Federal Agencies Issue Final Rules Implementing the “Volcker Rule”
| Date Published | 12/12/2013 |
| Author | Marja Hoek-Smit |
| Theme | Housing Finance Policy |
| Country | United States |
Federal Agencies Issue
Final Rules Implementing the “Volcker Rule”
2013-12-11
The Federal Reserve Board, the
Office of the Comptroller of the Currency, the Federal Deposit Insurance
Corporation, the Securities and Exchange Commission, and the Commodity Futures
Trading Commission issued final rules on December 10, 2013, implementing section
619 of the Dodd-Frank Wall Street Reform and Consumer Protection Act, referred
to as the “Volcker Rule”.
The “Volcker Rule”, prohibits
insured depository institutions and any company affiliated with an insured
depository institution from engaging in short-term proprietary trading of
certain securities, derivatives, and other financial instruments for the firm's
own account, subject to certain exemptions, including market making and
risk-mitigating hedging. It also imposes limits on banking entities'
investments in, and other relationships with, hedge funds and private equity
funds. The final rules also clarify that certain activities are not prohibited,
including acting as agent, broker, or custodian.
Section 619 requires banking
entities to conform by July 21, 2014, unless extended by the Board. To ensure
effective compliance, the Federal Reserve Board is extending the conformance
period by one year, i.e., July 21, 2015.
The compliance requirements under
the final rules vary based on the size of the banking entity and the scope of
activities conducted.
Link to Regulation topic page and US country profile
Link to:
"Volcker Rule - Order Approving Extension of Conformance Period" Report
"The Final Rules for Section 619 of the Dodd-Frank Wall Street Reform and Consumer Protection Act" Report