Dealers struggle to develop metrics to spot prop trading

Paul Volcker: still a fierce advocate of the rule

Banks are considering a variety of quantitative metrics to meet the requirements of the Volcker rule – part of the Dodd-Frank Act – but none is ideal, say dealers.

The rule – named after former chair of the Federal Reserve Paul Volcker – bans proprietary trading and limits bank investment in hedge funds and private equity firms. Underwriting, market-making and hedging are allowed – but all involve the bank taking proprietary positions, raising fears that a strict interpretation of the rule would

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 indvidual account here: