With pay based on positive performance, the temptation to hide losses increases on trading desks.
Sounds like a wonderful opportunity to take gaming to a new level on trading desks.
It involved swimming in the same pool with the trading desks of the big commercial banks.
More fund-management firms would then have in-house trading desks, or use brokers who simply execute deals.
And that may hurt the trading desks of the investment banks as prices fall.
And Goldman pulled this off even as rising interest rates threatened to trip up rival trading desks.
Of course, prime brokers say they go to great lengths to keep themselves separate from their trading desks.
They tapped their trading desks for people to focus full time on e-commerce.
Redkite was started by traders, so they know how the trading desks work.
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In the early seventies a coterie of market makers operated with minimal capital, many graduated from OTC trading desks.
Those inquiries have continued to trading desks at investment banks across the world.
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Another sign Goldman was waving a yellow flag at its trading desks: value-at-risk was also down from the second quarter.
Other market participants, such as the proprietary trading desks of banks, may withdraw, further thinning the ranks of the competition.
Chinese walls or no, it is no accident that most proprietary-trading desks are placed in the middle of the trading floor.
Some pensions, such as the Ohio State Teachers Retirement System, manage most of their assets internally and have their own trading desks.
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Banks trading desks were making money from LIBOR rigging through the reset trade, whereby traders risk trade profits for dislocations in maturities.
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Though the final rule has yet to take effect, Goldman has already shut down proprietary trading desks, divested other investments and shed securities.
It was already battling a long-held perception its trading desks seem unusually adept at making winning bets, like maybe they know something.
However, with trading desks barely manned and the NYSE scheduled to close early, those interested in trading favored the sell side on Friday.
The trading desks of those banks will be operating in the same markets as the hedge funds and often taking the same positions.
Trading desks are still speculating wildly with derivatives and the Volcker rule that was intended to stem abuses has yet to be implemented.
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Or, as should be engraved in stone above all trading desks: arbitrage is arbitrage and speculation is speculation and never the twain shall meet.
When Russia defaulted in the summer of 1998, the hedge funds and trading desks of investment banks started losing money and market volatility increased.
Investment banks have beefed up their trading desks with commodities experts.
That meant putting a terminal on each of their trading desks.
Cohn and his investment banking counterparts must be feeling especially resentful now that they Volcker Rule has forced them to shut down their proprietary trading desks.
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Computer trading--particularly programs using algorithms that parse out trades anonymously--has exploded in popularity and already has resulted in job cuts on trading desks across Wall Street.
Traders prepared multiple scenarios for the new easing plan, even coordinating bathroom breaks so trading desks wouldn't be caught understaffed when the headlines started to roll.
Until recently, Wall Street's ax had largely fallen on trading desks, which shed thousands of jobs as business dried up due to regulations and lackluster markets.
Also, many in the City were unable to get to their trading desks that day because of the disruption caused by the storms over the previous night.
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