A “banking entity” includes any depository institution that has federal deposit insurance or access to the discount window, any company that controls such a depository institution and any bank holding company as well as their subsidiaries and affiliates. Some broker-dealers will, therefore, be subject to the Volker Rule. The study includes a discussion of how to distinguish proprietary trading from permitted activities, such as underwriting, market making, risk-mitigating hedging and transactions on behalf of customers. This study was required by the Dodd-Frank financial reform act. Regulations implementing the Volker Rule are required to be in place nine months from the issuance of this study, by September 2011. BDA encourages its members to review the study and share any concerns with us. The study is available here.
