Effective May 1, senior U.S. Federal Reserve officials will be prohibited from the purchase of individual stocks, bonds, agency securities, foreign currencies, commodities, sector funds and cryptocurrencies.
The comprehensive new investment and trading activity rules that were initially announced in October apply only to senior Fed officials. However, expectations are that lower ranked employees will also become subject to the guidelines.
Current Fed officials will have a transitory period of one year to get rid of all impermissible holdings, following Friday’s formal order that included cryptocurrencies to the rules imposed last year.
Friday’s order also mandates a 45 days non-retractable notice for purchases and sales of securities, and requires investments to be held for a minimum of one year. It will also be prohibited to trade during (undefined) periods of heightened market stress.