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Volcker rule done — now for the hard part

"Finalizing the "Volcker rule," one of the most complex and controversial provisions to come out of the 2010 Dodd-Frank law, is one thing.

"Enforcing it will be an entirely different challenge.

"After nearly two years of back-and-forth over the proposal, issued in October 2011, the five agencies responsible for the rule struck 11th-hour agreements that secured near-unanimous support for a single version of the rule — and with only weeks to spare before a year-end deadline set by the Obama administration.

"But regulators emphasized that the success of the trading crackdown, more so than many other Dodd-Frank rules, will lie in the day to day efforts to enforce its provisions and the ability of supervisors to adjust to new complexities as they arise in securities markets.

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"By leaving so much up to supervision, regulators have also put pressure on themselves to follow through when it comes to policing trading markets.

“'Make no mistake about it: Regulators now own the Volcker rule,' said Dennis Kelleher, president of Better Markets, a group that supports the Volcker rule. 'They have to aggressively enforce it, ensure it is complied with or answer for any future blowups.'”

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