The Commodity Futures Trading Commission will begin working on its own version of the Volcker rule despite an order to work with other agencies, according to a CFTC commissioner.
Section 619 of the Dodd-Frank Act instructed the CFTC to draft language that would prohibit banks from engaging in proprietary trading, as well as owning, sponsoring or investing in hedge funds and private equity funds, according to Risk.net.
Jill Sommers, a commissioner at the CFTC, said that the commission will publish its own rule for consultation.
A 298-page proposed rule was issued by several financial regulators on Oct. 11. While the CFTC was not listed as a participant in that particular rule-making effort, the Federal Reserve said that CFTC staff had been consulted.
Sommers confirmed that the CFTC helped with the proposal but said little progress has been made so far, according to Risk.net.
"We do not have any Volcker rule language as yet, but it is this commission's intention to craft its own Volcker rule and put it out for comment,” Sommers said, Risk.net reports. “I am not exactly sure about the authority [of the CFTC], but I do know that it has always been on our agenda from the very beginning of the Dodd-Frank process that we would put forward our own Volcker rule.”
The four agencies responsible for writing the rule issued in Oct. said that the CFTC’s version would likely be similar to their own.