Risk management requirements for certain systemically important financial market utilities (FMUs) are updated in a final rule issued by the Federal Reserve Friday.
The Fed said the rule affects FMUs that are supervised by the agency. FMUs, the Fed said, provide essential infrastructure to clear and settle payments and other financial transactions to allow financial markets and the broader economy to function effectively.
According to the agency, the final rule provides “clarity and specificity” to existing requirements for operational risk management under agency rules. The four key areas are, the Fed said: incident management and notification; business continuity management and planning; third-party risk management; and review and testing of operational risk management measures.
“For example, the updates explicitly require FMUs to establish an incident management framework and emphasize the need for FMUs to continue to advance their cyber resilience capabilities,” the Fed wrote in a release.
Compliance is required for all updates in the rule 180 days after publication in the Federal Register; however, compliance with some requirements must be achieved within 90 days of the rule’s publication date, the agency said.