|Theme||Housing Finance Policy|
Federal Agencies Issue Final Rules Implementing the “Volcker Rule”
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
"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