SIFMA today released the following statement from President and CEO Tim Ryan in reaction to the draft Volcker Rule proposal preamble that was recently made public.
“While we will continue to review this expansive draft proposal, upon first read it seems to reflect much consideration about how these businesses and markets work but it also seems to have some complex and potentially burdensome provisions that may impede Congress's stated intent to allow for traditional market making activities and the asset management alternative fund business.
“SIFMA’s primary concern is the potential negative impact of the proposed rule on market liquidity. Any restriction on the ability of financial institutions to make markets for different kinds of financial instruments will reduce market liquidity, capital formation and credit availability, thereby hampering economic growth and job creation. The document raises important questions related to the costs and burdens of complying with certain aspects of the proposal and SIFMA appreciates the opportunity to work with regulators to ensure proper economic analysis is undertaken.
"Importantly, we understand that this draft may be subject to revision before formal publication and we look forward to the full proposed rule. Given its magnitude and impact on U.S. markets, it will be subject to significant comment and hopefully consideration by the regulators to insure against undermining the depth, liquidity, and viability of U.S. financial markets”