Volcker Rule

Regulation · CC-BY-4.0

Section 619 of Dodd-Frank, codified as §13 of the Bank Holding Company Act, prohibiting banking entities from engaging in short-term proprietary trading and from sponsoring/investing in 'covered funds' (most hedge funds and private equity funds). Final rule simplified in 2020 ('Volcker 2.0').

Details

• aliases: §619, Bank Holding Company Act §13
• jurisdiction: US
• regulator: FRB, OCC, FDIC, SEC, CFTC
• kind: rule
• effective date: 2014-04-01
• summary: Section 619 of Dodd-Frank, codified as §13 of the Bank Holding Company Act, prohibiting banking entities from engaging in short-term proprietary trading and from sponsoring/investing in 'covered funds' (most hedge funds and private equity funds). Final rule simplified in 2020 ('Volcker 2.0').
• scope: Banking entities and their affiliates.
• applies to: banking entities
• related regulations: dodd-frank, investment-company-act-1940
• related terms: covered-fund, proprietary-trading, market-making, tier-1-capital
• official text url: https://www.federalreserve.gov/supervisionreg/legalinterpretations/volcker-rule.htm
• history: Named for former Fed Chair Paul Volcker. Final rule adopted Dec 2013, effective April 2014. 'Volcker 2.0' simplification finalized Aug 2019 (effective Jan 2020); covered-funds amendments finalized June 2020.