On 2/18/2021, the Federal Reserve Board announced a final rule that should reduce risk and increase efficiency in the financial system by applying netting protections to a broader range of financial institutions. This final rule amends Regulation EE - which is the regulation on financial institution netting - to apply netting provisions to certain new entities including swap dealers. The rule would also make minor clarifications to the existing activities-based test in Regulation EE to clarify how the activities-based test applies following a consolidation of legal entities.
The Fed’s release can be found here.
The final rule can be found here.