WASHINGTON — One definite impact that the Volcker Rule will have on the derivatives industry is in the commodities area, Federal Reserve Board governor David Tarullo said Thursday, though he stressed the amount of derivatives banks currently hold that will have to be “pushed out” is “relatively small.”

During a hearing before the Senate Banking Committee, Tarullo was asked if the controversial Volcker Rule and its ban on proprietary trading would have any impact on currently high gasoline prices.

“The derivatives 'push out’ rule is where you are probably going to see the effect here. … I had mentioned earlier that there was a relatively small proportion of derivatives that would need to be pushed out of most national banks, but commodities is one of those areas,” Tarullo said. “So if there is an effect, that’s probably where you are going to see it.” 

With respect to the deadline for regulators to implement the Volcker Rule, Tarullo said: “There is obviously a real possibility that we don’t meet the July 21 date, although I personally think we should keep trying to do so.”

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