{"id":5554,"date":"2013-12-10T00:00:00","date_gmt":"2013-12-10T06:00:00","guid":{"rendered":"https:\/\/institutionalinvestorsecuritiesblog.blawgcloud.com\/2013\/12\/volcker_rule_is_approved_by_se"},"modified":"2022-04-28T12:30:01","modified_gmt":"2022-04-28T17:30:01","slug":"volcker-rule-is-approved-by-se","status":"publish","type":"post","link":"https:\/\/www.investorlawyers.com\/blog\/volcker-rule-is-approved-by-se\/","title":{"rendered":"Volcker Rule is Approved by SEC, FDIC, Federal Reserve, CFTC, and OCC"},"content":{"rendered":"\n<p>Five regulatory agencies in the US have voted to approve the Volcker Rule. The measure establishes new hurdles for banks that engage in market timing and will limit compensation arrangements that previously provided incentive for high risk trading. <\/p>\n<p>While the Federal Reserve Board and the Federal Deposit Insurance Corporation voted unanimously to approve the Volcker Rule, the Securities and Exchange Commission approved it in a 3-2 vote, the Commodity Futures Trading Commission approved it in a 3-1 vote, and the Office of the Comptroller of the Currency\u2019s sole voting member also said yes. President Barack Obama praised the rule\u2019s finalization. He believes it will improve accountability and create a safer financial system.<\/p>\n<p>Named after ex-Federal Chairman Paul Volcker, the rule sets up guidelines that impose risk-taking limits for banks with federally insured deposits. It mandates that they show the way their hedging strategies are designed to function, as well as set up approval procedures for any diversions from these plans. Per the rule\u2019s preamble, banks have to make sure hedges are geared to mitigate risks upon \u201cinception\u201d and this needs to be \u201cbased on analysis\u201d regarding the appropriateness of strategies, hedging instruments, limits, techniques, as well as the correlation between the hedge and underlying risks. <\/p>\n<div class=\"read_more_link\"><a href=\"https:\/\/www.investorlawyers.com\/blog\/volcker-rule-is-approved-by-se\/\"  title=\"Continue Reading Volcker Rule is Approved by SEC, FDIC, Federal Reserve, CFTC, and OCC\" class=\"more-link\">Continue Reading \u203a<\/a><\/div>\n","protected":false},"excerpt":{"rendered":"<p>Five regulatory agencies in the US have voted to approve the Volcker Rule. The measure establishes new hurdles for banks that engage in market timing and will limit compensation arrangements that previously provided incentive for high risk trading. While the Federal Reserve Board and the Federal Deposit Insurance Corporation voted unanimously to approve the Volcker [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[3810,3752,3740,3761],"tags":[2540],"class_list":["post-5554","post","type-post","status-publish","format-standard","hentry","category-cftc","category-financial-firms","category-miscellaneous","category-securities-and-exchange-commis","tag-volcker-rule"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Volcker Rule is Approved by SEC, FDIC, Federal Reserve, CFTC, and OCC &#8212; Investor Lawyers Blog &#8212; December 10, 2013<\/title>\n<meta name=\"description\" content=\"Five regulatory agencies in the US have voted to approve the Volcker Rule. The measure establishes new hurdles for banks that engage in market timing and &#8212; December 10, 2013\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.investorlawyers.com\/blog\/volcker-rule-is-approved-by-se\/\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:title\" content=\"Volcker Rule is Approved by SEC, FDIC, Federal Reserve, CFTC, and OCC &#8212; Investor Lawyers Blog &#8212; December 10, 2013\" \/>\n<meta name=\"twitter:description\" content=\"Five regulatory agencies in the US have voted to approve the Volcker Rule. The measure establishes new hurdles for banks that engage in market timing and &#8212; December 10, 2013\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Shepherd Smith Edwards &amp; Kantas, LLP\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Volcker Rule is Approved by SEC, FDIC, Federal Reserve, CFTC, and OCC &#8212; Investor Lawyers Blog &#8212; December 10, 2013","description":"Five regulatory agencies in the US have voted to approve the Volcker Rule. The measure establishes new hurdles for banks that engage in market timing and &#8212; December 10, 2013","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.investorlawyers.com\/blog\/volcker-rule-is-approved-by-se\/","twitter_card":"summary_large_image","twitter_title":"Volcker Rule is Approved by SEC, FDIC, Federal Reserve, CFTC, and OCC &#8212; Investor Lawyers Blog &#8212; December 10, 2013","twitter_description":"Five regulatory agencies in the US have voted to approve the Volcker Rule. The measure establishes new hurdles for banks that engage in market timing and &#8212; December 10, 2013","twitter_misc":{"Written by":"Shepherd Smith Edwards &amp; Kantas, LLP","Est. reading time":"3 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/www.investorlawyers.com\/blog\/volcker-rule-is-approved-by-se\/#article","isPartOf":{"@id":"https:\/\/www.investorlawyers.com\/blog\/volcker-rule-is-approved-by-se\/"},"author":{"name":"Shepherd Smith Edwards &amp; Kantas, LLP","@id":"https:\/\/www.investorlawyers.com\/blog\/#\/schema\/person\/e0240e0754684b69f7d6a7de1b9f1431"},"headline":"Volcker Rule is Approved by SEC, FDIC, Federal Reserve, CFTC, and OCC","datePublished":"2013-12-10T06:00:00+00:00","dateModified":"2022-04-28T17:30:01+00:00","mainEntityOfPage":{"@id":"https:\/\/www.investorlawyers.com\/blog\/volcker-rule-is-approved-by-se\/"},"wordCount":633,"keywords":["Volcker Rule"],"articleSection":["CFTC","Financial Firms","Miscellaneous","Securities and Exchange Commission"],"inLanguage":"en-US"},{"@type":"WebPage","@id":"https:\/\/www.investorlawyers.com\/blog\/volcker-rule-is-approved-by-se\/","url":"https:\/\/www.investorlawyers.com\/blog\/volcker-rule-is-approved-by-se\/","name":"Volcker Rule is Approved by SEC, FDIC, Federal Reserve, CFTC, and OCC &#8212; Investor Lawyers Blog &#8212; December 10, 2013","isPartOf":{"@id":"https:\/\/www.investorlawyers.com\/blog\/#website"},"datePublished":"2013-12-10T06:00:00+00:00","dateModified":"2022-04-28T17:30:01+00:00","author":{"@id":"https:\/\/www.investorlawyers.com\/blog\/#\/schema\/person\/e0240e0754684b69f7d6a7de1b9f1431"},"description":"Five regulatory agencies in the US have voted to approve the Volcker Rule. 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