This is the second shut down of a prominent London-based proprietary trading desk, as Societe Generale took a similar route at the end of last month. BNP Paribas cited staunch regulations that had been stymying the development of its operations, which included the passage of Dodd-Frank in the US.
The FX Global Code – Is Self-Regulation the Future of the Industry?Go to article >>
This act has mitigated the risk that banks can assume, thus creating a negative feedback loop with liquidity and risk. As a result, both Jean-Luc Alexandre and Philippe Fourcade are now listed as inactive on the UK’s Financial Conduct Authority (FCA) official register of industry staff.
It is unknown what lies next for both senior traders, however it bears watching if this develops into a broader trend in the industry in light of tighter regulations and waning revenues.