The rule comes up when a trading desk at a banking entity (such as a bank or a bank holding company) buys and sells derivatives such as swaps. The question is whether a trade falls under the proprietary trading prohibition or is permitted as market making or hedging. You check this by applying the rule's requirements to the trade.

What kind of rule this is

The Volcker Rule requires banking entities to do two things. The first is not to engage in proprietary trading. The second is not to acquire or retain an ownership interest in, or sponsor, a hedge fund or private equity fund. Except as otherwise provided, the statute prohibits both1.

The Volcker Rule is part of Title VI of the Dodd-Frank Act (the Dodd-Frank Wall Street Reform and Consumer Protection Act, Public Law 111-203), which became law on July 21, 2010. One section of Title VI added a new section to the Bank Holding Company Act of 1956 (the BHC Act)2. In the United States Code, it is 12 U.S.C. § 18513. Title VII, which covers clearing, trade execution and reporting of derivatives, is covered in Dodd-Frank Act Title VII.

The statute directed the Financial Stability Oversight Council to study and make recommendations on implementing the section. The purposes of the study include promoting the safety and soundness of banking entities, limiting the transfer of federal deposit insurance and liquidity support to unregulated entities, and reducing conflicts of interest between a banking entity's own interests and those of its customers4.

Five agencies wrote the rule, each for the banking entities it oversees. For insured depository institutions, the statute says the federal banking agencies write the rule jointly. For companies that control an insured depository institution and similar entities, the Board of Governors of the Federal Reserve System (the Board) writes it. For an entity whose primary financial regulatory agency is the Commodity Futures Trading Commission (CFTC) or the Securities and Exchange Commission (SEC), each commission writes it5. The rule defines the federal banking agencies as the Board, the Office of the Comptroller of the Currency (OCC) and the Federal Deposit Insurance Corporation (FDIC)6.

The statute requires the agencies to consult with one another so that the rules are comparable. The Chairperson of the Financial Stability Oversight Council coordinates the rulemaking5.

The five agencies' rules have the same title and appear in different parts of the Code of Federal Regulations.

Agency Code of Federal Regulations Banking entities covered by the rule
OCC 12 CFR Part 44 National banks, Federal branches and Federal agencies, Federal savings associations, Federal savings banks, and their subsidiaries, among others7
Board 12 CFR Part 248 (Regulation VV) State member banks, bank holding companies, savings and loan holding companies, companies treated as bank holding companies under section 8 of the International Banking Act, and their subsidiaries, among others8
FDIC 12 CFR Part 351 Insured depository institutions for which the FDIC is the appropriate Federal banking agency, and some of their subsidiaries9
CFTC 17 CFR Part 75 Banking entities for which the CFTC is the primary financial regulatory agency10
SEC 17 CFR Part 255 Banking entities for which the SEC is the primary financial regulatory agency11

This section describes the rule using the Board's 12 CFR Part 248. The definitions of swap and security-based swap, and the roles of the CFTC and SEC, are covered in The Roles of the CFTC and SEC.

The text was checked as published on October 1, 2026 (last amended March 1, 2021)12.

Covered entities and transactions

Banking entities

Under the statute, a "banking entity" is an insured depository institution, a company that controls one, a company treated as a bank holding company under the International Banking Act, and an affiliate or subsidiary of any of these. The rule defines the term in the same way1314. The rule excludes the following from banking entities.

Excluded Condition
Covered fund When it is not itself an entity within the definition above
Portfolio company A company held under clause (H) or (I) of section 4(k)(4) of the BHC Act, or a portfolio concern controlled by a small business investment company, that is not itself a banking entity
FDIC When it acts in its corporate capacity, or as a conservator or receiver

An insured depository institution is excluded from the rule's definition of "insured depository institution" if it and every company that controls it have total consolidated assets of USD 10 billion or less, and total trading assets and trading liabilities of 5% or less of total consolidated assets15. This exclusion came in through an amendment that reflects the Economic Growth, Regulatory Relief, and Consumer Protection Act (EGRRCPA) changes to the statute, and the amendment took effect on July 22, 201916.

