Banks Seed Traders They've Had to Spin Off

A recent article in Institutional Investor discusses how proprietary trading desks are history due to the Dodd-Frank Act's Volcker Rule which bans banks from making speculative trades with their own money. "We read about the very large moves from prop desks to hedge funds," says Ron Geffner, partner and head of financial services at Sadis & Goldberg LLP. "The day-to-day prop trader has either left or is leaving, forming emerging hedge funds or taking jobs in asset management at family offices, which can take the form of separately managed accounts."

Cheryl Spratt