Lessons from the implementation of the Volcker Rule for Banking Structural Reform in the European Union

  • In the United States, on April 1, 2014, the set of rules commonly known as the "Volcker Rule", prohibiting proprietary trading activities in banks, became effective. The implementation of this rule took more than three years, as “proprietary trading” is an inherently vague concept, overlapping strongly with genuinely economically useful activities such as market-making. As a result, the final Rule is a complex and lengthy combination of prohibitions and exemptions. In January 2014, the European Commission put forward its proposal on banking structural reform. The proposal includes a Volcker-like provision, prohibiting large, systemically relevant financial institutions from engaging in proprietary trading or hedge fund-related business. This paper offers lessons to be learned from the implementation process for the Volcker rule in the US for the European regulatory process.

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Metadaten
Author:Douglas J. Elliott, Christian Rauch
URN:urn:nbn:de:hebis:30:3-335131
URL:http://safe-frankfurt.de/policy-center/publications/details/article/lessons-from-the-implementation-of-the-volcker-rule-for-banking-structural-reform-in-the-european-un.html
Parent Title (English):SAFE white paper series ; 13
Series (Serial Number):SAFE white paper series (13)
Publisher:SAFE
Place of publication:Frankfurt am Main
Document Type:Working Paper
Language:English
Date of Publication (online):2014/04/16
Date of first Publication:2014/04/16
Publishing Institution:Universitätsbibliothek Johann Christian Senckenberg
Release Date:2014/06/04
Tag:Dodd-Frank Act; banking separation proposals; proprietary trading ban
Page Number:12
Last Page:10
HeBIS-PPN:344365085
Institutes:Wirtschaftswissenschaften / Wirtschaftswissenschaften
Wissenschaftliche Zentren und koordinierte Programme / House of Finance (HoF)
Wissenschaftliche Zentren und koordinierte Programme / Center for Financial Studies (CFS)
Wissenschaftliche Zentren und koordinierte Programme / Sustainable Architecture for Finance in Europe (SAFE)
Dewey Decimal Classification:3 Sozialwissenschaften / 33 Wirtschaft / 330 Wirtschaft
Sammlungen:Universitätspublikationen
Licence (German):License LogoDeutsches Urheberrecht