Buy-siders are asking whether new capital rules for bank trading businesses will bring cost or opportunity. Some already have a rough answer.
“If you are in the business of using a bank’s balance sheet to execute your exotic trades, your days are numbered. However, if you are in the business of reducing risk from bank balance sheets, the future is bright,” says Dennis Davitt, portfolio manager at Harvest Volatility Management, a hedge fund that specialises in options strategies.
Others are com