The new language, which clarifies the Volcker
rule's definition of trading solely outside the United States,
ensures that banking giants such as Deutsche Bank AG and
Barclays Plc are not an exception to the regulation's ban on
proprietary trading, according to the report, which cited
sources briefed on the change.
Gensler and the CFTC were not immediately available to comment
The CFTC was earlier sued by three Wall Street trade groups to
fight the tough overseas trading guidelines and accused it of
making changes to the guidelines without seeking public input.
The Volcker rule is a particular section of the Dodd-Frank Wall
Street Reform and Consumer Protection Act, designed to ban U.S.
banks from making proprietary investments by separating their
Gensler has been concerned that the foreign provisions in the
Volcker rule need to be tightened to avoid another "London
Whale," the report said.
The London Whale debacle involved JPMorgan Chase & Co losing
$6.2 billion because of risky bets in derivatives by employees
of its London office.
Three U.S. regulators — U.S. Federal Reserve and two other
finance watchdogs — have called for meetings to vote on the
Volcker rule. A total of five agencies need to approve the rule.
(Reporting by Devika Krishna Kumar in
Bangalore; editing by Lisa Shumaker)
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