Proprietary trading


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Proprietary trading

Principal trading in which firm seeks direct gain rather than commission dollars.

Proprietary Trading

The act or practice of an investment bank conducting trades on its own account, rather than on behalf of a client. Proprietary trading has three primary benefits. First, it allows the investment bank to profit on its own instead of simply collecting commissions and fees from clients. Secondly, it lets the bank build an inventory of securities. This can be useful if a client places an order for the securities in an illiquid market. In such a situation, the investment bank can fill the order from its own inventory. Finally, proprietary trading allows the bank to make a market when it is assigned to ensure the liquidity for a given security.
References in periodicals archive ?
HTG Capital Partners, LLC, a proprietary trading firm, has rebranded itself as Hehmeyer Trading + Investments, the company said.
Raytcheva most recently ran a proprietary trading desk at the New York bank and is to open her own hedge fund.
The Financial Industry Regulatory Authority's board approved proposed changes Thursday to FINRA's Communications With the Public Rules, as well as amendments to the Trading Activity Fee for firms with no customers that are engaged solely in proprietary trading activity for their own accounts.
14 January 2015 - US-based broker dealer T3 Trading Group, LLC purchased the trader base of fellow NASDAQ OMX PHLX member firm WTS Proprietary Trading Group, LLC during 4Q14, the company said on Wednesday.
Instead, Britain should use the threat of capital add-ons or other tools to bear down on any bank that shows signs of proprietary trading, said the Parliamentary Commission on Banking Standards (PCBS).
Global Banking News-February 10, 2011--MS may opt to move proprietary trading unit to client trading(C)2011 ENPublishing - http://www.
Hong Kong Acquisition of proprietary trading desks of banks by private equity firms could pose serious regulatory hurdles as transparency levels in private equity are far below the listed firms and banks, said leading market regulators at the Asian Financial Forum yesterday.
The Financial Stability Oversight Council (FSOB), the US supervisory body created by the Dodd-Frank Act, has unveiled tough new guidelines to ensure banks do not engage in proprietary trading and limit their investment in the hedge funds or private equity funds.
RESTRICTION ON PROPRIETARY TRADING BY DESIGNATED FINANCIAL HOLDING COMPANIES.
According to a person close to the firm, Goldman Sachs is ceasing proprietary trading in one type of structured debt.
NEW YORK: President Barack Obama s economic adviser, Paul Volcker, said his proposed banking rules would force Goldman Sachs and other banks to give up their bank charters if they want to continue proprietary trading.
Restructuring could include clear separation between retail deposit taking business and businesses involved in proprietary trading activities, with the latter able to fail even if the former were supported in crisis conditions," the FSA said.