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

Why Ponzi Schemes Work: An In-Depth Look At The Allen Stanford Fraud

Dec 21 2014 | 10:30am ET

Texan Allen Stanford first appeared on the radars of financial regulators in 1997...

Lifestyle

Hedgie Funds US Squash Program

Dec 24 2014 | 8:46am ET

Squash, anyone?

Guest Contributor

EidoSearch’s Top Three Market Projections For 2015

Dec 23 2014 | 4:03am ET

It is that time of year again when prognosticators make their big market calls for...

 

Sponsored Content

Editor's Note

    Guidelines for Guest Articles

    Oct 22 2014 | 9:46am ET

    We are always looking for guest articles from hedge fund managers and buy-side firms.

    If you are interested in submitting a contributed piece for possible publication on FINalternatives, please take a look at the specs. Read more…

 

Futures Magazine

December 2014 Cover

Futures 2014 person of the year

Jeff Sprecher was simply looking for a platform to trade energies when launching ICE 14 years ago but it has grown to reach the pinnacle of both the listed futures and equities world.

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.