SEC's Paredes calls for reproposed Volcker rule WASHINGTON (Reuters) - A key U.S. securities regulator on Friday called for a "re-proposal" of a controversial ban on banks' proprietary trading, saying he fears a rush to implement it could cause major harm to U.S. markets. "If the proposed rule changes as much as I believe it needs to at this point, the responsible course for us to follow would appear to be a re-proposal," said Troy Paredes, a commissioner at the U.S. Securities and Exchange Commission. Paredes, a Republican, was speaking about the so-called Volcker Rule, a provision in the Dodd-Frank Wall Street overhaul law that would restrict proprietary trading by banks and also limit their investments in hedge funds. Regulators were recently flooded with thousands of comment letters about the proposal, many of which were strongly opposed to the plan. Reporting By Sarah N. Lynch; Editing by Gerald E. McCormick