Prop trading is handled by which department of bank
Answers
Explanation:
Proprietary desks routinely had the highest value at risk among other trading desks at the bank. ... Because of recent financial regulations like the Volcker Rule in particular, most major banks have spun off their prop trading desks or shut them down altogether. However, prop trading is not gone.
Answer:
Day trading firms offer traders an opportunity to trade with a pool of capital rather than their own money in an arrangement from which all parties benefit. Many proprietary (i.e., prop) trading firms set up a structure that allows the trader to receive a cut of the profits they generate through trades.
The rule is often referred to as a ban on proprietary trading by commercial banks, whereby deposits are used to trade on the bank's own accounts, although a number of exceptions to this ban were included in the Dodd-Frank law.