Wednesday, 1 October 2014
Last updated 1 hour ago
Feb 7 2012 | 11:50am ET
As banks race to close or spin-off their proprietary trading operations, UBS is looking for a way to hold on to its unit.
The Swiss bank may move its prop. desks into its asset management unit, where it could manage client money as a sort of internal hedge fund, Bloomberg News reports. CFO Tom Naratil called the prop. trading operation a "very good profitable business," adding, "if we're successful in getting this into global asset management, we think there's a great way to show that we can use a proprietary trading strategy in a way that benefits clients."
And, as required by the U.S. Volcker rule, "over time, we won't have our money involved," Naratil said.
"We do plan to exit that business at the investment bank."
About 50 people would be moved to asset management if UBS chooses to go ahead with the plan. If it does not, many of them would likely follow their prop.-trading counterparts at other banks and join—or found—hedge funds.
UBS shuttered its last internal hedge fund, Dillon Read Capital Management, in 2007.
Sep 22 2014 | 4:15pm ET
"I tell people that everybody likes good news and so if you have good performance that’s wonderful,” explains Mike McKitish of Peddie School's endowment, “but it’s the people that want to talk about the bad news or where they drifted and how they came back and how they stayed to their discipline…” that he wants to hear from. Read more…
Sep 30 2014 | 9:29am ET
The crisp Autumnal days of October are upon us, and so are a few of the hedge fund industry’s favorite charitable events. If you have never been to Rocktoberfest, well, you are missing out. And for a quieter evening of sipping and socializing, stop by HFC’s Wine Soiree. Read more…
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