American regulators plan to unveil the final version of the controversial Volcker Rule by year’s end, with some banks required to come into compliance soon after.
The Volcker Rule, a provision of the 2010 Dodd-Frank Act that prohibits banks from engaging in proprietary trading, is now a month past its deadline. A U.S. Treasury official said regulators have debated how to implement the rule and have had to sort through large volumes of public comment on the measure, Reuters reports.
Regulators first proposed a 300-page version of the rule in October, but the draft included hundreds of questions for public comment, an indication that the final rule could differ from the original proposal.
Uncertainty surrounding the rule and its implications has affected shares for banks that engage in large trade volume. Some analysts expect the rule to have a negative impact on the U.S. financial system, according to Reuters.
The Federal Reserve, the Securities and Exchange Commission, the Federal Deposit Insurance Corp., the Commodity Futures Trading Commission and the Office of the Comptroller of the Currency are working to finalize the rule.
Regulators have received approximately 18,000 comments on the rule.
Ben Bernanke, the chairman of the Federal Reserve, announced in February that regulators would not likely finish the rule before its initial deadline in July, though a definitive timeframe for completion has yet to be announced. Once the rule is finalized, banks will have until July 21, 2014, to come into compliance, Reuters reports.