Prop trading no longer an option for dealers, says Masters
Banks can no longer afford to run commodity derivatives businesses based largely on proprietary trading and should aim to have a broad client franchise instead, says Blythe Masters, New York-based head of global commodities at JP Morgan.
Previously, many dealers interspersed prop trading and client activity at their own discretion, but regulatory reform means this is no longer an option, says Masters. Since the financial crisis, bank supervisors have become more aggressive in targeting excessive
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