The Fed Proposes Amendments to Reg HH

On Thursday, February 26, 2013, the Federal Reserve Board (the "Fed") introduced a proposed rule pursuant to Title VIII of the Dodd-Frank Wall Street Reform and Consumer Protection Act (the "Dodd-Frank Act").  The proposed rule would amend Regulation HH to set out the conditions and requirements for a Federal Reserve Bank to open and maintain accounts for and provide financial services to financial market utilities designated as systemically important by the Financial Stability Oversight Council.  In addition, the proposed rule, which implements provisions of Title VIII of the Dodd-Frank Act, would, among other things, authorize a Reserve Bank to pay interest on the balances maintained by a designated financial market utility in accordance with Title VIII.

Read the Fed press release