Proprietary trading and the trading account

The rule defines proprietary trading as engaging as principal for the trading account of the banking entity in any purchase or sale of one or more financial instruments17. A trading account is an account that meets any one of the following three tests18.

Test Content
Purpose test An account used to buy or sell positions principally for short-term resale, to benefit from short-term price movements, or to lock in short-term arbitrage profits, and an account used to hedge positions arising from such trading
Market risk capital rule test An account used to buy or sell covered positions under the market risk capital rule that are trading positions (or hedges of them)
Registered-dealer test An account used in connection with a business as a dealer, swap dealer or security-based swap dealer

The second test applies when the banking entity, or a consolidated affiliate, calculates risk-based capital ratios under the market risk capital rule. The third test applies when the banking entity is licensed or registered (or is required to be) for that business, and the same applies when that business is conducted outside the United States.

A banking entity to which the second test applies does not apply the first, purpose test. A banking entity that is not subject to the market risk capital rule may also choose to apply the second test19. Under the purpose test, a purchase or sale is presumed not to be for the trading account if the banking entity holds the financial instrument for 60 days or more and does not transfer substantially all of the risk within 60 days20.

Treatment of derivatives

In the rule, "financial instrument" means a security (including an option on a security), a derivative (including an option on a derivative), and a contract of sale of a commodity for future delivery or an option on one. It does not include a loan, or foreign exchange or currency itself21.

In the rule, "derivative" includes a swap as defined in the Commodity Exchange Act (CEA) and a security-based swap as defined in the Securities Exchange Act of 1934 (the Exchange Act). It also includes a commodity forward contract, a foreign exchange forward and a foreign exchange swap, among others. Transactions that the CFTC and SEC have jointly determined are not swaps, and some banking products defined by statute, are excluded from derivatives22.

For derivatives, "sale" and "purchase" are defined broadly. Transactions that extinguish rights or obligations, such as termination before maturity, assignment or exchange, are also treated as sales or purchases23.

The rule excludes the following purchases and sales from proprietary trading24.

Excluded transaction Main conditions
Repurchase and reverse repurchase agreements Agreements with the same counterparty, in writing, that commit to a purchase and a sale at the same time
Securities lending Under a written securities loan agreement, where the lender has the economic interest of an owner and the right to terminate the loan and recall the securities
Liquidity management Purchases and sales of securities, foreign exchange forwards, foreign exchange swaps and cross-currency swaps made principally for liquidity management under a documented liquidity management plan
Transactions in connection with clearing Transactions by a derivatives clearing organization or clearing agency in connection with clearing financial instruments, including a clearing member's correction of a customer's error and its handling of a customer's default
Customer-driven swaps and matched swaps Entered into at the same time, with the price risk borne by the banking entity limited to a minimum, and the banking entity not a registered dealer, swap dealer or security-based swap dealer
Transactions as agent, broker or custodian Transactions made solely as agent, broker or custodian

The rule also excludes purchases and sales to satisfy delivery obligations, purchases and sales under an employee benefit plan arrangement, collection of debts previously contracted, correction of errors, and others.

What the rule requires

Permitted activities

The statute lists "permitted activities" as exceptions to the prohibition25. The rule sets out those relating to proprietary trading as follows262728. The definition of trading desk is explained under requirements for market making and hedging.

Activity Section of the rule Main requirements
Underwriting 12 CFR 248.4(a) A position held as an underwriter in a distribution of securities
Market making-related activities 12 CFR 248.4(b) Activity in which a trading desk routinely quotes purchases and sales
Risk-mitigating hedging 12 CFR 248.5 A hedge that relates to individual or aggregated positions of the banking entity and is designed to reduce specific risks
Obligations of the United States, its agencies, and States and political subdivisions 12 CFR 248.6(a) Purchases and sales of obligations of the United States, obligations of US agencies and government-sponsored entities (such as GNMA, FNMA and FHLMC), and obligations of States and political subdivisions
Obligations of foreign governments 12 CFR 248.6(b) Separate conditions apply to trading in the United States by foreign bank-affiliated entities, and to trading by foreign affiliates of US banking entities
Trading on behalf of customers 12 CFR 248.6(c) Transactions as a fiduciary (with no beneficial ownership), and transactions in which the entity takes a customer's order and trades the opposite side for its own account (riskless principal)
Trading by a regulated insurance company 12 CFR 248.6(d) Purchases and sales for the general account or a separate account of an insurance company, in compliance with the insurance company investment laws of its State
Trading outside the United States by a foreign banking entity 12 CFR 248.6(e) Trading that meets the conditions, such as being conducted outside the United States under section 4(c)(9) or (13) of the BHC Act

