Washington DC
09 May 2017
Reporter: Mark Dugdale

Dodd-Frank replacement clears first hurdle


The Financial CHOICE Act, the long awaited legislation that will repeal and replace the Dodd-Frank Act, is set to be considered by the House of Representatives in the coming weeks.

House financial services committee chairman Jeb Hensarling officially introduced the act in April, but a series of Democratic amendments and other delays were raised before the final vote was taken.

Speaking on the act’s journey through Capitol Hill, law firm Arnold & Porter Kaye Scholer noted in a blogpost that “the markup session was a clearly partisan affair that is indicative of the bill's uncertain future in the closely divided Senate”.

The replacement legislation promises to radically re-write several key aspects of Dodd-Frank, and scrap the rest.

Among the first casualties will likely be the Volcker rule, the much-maligned restriction on short-term proprietary trading using banks’ own funds, which “discourages legitimate and needed customer-supporting market-making activities by imposing an overly complex and intent-based compliance regime”, according to Securities Industry and Financial Markets Association executives speaking before a House committee hearing in March.

Deutsche Bank was recently fined $19.7 million for failing to comply with Volcker rule.

The Federal Reserve found gaps in key aspects of Deutsche Bank's compliance programme for the Volcker rule, which generally prohibits insured depository institutions and any affiliated company from engaging in proprietary trading and acquiring or retaining ownership interests in, sponsoring, or having certain relationships, with a hedge fund or private equity fund.

Deutsche Bank was also ordered to improve its senior management oversight and controls over its compliance with Volcker rule requirements.

More Industry 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
Peel Hunt expands Torstone’s Inferno into US business
13 October 2017 | London | Reporter: Theo Andrew
According to Peel Hunt, the agreement with Torstone will give the firm more flexibility to develop its US business
Orange and BASF select BNY Mellon as depositary bank
12 October 2017 | New York | Reporter: Becky Butcher
BNY Mellon has been appointed as successor depositary bank by both BASF, a German-based chemical company and Orange, the telecommunications company, for their American depositary receipt programmes
BNP Paribas wades into collateral pools with triparty service
05 October 2017 | London | Reporter: Drew Nicol
As a triparty collateral agent, BNP Paribas Securities Services handles its clients’ collateral needs, from net exposure calculation, automatic collateral allocation and substitution, to physical settlement and custody
Smartkarma opens European hub in London
25 September | London | Reporter: Theo Andrew
According to Smartkarma, the move means European analysts can now register with the platform to join the data platform, offering a network approach to insights and publishing tools
First RFQ inflation swap transactions executed on Tradeweb platform
25 September 2017 | London | Reporter: Stephanie Palmer
Tradeweb has completed the first cleared inflation swap transactions using request-for-quote protocol, on its European Interest Rate Swap platform
AcadiaSoft expands user base for IM compliance
21 September 2017 | Massachusetts | Reporter: Drew Nicol
The second phase of the IM rules went live on 1 September under the regulatory framework of BCBS and IOSCO
UCITS funds enjoy assets boom in Q2
18 September 2017 | Brussels | Reporter: Jenna Lomax
The latest growth figures represent the highest level of net sales recorded since Q1 2015
More Industry news