Federal Reserve Adopts Single-Counterparty Credit Limits

On June 14, 2018, the Board of Governors of the Federal Reserve System (“Federal Reserve”) finalized single-counterparty credit limits (“SCCLs”) for US and non-US banking organizations (“Final Rules”). At the same time it adopted the Final Rules, the Federal Reserve also proposed SCCL reporting requirements that are subject to a 60-day comment period. In this Legal Update, we summarize the changes that have been made to the Final Rules and the proposed reporting requirements.