Volcker to “dramatically affect” equity liquidity

Author: Danielle Myles | Published: 16 Nov 2011

A Volcker Rule approved in its proposed form would dramatically affect liquidity in US equity markets, Goldman Sachs’ head of US equities trading has said.

The planned limit on bank capital used for proprietary trading will impact liquidity in securities generally, but it exacerbates equity markets’ existing liquidity and volatility issues being tackled through the Securities and Exchange Commission’s (SEC) market structure reforms.

Speaking at last week’s Securities Industry and Financial Markets Association (Sifma) annual meeting, Goldman Sachs’ Paul Russo...