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Report: Regulators to scrap short term trading assumption under Volcker Rule

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Report: Regulators to scrap short term trading assumption under Volcker Rule

The Federal Reserve and other federal regulators are planning to remove a short-term trading assumption under the Volcker Rule, Bloomberg reported May 15, citing three people with knowledge of the matter.

The move is part of the proposed revamp of the Volcker Rule, known as "Volcker 2.0," according to Bloomberg. The proposal would remove the assumption that trading positions held by banks for less than 60 days are speculative and should be banned.

Other reforms being considered include making it easier for banks to stockpile assets that customers may want to buy in the near term as well as reducing the compliance burden for smaller lenders, according to Bloomberg.

The regulatory agencies expect to release their proposed Volcker Rule revamp by the end of May. That date was confirmed by former Office of the Comptroller of the Currency head Joseph Otting, Bloomberg reported.