Ontario said the province’s bonds received an exemption from the proprietary trading ban imposed on U.S.-based banks under the Volcker rule.
“I can let you know that Ontario gets the same treatment as Canada,” Scott Blodgett, a spokesman for Ontario’s Finance Ministry, said in an e-mail statement today.
The buying and selling of securities backed by a foreign sovereign will not fall under the proprietary trading ban in most circumstances. That exemption includes securities issued by foreign central banks and applies to U.S. banks with overseas operations as well as foreign firms with affiliates in the U.S.
The initial Volcker rule draft drew international criticism for its reach into banks based overseas as well as for its impact on foreign sovereign debt markets.
To contact the reporter on this story: Cecile Gutscher in Toronto at firstname.lastname@example.org