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Board of Governors of the Federal Reserve System
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Press Release
February 09, 2011

Federal Reserve issues final rule to implement
Volcker Rule conformance period
For immediate release
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The Federal Reserve Board on Wednesday announced its approval of a
final rule to implement the provisions of the Dodd-Frank Wall Street
Reform and Consumer Protection Act that give banking firms a period of
time to conform their activities and investments to the prohibitions and
restrictions of the so-called Volcker Rule.
The Volcker Rule generally prohibits banking entities from engaging in
proprietary trading in securities, derivatives, or certain other financial
instruments and from investing in, sponsoring, or having certain
relationships with a hedge fund or private equity fund. The statute
generally provides banking entities two years to bring their activities and
investments into compliance and allows the Board to extend this
conformance period under certain conditions.
The Dodd-Frank Act requires that the Board issue rules implementing
the Volcker Rule's conformance period. In developing the rule, the
Board consulted with the Department of the Treasury, the Office of the
Comptroller of the Currency, the Federal Deposit Insurance Corporation,
the Securities and Exchange Commission, and the Commodity Futures
Trading Commission. The final rule is substantially similar to the
proposal published in November.
The final rule is effective April 1, 2011.
Federal Register notice: HTML | 103 KB PDF

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Last Update: February 09, 2011

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BOARD OF GOVERNORS of the FEDERAL RESERVE SYSTEM
20th Street and Constitution Avenue N.W., Washington, DC 20551