Washington Report 360 | June 29, 2018

Key highlights

• The Fed issued its CCAR results, objecting to the capital plan of one of the 35 firms reviewed and issuing a conditional non-objection to the capital plans of three other firms.
• The BCBS published its progress report on GSIB implementation of the Principles for effective risk data aggregation and reporting, finding that only three of the thirty GSIBs have achieved full compliance.
• The California legislature passed, and the Governor signed, new data privacy legislation that allows consumers to prevent companies from selling their data.

Financial services legislative and regulatory news

The Fed issued results from its eighth Comprehensive Capital Analysis and Review (CCAR) for 35 firms. Three firms received conditional non-objections and one firm received an objection to its capital plan based on qualitative considerations.

The California legislature passed, and the Governor signed, new data privacy legislation that allows consumers to prevent companies from selling their data.

New York's Department of Financial Services issued a final regulation requiring credit reporting agencies that report on more than 1,000 New York consumers to register and to comply with the state's cybersecurity standard.

The SEC:

• Adopted amendments to public liquidity-related disclosure requirements.
• Approved a proposed rule and form amendments to modernize the regulatory framework for exchange traded funds.
• Proposed amendments to its whistleblower rules that would provide additional tools in awarding whistleblowers and clarify the requirements for anti-retaliation protection.

Financial services policy news

The BCBS published its latest progress report on GSIB implementation of the Principles for effective risk data aggregation and reporting, or BCBS 239, indicating that the banks continue to struggle to comply with the Principles, which had an implementation deadline of January 2016.

The FSB Plenary released a summary of market risks and vulnerabilities in the global financial system and an assessment of progress against its 2018 workplan.

The U.S. Supreme Court held that a credit card company did not violate federal antitrust law by prohibiting retailers and merchants from recommending or incentivizing customers to pay with competing credit card networks.

Fed Vice Chairman Randal K. Quarles discussed the U.S. role in promoting global financial stability through participation in the FSB and other international standards-setting bodies.

CFTC Commissioner Brian Quintenz discussed a “deference-based approach” to the cross-border regulation of global derivatives markets, separately highlighting algorithmic trading and position limits as areas where the U.S. is considering different approaches than the EU.