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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.


"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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