The rule contains two primary components:
- A prohibition on proprietary trading, with allowances for activities such as market-making, underwriting and the hedging and trading of government securities;
- A prohibition on investing in or sponsoring hedge funds and private equity funds.
The Federal Reserve, the Federal Deposit Insurance Corporation, the Office of the Comptroller of the Currency and the U.S. Securities and Exchange Commission (collectively known as the Agencies) issued the proposed Volcker Rule regulations in a 298-page document in October of 2011. At the same time, the Agencies solicited comments from banks, investors and other interested parties about how the proposed rule might impact market-making liquidity, foreign institutions and private equity and hedge fund investments. What followed was a tidal wave of responses – more than 17,000 in all – from a wide range of banking entities, industry associations, investors and consumer advocacy groups.
We would be pleased to speak to you about the potential impact of the Volcker Rule on your business. Contact us for more information at email@example.com.