Prohibitions and Restrictions on Proprietary Trading and Certain Interests in, and Relationships With, Hedge Funds and Covered Funds (Proposed Rule)

77 FR XXXX

The CFTC is requesting comment on a proposed rule that would implement Section 619 of the Dodd-Frank Act, which contains certain prohibitions and restrictions on the ability of a banking entity and nonbank financial company supervised by the Board of Governors of the Federal Reserve System to engage in proprietary trading and have certain interests in, or relationships with, a hedge fund or private equity fund (the "Volcker Rule"). Under the proposed rule, banking entities would be required to establish an internal compliance program that is designed to ensure and monitor compliance with the prohibitions and restrictions of the Volcker Rule.

Cross References: Dodd-Frank Section 619; Bank Holding Act, Section 13.