Wall Street Says Volcker Rule Ignores Swap Market Reality

Law360, New York (April 17, 2012, 3:21 PM EDT) -- A quartet of Wall Street industry groups said Monday that the U.S. Commodity Futures Trading Commission's proposed version of the Volcker Rule could essentially eliminate many market-making activities necessary to keep the largely illiquid swaps market functioning.

In a letter to the agency, the four groups noted that swaps trading involves largely illiquid financial products. The CFTC's proposed market-making exemptions for swaps dealers could make it impossible for bank holding companies, the largest swaps dealers, to engage in the exploratory bids and trading with other dealers...
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