On Oct. 17, FIA submitted a comment letter responding to amendments to the Volcker Rule proposed by U.S. banking regulators and market regulators in July. The letter focused on a section of the proposed amendments that relates to clearing services provided by a bank to hedge funds and private equity funds that are serviced by a bank affiliate acting as, for example, an investment manager, investment adviser, commodity trading advisor, or sponsor to the funds. The letter sought to clarify that this type of clearing service is not the type of activity that was intended to be prohibited by the rule, and expressed FIA's support for a rulemaking by the Commodity Futures Trading Commission to allow all banks to provide clearing services to funds that are customers of affiliates.
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FIA responds to Volcker Rule consultation, urges greater legal certainty for clearing services