Header graphic for print
The BD/IA Regulator Providing securities regulatory, enforcement and litigation trends for broker-dealers, investment advisers and investment funds

The Volcker Rule Prohibition on Proprietary Trading: Considerations for Broker-Dealer Affiliates of Foreign Banking Organizations

Posted in Broker-Dealer Regulation

The Volcker Rule imposes significant restrictions on “proprietary trading” by banking organizations and their affiliates.   The Rule applies to all banking entities, which are defined to include foreign banking organizations that have U.S. branches or agencies or which own U.S. banks or certain other U.S. subsidiaries (“FBOs”).   Also covered by the Rule are affiliates of FBOs, including affiliated broker-dealers located in the United States or overseas.

The purpose of this alert is to discuss how the Volcker Rule’s restrictions may impact broker-dealer affiliates of FBOs that conduct business in the United States or with U.S. customers.

To learn more, read our full client alert.