CFTC Proposes Volcker Rule

Jan 12 2012 | 5:07am ET

The Commodity Futures Trading Commission has finally acted on the Volcker rule, proposing a new regulation that would ban banks from trading their own capital and severely restrict their investments in alternative assets.

The CFTC voted, along party lines, to propose the measure. The regulator's rule is similar to a joint rule proposed last year by the Federal Reserve, Federal Deposit Insurance Corp., Office of the Comptroller of the Currency and Securities and Exchange Commission. Those four regulators extended their comment period on that proposal until next month in an effort to coordinate with the CFTC, whose own proposal is subject to a 60-day comment period.

"I think our role here is important, it's significant, but it's actually just a supporting member," Chairman Gary Gensler said. "The bank regulators have the lead role."

Scott O'Malia, one of the two dissenting Republicans on the panel, disagreed, calling the rule "so bad it really merits re-proposal."


In Depth

Q&A: Brevan Howard’s Charlotte Valeur Talks Strategy

Sep 18 2014 | 11:18am ET

Charlotte Valeur chairs the board of Brevan Howard Credit Catalysts, an LSE listed...

Lifestyle

Hedgies Rock Out For Children's Charity

Sep 15 2014 | 8:40am ET

It's that time of year again—when hedgies trade in their spreadsheets for guitars...

Guest Contributor

Volkered: How Financial Sector Reforms are Creating Opportunities for Hedge Funds

Sep 16 2014 | 11:28am ET

New regulations have dramatically curtailed proprietary trading activity in investment...

 

Editor's Note

    Get A Sneak Peak Of The Alpha Pages

    Aug 25 2014 | 11:21am ET

    As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…

 

Futures Magazine

September 2014 Cover

The London Whale: Rogue risk management

Credit default swaps brought down the London Whale and cost JPMorgan $6.2 billion. Here is how it happened.

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.