Do not expect the proposed Volcker rule to shed much light on which activities will be permitted under the final rule. A granular proposal is not expected, according to bankers’ counsel.
An official with the Financial Industry Regulatory Authority (Finra) has also admitted it will be difficult to identify prohibited trades under the rule.
The draft rule, widely touted for release this month, is one of the most controversial and eagerly awaited under Dodd-Frank.
But counsel speaking at the Securities Industry and Financial Markets Association’s (Sifma) market structure conference on September 21 said the most important detail will not be known for sometime.
“When we get the draft rule, hopefully in October, you are going to see a lot more general concepts and asking of questions,” said one bankers’ counsel panelist. “So I don’t think it will be clear cut even then,” they added.
This is despite...