The BDA continues to have significant concerns regarding the Volcker Rule and the impact on the principal trading business at bank affiliated middle-market, regional and small fixed income dealers. As currently written, the BDA believes principal trading in non-exempt securities like corporate bonds and municipal revenue bonds by bank affiliated broker dealers would be deemed as proprietary trading and disallowed by the Volcker Rule, essentially forcing bank affiliated BDs to act as agent when selling non-exempt securities. The BDA is working very closely with federal regulators to ensure these concerns are understood and appreciated and that changes are made before the Rule is finalized.
View the full letter [here.]
Please follow and like us:
