Volcker Rule

Federal Reserve, Volcker Rule

The Federal Reserve Board asked for comment on a proposed rule to simplify and tailor compliance requirements relating to the Volcker rule. By statute, the Volcker rule generally prohibits banking…

US House passes Volcker Rule changes, puts Fed in charge

April 16, 2018

Federal Reserve, House of Representatives, Volcker Rule

The US House of Representatives passed the Volcker Rule Regulatory Harmonization Act. The Volcker Rule prohibits banking agencies from engaging in proprietary trading or entering into certain relationships with hedge funds…

US Senate passes bill rolling back financial reforms

March 14, 2018

Regulatory reform, US Senate, Volcker Rule

In a 67-31 vote, the US Senate passed the Economic Growth, Regulatory Relief, and Consumer Protection Act, paving the way for the bill to become law. The bill amends the…

Fed’s Quarles outlines regulatory agenda for foreign banks

March 5, 2018

Dodd-Frank, Federal Reserve, Randal Quarles, Volcker Rule

Excerpts from Speech by Vice Chairman for Supervision Randal Quarles at the Institute of International Bankers Annual Washington Conference, Washington, D.C. The Federal Reserve is actively reviewing post-crisis financial reforms in…

The US Senate’s obvious Volcker Rule arbitrage for trading and financing

January 23, 2018

Derivatives, Dodd-Frank, US

Proprietary Trading, topstory, US Senate, Volcker Rule

The rationale is justifiable: reduce the regulatory burden for banks with under US$10 billion in assets. But the upshot from a US Senate bill now passed the Senate Banking Committee…

The SEC report on liquidity and regulations: its a complex story, not a done deal

August 15, 2017

Investments, Liquidity Management, Regulatory, SEC, US

Liquidity, sec, topstory, US Treasuries, Volcker Rule

The headlines say that the SEC reports little damage to liquidity from regulations, and this is going to influence both government and public opinion going forward. But the SEC measured…

SEC reports to Congress on market liquidity

August 9, 2017

Liquidity, US SEC, Volcker Rule

In a report to Congress, the SEC wrote that evidence for the impact of regulatory reforms on market liquidity is mixed, with different measures of market liquidity showing different trends. Many…

US Treasury report on financial regulations will result in big changes to bank capital rules (Premium)

June 14, 2017

Basel III, Dodd-Frank, Regulatory, US

Dodd-Frank, Leverage Ratio, Liquidity Coverage Ratio, stress tests, topstory, US Treasury, Volcker Rule

The US Treasury has released an expected report looking at a wide variety of financial regulations as per a Presidential Executive Order earlier this year. We have analyzed the sections…

Would brokers move back into prop trading without Dodd-Frank? (Premium)

January 25, 2017

Richard Stinchfield

Dodd-Frank, Hedge Funds, Regulatory, Securities Lending, US

bank capital, brokers, Proprietary Trading, topstory, US, Volcker Rule

If changes to the Volcker Rule come to pass, what is the likelihood that brokers will dust off the prop desks and draw back trading talent that fled to the…

Federal Reserve Board formalizes previously announced one-year conformance period extension for certain Volcker rule legacy fund investments

July 8, 2016

Federal Reserve, hedge funds, Volcker Rule

Formalizing its prior commitment to facilitate the orderly implementation of section 619 of the Dodd-Frank Act, commonly known as the Volcker Rule, the Federal Reserve Board on Thursday announced that…

Dealers speak their minds on US bond and repo market liquidity (Premium)

April 11, 2016

Fixed Income, Repo, US

Federal Reserve, GCF Repo, HQLA, Liquidity, Repo, topstory, US Treasuries, Volcker Rule

As the repo market moves from what it was to what it will become, the current state of flux is creating fear and loathing, with just the slightest hint of…

Finalternatives: Volcker creating opportunities for hedge funds

September 22, 2014

Volkered: How Financial Sector Reforms are Creating Opportunities for Hedge Funds Sep 16 2014 | 11:28am ET By Sam Diedrich Director, PAAMCO Six years on, evidence of the immense distress…

Corporate Bond Liquidity: Going, Going, Gone….

January 9, 2014

corporate bond liquidity, repo haircuts, Volcker Rule

Dodd-Frank, Featured, Regulatory, Repo, Tri-Party Repo

Last month we saw a very well written piece in MarketWatch on the trend toward less and less liquidity in the corporate bond market. The article, by Ben Eisen, was…

Regulatory pendulum starting to favor liquidity instead of Shadow Banking restrictions

December 12, 2013

Bank of England, Basel III, Europe, Liquidity Management, Regulatory, Shadow Banking

Andrew Haldane, Bank of England, EU Internal Market and Services, Patrick Pearson, Securitization, Shadow Banking, Volcker Rule

Following the initial reactions of regulators to protect market stability and dial down risk, we are seeing several points suggesting that the tide is turning: maintaining market liquidity is being…

Fixed Income Rout Made Worse by Quarter-End Repo Balance Sheet Pressures and Lack of Bank Prop Desks

July 1, 2013

Featured, Primary Dealers, Repo

Volcker Rule

The rout in the fixed income markets may have been triggered by the Fed talking tapering, but it was made worse by quarter-end pressures on repo balance sheets and lack…

Volcker on the Volcker Rule

April 10, 2013

On Monday, April 8th NYU’s Stern School hosted a interview with Sir John Vickers, former Chief Economist of the Bank of England and Chair of the Independent Commission on Banking…

A look at the Volcker Rule's impact on market liquidity

April 5, 2012

Featured, Liquidity Management, Regulatory, Repo, Systemic Risk

Dodd-Frank, Liquidity, Liquidity Management, Repo, Shadow Banking, Volcker Rule

A new opinion piece from Woodbine Associates published on April 4, 2012 “Beyond Volcker: Seeing the Forest through the Trees” caught our eye. About half-way into the piece the author…

Volcker Rule exempts Repo and Sec Lending….or will it?

February 21, 2012

Featured, Regulatory, Repo, Securities Lending

Dodd-Frank, Finadium, Repo, Securities Lending, Volcker Rule

The comment period on the Volcker Rule came to a close on January 13, 2012. Digesting those letters will take a lot of work and will inevitably impact the structure…

IMN Beneficial Owners' Securities Lending Conference: a review of the regulatory issues facing the industry

February 1, 2012

Featured, Securities Lending

Basel III, Dodd-Frank, ESMA, IMN International Beneficial Owners' Securities Lending Summit, OLA, sec, Securities Lending, short selling ban, Volcker Rule

We were at the IMN Beneficial Owners’ Securities Lending Conference in Phoenix earlier this week. There were a number of great discussions. Not surprisingly, several panels reviewed key regulatory issues…

FT: Dodd-Frank’s long-distance paper chase

November 1, 2011

Featured, OTC Derivatives Clearing, Regulatory, Securities Lending

Basel III, Dodd-Frank, Volcker Rule

We liked this article by the well-regarded FT financial reporter Gillian Tett about the complexities of Dodd-Frank, including the Volcker Rule. Tett points out that the D-F is groaning not…

Is Repo for Speculation?

October 7, 2011

Featured, Regulatory, Repo, Securities Lending

Credit Markets, Dodd-Frank, Repo, Securities Lending, Volcker Rule

The Volcker Rule bans proprietary trading, but repo trading and securities lending look safe. There is often a lot of prop trading in repo – maturity transformation by playing the…

Volcker Rule likely a non-issue for securities lending and repo – FT/WSJ

September 23, 2011

Regulatory, Repo, Securities Lending

Dodd-Frank, Repo, Securities Lending, Volcker Rule