The Volcker Rule prohibits banks from using their own accounts for short-term trading in securities, derivatives and commodity futures, as well as options on any of these instruments.
On June 25, 2020, Federal Deposit Insurance Corporation (FDIC) officials said the agency will ease the restrictions of the Volcker Rule, allowing banks to more easily make large investments in venture capital and similar funds.
The main criticism of the Volcker rule is that it will reduce liquidity due to the reduction in market operations of banks.