RBC Prop. Desk To Become Hedge Fund, Ex-Exec. Says

May 29 2014 | 12:22pm ET

A former Royal Bank of Canada executive has confirmed that the bank will spin off one of its last proprietary-trading desks as a separate hedge fund later this year.

Mark Standish, the former co-CEO of RBC Capital Markets, revealed the plans on his LinkedIn page. “I am currently working as a consultant to RBC on the spin out of the New York-based Proprietary Trading Business in compliance with the Volcker rule,” Standish wrote. “Subject to various approvals etc., the new hedge fund is targeted to launch around year end.”

The Wall Street Journal reported last month that RBC would spin off its global arbitrage and trading arm, with Standish, Ed McBride and Richard Tavoso at the helm. Tavoso currently runs the prop. trading desk, and McBride is its head trader.

“We are actively working to restructure our proprietary trading business to comply with the Volcker rule,” which bars banks from the practice, RBC spokesman Kevin Foster said.

In April, the Journal reported that RBC is likely to be an investor in the new hedge fund, but will not have an ownership stake.


In Depth

Exotic Assets: Investing In Rare Violins

Jan 17 2017 | 4:43pm ET

By definition, alternative investments include exotic assets far beyond your typical...

Lifestyle

'Tis the Season: Wall Street Holiday Parties Back In Fashion

Dec 22 2016 | 9:23pm ET

Spending on Wall Street holiday parties has largely returned to pre-2008 levels...

Guest Contributor

The Trump Administration: What It Could Mean for Carried Interest

Jan 19 2017 | 5:25pm ET

The arrival of the Trump administration brings the potential for a repeal of the...

 

From the current issue of

Versum Materials (VSM), with a market capitalization of $2.7 billion, enables chipmakers to achieve higher performance at lower cost with enhanced reliability. Versum is a leading global provider of electronic materials for the integrated circuit and flat-panel display markets.