

DIVISION OF
SUPERVISION AND REGULATION

SR 17-7
August 14, 2017

TO THE OFFICER IN CHARGE OF SUPERVISION AT EACH FEDERAL RESERVE BANK AND TO FINANCIAL INSTITUTIONS SUPERVISED BY THE FEDERAL RESERVE

SUBJECT:

Regulatory Capital Treatment of Certain Centrally-cleared Derivative Contracts under the Board's Capital Rule

Applicability: This guidance applies to state member banks, bank holding companies, and savings and loan holding companies (not substantially engaged in insurance underwriting or commercial activities) supervised by the Federal Reserve, including those with $10 billion or less in consolidated assets.

The Federal Reserve, together with the Office of the Comptroller of the Currency and the Federal Deposit Insurance Corporation (the agencies), is issuing the attached supervisory guidance in response to questions from regulated institutions about the agencies' regulatory capital rules. The attached document provides regulated institutions with guidance on the regulatory capital treatment of certain centrally-cleared derivative contracts in light of some changes to the rulebooks of certain central counterparties.1

Reserve Banks are asked to distribute this letter and the attached supervisory guidance to the state member banks, relevant bank holding companies, and relevant savings and loan holding companies in their districts and to appropriate supervision staff. Questions regarding the attached supervisory guidance may be directed to the following staff in the Board's Capital and Regulatory Policy Section:  Elizabeth MacDonald, Manager, at (202) 475-6316; or Sviatlana Phelan, Supervisory Financial Analyst, at (202) 912-4306. In addition, questions may be sent via the Board's public website.2

signed by
Maryann F. Hunter
Deputy Director
Division of
Supervision and Regulation

Attachments:

Regulatory Capital Treatment of Certain Centrally-cleared Derivative Contracts under the Regulatory Capital Rules

Notes:
  1. The guidance applies solely to the regulatory capital rules of the Office of the Comptroller of the Currency (OCC), the Federal Reserve Board (Board), and the Federal Deposit Insurance Corporation (FDIC), which are codified at 12 CFR part 3 (OCC), 12 CFR part 217 (Board), and 12 CFR part 324 (FDIC), and does not have any bearing on any other Board, OCC and FDIC regulations. Return to text
  2. See http://www.federalreserve.gov/apps/contactus/feedback.aspx. Return to text
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Last Update: August 14, 2017