Clarke Dryden Camper is Senior Vice President, Head of Government Affairs and Public Advocacy at NYSE Euronext, a...
President Obama Signs the Dodd-Frank Wall Street Reform and Consumer Protection Act (Photo credit: Leader Nancy Pelosi)
The Federal Reserve announced that banks will have until July 2014 to comply with Section 619 of Dodd-Frank, better known as the Volcker Rule, which prohibits banks from proprietary trading activities. Dodd-Frank author Congressman Barney Frank welcomed the move:
“The guidance issued today by the Federal Reserve regarding the Volcker Rule is an appropriate and reasoned approach to the implementation of this important provision….The two-year period during which the banks will have to come into compliance with the rule will allow a reasonable time for them to make their necessary changes, and will give the regulators the chance to deal with any particular issues that arise from the experience of implementation.
Rob Nichols, President and CEO of the Financial Services Forum, said the extended timeline “will assist financial services firms and regulators in navigating the complex proposed Volcker Rule” and pressed regulators to “ensure that permitted activities like legitimate market-making are not unnecessarily impacted.”