Pay Practices Could Define Market Making Under Dodd-Frank

Law360, New York (May 31, 2012, 4:33 PM EDT) -- Financial reform advocates said Thursday that regulators should use trader compensation as a key metric for defining the market-making exemption under the Dodd-Frank Act's proprietary trading ban.

At a roundtable discussion held by the U.S. Commodity Futures Trading Commission on the implementation of the so-called Volcker rule, advocates said that the Volcker rule should make the compensation structure for traders involved in market making based solely on the services rendered, not any profits that the services provide for the bank.

Compensation for those bankers should be based entirely on "fees, commissions and observable bid-ask spreads," said Marc Jarsulic, the chief economist...

Stay ahead of the curve

In the legal profession, information is the key to success. You have to know what’s happening with clients, competitors, practice areas, and industries. Law360 provides the intelligence you need to remain an expert and beat the competition.


  • Access to case data within articles (numbers, filings, courts, nature of suit, and more.)
  • Access to attached documents such as briefs, petitions, complaints, decisions, motions, etc.
  • Create custom alerts for specific article and case topics and so much more!

TRY LAW360 FREE FOR SEVEN DAYS

Hello! I'm Law360's automated support bot.

How can I help you today?

For example, you can type:
  • I forgot my password
  • I took a free trial but didn't get a verification email
  • How do I sign up for a newsletter?
Beta
Ask a question!