I want to clarify this language would allow banks to maintain an appropriate dealer inventory and residual risk positions, which are essential parts of the market making function. Without that flexibility, market makers would not be able to provide liquidity to markets.
Evan Bayh: “I want to clarify this language would allow banks to maintain an appropriate dealer inventory and residual risk…”
Editor's note · Context
The speaker is discussing the implications of the Volcker Rule on banking entities and market making activities.
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