MNI: Fed Announces New Trading Rules For Senior Officials

The Federal Reserve announced new rules restricting investment trading activity among senior central bank officials in the wake of a trading scandal that saw two high profile resignations by regional bank presidents.

The rules will prohibit senior officials from buying and selling individual stocks and sector funds, and from holding investments in individual bonds, agency securities, cryptocurrencies, commodities or foreign currencies. Officials are also forbidden from entering into derivatives contracts and short sales, or purchasing securities on margin.

“Purchases and sales also will be prohibited during periods of heightened financial market stress,” the board said in a statement. “Reserve Bank presidents will be required to publicly disclose securities transactions within 30 days, as Board members and senior Board staff currently do.”

The changes “aim to support public confidence in the impartiality and integrity of the Committee’s work by guarding against even the appearance of any conflict of interest,” the Fed’s board said in a statement.