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.