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Volcker could hurt bond markets, says Sifma

13 January 2012


The Securities Industry and Financial Markets Association has cautioned that the Volcker Rule could have a negative impact on global bond markets. Annabelle Palmer reports

Read more: Securities Industry and Financial Markets Association Volker rule Sifma

The impact of the Volcker Rule on the functioning of global bond markets is one of the main concerns for the Securities Industry and Financial Markets Association (Sifma) in 2012.

Sifma has previously warned that an overly restrictive implementation of the Dodd Frank rule which attempts to prohibit proprietary trading, would artificially limit the ability of banks to facilitate trading, hold inventory at levels sufficient to meet investor demand and actively participate in the market as market makers – thereby reducing liquidity across a wide spectrum of asset classes.

At Sifma’s ‘State of the Industry’ for 2012 in New York this week, discussion...