“In our role as the predominant settlement system for FX, CLS acknowledges its designation as systemically important to the US financial system,” Gerard Hartsink, CLS’s interim executive chairman, says in a statement. “We take this responsibility very seriously and understand how important it is for us to continue doing our job at the highest level of competency.” The FSOC was established under Title VIII of Dodd-Frank to designate an FMU as systemically important to the US financial system.
The FSOC, established under the Dodd-Frank Act, aims to create and reward a safer and more resilient financial system in the US.
An FMU is typically a payment system, securities depository, or central counterparty that provides the essential infrastructure to clear and settle payments and other financial transactions, upon which the financial markets and broader economy rely to function effectively.
The FSOC, which is made up of a group of top regulators, including US Treasury secretary Timothy Geithner and Federal Reserve chairman Ben Bernanke, issued its annual report on Wednesday.
Other FMUs considered to be systemically important were the Chicago Mercantile Exchange, Depository Trust Company, National Securities Clearing Corporation, Options Clearing Corporation, Clearing House Payments Company, Fixed Income Clearing Corporation and ICE Clear Credit LLC.