Monday, 24 November 2014
Last updated 5 hours 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.
Nov 4 2014 | 9:45am ET
Data management is important to every business, but for hedge funds, it is critical. FINalternatives recently asked Peter Sanchez, CEO of Northern Trust Hedge Fund Services, how fund managers can deal with the demands of managing data while at the same time remain transparent and abide by operational best practices. Read more…
Reg NMS created a huge bifurcation in equity markets and while much of what has followed has been positive, in terms of lower fees and greater liquidity, many traders would like to see the market come...