NYSE Discusses Implications Of Prop Trading Ban
An interesting observation from NYSE's Duncan Niederauer, who is convinced that "separating prop trading, from market making business, from customer facilitation businesses, from principal business" will be next to impossible. For those not on Duncan's side of the trade, we are hopeful that Paul Volcker is just as aware of all this and much more. Although should Obama's proposal be defanged by Geithner's intellectual challenged henchmen when it goes through the Treasury for implementation, Duncan may just be on to something, thus precluding Obama's lofty goal to actually moderate the taxpayer funded risk-taking activities at banks. As is well-known, Niederauer is well-connected within the political circles of DC, where his opinion on what is proper for capital markets carries abnormal sway, so one may wonder, was Obama aware of this all along and was once again merely stringing the morts along, in his epic and unrelenting journey from one TV appearance to another.
From Bloomberg earlier:
In the meantime, based on NYSE's most recent program trading data, Goldman's ratio of agency to principal trading was a solid 20x. We can't wait to see how these two numbers will flip to indicate the proper ratio for a client-facing/flow-based investment bank that does not see the need to trade over 400 million shares in program trading for its prop account.