Regulators extend comment period for Volcker Rule changes

WASHINGTON — Federal regulators have extended the comment period for a proposal to revise the Volcker Rule.

In June, the Federal Deposit Insurance Corp., Federal Reserve Board, Office of the Comptroller of the Currency and two other regulators proposed making changes to the proprietary trading ban that was enacted as a provision of the Dodd-Frank Act.

Under the proposal, Volcker Rule compliance would be revised, the rule would be tailored for institutions that participate in fewer trading activities and the definitions of certain prohibited trades would be altered. The agencies also proposed making it easier for foreign banks with a U.S. presence to make non-U.S. trades.

Andrew Harrer/Bloomberg

However, some banks are concerned that the revisions to the rule could actually complicate compliance and limit trading. The Wall Street Journal reported last month that industry representatives had met with the Fed to share their concerns about the proposal.

The comment period was set to close on Sept. 17 but will now end a month later, on Oct. 17, in response to requests from commenters. The extension “will allow interested persons additional time to analyze the proposal and prepare their comments,” the agencies said in a release.

FDIC Chairman Jelena McWilliams had signaled last month that the agencies were willing to extend the comment period.