New York
22 September 2017
Reporter: Drew Nicol

US Volcker Rule not fit for purpose, says SIFMA


The US Volcker Rule is too broad, excessively complex, and uniquely prescriptive, according to the Securities Industry and Financial Markets Association (SIFMA).

Responding to the Office of the Comptroller of the Currency’s (OCC’s) request for comments on the rule, SIFMA said: “[the rule] should be revised to better accomplish the purposes of the underlying statute and its impact on the efficient functioning of markets to facilitate growth.”

SIFMA added that, the complexity of implementing regulations, and the difficulties inherent in having five agencies tasked with implementing and interpreting the regulations, mean that many key interpretive issues remain unresolved.

In its letter to the OCC, SIFMA set out several recommendations for reform, including, revise the definition of proprietary trading to focus on speculative short-term standalone proprietary trading and simplifying the prescriptive compliance obligations of the proprietary trading and covered fund provisions, and eliminate the quantitative metrics regime, among others.

“While we continue to believe the Volcker Rule is a solution in search of a problem, SIFMA appreciates the growing recognition by the Volcker Agencies of the problems with the current implementing regulations," said Kenneth Bentsen, SIFMA president and CEO.

“We remain concerned that the current regulatory framework goes beyond statutory intent and is overly restrictive, impeding beneficial market activity at the expense of the economy, and ultimately consumers.”

“SIFMA fully supports the efforts of the Volcker Agencies to streamline and simplify the implementing regulations, and offers our members’ recommendations on necessary revisions to achieve this goal.”

More news
The latest news from Asset Servicing Times
Join Our Newsletter

Sign up today and never
miss the latest news or an issue again

Subscribe now
FS-ISAC enables safer financial data sharing with API
20 February 2018 | Virginia | Reporter: Jenna Lomax
The introduction of the new API supports enhancements to secure financial data transfer including improvements in speed and error reduction
Around half in the industry have seen no real effect of Brexit, according to Augentius’ annual global survey
SETL welcomes new shareholders and new board member
20 February 2018 | London | Reporter: Jenna Lomax
SETL was launched in July 2015 to deploy a payment and settlements infrastructure based on blockchain technology
Euroclear reports strong 2017 operating performance
19 February 2018 | Brussels | Reporter: Jenna Lomax
Euroclear’s fund assets under custody grew 13 percent as Euroclear continued to utilise its international exchange traded funds model
Minium, IBM and Promontory release joint white paper
19 February 2018 | London | Reporter: Jenna Lomax
The white paper says business should explore new geographies refocus on new businesses and invest in new technologies
Kane LPI appoints new head of LPI fund administration
19 February 2018 | Bermuda | Reporter: Jenna Lomax
Alain Fournier will be responsible for the management of the life, pension and investment division
Ricky Maloney rejoins Eurex
19 February 2018 | London | Reporter: Jenna Lomax
He previously worked at Eurex from 2013 to 2016 as head of OTC clearing sales and relationship management
More news