(a) Authority. This part (Regulation EE; 12 CFR 231) is issued by the Board of
Governors of the Federal Reserve System under the authority of sections
402(1)(B) and 402(9) of the Federal Deposit Insurance Corporation
Improvement Act of 1991 (12 U.S.C. 4402(1)(B) and 4402(9)).
(b) Purpose and scope. The purpose
of the act and this part is to enhance efficiency and reduce systemic
risk in the financial markets. This part expands the act’s definition
of “financial institution” to allow more financial market participants
to avail themselves of the netting provisions set forth in sections
401-407 of the act (12 U.S.C. 4401-4407). This part does not affect
the status of those financial institutions specifically defined in
the act.
