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CFTC Adopts Final Volcker Rule; FRB, FDIC, OCC and SEC Separately Adopt Joint Final Volcker Rule (Fed. Reg.)

The Federal Reserve Board ("FRB"), FDIC, Officer of the Comptroller of the Currency ("OCC") and the SEC (the "Agencies"), and the CFTC in a separate rule release, published in the Federal Register the adoption of final rules implementing Section 619 of the Dodd-Frank Act, commonly known as the "Volcker Rule." Though the CFTC adopted a final rule that is not a joint rule with the other agencies, the other agencies and the CFTC stated that they worked closely together to develop the same rule text and supplementary information.

The Agencies adopted a rule that would implement Section 13 of the Bank Holding Company Act, which was added by Dodd-Frank Section 619. Section 13 contains certain prohibitions and restrictions on the ability of a banking entity and nonbank financial company supervised by the Board to engage in proprietary trading and have certain interests in, or relationships with, a hedge fund or a private equity fund.

The CFTC's final rule is numbered as Part 75 of the Commission's regulations.

Effective Date: April 1, 2014.

Click here to view the Cadwalader Cabinet's new page of Volcker Materials.

See: 79 FR 5807 (CFTC Release); 79 FR 5535 (FRB, FDIC, OCC, SEC Release).
Related News: "Agencies Issue Final Volcker Rule" (December 10, 2013).
CWT Analysis (access for subscribers only):
The Volcker Rule's Impact on Foreign Banking Organizations (December 20, 2013); The Volcker Rule's Impact on Banking Entities' Ownership and Sponsorship of Structured Finance and Securitization Transactions (December 17, 2013).

Body of Law: