The House Financial Services Subcommittee on Financial Institutions and Consumer Credit ("Subcommittee") held a hearing that examined how and why bank holding companies are designated as "systemically important financial institutions" ("SIFIs") under Dodd-Frank. The hearing is the first in a series of three hearings that evaluate how Dodd-Frank has impacted the financial regulatory landscape in the five years since it has been enacted. Several significant criticisms were raised by witnesses. These include: Dodd-Frank requires the Federal Reserve Board to apply enhanced prudential standards to

Governor Lael Brainard of the Board of Governors of the Federal Reserve System ("FRB") delivered remarks at the Bipartisan Policy Center and Managed Funds Association's event. Her remarks focused on the structural changes that resulted from the Dodd-Frank Act over the past five years. Governor Brainard stressed that the largest structural change has been the execution of tougher requirements imposed on banking organizations "that are so big or complex that their risk taking and distress could pose risks to financial stability." Unlike the previously homogeneous approach which focused narrowly

The Committee on Payments and Market Infrastructures ("CPMI") and IOSCO announced that they began the first Level 3 Assessment of the implementation of the principles for financial market infrastructures ("PFMI"). The Level 3 Assessment will examine consistency in the outcomes of PFMI implementation and is part of the CPMI-IOSCO's monitoring of full, timely and consistent implementation of the PFMI. The Assessment will also focus on a subset of requirements under the PFMI that relate to financial risk management by central counterparties, including certain practices related to governance

FINRA's proposal to expand the scope of its alternative trading system ("ATS") transparency initiative was published in the Federal Register. The proposal would amend FINRA Rules 6110 and 6610 to include publishing the remaining equity volume that is executed over the counter by FINRA members, including in non-ATS electronic trading systems and internalized trades. Comments on the proposal must be submitted by July 30, 2015. See: 80 FR 39463. Related News: FINRA Proposes Rule Changes to Expand ATS Transparency Initiative (June 25th, 2015).

The CFTC announced that it is seeking public comment on a petition submitted by OTC Clearing Hong Kong Limited, a Chinese entity, for exemption from registration as a derivatives clearing organization. Comments must be submitted no later than July 23, 2015. Se e: CFTC Press Release.Click here to submit comments to the CFTC.