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Can you summarize 12 CFR Part 248?
BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM > PROPRIETARY TRADING AND CERTAIN INTERESTS IN AND RELATIONSHIPS WITH COVERED FUNDS (REGULATION VV)
Short Summary
The provided legal document content consists of multiple documents related to proprietary trading and certain interests in and relationships with covered funds. The documents are issued by the Board of Governors of the Federal Reserve System and are part of the Code of Federal Regulations. The main focus of these documents is to regulate and prohibit proprietary trading by banking entities. Proprietary trading refers to engaging as principal in the purchase or sale of financial instruments for the trading account of the banking entity. The documents provide definitions for trading account, financial instruments, and other related terms. They outline various exceptions to the prohibition on proprietary trading, including trading in domestic and foreign government obligations, trading on behalf of customers in certain transactions, and trading activities of regulated insurance companies, foreign banking entities, and qualifying foreign excluded funds. The documents also address permitted underwriting and market making-related activities of banking entities, setting forth requirements and emphasizing the need for internal compliance programs and appropriate compensation arrangements. Additionally, the documents govern the risk-mitigating hedging activities of banking entities, specifying requirements for entities with significant trading assets and liabilities, as well as documentation requirements. The importance of compliance and record-keeping is emphasized throughout the documents. However, no specific penalties for non-compliance or violation are mentioned in the provided legal document content.
Whom does it apply to?
State member banks, bank holding companies, savings and loan holding companies, other companies that control an insured depository institution, foreign banking organizations, and certain subsidiaries thereof
What does it govern?
Proprietary trading and certain interests in and relationships with covered funds
What are exemptions?
Entities that are not within the definition of a banking entity as defined in 248.2(c)
What are the Penalties?
No specific penalties for non-compliance or violation are mentioned in the provided legal document content.
Jurisdiction
U.S. Federal Government