WASHINGTON (Reuters) - The U.S. futures regulator plans to introduce its own Volcker rule proposal, similar to what other agencies have already embraced, the head of the agency told lawmakers on Tuesday.
“I would envision that we would move forward with a rule similar to what other regulators have done,” Gary Gensler, the chairman of the Commodity Futures Trading Commission, told the Senate Banking Committee.
Gensler did not specify when the CFTC would move forward with the rule. He said the agency’s work has been slowed because it has been bogged down with “capacity” issues and is adjusting to a new commissioner.
Other financial regulators put forward in October a proposal to implement the Volcker rule, a provision in the 2010 Dodd-Frank Wall Street overhaul law that was championed by former Federal Reserve Chairman Paul Volcker.
Up until now, it had been unclear if the CFTC would follow suit or break with other agencies and put forth a slightly different version.
The Volcker rule aims to prevent banks that receive government backstops like deposit insurance from making risky trades with their own funds in securities, derivatives and other financial products.
It will also prohibit banks from investing in, or sponsoring, hedge funds or private equity funds.
Reporting by Christopher Doering; Editing by Derek Caney