Cryptocurrency Q&A
Is proprietary trading illegal?
Is proprietary trading illegal?
SumoHonorable
Sun Dec 08 2024
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7 answers
1479
I'm wondering if proprietary trading is considered illegal. I've heard mixed opinions on this and would like to get a clearer understanding of its legality.
7 answers
Alessandro
Tue Dec 10 2024
It prohibits banks from engaging in proprietary trading, which refers to the buying and selling of financial instruments for their own accounts rather than on behalf of clients.
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SakuraFestival
Tue Dec 10 2024
The rule is designed to prevent banks from taking excessive risks with their own capital, which could potentially lead to financial instability.
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Tommaso
Tue Dec 10 2024
In addition to proprietary trading, the Volcker Rule also restricts banks from owning or sponsoring hedge funds.
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Martino
Tue Dec 10 2024
The Volcker Rule is a regulation aimed at restricting banking entities from participating in certain activities.
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isabella_oliver_musician
Tue Dec 10 2024
This means that banks are not allowed to have direct ownership or control over hedge funds, which are investment vehicles that typically use complex strategies to generate returns.
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