CFTC Proposes Volcker Rule Regulation

On Tuesday February 14, 2012, the Commodity Futures Trading Commission (the "CFTC") proposed regulations that would implement Section 619 of the Dodd-Frank Wall Street Reform and Consumer Protection, commonly known as the "Volker Rule."  Section 619 contains certain prohibitions and restrictions on the ability of a banking entity and nonbank financial company supervised by the Board of Governors of the Federal Reserve System (the "Board") to engage in proprietary trading and have certain interests in, or relationships with, a hedge fund or private equity fund.

On November 7, 2011, the Office of the Comptroller of the Currency, the Department of the Treasury, the Board, the Federal Deposit Insurance Corporation, and the Securities and Exchange Commission issued a joint proposed rule implementing Section 619 of the Dodd-Frank Act.  The proposed CFTC regulation incorporates the entire text of the proposed common rules section from the joint proposed rule.  The proposed CFTC regulation also contains additional questions specific to the CFTC, and does not include a subpart that deals exclusively with the Board.

© 2012 Perkins Coie LLP