Saturday 24 February 2018

US adopts Volckler rule to regulate trading

Paul Volckler
Paul Volckler

U.S. securities regulators voted to adopt the Volcker rule to ban proprietary trading by large banks on Tuesday, making them the fourth regulator to sign off on the measure.

The Securities and Exchange Commission is one of five federal regulators that have been working for more than two years to complete the rule, which also restricts banks' investments in certain private funds. Three banking regulators voted earlier Tuesday to approve it, and U.S. derivatives regulators are expected to announce their vote later on Tuesday.

The SEC's two Republican commissioners voted against the Volcker rule, saying it was flawed and should have been completely rewritten.

"I believe that market-making activities will be impacted most by this faulty rule," SEC Commissioner Daniel Gallagher said in a written statement.

Online Editors

Promoted Links

Promoted Links

Business Newsletter

Read the leading stories from the world of Business.

Also in Business