Regulators, though, are thinking about a new Markets in Financial Instruments Directive, or MiFid 2, which will require confirmation procedures and reporting requirements on over-the-counter trades; however, the new regulation won’t be implemented until 2013.
Trades conducted on “Delta One” desks are driven by banks wagering their capital to make a profit in proprietary, or “prop,” trading, report Luke Jeffs and Douwe Miedema for Reuters.
The U.S. has approved the “Volcker Rule,” which will restrict prop trading. Goldman Sachs, Deutsche Bank, Morgan Stanley and JP Morgan have already diminished their stand-alone prop desks in anticipation.
Max Chen contributed to this article.
