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As part of any larger reform, the Congress should consider granting the Federal Reserve explicit oversight authority for systemically important payment and settlement systems.
Because of this, Bernanke has argued that the Fed should be given a formal mandate to regulate systemically important payments and settlement systems.
Of course, like other central banks, the Federal Reserve continues to monitor systemically important payment and settlement systems and to compare their performance with international standards for reliability, efficiency, and safety.
But it wants to see settlement systems consolidated, favouring a merger between Clearstream and Euroclear.
The Fed is already, informally, beginning to supervise these "payment and settlement systems," but Mr. Bernanke suggested that Congress "should consider granting the Federal Reserve explicit oversight authority".
Europe's banks may have to deal with up to 31 different national and cross-border clearing and settlement systems when trading in European shares and bonds.
Similar(19)
A: America is a settlement system.
The Colombo Metropolitan Region dominates the settlement system of Sri Lanka.
"We will have to move into other currencies, create our own settlement system".
Half of the trading in government bonds, for example, moves through its settlement system.
The Deutsche Borse owns 50percentt of the Luxembourg-based Clearstream settlement system, which is not included in the merger.
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