RBC Prop. Desk To Become Hedge Fund

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.


In Depth

Don’t Overlook These 6 Hybrid Cloud Concerns

Sep 14 2017 | 6:27pm ET

Cloud-based technology solutions have made tremendous inroads into the alternative...

Lifestyle

CFA Institute To Add Computer Science To Exam Curriculum

May 24 2017 | 9:25pm ET

Starting in 2019, financial industry executives sitting for the coveted Chartered...

Guest Contributor

Cash: An Asset In Adolescence

Aug 31 2017 | 3:34pm ET

If the investment industry has a rebellious teenager in the house today, that teenager...

 

From the current issue of