All three models recommend separation between deposit-taking activities and trading/investment bank functions. Whilst each regime advocates a ring-fence model, they offer slightly different approaches. Let me amplify. 3. Volcker Rule restricts deposit-taking banks from engaging in proprietary trading, prohibiting them from engaging in more complex activities that are prone to conflicts of interest, in order to safeguard the core of the banking system, i.e.
commercial or traditional banking (deposit taking and lending). The rule prohibits any banking entity from engaging as principal in short-term trading in securities, derivatives, or commodity futures, i.e.