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.
See: 79 FR 5807 (CFTC Release); 79 FR 5535 (FRB, FDIC, OCC, SEC Release).
Related News: Agencies Issue Final Volcker Rule (December 11, 2013).