Prop trading: changing dynamics

Regulatory changes are forcing firms to reevaluate their business models at every point in the sales cycle Prop firms were not immune to costs due to low volumes and high compliance, that poison the lives of most organizations in the industry, and what many have struggled with last 18 Months. This led to market consolidation. Here are some recent examples: Getco buys Automat, Marex Spectron преобретает Schneider Trading Associates, Webb Traders merges with Caerus Trading. However, along with the changes, there are also opportunities for prop firms.. Правило Волкера (Volcker Rule) in the USA and steps, undertaken in Europe to separate prop-trading units from retail banks, reduce the volume of prop trading in banks and further promote traditional prop firms. In the short term, this will reduce liquidity, and also provide an opportunity to recruit talented people, leaving banks. But prop-trading firms also have big short-term problems.. Rising technology costs hit the bottom line, тогда как более низкие объемы уменьшают возможности трейдеров.