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Prop Trading Desks @ Foreign Banks in the US

smudge

Joined
1/2/08
Messages
9
Points
11
Hi all,

I'm working for a foreign investment bank in NYC, and the trading desk I work for is a proprietary trading business. I've heard that the Volker rule could ban all prop trading at all investment banks in the US. I know most of the US banks have closed their prop trading desks, but what about the foreign banks? I'm a little worried if this business will be allowed to continue under the proposed regulations. My experience is when they decide to shut down these businesses, they don't do it with much warning. I've been at my current role for less than a year, should I be looking for another job?

Please let me know your thoughts.
Thanks.
 
Shouldn't you basically more or less always be looking for another job when you work in the financial industry?
 
yes. if a foreign bank does trade in the US for prop purposes, it can still be subject to Volcker rule. Depends on counterparty and instrument. It is a bit draconian. Not sure if this will go through as there is a strong lobby.

but yes in some way or another foreign banks in US will be affected. In case you are interested, I spoke to some quants working for CS in NY and though CS is Swiss, the quants were affected by Volcker rule.

End of day, move to Canada or join a Hedge fund or take the fight to Volcker.
 
It shouldn't matter to you. The prop trading arm will probably be spun off from the bank as a hedge fund, provided it is doing well.
 
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