View all text of Subchapter IV [§ 5461 - § 5472]
§ 5462. Definitions
In this subchapter, the following definitions shall apply:
(1) Appropriate financial regulator
The term “appropriate financial regulator” means—
(A) the primary financial regulatory agency, as defined in section 5301 of this title;
(B) the National Credit Union Administration, with respect to any insured credit union under the Federal Credit Union Act (12 U.S.C. 1751 et seq.); and
(C) the Board of Governors, with respect to organizations operating under section 25A of the Federal Reserve Act (12 U.S.C. 611), and any other financial institution engaged in a designated activity.
(2) Designated activity
(3) Designated clearing entity
(4) Designated financial market utility
(5) Financial institution
(A) In general
The term “financial institution” means—
(i) a depository institution, as defined in section 1813 of this title;
(ii) a branch or agency of a foreign bank, as defined in section 3101 of this title;
(iii) an organization operating under section 25 or 25A of the Federal Reserve Act (12 U.S.C. 601–604a and 611 through 631);
(iv) a credit union, as defined in section 101 of the Federal Credit Union Act (12 U.S.C. 1752); 1
1 See References in Text note below.
(v) a broker or dealer, as defined in section 3 of the Securities Exchange Act of 1934 (15 U.S.C. 78c);
(vi) an investment company, as defined in section 80a–3 of title 15;
(vii) an insurance company, as defined in section 80a–2 of title 15;
(viii) an investment adviser, as defined in section 80b–2 of title 15;
(ix) a futures commission merchant, commodity trading advisor, or commodity pool operator, as defined in section 1a of the Commodity Exchange Act (7 U.S.C. 1a); and
(x) any company engaged in activities that are financial in nature or incidental to a financial activity, as described in section 4 of the Bank Holding Company Act of 1956 (12 U.S.C. 1843(k)).
(B) Exclusions
(6) Financial market utility
(A) Inclusion
(B) Exclusions
The term “financial market utility” does not include—
(i) designated contract markets, registered futures associations, swap data repositories, and swap execution facilities registered under the Commodity Exchange Act (7 U.S.C. 1 et seq.), or national securities exchanges, national securities associations, alternative trading systems, security-based swap data repositories, and swap execution facilities registered under the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.), solely by reason of their providing facilities for comparison of data respecting the terms of settlement of securities or futures transactions effected on such exchange or by means of any electronic system operated or controlled by such entities, provided that the exclusions in this clause apply only with respect to the activities that require the entity to be so registered; and
(ii) any broker, dealer, transfer agent, or investment company, or any futures commission merchant, introducing broker, commodity trading advisor, or commodity pool operator, solely by reason of functions performed by such institution as part of brokerage, dealing, transfer agency, or investment company activities, or solely by reason of acting on behalf of a financial market utility or a participant therein in connection with the furnishing by the financial market utility of services to its participants or the use of services of the financial market utility by its participants, provided that services performed by such institution do not constitute critical risk management or processing functions of the financial market utility.
(7) Payment, clearing, or settlement activity
(A) In general
(B) Financial transaction
For the purposes of subparagraph (A), the term “financial transaction” includes—
(i) funds transfers;
(ii) securities contracts;
(iii) contracts of sale of a commodity for future delivery;
(iv) forward contracts;
(v) repurchase agreements;
(vi) swaps;
(vii) security-based swaps;
(viii) swap agreements;
(ix) security-based swap agreements;
(x) foreign exchange contracts;
(xi) financial derivatives contracts; and
(xii) any similar transaction that the Council determines to be a financial transaction for purposes of this subchapter.
(C) Included activities
When conducted with respect to a financial transaction, payment, clearing, and settlement activities may include—
(i) the calculation and communication of unsettled financial transactions between counterparties;
(ii) the netting of transactions;
(iii) provision and maintenance of trade, contract, or instrument information;
(iv) the management of risks and activities associated with continuing financial transactions;
(v) transmittal and storage of payment instructions;
(vi) the movement of funds;
(vii) the final settlement of financial transactions; and
(viii) other similar functions that the Council may determine.
(D) Exclusion
(8) Supervisory Agency
(A) In general
The term “Supervisory Agency” means the Federal agency that has primary jurisdiction over a designated financial market utility under Federal banking, securities, or commodity futures laws, as follows:
(i) The Securities and Exchange Commission, with respect to a designated financial market utility that is a clearing agency registered with the Securities and Exchange Commission.
(ii) The Commodity Futures Trading Commission, with respect to a designated financial market utility that is a derivatives clearing organization registered with the Commodity Futures Trading Commission.
(iii) The appropriate Federal banking agency, with respect to a designated financial market utility that is an institution described in section 1813(q) of this title.
(iv) The Board of Governors, with respect to a designated financial market utility that is otherwise not subject to the jurisdiction of any agency listed in clauses (i), (ii), and (iii).
(B) Multiple agency jurisdiction
(9) Systemically important and systemic importance
(Pub. L. 111–203, title VIII, § 803, July 21, 2010, 124 Stat. 1803.)