Effects on proprietary trading after the announcement of the Volcker Rule
(2012) NEKH01 20121Department of Economics
- Abstract (Swedish)
- There has been significant growth in proprietary trading in recent years and it constitutes a major part of the traded volume in the financial markets. I have analyzed differences in the volume and volatility of Standard & Poor’s 500 index, before and after the announcement of the Volcker Rule. I have also looked into how the biggest investment banks have been affected according to their market value and where the lost volume has shifted to. I have found that the volume has decreased just prior and after the announcement, the price per share of the bulge bracket banks has decreased and that the number of completed Initial Public Offerings and Equity Offerings in the hedge fund industry increased from the 2008-2009 levels. With this thesis,... (More)
- There has been significant growth in proprietary trading in recent years and it constitutes a major part of the traded volume in the financial markets. I have analyzed differences in the volume and volatility of Standard & Poor’s 500 index, before and after the announcement of the Volcker Rule. I have also looked into how the biggest investment banks have been affected according to their market value and where the lost volume has shifted to. I have found that the volume has decreased just prior and after the announcement, the price per share of the bulge bracket banks has decreased and that the number of completed Initial Public Offerings and Equity Offerings in the hedge fund industry increased from the 2008-2009 levels. With this thesis, I expect to give a good insight into the new market conditions. Since this rule is about to be implemented in the United States, this outlook of the American market is not well known in Europe. A clearer understanding of the kind of investment strategies and how markets function in the U.S. would provide a broader understanding when investing in other markets. I want to give an alternative look into the markets that specifically addresses portfolio and bank managers outside the U.S. (Less)
Please use this url to cite or link to this publication:
http://lup.lub.lu.se/student-papers/record/2629112
- author
- Johansson, Daniel LU
- supervisor
- organization
- course
- NEKH01 20121
- year
- 2012
- type
- M2 - Bachelor Degree
- subject
- keywords
- The Volcker Rule, Proprietary Trading, The Glass-Steagall Act, The Gramm-Leach-Bliley Act, the Dodd-Frank Wall Street Reform and Consumer Protection Act
- language
- English
- id
- 2629112
- date added to LUP
- 2012-06-15 12:41:37
- date last changed
- 2012-06-15 12:41:37
@misc{2629112, abstract = {{There has been significant growth in proprietary trading in recent years and it constitutes a major part of the traded volume in the financial markets. I have analyzed differences in the volume and volatility of Standard & Poor’s 500 index, before and after the announcement of the Volcker Rule. I have also looked into how the biggest investment banks have been affected according to their market value and where the lost volume has shifted to. I have found that the volume has decreased just prior and after the announcement, the price per share of the bulge bracket banks has decreased and that the number of completed Initial Public Offerings and Equity Offerings in the hedge fund industry increased from the 2008-2009 levels. With this thesis, I expect to give a good insight into the new market conditions. Since this rule is about to be implemented in the United States, this outlook of the American market is not well known in Europe. A clearer understanding of the kind of investment strategies and how markets function in the U.S. would provide a broader understanding when investing in other markets. I want to give an alternative look into the markets that specifically addresses portfolio and bank managers outside the U.S.}}, author = {{Johansson, Daniel}}, language = {{eng}}, note = {{Student Paper}}, title = {{Effects on proprietary trading after the announcement of the Volcker Rule}}, year = {{2012}}, }