For underwriting, the amount and type of the position must be designed not to exceed the reasonably expected near term demand of clients, customers and counterparties, and the entity must make reasonable efforts to reduce the position within a reasonable period. For market making-related activities, the trading desk must routinely stand ready to purchase and sell, with quotations, in commercially reasonable amounts throughout market cycles. The activity must be designed not to exceed the same near term demand. For both, compensation must not incentivize proprietary trading, and the entity must hold a license or registration.

The rule also permits trading by a qualifying foreign excluded fund29.

Even a permitted activity is not permitted if it falls within any of three cases. The first is a transaction, class of transactions or activity that would involve or result in a material conflict of interest with clients, customers or counterparties. The second is one that would result in a material exposure to high-risk assets or high-risk trading strategies. The third is one that would pose a threat to the safety and soundness of the banking entity or to the financial stability of the United States30. A material conflict of interest can be brought into a permitted form through clear and timely disclosure made in advance, or through information barriers31.

The order for judging the prohibition and its exceptions

Applying the conditions so far to a transaction one at a time gives the flow below.

YesNoDoes the banking entitytrade as principal?NotproprietarytradingYesNoIs it a purchase or saleof a financialinstrument?Not afinancialinstrumentYesNoIs it for the tradingaccount?NotproprietarytradingNoYesIs it an excludedtransaction, such as arepo?Excluded fromproprietarytradingNoYesIs it a case meeting apermitted activity?PermittedactivityexceptionIn principle, within theprohibition
Figure 1Questions, in order, for checking whether the proprietary trading prohibition applies
Figure description

The figure checks, through five questions in order, whether the proprietary trading prohibition applies. A no to questions 1 to 3 exits to the side where it is not proprietary trading (for question 2, not a financial instrument). A yes to questions 4 and 5 exits to an excluded transaction or a permitted-activity exception, and a no continues to the next question. If all are passed, the transaction is in principle within the prohibition. Transactions that are not permitted even within permitted activities and the covered fund restrictions are not included.

Consider a hypothetical example in which Bank E enters the three transactions below. An actual determination varies with the terms of the transaction and the agencies' practice.

In example 1, Bank E, a banking entity under the rule, buys and sells swaps in its trading account for its own account, mainly to earn profit from short-term price movements. The trades do not fill customer orders and are not hedges, and Bank E is assumed not to be a banking entity that uses the market risk capital rule. Because the main purpose is profit from short-term price movements, the trades meet the purpose test for the trading account. A swap is a derivative and so a financial instrument, and no facts make the trades an excluded transaction or meet the requirements of a permitted activity. The transaction can therefore in principle fall within the prohibition171821.

In example 2, Bank E's trading desk trades swaps in its trading account by routinely posting bid and offer quotes in response to customer demand. The desk is assumed to meet the requirements for market making-related activities (for example, quoting throughout market cycles, a design that does not exceed reasonably expected near term demand, compensation that does not incentivize proprietary trading, and a license or registration), and the other requirements as well. Because the activity meets the requirements of a permitted activity, it can fall within the exception for market making-related activities26.

In example 3, Bank E enters into a repo in its trading account with the same counterparty, under a written agreement that commits it to a purchase and a sale of a stated asset, at stated prices and on stated dates, at the same time. That commitment meets a condition of the transactions the rule excludes. The transaction can therefore be one that is excluded from proprietary trading24.

Requirements for market making and hedging

The requirements for market making-related activities apply to financial instruments. Because the rule's "financial instrument" includes derivatives, the requirements also apply when a trading desk acts as a market maker and keeps quoting swaps and similar instruments. Underwriting applies to distributions of securities32. Under the rule, a "trading desk" of a banking entity that is not subject to the market risk capital rule is the unit organized to implement a well-defined business strategy, operated subject to a common limit, and booking trades together. For a banking entity that is subject to the market risk capital rule, the unit that the banking entity or an affiliate establishes for the calculations under that rule is the desk33.

