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Volcker Hedging Exemption Said Disputed by Gensler, Stein

Officials at two of the agencies charged with writing the Volcker rule banning U.S. banks from trading for their own accounts are insisting on strengthening a key provision.

Gary Gensler, chairman of the Commodity Futures Trading Commission, and Kara Stein, a Democrat on the Securities and Exchange Commission, want to make it more difficult for banks to classify such trading as legitimate hedging activity, according to three people familiar with the negotiations. The dispute could make it harder for the five agencies drafting the rule to meet a White House-imposed year-end deadline for completing the regulation.