Wednesday, 1 July 2015
Last updated 3 hours ago
Apr 16 2014 | 2:58pm ET
The Royal Bank of Canada will spin-off one of its last proprietary-trading desks as an independent hedge fund as it moves to comply with new U.S. and global regulations.
The bank will separate its global arbitrage and trading arm, The Wall Street Journal reports. The spin-off could come as soon as the end of the year.
RBC will likely remain an investor in the hedge fund, according to the Journal, although it will retain no ownership stake.
The bank said it is still considering options for its remaining U.S. prop. trading businesses. “We intend to fully comply with the Volcker rule and we continue to look at all of our options,” RBC spokesman Kevin Foster said.
The new hedge fund will feature Richard Tavoso, who runs the prop. trading desk, Mark Standish and Ed McBride. The former was co-head of RBC’s investment bank, and the latter the desk’s head trader. The spin-off has yet to settle on a new name.
May 27 2015 | 2:15pm ET
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