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WASHINGTON — A Democratic member of the Commodity Futures Trading Commission became the starting time regulator to oppose proposed changes to Volcker Dominion already issued by the Federal Reserve, Federal Eolith Insurance Corp. and the Part of the Comptroller of the Currency.

Rostin Behnam, the CFTC's only current Autonomous commissioner, announced his dissent a twenty-four hours before the Securities and Commutation Commission is set to become the final regulator to vote on the proposed changes to the proprietary trading ban. His opposition are unlikely to stop the SEC from issuing the plan, which is expected to be supported by the two Republican members of the lath.

"Unfortunately, the concerns I have outlined, and my exclusion from the procedure, leave me unable to back up this proposal," Behnam said about his vote. "I look forward to hearing from the commenters on my concerns and I'one thousand sure many others, and I hope that we can have a fulsome dialogue that leads to agreement on a sensible terminal rule."

He warned that the proposal'southward expansion of what constitutes chance-mitigating hedging activities potentially provides a method to evade oversight.

"Specifically here at the CFTC, we need to remember very carefully well-nigh how the definition of hedging activity in the proposal compares to our definitions of hedging activity in the context of other critical rules like the de minimis threshold or position limits," Behnam said.

He besides criticized the procedure for the proposal, maxim he was given little notice of it earlier voting on it at a coming together scheduled for Tuesday.

Though the proposal has been criticized by some Democratic lawmakers, it has been supported past other Democrats, including FDIC Chairman Martin Gruenberg and Fed Gov. Lael Brainard.

CFTC Chairman Chris Giancarlo and Republican Commissioner Brian Quintenz take both said they support the changes.

Giancarlo cited Old Fed Chairman Paul Volcker'southward support as part of his rationale for backing the proposal.

"Chairman Volcker said that he was proud of the rule that bears his name," Giancarlo said. "But he besides said told me that regulators should accept come with something more straightforward than what is currently in place, peculiarly for smaller banks. The amendments to the Volcker Rule in the proposal before us today accost that business concern. The proposal seeks to simplify and tailor the Volcker Rule to increase efficiency, rightsize firms' compliance obligations, and allow banking entities — particularly smaller ones — to more than efficiently provide services to clients."

The changes come as some Republicans in Congress are pushing for additional changes to the regulation, including giving the Fed full rulemaking authority over the regulation. That legislation could face up pushback from the other regulators, particularly the CFTC and SEC, which take their own jurisdiction over the rule.

Reporter, American Broker