Prop trading restrictions already hurting liquidity, say investors

Obama signs the Dodd-Frank Act in July. Investors say the restrictions on prop trading are harming liquidity

Credit investors say restrictions on bank proprietary trading, whether forced by regulators or resulting from internal business decisions, are causing liquidity to fall in the credit markets, making it more difficult to rebalance portfolios and deliver returns.

The controversial ‘Volcker rule’, intended to prevent US banks from making risky speculative investments that put customer deposits at risk, was announced as part of the Dodd-Frank Wall Street Reform and Consumer Protection Act, signed

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact [email protected] or view our subscription options here:

You are currently unable to copy this content. Please contact [email protected] to find out more.

To continue reading...

You need to sign in to use this feature. If you don’t have a account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here: