Wednesday, 24 August 2016
Last updated 19 hours ago
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.