Tabs

Bank/Thrift Supervision   |    Capital    |    CFPB    |    Deposit Insurance    |    Interchange    |    Mortgage Finance
Municipal Advisors   |    OCC-OTS Merger   |    Preemption    |    QM - QRM    |    Swaps   |    Volcker Rule    |    Full Topics List
 
Qualified Mortgage - Qualified Residential Mortgage
Swaps
Consumer Financial Protection Bureau - CFPB
Bank/Thrift Holding Company Supervision
Capital
Deposit Insurance
Interchange
Mortgage Finance
Municipal Advisors
OCC-OTS Merger
Preemption
Volcker Rule
Corporate Governance
Financial Stability Oversight Council (FSOC)
Appraisals
Office of Financial Research (OFR)
Systemic Risk
Supervision and Oversight
Payment, Clearing and Settlement
Prudential Supervision
Trust & Securities
Asset-Backed Securities
Resolution Authority

Friday, March 14, 2014

SEC Director: Volcker Rule’s Market Making Exemption

The agencies were tasked with implementing the Volcker Rule in a way that bans general propriety trading, but “preserves the public benefit that comes from active participation by banking entities in supplying liquidity to the securities and derivatives markets,” SEC Acting Director John Ramsay said in a speech at the New York City Bar Association.

Ramsay focused his speech on the market making exemption to the propriety trading ban under the Volcker Rule, noting that market making is a necessary part of the role that broker-dealers perform in supplying liquidity and helping raise capital. Ramsay added:

If a purpose of the exemption is to encourage banks to supply liquidity to securities markets, it would not make sense to limit its use to markets where there is already plenty of liquidity.

In addition, Ramsay noted that separating market making from proprietary trading is “no easy task.”

Ramsay went on to discuss the compliance program requirements of the rule, including the timing for implementation.

Read the speech.

No comments:

Post a Comment

Please read our comment policy before making a comment.