Industry Groups Weigh In On Proposed Changes To Volcker Rule

SIFMA, ISDA, the Futures Industry Association, and other industry trade associations and a diverse group of banking organizations made recommendations on proposed changes to regulations implementing Section 13 of the Bank Holding Company Act, also known as the "Volcker Rule." The comment period ended on October 17, 2018.

SIFMA asserted that the proposal is inconsistent with the statutory language and could have unintended negative consequences for the capital markets economy by restricting liquidity of banking entities. SIFMA said the proposal would leave untouched the "overbroad" definition of "covered fund," which continues to interfere with banking entities' ability to provide certain financing and asset management services. SIFMA's Municipal Securities Division filed a separate comment letter that addressed the interaction between the Volcker Rule and municipal Tender Option Bonds, a tool used by banks to support market liquidity that SIFMA believes should be