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This suggestion would be the equivalent of requiring that all software firms provide all of their source code for free public viewing. The information about th
by bd_at_rivenhill 16y ago
This suggestion would be the equivalent of requiring that all software firms provide all of their source code for free public viewing. The information about the aggregate positions that a bank holds for its own account can be used by a trading firm to make tremendous amounts of money at the bank's expense. In fact, Goldman was basically accused of doing this to Long Term Capital management in the book "When Genius Failed".
- T_S_ 16y agoNot exactly. It would require them to release the terms of every deal. The methodology to evaluate these would not be required. In many sectors of the markets such services are alrady provided to the banks by vendors so the bank would merely have disclose the name of the security and just a few other bits. And yes, this would have a profound effect on proprietary trading. That's the whole point. It would disperse prop trading to smaller entities not subject to disclosure.