More recently Guggenheim has made a significant amount of hires in its proprietary trading division.
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The implementation of regulations restricting proprietary trading activities will also likely hinder asset growth.
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In reaction, they are building their proprietary trading capabilities to stave off the exodus of talent.
One is proprietary trading, in which they bet their own capital on movements in the markets.
Treasury put out a statement today talking about wanting limits for banks on proprietary trading.
One way to do that is to outsource proprietary trading to a hedge fund.
Nor are they happy with some parts of the Dodd-Frank bill regarding derivatives, proprietary trading, and capital.
More specifically, the most sticking inclusions in the Volcker Rule is the complete ban on proprietary trading.
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But Mr Darling told MPs that "most British banks don't actually engage in that much proprietary trading".
His team of 30 traders and salesmen are marketmakers, but they almost never engage in proprietary trading.
The back story is this: For years, these firms were known as proprietary trading groups, or prop shops.
Goldman, the most profitable trading operation on the Street, attributes a mere 10% of revenues to proprietary trading.
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One of the tricks to implementing the Volcker rule will be in interpreting what exactly proprietary trading is.
Dresdner's investment bank will not be the only one to slim down riskier activities such as proprietary trading.
Indeed, regulators might ask whether such institutions should be allowed to indulge in risky proprietary trading at all.
The firm is adamant that there is no conflict, because it closed its proprietary trading arm last October.
Soft dollar and proprietary trading, securities lending, foreign exchange and custody arrangements are additional issues in need of review.
Chi-X Global, a subsidiary of Instinet, recently received a proprietary trading system license from the Japan Financial Services Agency.
Is proprietary trading with customer benefits, is that still allowed under this proposal?
Financial Regulations need to separate proprietary trading from banks that take consumer deposits.
The bank claims that it does not engage in proprietary trading and that it purchases derivatives solely to hedge.
It addresses proprietary trading of all kinds of financial instruments, including derivative instruments.
Proprietary trading and investments accounted for two-thirds of the firm's revenues in 2007.
Incremental Capital and Schottenfeld Group are proprietary trading firms that specialize in putting on short and long positions in stocks.
"We do think the Volcker rule address a core concern we had with proprietary trading by banking entities, " says Barr.
Other market participants, such as the proprietary trading desks of banks, may withdraw, further thinning the ranks of the competition.
The delay of Volcker Rule allows financial companies to use proprietary trading to transfer their financial risks to their customers, e.g.
That would apply to owning hedge funds, owning private equity funds, and proprietary trading that is not for any client-related business.
Early commentary also distinguishes this case from those involving larger institutions that cannot engage in proprietary trading as a result of Dodd-Frank.
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The main impact will be on proprietary trading, the desks that attempt to profit from market movements with the bank's own money.
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