JPMorgan (NYSE:JPM) has went a different route than its competitors concerning the rules against retaining a proprietary trading unit, as they announced they're going to close them all down, starting with their commodities trading unit.
Most other banks affected by the so-called Volcker rule, are shuffling things around, calling it a different name, and continuing on with business as usual.
Following up the closure of their commodity unit, JPMorgan will then shut down their fixed-income and equities proprietary trading division.
Proprietary trading is a bank using their own money to make deals, and not their clients'.
Showing posts with label Proprietary Trading. Show all posts
Showing posts with label Proprietary Trading. Show all posts
Wednesday, September 1, 2010
Thursday, August 5, 2010
Goldman Sachs (NYSE:GS) May Offload Proprietary Trading Desk
Now that the so-called Volcker rule has been included in the new financial reform legislation, Goldman Sachs (NYSE:GS) is thinking about responding by selling its proprietary trading business as one of its options.
Revenue from the unit reportedly accounted for about 10 percent of the revenue when the economic boom was at its highest levels. The assumption would be under normal economic conditions it accounted for about 5 to 7 percent of overall revenue. Goldman has never revealed how much the unit brings into the company.
No matter, a spokesman for Goldman said, "We're considering our options, but clearly we're going to comply with the legislation."
The proprietary unit is known as Goldman Sachs Principal Strategies (GSPS), and one option being considered is to place the division into an external fund, where Goldman funds would replace outside investors.
Another option would be to shut down the trading desk altogether, but that seems the least likely of directions Goldman will take.
Possibly the option that makes the most sense would be one in which the company places it into Goldman Sachs Asset Management. The reason for that making the most sense is it has transferred 50 percent of the unit there already several years ago.
Revenue from the unit reportedly accounted for about 10 percent of the revenue when the economic boom was at its highest levels. The assumption would be under normal economic conditions it accounted for about 5 to 7 percent of overall revenue. Goldman has never revealed how much the unit brings into the company.
No matter, a spokesman for Goldman said, "We're considering our options, but clearly we're going to comply with the legislation."
The proprietary unit is known as Goldman Sachs Principal Strategies (GSPS), and one option being considered is to place the division into an external fund, where Goldman funds would replace outside investors.
Another option would be to shut down the trading desk altogether, but that seems the least likely of directions Goldman will take.
Possibly the option that makes the most sense would be one in which the company places it into Goldman Sachs Asset Management. The reason for that making the most sense is it has transferred 50 percent of the unit there already several years ago.
Monday, May 3, 2010
Top Citigroup (NYSE:C) Proprietary Trader Quits
Jay Glasser, one of the leading proprietary traders at Citigroup (NYSE:C) has left the company for Nomura Holdings, citing concerns over the possible implementation of the Volcker Rule.
Proprietary trading is when a bank or financial institution uses its own funds to trade in.
For Glasser, his specialty was currency and derivative trades connected to interest rates in Japan. Reportedly he joined Normura last week.
If the Volcker rule were to become law, it would close down the proprietary trading units at banks.
Proprietary trading is when a bank or financial institution uses its own funds to trade in.
For Glasser, his specialty was currency and derivative trades connected to interest rates in Japan. Reportedly he joined Normura last week.
If the Volcker rule were to become law, it would close down the proprietary trading units at banks.
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