what is purpose of proprietary trading desks and how to start one ?
July 10th, 2008
John K asked:
Is the sole purpose of proprietary trading desks trading equities and futures and performing arbitrages based soley on profits which can be achieved better by a group of traders using firm’s money. How do these firms attract money and from particular who ? Corporations hedging their positions in commodity or currency ?
Is the sole purpose of proprietary trading desks trading equities and futures and performing arbitrages based soley on profits which can be achieved better by a group of traders using firm’s money. How do these firms attract money and from particular who ? Corporations hedging their positions in commodity or currency ?
What is the cost and regulation to start a prop desk?
What would be a requirement for you to join a prop desk in Canada ?
VIRAMONTES
By definition, proprietary trading is something that an investment bank does with its OWN money, not someone else’s money. The proprietary trading desk is the organization WITHIN the bank that does the trading.
Therefore, I don’t understand your questions about attracting money, regulation, etc. Or, if they do not do proprietary trading currently you would need to convince them to let you start one.
To join a proprietary trading desk in Canada, you would have to get a job with an investment bank in Canada and convince them to assign you to their proprietary trading desk.
Your chances of being able to do either are probably not high.