Last year, the financial services regulators responsible for the Volcker Rule regulations (the Federal Reserve Board, the Securities and Exchange Commission, the Office of the Comptroller of the Currency and the Commodity Futures Trading Commission, collectively, the agencies) issued final rules revising the proprietary trading restrictions the Volcker Rule places on certain banking entities (the 2019 Rule). (See The New York Law Journal, Sept. 9, 2019, “How will latest changes to Volcker Rule affect non-U.S. banks?).

On Feb. 28, the agencies published a Notice of Proposed Rulemaking (NPRM) proposing changes to the “covered funds” prong of the Volcker Rule. (See The New York Law Journal, March 20, 2020, “The “Covered Funds” Side of Volcker: Is there a benefit for international banks?”). On June 25, the agencies announced they had finalized the revisions. This month’s column will discuss some of the final rule’s provisions that might be of most interest to non-U.S. banking organizations.