Commodity desks breathe sigh of relief over Volcker
US banks say their initial concerns over the Volcker rule of Dodd-Frank have turned to relief, as the rule's drafting allows them to continue making markets in commodity derivatives
Despite early worries that the Volcker rule would stifle the ability of US banks to trade commodities, the rule's actual impact on Wall Street commodity businesses will be much more modest than some market participants initially feared, according to senior traders.
"Things are not as bad on the Volcker front as they first seemed," says one New York-based source at a major commodity derivatives dealer.
The Volcker rule, which was required as part of the US Dodd-Frank Act and finalised in December
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