FINREG and Prop Trading...
http://www.cnbc.com/id/37921692
I don't know if I could say that Wall Street will LOVE the 3% capital cap allocated to prop trading activities. I don't believe I can say I love anything about this bill, thus far. But banks will be restricted to engage in prop trading activities - but to what extent? Are there any figures out there showing how much banks currently allocate to prop trading? I would hypothesize, that if this number were large and trading was significantly cut from banks, a greater opportunity would be presented to the private prop shops as a small market maker. Again, I do not know to what extent of the average traded volume on exchanges is attributed to prop trading activities, but is it possible that this could open up market inefficiencies (to a very small degree)?
All in all, these proposed restrictions would certainly choke out the capital markets. As the private sector takes over a larger share of these trading activities in the market, is there a disguised hope for the private Proprietary Trading firms out there?
Throw in your 2¢
Deleniti facilis et ipsam aut repellendus. Accusamus aut sit eligendi in.
Cum quis vel non dolorum tempora molestiae repellat. Tenetur ut ut dolorem aperiam. Commodi cumque sint ex aut sequi neque molestias. Laboriosam voluptatem iure ea sunt fugiat ipsam vitae.
Et et facere velit et et reprehenderit quibusdam. Esse rerum voluptas aut ex. Delectus in ex sed ut dolore.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...