Released and adopted by government agencies on December 10th, 2013. Section 619 of the Dodd-Frank Act.
Key Facts
The Volcker Rule restricts the ability of a banking entity or nonbank financial company to engage in proprietary trading.
Under the Volcker Rule, banks are prohibited from:
- Engaging in short term propriety trading for their own benefit;
- Owning, sponsoring, or having relationships of a specific nature with ‘covered funds’;
And required to:
- Establish a compliance program (section 13 BHC) featuring written policies, internal controls, a management framework, recordkeeping, and a means to test the program independently;
- Report quantitative accounts of their trading behaviors*
*This applies only to certain banking entities.
Additional Information
More Information
Volcker Rule FAQ
Who it affects
Commercial Banks
Wikipedia Entry
http://en.wikipedia.org/wiki/Basel_III