In these requirements, a "client, customer, or counterparty" is a market participant that uses the desk's market-making services. The desk of another banking entity with USD 50 billion or more in trading assets and liabilities, among others, is in principle not counted as a customer. The exceptions are when the desk documents why it treats that party as a customer, and anonymous trading on an exchange or similar venue where a wide range of participants can trade34.

A banking entity that establishes, implements, maintains and enforces internal limits for each desk, designed not to exceed the reasonably expected near term demand, is presumed to meet the requirement not to exceed that demand. The Board can rebut this presumption if it determines that the desk's activity is not based on the reasonably expected near term demand of clients, customers and counterparties. Taking corrective action as promptly as possible after a limit is exceeded is a condition for the presumption to continue. Both an excess over a limit and an increase of a limit must follow a written authorization procedure35. The banking entity keeps records of any limit that is exceeded and of any increase of a limit, whether temporary or permanent, and makes them available to the Board on request36.

The requirements for risk-mitigating hedging differ between banking entities with large trading assets and liabilities and those without.

The requirements for a banking entity with significant trading assets and liabilities (USD 20 billion or more) are as follows.

  • It has a compliance program that includes policies and procedures on the positions, techniques and strategies that may be used for hedging, internal controls, and independent testing.
  • At inception, the hedge is designed to reduce or significantly mitigate one or more specific, identifiable risks (such as market risk, credit risk including counterparty risk, currency or foreign exchange risk, interest rate risk, commodity price risk and basis risk).
  • The hedge itself does not give rise to a significant new risk that is not itself hedged contemporaneously, and it is subject to continuing adjustment.
  • Compensation does not incentivize proprietary trading.

The requirements for other banking entities are that, at inception, the hedge is designed to reduce or significantly mitigate one or more specific, identifiable risks, and that it is subject to continuing review and adjustment as needed.

A banking entity with significant trading assets and liabilities also has a documentation requirement for hedging transactions. It applies to a risk-mitigating hedging transaction that meets any of three conditions.

  • It is executed by a desk other than the desk that established the underlying position.
  • It is made using an instrument, technique or strategy that the policies of the desk holding that position do not specify.
  • It hedges aggregated positions of multiple desks.

For these, the entity documents, at the time of the transaction, the risk being reduced, the strategy, and the desk or business unit responsible for the hedge, and keeps the documentation for at least 5 years. This documentation is not required for a desk's routine use of instruments on a pre-approved list, within approved limits37.

Covered funds

The statute defines a hedge fund or private equity fund as an issuer that would be an investment company, as defined in the Investment Company Act of 1940, but for an exclusion from that definition38. The rule uses this definition for "covered fund" and adds certain commodity pools and certain foreign funds related to banking entities that have a US connection39.

The rule prohibits a banking entity from acquiring or retaining an ownership interest in, or sponsoring, a covered fund as principal, with exceptions. To "sponsor" is to serve as a general partner, managing member or trustee of the fund, to select or control a majority of its directors or similar persons, or to share the fund's name or a variation of it40. The restriction on a fund sharing a name with a banking entity was eased by the July 2019 amendments, so that a banking entity that is an investment adviser can use the same name under certain conditions16.

One permitted form is an investment in a fund that the banking entity organizes and offers. The investment by the banking entity and its affiliates must be reduced to 3% or less of the total number or value of the fund's ownership interests within 1 year of the fund's establishment (longer if the Board approves). The aggregate of all investments in covered funds cannot exceed 3% of the banking entity's Tier 1 capital. Funds that issue asset-backed securities are subject to a different provision41.

When a banking entity serves as the investment manager, investment adviser or sponsor of a covered fund, it generally cannot enter into a "covered transaction", as defined in the Federal Reserve Act, with that fund. As exceptions, for example, an investment in a fund that meets the rule's requirements and prime brokerage transactions that meet certain conditions are allowed. Another provision of that Act, on transactions with affiliates, also applies, with the banking entity treated as a member bank and the fund as its affiliate42.

