Strategic Exchanges connects innovative markets to a select group of service providers that place a strong emphasis on impacts of regulatory change. Each consortium member provides services that offer unique views and solutions to help financial institutions navigate the new mandates.

Business and Compliance Requirements for U.S. and Foreign Banking Entities

by Ryan Surprenant

Stamford, Connecticut, February 24, 2014 – Woodbine Associates, the capital markets consulting firm, announces the release of a new report: “Volcker Rule Readiness Assessment.”

The report distills business and compliance requirements for U.S. and foreign banking entities under the Volcker Rule and provides actionable guidance in preparing for trading, covered fund investments, and other activities. This report provides a roadmap to facilitate their efforts.

“Banking entities must meet myriad baseline requirements that include development and implementation of a comprehensive compliance program, changes to corporate governance, refinements in management structure, new business practices, modified risk management and internal control measures, new compensation policies, and new reporting metrics,” says the report’s author Sean Owens. “The breadth and detail of these requirements will require substantial effort and necessitate changes far beyond the explicit requirements. This report is an invaluable tool for senior business and compliance personnel to use in their efforts.”

Key points include:
All banking entities active in U.S. capital markets face substantial new compliance requirements under the Volcker Rule.

Entities that engage in underwriting, market-making and hedging must develop and implement a comprehensive business and compliance framework that includes detailed policies and procedures for trading, risk management, internal control and oversight.

Multi-functional teams are essential for developing and implementing requirements due to the breadth and complexity of the new regulation.
Qualified external and independent analysis of business practices, policies, procedures, and internal controls is essential to ensuring compliance without business disruption.

Developing and deploying an effective compliance program requires banking entities to take comprehensive measures to assess regulatory and business requirements. Implementation will involve significant organizational change across multiple functional areas. Organizations must take immediate action owing to the breadth and complexity of the Rule.

Woodbine Associates is an independent capital markets consulting and research firm focused on strategic, regulatory, market structure, business, and technology issues facing firms active in the financial markets.

Sean Owens, Director of Fixed Income Research and Consulting, has more than a decade of OTC derivatives trading experience and is the author of this report.

For more information or to purchase, please contact:

Ryan Surprenant
Director of Sales and Relationship Management
Phone: 203-274-8970 ext 203