Question about Trading in regards to Volcker rule
I intern at a BB market risk department and I have a few questions about trading:
My understanding is that Volcker rule forbids prop trades so why do traders hold directional exposure? Shouldn't all positions be hedged flat? How does the desk generate PL besides commission (b/a spread)?
In the case that traders are actually making bets, why wouldn't they all move to prop trading firms since there are fewer restrictions?
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