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.
Its adoption of Imagine includes both risk and portfolio managers based in Tokyo and Singapore, trading through Shenton Structured Projects Pte Ltd ("Shenton"), SBI's public markets proprietary desk.
He traded options and exotics at HSBC in New York from 2005 to 2006 and traded at the proprietary desk for Greenwich Capital Markets (GCM) for four years prior to that.
With the mandates of Reg NMS on the horizon, large asset managers and pension funds, for example, no longer can ignore the fiduciary consequences of receiving poor execution by sending their orders to a proprietary desk algorithm - particularly VWAP, which is one of the easiest to pick apart.
The report also identifies seven internal market drivers; buy-side concerns, including reducing fragmentation, proprietary desk involvement, gaming in the crossing world and delayed market implementation; four broker roadblocks; and the vendor landscape comprised of internal development, vendors Headstrong and Lava Trading and OMS vendors.
Although we continue to incur expenses due to the expansion of our proprietary Desk Top Loan Origination Terminals, designed to create a network of electronic loan production offices in real estate brokerages nationwide, I believe we will show improved operating results in the near future.
CedarKnight will operate more akin to bank proprietary desks in accessing better price arbitrage.
Prior to the crisis, many midsize enterprises had access to finance from non-traditional funding sources such as mezzanine funds, proprietary desks of investment banks, and special funds.
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.
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.
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.