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Effects on proprietary trading after the announcement of the Volcker Rule

Johansson, Daniel LU (2012) NEKH01 20121
Department 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)
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author
Johansson, Daniel LU
supervisor
organization
course
NEKH01 20121
year
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},
  keyword      = {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     = {eng},
  note         = {Student Paper},
  title        = {Effects on proprietary trading after the announcement of the Volcker Rule},
  year         = {2012},
}