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financial market utility to be or become a bank or bank holding company. (c) EARNINGS ON FEDERAL RESERVE BALANCES.—A Federal Reserve Bank may pay earnings on balances maintained by or on behalf of a designated financial market utility in the same manner and to the same extent as the Federal Reserve Bank may pay earnings to a depository institution under the Federal Reserve Act, subject to any applicable rules, orders, standards, or guidelines prescribed by the Board of Governors. (d) RESERVE REQUIREMENTS.—The Board of Governors may exempt a designated financial market utility from, or modify any, reserve requirements under section 19 of the Federal Reserve Act (12 U.S.C. 461) applicable to a designated financial market utility. (e) CHANGES TO RULES, PROCEDURES, OR OPERATIONS.— (1) ADVANCE NOTICE.— (A) ADVANCE NOTICE OF PROPOSED CHANGES REQUIRED.—A designated financial market utility shall pro- vide notice 60 days in advance notice to its Supervisory Agency of any proposed change to its rules, procedures, or operations that could, as defined in rules of each Super- visory Agency, materially affect, the nature or level of risks presented by the designated financial market utility. (B) TERMS AND STANDARDS PRESCRIBED BY THE SUPER- VISORY AGENCIES.—Each Supervisory Agency, in consulta- tion with the Board of Governors, shall prescribe regula- tions that define and describe the standards for deter- mining when notice is required to be provided under subparagraph (A). (C) CONTENTS OF NOTICE.—The notice of a proposed change shall describe— (i) the nature of the change and expected effects on risks to the designated financial market utility, its participants, or the market; and (ii) how the designated financial market utility plans to manage any identified risks. (D) ADDITIONAL INFORMATION.—The Supervisory Agency may require a designated financial market utility to provide any information necessary to assess the effect the proposed change would have on the nature or level of risks associated with the designated financial market utility’s payment, clearing, or settlement activities and the sufficiency of any proposed risk management techniques. Deadline. (E) NOTICE OF OBJECTION.—The Supervisory Agency shall notify the designated financial market utility of any objection regarding the proposed change within 60 days from the later of— (i) the date that the notice of the proposed change is received; or (ii) the date any further information requested for consideration of the notice is received. (F) CHANGE NOT ALLOWED IF OBJECTION.—A designated financial market utility shall not implement a change to which the Supervisory Agency has an objection. (G) CHANGE ALLOWED IF NO OBJECTION WITHIN 60 LAWS DAYS.—A designated financial market utility may imple- ment a change if it has not received an objection to the proposed change within 60 days of the later of—PUBLIC with on anorris VerDate Nov 24 2008 00:49 Aug 26, 2010 Jkt 089139 PO 00203 Frm 00438 Fmt 6580 Sfmt 6581 E:\PUBLAW\PUBL203.111 GPO1 PsN: PUBL203