Compliance program and reporting

A banking entity other than a banking entity with limited status or similar exceptions (including a qualifying foreign excluded fund) has a compliance program appropriate to the type, size and complexity of its activities43. The rule divides the requirements into three tiers by the size of trading assets and liabilities. Size is measured as the average of the total trading assets and trading liabilities, including those of affiliates and subsidiaries, at the end of each of the four most recent calendar quarters. Purchases and sales of obligations of the United States and its agencies, among others, are excluded from this calculation44.

Tier Trading assets and liabilities (four-quarter average) Requirements
Significant USD 20 billion or more (including when the Board designates the entity) A program that includes policies and procedures, internal controls, a management framework with clear responsibility, independent testing and audit, training, and records kept for at least 5 years45
Moderate Neither significant nor limited The existing policies and procedures can include references to the rule and be adjusted to the scale of the activities46
Limited Less than USD 1 billion (unless the Board designates otherwise) Presumed to comply with the rule, with no obligation to keep showing compliance47

In the significant tier, the chief executive officer (CEO) gives the Board a written attestation by March 31 each year. The Appendix A reporting is also due every quarter, within 30 days of the end of the quarter45. Even in the limited tier, the Board can rebut the presumption if an examination or similar review finds transactions that violate the rule47.

YesNoIs the four-quarteraverage of tradingassets and liabilitiesunder USD 20 billion?SignificantYesNoIs the same average underUSD 1 billion?ModerateLimited (presumed tocomply with the rule)
Figure 2Questions, in order, for deciding the compliance program tier
Figure description

The figure determines the compliance program tier from the four-quarter average of trading assets and liabilities. A no to the first question means the significant tier, a no to the second means the moderate tier, and a yes to both means the limited tier. Limited is the tier presumed to comply with the rule. A case where the Board designates the tier does not appear in the figure.

A foreign banking organization and its subsidiaries are measured by the combined trading assets and liabilities of their US operations44. The Board can require a banking entity that is not significant to meet the requirements for a moderate or significant banking entity, based on the size or complexity of its trading and investments or on the risk of evasion of the rule48.

The Appendix A reporting is a set of measurements by desk. The banking entity submits five measurements, namely internal limits and usage, value-at-risk, comprehensive profit and loss attribution, positions, and transaction volumes, together with trading desk information and identifying information for the measurements49.

A banking entity that finds an activity or investment that violates the rule must promptly terminate the activity and dispose of the investment once it finds it. For good cause, the Board can take any action the law permits, such as directing a restriction or termination of the activity or the disposal of the investment50.

Implementation and transition

The effectiveness of the statute, the effective date of the rule and the start of compliance are separate dates. The row for July 21, 2015 is the deadline for the conformance period after the Board's extension.

Date Type Event
July 21, 2010 Enactment The Dodd-Frank Act was enacted51
July 21, 2012 Statutory effectiveness The prohibitions and restrictions of section 13 took effect. The statute gave banking entities a conformance period of 2 years from that date (to July 21, 2014)52
January 31, 2014 Federal Register publication The final rule of the OCC, the Board, the FDIC and the SEC (79 FR 5536) and the final rule of the CFTC (79 FR 5808) were published53
April 1, 2014 Rule effective The 2013 final rule took effect53
July 21, 2015 Conformance period deadline (after extension) The Board extended the conformance period by 1 year, in a separate order issued alongside the final rule52
July 22, 2019 Rule effective The amendments reflecting the Economic Growth, Regulatory Relief, and Consumer Protection Act took effect16
January 1, 2020 Rule effective The amendments published in the Federal Register on November 14, 2019 took effect for the OCC, the Board, the FDIC and the CFTC. For the SEC, they took effect on January 13, 202054
October 1, 2020 Rule effective The amendments to the covered fund provisions, published in the Federal Register on July 31, 2020, took effect55
January 1, 2021 Compliance date The compliance date for the November 2019 amendments (84 FR 61974)54

The July 2019 amendments (84 FR 35008) specify no compliance date. Until January 1, 2021, the 2013 rule remained in effect as Appendix Z. Voluntary early compliance was also permitted, subject to the agencies' technical readiness54.

