JPMorgan (JPM) To Shutter Prop-Trading Operations
Down)
According to a report from Bloomberg on Tuesday, JPMorgan Chase & Co. (NYSE: JPM) will shutter its proprietary trading desks to bring itself in line with the Volcker Rule that limits how banks can trade their own money.
The firm told its commodity traders that make bets for the bank’s account that the desk was going to be shut down, as JPMorgan closes down all of its proprietary trading, according to people familiar with the matter cited by Bloomberg.
The report stated that the New York-based bank will shut down its proprietary trading in fixed-income and equities later to comply with the new financial regulations.
The proprietary trading desk at JPMorgan has fewer than 20 traders, with one based in the United States and the rest located in the United Kingdom. The traders were notified on August 27 that the unit would be closed and their jobs may be in jeopardy and will be given the opportunity to apply for jobs elsewhere in the company.
Proprietary trading involves trading on behalf of the firm and not its customers, and was seen as a catalyst for the credit crisis in 2008 that nearly brought the banking system crumbling down.
Shares of JPMorgan closed up 51 cents to $36.36 on Tuesday.
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The firm told its commodity traders that make bets for the bank’s account that the desk was going to be shut down, as JPMorgan closes down all of its proprietary trading, according to people familiar with the matter cited by Bloomberg.
The report stated that the New York-based bank will shut down its proprietary trading in fixed-income and equities later to comply with the new financial regulations.
The proprietary trading desk at JPMorgan has fewer than 20 traders, with one based in the United States and the rest located in the United Kingdom. The traders were notified on August 27 that the unit would be closed and their jobs may be in jeopardy and will be given the opportunity to apply for jobs elsewhere in the company.
Proprietary trading involves trading on behalf of the firm and not its customers, and was seen as a catalyst for the credit crisis in 2008 that nearly brought the banking system crumbling down.
Shares of JPMorgan closed up 51 cents to $36.36 on Tuesday.
Get immediate access to market moving news and alerts with StreetInsider.com Premium - FREE TRIAL!
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