Proprietary Desk

Proprietary Desk

A group of traders that invest an investment bank's own capital, rather than the capital of the bank's clients. Proprietary desks may engage in high-risk transactions that can lead to large gains for the bank.
References in periodicals archive ?
According to the SEC, market-making stock traders at brokerage firm Merrill Lynch regularly shared confidential investor information with traders on its proprietary desk to trade securities for the firm's own benefit from 2003 to 2005.
QuantHouse provides trading solutions including ultra-low latency market data, algo trading development frameworks, proximity hosting and order routing to hedge funds, market makers, proprietary desks, brokers and sell-side firms.
QuantHouse provides end-to-end systematic trading solutions including ultra-low latency market data, algo trading development frameworks, proximity hosting and order routing to hedge funds, market makers, proprietary desks, brokers and sell-side firms.
The move comes as the bank prepares to comply with the mandate to shut down proprietary desks, which use the bank's own capital to trade.
These include ultra-low-latency market data technologies, Automated Trading Platform, trading infrastructure and order routing services to help hedge funds, proprietary desks and low-latency-sensitive sell side firms to take the lead.
Bank of America Merrill Lynch is one of a number of firms that are reported to have take steps to wind down or adapt their proprietary desks ahead of the Volcker Rule along with Goldman Sachs, J.P.
"Retail investors are strong sellers, which is shown by many of the small- to mid-cap stocks doing particularly badly, while the proprietary desks at foreign institutions are also selling.
Scott Powell, CUNA Mutual Group general account, managing director, said there were a number of things "when taken together, spun the trading systems into a tornado that fortunately recovered rather quickly." One factor was the high-volume, high-speed flash trading algorithms that try to skim tenths and hundredths of pennies on trading opportunities and are conducted only by very large Wall Street institutions, bank proprietary desks and hedge funds.
A 14-year veteran of Bear Stearns, he also worked at the Newedge Group, where he covered hedge funds and bank proprietary desks.
Market makers and proprietary desks are primarily drawn to lit pools as they require price discovery, while buy side firms tend to favour dark pools, says Lee Hodgkinson, CEO of dark venue NYSE Euronext-owned SmartPool.
In his new role he will cover hedge funds, insurance companies, asset managers, bank proprietary desks and bank credit portfolio management teams, and will report to Patrick McKee.