Volcker Rule
The Volcker rule generally prohibits banking entities from engaging in proprietary trading or investing in or sponsoring hedge funds or private equity funds.
The regulations have been developed by five federal financial regulatory agencies, including the Federal Reserve Board, the Commodity Futures Trading Commission, the Federal Deposit Insurance Corporation, the Office of the Comptroller of the Currency, and the Securities and Exchange Commission.
This webpage includes information on the rulemakings to implement the Volcker rule, as well as related statements and other announcements on the Volcker rule.
Rulemakings
- Agencies invite comment on proposal to implement the Volcker rule (October 10, 2011)
- Agencies finalize regulations implementing the Volcker rule (December 10, 2013)
- Agencies invite comment on proposal to simplify and tailor compliance requirements of Volcker rule (May 30, 2018)
- Agencies extend comment period on proposal to simplify and tailor compliance requirements of Volcker rule (September 4, 2018)
- Agencies invite comment on proposal to exclude community banks from the Volcker rule (December 21, 2018)
- Agencies finalize changes to exclude community banks from the Volcker rule (July 9, 2019)
- Agencies finalize changes to simplify Volcker rule (October 8, 2019)
- Agencies invite public comment on a proposal to modify Volcker rule “covered funds” restrictions (January 30, 2020)
Statements and Other Announcements
- Agencies announce coordination of reviews for certain foreign funds under Volcker rule (July 17, 2019)
- SR Letter 17-5: Procedures for a Banking Entity to Request an Extension of the One-Year Seeding Period for a Covered Fund (July 24, 2017)
- Agencies announce coordination of reviews for certain foreign funds under Volcker rule (July 21, 2017)
- SR Letter 16-18: Procedures for a Banking Entity to Request an Extended Transition Period for Illiquid Funds (December 9, 2016)
- Federal Reserve Board formalizes previously announced one-year conformance period extension for certain Volcker rule legacy fund investments (July 7, 2016)
- Federal Reserve Board announces banking entities have until July 21, 2016, to conform investments in and relationships with covered funds and foreign funds that were in place prior to December 31, 2013 (December 18, 2014)
- Federal Reserve Board announces it intends to grant banking entities two additional one-year extensions to conform their ownership interests in and sponsorship of certain collateralized loan obligations covered by section 619 of Dodd-Frank (April 7, 2014)
- Agencies approve interim final rule authorizing retention of interests in and sponsorship of collateralized debt obligations backed primarily by bank-issued trust preferred securities (January 14, 2014)
- Agencies reviewing treatment of collateralized debt obligations backed by trust preferred securities under final rules implementing the "Volcker rule" (December 27, 2013)
- Agencies issue FAQ document regarding collateralized debt obligations backed by trust preferred securities under final rules implementing the "Volcker rule" (December 19, 2013)
- Federal Reserve Board announces banking entities covered by section 619 of the Dodd-Frank Act are required to fully conform their activities by July 21, 2015 (December 10, 2013)
- Volcker rule conformance period clarified (April 19, 2012)
- Federal Reserve issues final rule to implement Volcker rule conformance period (February 9, 2011)