The statute provides that this rule takes effect on the earlier of 12 months after the final rules are issued and 2 years after enactment. The conformance period lasts 2 years from the effective date, and the Board can extend it by 1 year at a time, for a total of 3 years. For illiquid funds, the Board can grant one extension of up to 5 years, for the purpose of meeting a contractual obligation in effect on May 1, 201056.

The November 2019 amendments tailored the compliance program requirements to the size of trading activity. The enhanced requirements in Appendix B of the 2013 rule were eliminated. The CEO attestation is required only for banking entities with significant trading assets and liabilities, and some of the metrics to be collected were eliminated57.

Practical implications

The rule adds burdens such as running limits for each desk, documenting hedges, and submitting the Appendix A metrics. A desk that exceeds a limit keeps the presumption that it meets the near term demand requirement only if it acts as promptly as possible to bring the desk back into compliance and follows the written authorization procedure. Keeping and providing records of exceeded limits and limit increases is a separate requirement3536. A banking entity with significant trading assets and liabilities also faces documentation of certain hedging transactions and submission of the Appendix A metrics375845.

What this page does not cover

This page does not cover a comparison of the rules of the OCC, FDIC, CFTC and SEC (12 CFR Parts 44 and 351 and 17 CFR Parts 75 and 255) with the Board's Part 248. This page does not cover extensions of the conformance period after July 21, 2015.

Notes

  1. Public Law 111-203, section 619, adding BHC Act section 13(a)(1)(A) and (B) (124 Stat. 1620). ↩

  2. Public Law 111-203, section 619, adding BHC Act section 13 (Title VI; 124 Stat. 1620 to 1631). The date of enactment is from the note at the beginning of the Act and the closing line "Approved July 21, 2010". ↩

  3. 12 CFR 248.1(a). The rule cites the section as 12 U.S.C. 1851. ↩

  4. Public Law 111-203, section 619, adding BHC Act section 13(b)(1)(A) through (G) (124 Stat. 1621). ↩

  5. The same section 13(b)(2)(A) and (B)(i) through (iii) (124 Stat. 1621 to 1622). ↩ ↩2

  6. 12 CFR 248.2(m). ↩

  7. 12 CFR 44.1(c). The authority is in the Authority field of Part 44. ↩

  8. 12 CFR 248.1(a) and (c). ↩

  9. 12 CFR 351.1(c). ↩

  10. 17 CFR 75.1(c). ↩

  11. 17 CFR 255.1(c). ↩

  12. eCFR amendment history (Title 12, Part 248). The latest amendment_date for the Part 248 entries is 2021-03-01 (history retrieved on October 3, 2026). ↩

  13. Public Law 111-203, section 619, adding BHC Act section 13(h)(1) (124 Stat. 1629). The International Banking Act reference is to its section 8. ↩

  14. 12 CFR 248.2(c)(1) and (2). ↩

  15. 12 CFR 248.2(r)(2). ↩

  16. 84 FR 35008 (July 22, 2019), Summary and Dates ("These final rules are effective on July 22, 2019."). ↩ ↩2 ↩3

  17. 12 CFR 248.3(a). ↩ ↩2

  18. 12 CFR 248.3(b)(1)(i) through (iii). The market risk capital rule is defined in 12 CFR 248.3(e)(11) and (12) (12 CFR Part 3 for the OCC, Part 217 for the Board and Part 324 for the FDIC). ↩ ↩2

  19. 12 CFR 248.3(b)(2)(i) and (ii). ↩

  20. 12 CFR 248.3(b)(4). ↩

  21. 12 CFR 248.3(c)(1) and (2). ↩ ↩2

  22. 12 CFR 248.2(h)(1)(i) through (vi) and (2)(i) and (ii). The definitions are those of CEA section 1a(47) and Exchange Act section 3(a)(68). ↩

  23. 12 CFR 248.2(w) and (z). ↩

  24. 12 CFR 248.3(d)(1), (2), (3), (4), (5), (7) and (11). The other exclusions are in (6), (8) through (10), (12) and (13). ↩ ↩2

