Sat, Oct 1, 2016
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Other Voices: The Volcker Rule's ban on proprietary trading - a practical approach to implementation

Thursday, July 15, 2010

This article was authored by U.S.-based research and consulting house Woodbine Associates.

The final form of the Dodd Frank Wall Street Reform and Consumer Protection Act is essentially complete and awaiting Senate confirmation; now, attention will turn toward how regulators will implement provisions of the new law and the impact of these changes on the financial markets.

The "Volcker Rule," a central element of the new legislation, has received a great deal of attention for numerous reasons, ranging from outright practicality to issues regarding the potential for global regulatory arbitrage. No doubt, implementation of the final rule will be hotly debated as the markets will look to federal banking regulators, the Securities and Exchange Commission (SEC) and the Commodities Futures Trading Commission (CFTC) to sort out specifics centered around differentiating market making and customer related hedging from outright proprietary trading and positioning within regulated financial firms.

The Volcker Rule in its (near) final form has two main components affecting banks and regulated financial entities: it curtails investment in and ownership of hedge funds and private equity investment and it eliminates proprietary trading by covered financial institutions.

The restrictions on private equity and hedge fund investment are relatively uncomplicated. Banks will be restricted from investing more than 3......................

To view our full article Click here

Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing

 



  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Opalesque Exclusive: BlackRock taps Artivest for alternative investment platform partnership[more]

    Bailey McCann, Opalesque New York: BlackRock will be working with New York-based Artivest to provide a platform for broader distribution of BlackRock alternatives funds. Artivest is a technology-driven alternative investment platform that also offers brokerage services. BlackRock has approximatel

  2. Eden Rock buys Gottex stake in ERG Asset Management[more]

    Matthias Knab, Opalesque: Eden Rock Group announced the purchase of Gottex’s stake in ERG Asset Management and so the firm is now wholly owned by Eden Rock. The two firms established the joint venture in 2011 to focus on providing cost effective solutions to funds holding illiquid investments, as

  3. "Hedge fund industry needs to shrink"[more]

    Komfie Manalo, Opalesque Asia: Writing for CNBC, Josh Brown, creator of The Reformed Broker blog and financial advisor for Ritholtz We

  4. Strategy - Voyager Management wants to invest in smaller hedge funds[more]

    From Valuewalk.com: Voyager Management, a $475 million fund of funds, is looking to downsize the hedge fund’s in which they invest, looking for smaller funds with assets under management that enable the fund to be nimble. The fund is looking for noncorrelation and will consider long / short equity

  5. Asia - Quant hedge funds are China's hot new export, Europe banks return to Korean brokerage market; target debt, alternative products[more]

    Quant hedge funds are China's hot new export From Bloomberg.com: Add China’s quant shops to the list of hedge funds branching out across Asian markets. Quantitative money managers from the world’s second-largest economy are opening offshore funds at a never-before-seen pace, according to