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Home > News & Events > Press Releases
Joint Press Release
December 10, 2013
Agencies issue final rules implementing the
Volcker rule
Board of Governors of the Federal Reserve System
Commodity Futures Trading Commission
Federal Deposit Insurance Corporation
Office of the Comptroller of the Currency
Securities and Exchange Commission
For immediate release
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Five federal agencies on Tuesday issued final rules developed jointly to
implement section 619 of the Dodd-Frank Wall Street Reform and
Consumer Protection Act (the "Volcker rule").
The final rules prohibit insured depository institutions and companies
affiliated with insured depository institutions ("banking entities") from
engaging in short-term proprietary trading of certain securities,
derivatives, commodity futures and options on these instruments, for
their own account. The final rules also impose limits on banking entities'
investments in, and other relationships with, hedge funds or private
equity funds.
Like the Dodd-Frank Act, the final rules provide exemptions for certain
activities, including market making, underwriting, hedging, trading in
government obligations, insurance company activities, and organizing
and offering hedge funds or private equity funds. The final rules also
clarify that certain activities are not prohibited, including acting as agent,
broker, or custodian.
The compliance requirements under the final rules vary based on the
size of the banking entity and the scope of activities conducted. Banking
entities with significant trading operations will be required to establish a
detailed compliance program and their CEOs will be required to attest
that the program is reasonably designed to achieve compliance with the
final rule. Independent testing and analysis of an institution's compliance
program will also be required. The final rules reduce the burden on
smaller, less-complex institutions by limiting their compliance and
reporting requirements. Additionally, a banking entity that does not
engage in covered trading activities will not need to establish a
compliance program.
The Federal Reserve Board announced on Tuesday that banking
organizations covered by section 619 will be required to fully conform
their activities and investments by July 21, 2015.
Statement by Chairman Ben S. Bernanke
Statement by Governor Daniel K. Tarullo
Federal Register notice: HTML | PDF
Fact Sheet (PDF)
Community Bank Guide (PDF)
Media Contacts:
Federal Reserve
Board
Barbara
Hagenbaugh
CFTC
Steve Adamske
FDIC
Andrew Gray
OCC
Robert M.
Garsson
SEC
Judy Burns
Board Votes
Related Information
Meeting Memoranda
Open Board Meeting on December 10
Last Update: December 10, 2013
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