  25. Public Law 111-203, section 619, adding BHC Act section 13(d)(1)(A) through (J) (124 Stat. 1623 to 1626). ↩

  26. 12 CFR 248.4(a)(2) and (b)(2). ↩ ↩2

  27. 12 CFR 248.5(a). ↩

  28. 12 CFR 248.6(a), (b), (c), (d) and (e). ↩

  29. 12 CFR 248.6(f). ↩

  30. 12 CFR 248.7(a)(1) through (3). The statutory basis is BHC Act section 13(d)(2)(A). ↩

  31. 12 CFR 248.7(b)(2)(i) and (ii). ↩

  32. 12 CFR 248.4(b)(2)(i), (ii), (4) and (5). That derivatives are financial instruments is in 12 CFR 248.3(c)(1)(ii). ↩

  33. 12 CFR 248.3(e)(14). ↩

  34. 12 CFR 248.4(b)(3)(i)(A) and (B). How trading assets and liabilities are measured is in 12 CFR 248.2(ee). ↩

  35. 12 CFR 248.4(c)(1) through (4). ↩ ↩2

  36. 12 CFR 248.4(c)(3)(i) and (ii). ↩ ↩2

  37. 12 CFR 248.5(b)(1), (b)(2) and (c)(1) through (4). ↩ ↩2

  38. Public Law 111-203, section 619, adding BHC Act section 13(h)(2) (124 Stat. 1630). The exclusions are Investment Company Act section 3(c)(1) and (c)(7). ↩

  39. 12 CFR 248.10(a)(1) and (b)(1)(i) through (iii). ↩

  40. Public Law 111-203, section 619, adding BHC Act section 13(h)(5) (124 Stat. 1630). ↩

  41. 12 CFR 248.12(a)(2)(i) through (iii). The statutory basis is BHC Act section 13(d)(4)(B)(ii). ↩

  42. 12 CFR 248.14(a)(1), (2) and (b). Covered transactions are in Federal Reserve Act section 23A, and the other provision on transactions with affiliates is section 23B. The statutory basis is BHC Act section 13(f)(1) and (2). ↩

  43. 12 CFR 248.20(a). ↩

  44. 12 CFR 248.2(ee)(1), (2), (3) and (s)(1) and (3). The excluded purchases and sales are in 12 CFR 248.6(a)(1) and (2). ↩ ↩2

  45. 12 CFR 248.20(b)(1) through (6), (c) and (d)(1) and (2). ↩ ↩2 ↩3

  46. 12 CFR 248.20(f)(2). ↩

  47. 12 CFR 248.20(g)(1) and (2). The definition of limited is in 12 CFR 248.2(s)(1). ↩ ↩2

  48. 12 CFR 248.20(h). ↩

  49. 12 CFR Part 248 Appendix A, I, items 1 through 3 ("Quantitative measurements", "Trading desk information", "Quantitative measurements identifying information"). ↩

  50. 12 CFR 248.21(a) and (b). ↩

  51. Public Law 111-203, the note at the beginning ("July 21, 2010") and the closing line "Approved July 21, 2010." ↩

  52. 79 FR 5536 (January 31, 2014), the part of the text that describes the conformance period (79 FR 5540, notes 19 through 21). The Board's separate order is the order cited in note 21. ↩ ↩2

  53. 79 FR 5536 and 79 FR 5808 (January 31, 2014), Dates ("The final rule is effective April 1, 2014."). ↩ ↩2

  54. 84 FR 61974 (November 14, 2019), Dates (Effective date and Compliance date). ↩ ↩2 ↩3

  55. 85 FR 46422 (July 31, 2020), Summary and Dates ("The final rule is effective October 1, 2020."). ↩

  56. Public Law 111-203, section 619, adding BHC Act section 13(c)(1), (2) and (3) (124 Stat. 1622 to 1623). ↩

  57. 84 FR 61974, the part of the text that describes the compliance program requirements (elimination of the enhanced requirements in Appendix B, limiting the CEO attestation to entities with significant trading assets and liabilities, and the changed requirements for collecting metrics). ↩

  58. 12 CFR Part 248 Appendix A, the section on frequency and format of reporting ("A banking entity must calculate any applicable quantitative measurement for each trading day..."). ↩ ↩2

  59. 12 CFR 248.20(g)(2) and (i)(1) through (4). ↩