September 17, 2002
To: All Member Banks and Others Concerned in the Third Federal Reserve District
Attention: Chief Executive Officer
Subject: DRAFT INTERAGENCY WHITE PAPER ON SOUND PRACTICES TO STRENGTHEN THE RESILIENCE OF THE U.S. FINANCIAL SYSTEM
The Board of Governors of the Federal Reserve System, the Office of the Comptroller of the Currency, the Securities and Exchange Commission, and the New York State Banking Department have published a "Draft White Paper on Sound Practices to Strengthen the Resilience of the U.S. Financial System" that reflects their preliminary conclusions regarding the factors necessary to strengthen the resilience of critical U.S. financial markets in the face of a wide-scale regional disaster. The conclusions are based on recent interviews with industry participants and market utilities about actions being taken to strengthen their ability to recover and resume critical business activities in the event of future wide-scale regional disruptions. The paper also discusses appropriate timetables for completing reviews and revisions of business continuity plans and implementation of the sound practices.
The sound practices apply most directly to "core clearing and settlement organizations" and "financial institutions that play significant roles in critical markets." Critical markets are defined as the markets for federal funds, foreign exchange, commercial paper, and government, corporate, and mortgage-backed securities.
The agencies request comment on the appropriate scope and application of the sound practices and related issues. After consideration of the comments received, the agencies intend to issue a final version of the White Paper.
Effective Date: Comments are requested by October 21, 2002.
Comment Requested: Comments should refer to Docket No. R-1128 and should be submitted to Ms. Jennifer J. Johnson, Secretary, Board of Governors of the Federal Reserve System, 20th Street and Constitution Avenue, NW, Washington, DC 20551, or mailed electronically to: email@example.com
Additional Information: A copy of the draft WhitePaper is attached (216 KB, 20 pages). For additional information, contact the Regulations Assistance Unit at this Reserve Bank at (215) 574-6568 or Jeffrey Marquardt, Associate Director, Division of Reserve Bank Operations and Payment Systems, at (202) 452-2360 or Angela Desmond, Assistant Director, Division of Banking Supervision and Regulation, at (202) 452-3497.