The Financial Stability Oversight Council is working to establish standards for determining which nonbank financial firms should be designated as systemically important. Regulators will start with firms that have more than $50 billion in assets. Then they will look at their leverage ratios, derivatives liabilities and other factors. Firms determined to be systemically important will be subjected to greater scrutiny by the Federal Reserve. "We appreciate the increased transparency in the process and the flexibility in the rule that recognizes the individual characteristics of market participants," said Scott Talbott, senior vice president of government affairs at The Financial Services Roundtable.