Volcker Rule To Curb Wall Street Bank Trading Bets

Banks have already done away with many of the riskiest trading operations common before the crisis. Morgan Stanley in January 2011 said it would spin off its proprietary trading unit Process Driven Trading, which had 60 employees around the world. Goldman Sachs said it had shut down two proprietary trading desks, one known as GSPS and another that did global macro trading, by February 2011. And Citigroup has closed a loss-making unit that had traded stocks. These banks have such sprawling legal structures engaging in different financial activities that the rule needs to be adopted by a patchwork of U.S.
Source: http://www.reuters.com/article/2013/12/10/us-financial-regulation-volcker-idUSBRE9B705120131210?feedType=RSS

High Frequency Trading: Clear and Present Danger?

Arvind Kejriwal who formed AAP just an year ago has rattled the mainstream parties with his politics. His haul of 28 seats has led to a hung assembly in Delhi and with Lok Sabha elections just a few months away its almost as if both the BJP and AAP are saying ‘Pehle AAP’. Kejriwal has made it clear that AAP was not interested in taking support or giving it to any party for government formation. Earlier in the day, the Congress which won eight seats appeared to be extending an olive branch to AAP to form a government. Congress’s Delhi in-charge Shakeel Ahmed said the party is prepared to give outside support to the AAP. “Many of our leaders feel that if AAP forms government, we should lend them unconditional support from outside.
Source: http://ibnlive.in.com/news/no-government-no-horsetrading-in-delhi-as-bjp-aap-play-safe/438899-80-258.html

US Set To Adopt New Rules To Reduce Risky Bank Trading

A huge proportion of the market is certainly electronic trading and gone are the days of open outcry trading. However, much of that is more traditional large orders, for example on behalf of a pension fund, which may use algorithms to break them down into more manageable chunks and sequence these chunks in the market. Then there may be other totally automated algorithms trading for a proprietary trading firms that might hold their positions for hours or days. The Chairman of the CFTC technology advisory committee (on which I serve) Commissioner Scott O’Malia has been trying to get a good definition of HFT. He’s now got one, which is essentially “fully automated super speedy, short holding time”. Within the ranks of HFT there are almost certainly bad apples.
Source: http://www.huffingtonpost.com/john-bates/high-frequency-trading-cl_b_4393276.html

No government, no horse-trading in Delhi as BJP, AAP play safe

The rule explicitly exempts many of those kinds of funds andalso more narrowly defines commodity pools so that only thoseoperating most like hedge funds are captured. Regulators also extended the deadline by which banks have tofully comply with the new regulations by one year to July 2015,a widely expected move after they repeatedly missed deadlinesfor the rule. Further delays were also possible, the regulatorssaid in the text of the rule. DISSENTERS Even before the five regulators adopted the rule on Tuesday,lawyers were looking for weak spots, preparing for a potentialfight in court to try to knock out the legislation – possiblyhelped by dissent within the agencies.
Source: http://finance.yahoo.com/news/u-set-adopt-volcker-rule-133130834.html

ANZ Bank Said to Hire Coal Trading Team From Thailand’s PTT

In market making, for instance, they have inventories of shares or other securities in order to quickly satisfy client orders, but banks fear new limits on how long they can hold these may make it harder to stock up. Banks are also worried regulators will clip their wings when it comes to entering risky positions to mitigate financial risk arising in their business, so-called risk hedging. This can still be done when there is a direct connection to the underlying risk, but banks are used to doing this in multiple and often loosely defined ways – so-called portfolio hedging – and fear this will no longer be allowed. JPMorgan initially explained itsLondonWhale trades as portfolio hedges and regulators have since made it clear the final rule will render such trades impossible. While the narrowing of theVolckerrule trading exemptions is expected to bite, banks have already wound down http://www.etftradingsignals.com/ their proprietary trading since the crisis. Morgan Stanley in January 2011 said it would spin off its proprietary trading unitProcess Driven Trading, which had 60 employees around the world.
Source: http://www.businessinsider.com/us-set-to-adopt-new-rules-to-reduce-risky-bank-trading-2013-12

U.S. Volcker rule to curb Wall Street bank trading bets

ANZ hired the team from Tiger Energy Trading Pte, a unit of PTTs Sakari Resources Ltd. (PTT) , which markets coal from the Sebuku and Jembayan thermal coal mines in Indonesia , said the person, who asked not to be named because the details are private. ANZ will also employ Perth-based Nicholas Stephens, Sakaris managing director of marketing, the person said. State-controlled PTT, which completed the takeover of Sakari earlier this year, is shutting Tiger Energys office in Perth and will take over its trading activities, PTTs Chief Financial Officer Surong Bulakul said in a phone interview. We are closing down the Perth office as it is no longer strategically relevant to our operations, which are now concentrated in Singapore and Jakarta, Surong, who has about 20 years of oil trading experience, said by phone yesterday.
Source: http://www.bloomberg.com/news/2013-12-10/anz-bank-said-to-hire-coal-trading-team-from-thailand-s-ptt.html

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