U.S. Commodity Futures Trading Commission Chairman Gary Gensler said his agency may vote to propose the so-called Volcker Rule in January, following in the footsteps of four other federal agencies.
The CFTC is the last of five U.S. financial regulators to propose the rule, which would curtail banks’ proprietary trading and limit their relationships with hedge funds. The rule, named for former Federal Reserve Chairman Paul Volcker, is required by the 2010 Dodd-Frank Act.
“I would be hopeful that we would address ourselves to a proposal -- possibly even in the first meeting of January -- of the Volcker Rule,” Gensler told reporters at a meeting today in Washington.
The next CFTC meeting is tentatively scheduled for Jan. 11, according to CFTC spokesman Steve Adamske.
The Securities and Exchange Commission, Federal Reserve, Office of the Comptroller of the Currency and the Federal Deposit Insurance Corp. issued a joint 298-page proposal for the rule on Oct. 11. The agencies are seeking public comment on the draft and may make changes before it takes effect July 21.
“I would envision that we would move forward with the proposal consistent with what other regulators have done,” Gensler told lawmakers at a Dec. 6 hearing.