It avoids the huge internal pay gap between high-flying proprietary traders and the rest.
Electronic proprietary traders make their living by carefully analyzing trading activity to find profitable trading opportunities.
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Gleacher now has the chance to scoop up proprietary traders who are fleeing big Wall Street banks.
Earlier reports had Goldman reassigning its proprietary traders to its asset management division, where they could claim to be acting in client interests.
The regulator says Trillium, through nine proprietary traders, sent non-bona fide orders into the markets to create false volume, thereby attracting buying or selling interest.
Goldman Sachs (GS), for example, lost several teams of proprietary traders, including Bob Howard, head of its Principal Strategies Group, and eight traders who reported to him, to KKR (KKR).
Thursday's charges focus on a group of traders at the proprietary firm Incremental Capital.
Jump is a so-called proprietary firm, meaning the traders are trading the money of the founding partners, Paul Gurinas and Bill Disomma .
There are major Wall Street brokerages that sell proprietary investment research, inventory blocks of stock to sell to money managers, and, because they profit handsomely from proprietary trading, pay their traders the highest salaries.
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Now known as Bank of America Merrill Lynch, it has since been fined for letting day traders and its own proprietary trading desk front-run clients.
As the Volcker Rule cuts down on proprietary trading at large investment banks, skilled traders are leaving and setting up their own alternative investment funds, and looking for the technology they need to trade and to report to their investors.
Banks may be stripped of their proprietary trading activities (that is, the ability of traders to make large speculative bets on financial markets using their bank's money, rather than their clients).
His team of 30 traders and salesmen are marketmakers, but they almost never engage in proprietary trading.
All banks have until 2014 to comply but Goldman and JP Morgan already shut down some of their proprietary trading desks while Bank of America laid off a third of its prop traders.
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