Volcker Rule Puts Short-Term Trades Under More Scrutiny
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U.S. banks seeking to gain from or hedge against short-term price movements in securities and derivatives markets would face restrictions under a proprietary-trading ban, according to a draft of the so-called Volcker rule.
The 205-page document, dated Sept. 30 and obtained yesterday by Bloomberg News, is the latest version of the rule to emerge as it’s being written by four federal banking regulators and is scheduled to be released on Oct. 11 by the Federal Deposit Insurance Corp. The rule would take effect on July 21, 2012.