Chicago is experiencing a mini-boom in new, small prop shops, says Fintan Quill.
Regulation today is having a profound influence on the
global business landscape. Many of the stories in today's news
are about market volatility, fragmentation and difficulties
facing today's financial markets including whether regulation
has helped or hurt in improving the economy in the face of the
global financial crisis. Amidst the chaos, one regulation in
particular, is bringing about innovation and new business
opportunities - in Chicago.
The Volcker Rule, which is part of the larger Dodd
Frank Financial Reform Act, bans the practice of proprietary
trading at banks. As such, as banks now have to dispose of this
arm, proprietary trading is finding a new home; these traders
are fleeing banks to set up small, independent proprietary
trading companies. They have money under management from
outside investors, and they are trying to make money for
themselves which brings a new level of engagement to the
investment strategy process.
This article is available exclusively to subscribers and trialists
Please log in to continue reading or register for access. As a Registered user you get full access to trial the site for 7 days and can continue reading Analysis, Opinion, Whitepapers and archive news after the trial has finished.
Already a user? |
Login to view the content