SIFMA today called for significant changes in the Volcker Rule before a joint hearing of the House Financial Services Subcommittees on Capital Markets and Government Sponsored Enterprises, Financial Institutions and Consumer Credit that was examining the impact of the Rule.
In testimony on behalf of SIFMA’s Asset Managers Group (AMG), Douglas Peebles, chief investment officer and head of Fixed Income at AllianceBernstein noted that the rule, as proposed, could have a significant negative impact on market making.
“The proposal clearly fails to account for different types of market making environments, particularly those related to fixed income and over-the-counter (“OTC”) markets, where market makers regularly trade as principal due to the high degree of fragmentation and intermittent liquidity,” Peebles said. “We believe the failure to take into account different OTC market making activities reflects a major oversight in the proposal and could have devastating effects on fixed income market that exhibit intermittent liquidity.”
Peebles full testimony on behalf of SIFMA AMG can be found at the following link: http:/
Additionally, in testimony submitted for the record, SIFMA addressed a number of concerns with the rule, including:
- The proposal’s market-making exemption and its’ impact on different markets, including the municipal securities and securitization markets;
- The Rule’s original intent for limiting investments in hedge funds and private equity funds has been lost in the current proposal;
- The proposal is more like a concept release than a concrete proposal;
- The proposal’s conformance period should be given real meaning, as Congress intended;
- The proposal is unclear as to who should be regulating and enforcing the Volcker Rule; and
- The Rule’s benefits, as implemented in the proposed regulations, are likely to be dwarfed by the costs.
SIFMA’s full statement for the record can be found at the following link: http:/
government sponsored enterprises, asset managers group, congress, alliancebernstein, douglas peebles, securities industry and financial markets association, fixed income market, paul volcker, bond market, chief investment officer and head
News: U.S. Department Of The Treasury: Remarks By Assistant Secretary Mary J. Miller At The CFA Institute
1390 days ago,(2011/10/14) - News Articles
Thank you very much for the invitation to join you this afternoon. It is great to be with a group of fellow CFAs at a fixed-income management conference. The CFA Charter...
1027 days ago,(2012/10/12) - HFT Review
By Peter Chapman The Securities Industry and Financial Markets Association is opposing a plan by Nasdaq OMX Group to offer algorithmic trading services to its members. In ...
244 days ago,(2014/12/03) - Neonet Securities AB
Stockholm, 03 December 2014 – Neonet Securities, the independent agency broker and execution specialist, today announced that it has joined REDI’s broker netw...
379 days ago,(2014/07/21) - GFT.
GFT recognised for delivering ‘big data’ IT solution for Major Multinational Bank London, 21 July 2014 – GFT, one of the world’s leading IT solutions ...
1079 days ago,(2012/08/20) - HFT Review
Fueled by recent market snafus involving faulty execution and operations, the debate over the pros and cons of high-frequency trading has escalated in recent months. &ldquo...