http://www.bearmarketcomparison.com/Bear-Market-Comparison-Unemployment-Rate.htm According to this chart we are due for another round of layoffs…
Agree if prop trading is not allowed in future, these banks will certainly let go their trading desk employees.
Wouldn’t they just spin off their prop trading divisions into CTAs and hedge funds?
pupdawg82 Wrote: ------------------------------------------------------- > Agree if prop trading is not allowed in future, > these banks will certainly let go their trading > desk employees. Yeah right they will sell them and then find a way to invest in them indirectly and avoid regulation by exploiting legal loppholes. ie minority interest in a special purpose entity financed with ABCP based in Bermuda structured as a LP. Also, who’s to say what is flow trading and what is prop trading? Its too subjective. If your Treasury desk shorts a bunch of long bonds, you could say they are prop betting on interest rates, but they could counter and say they are expecting to have to bid on a bunch of bonds soon and are hedging based on expected flows. Prop vs. client driven is too hard to define unless they are in separate areas of the bank.
1morelevel Wrote: ------------------------------------------------------- > pupdawg82 Wrote: > -------------------------------------------------- > ----- > > Agree if prop trading is not allowed in future, > > these banks will certainly let go their trading > > desk employees. > > > Yeah right they will sell them and then find a way > to invest in them indirectly and avoid regulation > by exploiting legal loppholes. ie minority > interest in a special purpose entity financed with > ABCP based in Bermuda structured as a LP. > > Also, who’s to say what is flow trading and what > is prop trading? Its too subjective. If your > Treasury desk shorts a bunch of long bonds, you > could say they are prop betting on interest rates, > but they could counter and say they are expecting > to have to bid on a bunch of bonds soon and are > hedging based on expected flows. Prop vs. client > driven is too hard to define unless they are in > separate areas of the bank. Yeah, I guess one job market is heading for boom … Lawyers.