SIFMA today released the following statement from Tim Ryan, president and ceo after the Commodity Futures Trading Commission’s adoption of a proposal implementing the Volcker Rule.
“As with the earlier proposal from the other regulators, today’s CFTC proposal addressing the Volcker Rule is complex and has the potential to have a major impact on liquidity in markets. It could inhibit the ability of financial institutions to effectively make markets which will, in turn, hurt capital formation. Indeed, a recent Oliver Wyman study showed the Volcker Rule, as proposed, could cost investors between $90 and $315 billion in one-time costs in the corporate bond market alone. Additionally, corporate issuers might incur $12 to $43 billion in incremental borrowing costs over time. As the CFTC moves forward with this proposal, we hope that they will dedicate themselves to working closely with the other regulators that have jurisdiction in implementing the Volcker Rule.”
