Tuesday, 29 July 2014
Last updated 1 hour ago
Nov 3 2010 | 2:59am ET
One proprietary trading firm plans to take advantage of banks being barred from its industry—by launching a hedge fund.
First New York Securities is preparing to launch a multi-strategy fund, its first vehicle to trade outside capital. And to run it, the $350 million firm may hire as many as 40 traders over the next six months, hoping to tap into the talent leaving bank prop desks, Bloomberg News reports.
Banks have begun dismantling their prop trading operations, which will be barred under the Dodd-Frank financial services reform law.
First New York, which already boasts more than 200 traders, plans to begin fundraising in the first quarter. The fund's prop traders have enjoyed average annual returns of 20% over the last five years, according to Bloomberg.
The firm's move into hedge funds follows the appiontment of new CEO Joseph Schenk, a former CFO of Jefferies Group, and the sale of its prime brokerage business, both last month.
Jul 8 2014 | 10:48am ET
The surge in derivatives regulation is among the most complex challenges facing the financial services industry today. Northern Trust’s Joshua Satten recently spoke with FINalternatives to share insights into the challenges presented by new regulation and explore how the industry is responding. Read more…