FED Revises FR Y-9C; SEC Consults on Reporting for Securities Lending
The Board of Governors of the Federal Reserve System (FED) is adopting a proposal to revise and extend, for three years, the forms on financial statements for holding companies (FR Y-9 reports). As per the September 2021 proposal, the revisions relate to the standardized approach for counterparty credit risk (SA-CCR), brokered deposits, and contact information of Chief Executive Officers. The revisions become effective as of December 31, 2021. Additionally, the Securities and Exchange Commission (SEC) proposed a rule on reporting of securities lending information to a registered national securities association to increase the transparency and efficiency of the securities lending market; the comment period on SEC proposal ends on January 07, 2022.
The Federal Register notice on FR Y-9 reports notes that FED did not receive any comments to the proposal to revise FR Y-9 reports and is, therefore, implementing the revisions as proposed. With respect to revisions related to SA-CCR, FED proposed to revise the FR Y-9C forms and instructions by adding the new line item 31.b titled “Standardized Approach for Counterparty Credit Risk opt-in election.” FED proposed to add this new item to identify holding companies that have chosen to either early adopt or voluntarily elect SA-CCR. Due to the inherent complexity of adopting SA-CCR, this identification is important for the non-advanced approaches institutions that choose to voluntarily adopt SA-CCR. A non-advanced approaches holding company that adopts SA-CCR would enter “1” for “Yes” in line item 31.b. All other non-advanced approaches holding companies would leave this item blank. An advanced approaches holding company that elects to early adopt SA-CCR prior to the January 01, 2022 mandatory compliance date would enter “1” for “Yes” in line item 31.b. After January 01, 2022, an advanced approaches holding company would leave this item blank. This item would have no longer been applicable to advanced approaches holding companies starting with the March 31, 2022, report date. As mentioned above, the revisions will be implemented as proposed.
Related Links
Comment Due Date: January 07, 2022 (SEC Proposal)
Effective Date: December 31, 2021 (FR Y-9)
Keywords: Americas, US, Banking, Securities, Reporting, FR Y-9C, SA-CCR, Credit Risk, Standardized Approach, Brokered Deposits, Governance, Lending, Securities Lending, FED, SEC
Related Articles
EU Agencies Update LCR Rule and Macro-Prudential Policy Recommendation
The European Commission (EC) published the Delegated Regulation 2022/786 with regard to the liquidity coverage requirements for credit institutions under the Capital Requirements Regulation (CRR).
EBA Publishes Regulatory Standards to Identify Shadow Banking Entities
The European Banking Authority (EBA) published the final draft regulatory technical standards specifying the criteria to identify shadow banking entities for the purposes of reporting large exposures.
EIOPA Examines Physical Climate Risk Exposure, SII Non-Compliance
The European Insurance and Occupational Pensions Authority (EIOPA) published a report assessing insurers' exposure to physical climate change risks
NGFS Report Explores Quantification of Climate Risk Differentials
The Network for Greening the Financial System (NGFS) published two reports to aid central banks and regulators in their oversight of the financial sector and in their central bank operations
EC Publishes Results on Review of Web Accessibility Directive
The European Commission (EC) published the results of a public consultation, held in October 2021, on the review of the Web Accessibility Directive.
MAS Consults on Adjustment Spreads for Conversion of SOR Contracts
The Monetary Authority of Singapore (MAS) and the SC-STS are jointly consulting, until June 10, 2022, on setting adjustment spreads for the conversion of legacy SOR contracts to SORA reference rate.
OSFI Discusses Benchmark Rate Transition, Sets Out Work Priorities
The Office of the Superintendent of Financial Institutions (OSFI) published the strategic plan for 2022-2025 and the departmental plan for 2022-23.
EBA Proposes Standards to Support Secondary NPL Markets
The European Banking Authority (EBA) is consulting, until August 31, 2022, on the draft implementing technical standards specifying requirements for the information that sellers of non-performing loans (NPLs) shall provide to prospective buyers.
EU Confirms Agreement on Rules on Cybersecurity and Banking Resolution
The European Council and the Parliament reached an agreement on the revised Directive on security of network and information systems (NIS2 Directive).
EBA Issues Standards for Crowdfunding Service Providers Under ECSPR
The European Banking Authority (EBA) published the final draft regulatory technical standards specifying information that crowdfunding service providers shall provide to investors on the calculation of credit scores and prices of crowdfunding offers.
