Volcker rule In December, the U.S. banking agencies, the Securities and Exchange Commission (SEC), and the Commodity Futures Trading Commission finalized the Volcker Rule to implement section 619 of the Dodd-Frank Act. As you know, the Volcker Rule prohibits banking entities from engaging in short-term proprietary trading of certain securities and derivatives for their own account.
The Volcker Rule also imposes limits on banking entities’ investments in, and relationships with, hedge funds and private equity funds.