CFTC Commissioner Will Stay To Vote On Volcker Rule

Dec 9 2013 | 10:00am ET

Bart Chilton will stick around the Commodity Futures Trading Commission long enough to vote on the Volcker rule tomorrow.

The CFTC and three other federal regulators are set to vote on the proposal, which will bar banks from proprietary trading and strictly limit their alternative investments activities, tomorrow, with the Securities and Exchange Commission soon to follow.

The rule expected to be approved tomorrow is significantly tougher than drafts from just a few weeks ago, with tougher restrictions on bank hedging and a requirement that CEOs affirm that their bank is not violating the prohibition on prop. trading. That could be key—when Chilton announced his plans to leave the CFTC last month, he indicated that he would not vote for the Volcker rule in its weaker form.

It is unclear if the changes will have mollified Chilton. If they have not, the CFTC will be unable to pass the rule, as Chilton's "no" vote would leave the regulator deadlocked.

Chilton said he decided to stay on at the urging of lawmakers.

"The timing will allow me to vote on the Volcker rule," he said. "As long as I'm a commissioner and not conflicted or recused from an issue, I intend to fulfill the responsibilities of the office."

U.S. Treasury Secretary Jacob Lew has pushed the five cooperating regulators to approve the rule, which was mandated by 2010's Dodd-Frank financial regulation law. On Thursday, he said that the rule "prohibits risky proprietary trading while protecting economically essential activities like market-making."

Even if the rule is approved, it is unlikely to come into force until 2015.


In Depth

Q&A: Neil Azous Talks Global Macro Investing

Nov 24 2014 | 12:41pm ET

Neil Azous is the founder and managing member of Rareview Macro, an advisory firm...

Lifestyle

Griffin Selling Chicago Apartment

Nov 26 2014 | 11:40am ET

Citadel Investment Group’s Kenneth Griffin is making clear to his estranged wife...

Guest Contributor

Why The Big Money Is Going To Europe

Nov 14 2014 | 6:03am ET

Peer-to-peer lending was invented with the individual investor in mind. But despite...

 

Sponsored Content

    For Hedge Funds, Mastering Data Is Key To Success

    Nov 4 2014 | 9:45am ET

    Data management is important to every business, but for hedge funds, it is critical. FINalternatives recently asked Peter Sanchez, CEO of Northern Trust Hedge Fund Services, how fund managers can deal with the demands of managing data while at the same time remain transparent and abide by operational best practices. Read more…

Editor's Note

    Guidelines for Guest Articles

    Oct 22 2014 | 9:46am ET

    We are always looking for guest articles from hedge fund managers and buy-side firms.

    If you are interested in submitting a contributed piece for possible publication on FINalternatives, please take a look at the specs. Read more…

 

Futures Magazine

November 2014 Cover

Building a better market

Reg NMS created a huge bifurcation in equity markets and while much of what has followed has been positive, in terms of lower fees and greater liquidity, many traders would like to see the market come...

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.