Fed mulls delay to Volcker rule

|By:, SA News Editor

The Federal Reserve could delay by a year the date by which banks will have to comply with all aspects of the Volcker rule. The target at the moment is July 2014.

Regulators are still finalizing the proposal, which, among other things, would ban banks from proprietary trading using their own money. The regulators are unlikely to release the definitive version until December.

However, banks would still have to eliminate their pure proprietary trading desks by July next year.

The sector is concerned that the rule will limit activities such as market making and hedging.

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