Low trading activity to stay with us for decades

[Grandluxe]

Fed Saps Wall Street Hopes for Trading Revival

By John Carney18 hours ago

Even as market conditions appear to be more favorable for the trading operations of big Wall Street banks, the weight of regulation will continue to be a drag on the business.

Daniel Tarullo, the Federal Reserve governor who serves as the central bank's point person on regulation, told the Senate Banking Committee Tuesday that regulators are crafting rules that would require banks to finance their short-term securities lending with a significant amount of stable funding. And customers such as hedge funds would be required to post collateral meeting regulatory minimums.

The combined effect would be akin to a tax on leveraged trading, making it more expensive for banks to provide short-term credit to the customers of their trading desks. The very likely result is a long-term reduction in trading activity and slimmer profits.
http://finance.yahoo.com/news/fed-saps-wall-street-hopes-195800095.html

What is the future for active traders?

 

[murray t turtle]

Fed Saps Wall Street Hopes for Trading Revival

By John Carney18 hours ago

Even as market conditions appear to be more favorable for the trading operations of big Wall Street banks, the weight of regulation will continue to be a drag on the business.

Daniel Tarullo, the Federal Reserve governor who serves as the central bank's point person on regulation, told the Senate Banking Committee Tuesday that regulators are crafting rules that would require banks to finance their short-term securities lending with a significant amount of stable funding. And customers such as hedge funds would be required to post collateral meeting regulatory minimums.

The combined effect would be akin to a tax on leveraged trading, making it more expensive for banks to provide short-term credit to the customers of their trading desks. The very likely result is a long-term reduction in trading activity and slimmer profits.
http://finance.yahoo.com/news/fed-saps-wall-street-hopes-195800095.html

What is the future for active traders?

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Your article made some good points, thanks ;
but NOT comparing it to a tax.The FEDERAL Reserve [regulator of banks, FED head appointed by President]is not federal, its business, in the white pages, next to Federal Express. To whine @ more margin is like to whine @ trading exchanges for inscreasing margin rerquirement-NOT wise

Not to mention AIG stupidity/insane leverage'tax payer bailout. They should claw back those bonuses of AIG, they may do it; It took NY rstate regulators about 10 years to claw back Hunt silver corner =$300 million fine, which nudged them into bankruptcy

Use all the leverage you want to ;, but not @ taxpayer risk. NO more taxpayer bail outs for stupidity. Paul Volker was rightThanks