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U.S. Banks Report One Of The Worst Trading Performances Since The Downturn 

February 13, 2015

Trefis Team, Forbes

2014 was a lukewarm period for investment banks around the globe in terms of trading revenues – especially since all major players in the debt trading industry fared poorly over the last quarter from an unexpected increase in volatility for the month of December. This did not bode well for the banks, which have already seen lower revenues from their trading desks in the wake of increased capital requirements as well as stringent regulations such as the Volcker Rule (which restricts proprietary trading activities). While each investment bank has had to make changes to its trading desks to accommodate increased regulatory oversight, some of them have chosen to focus almost entirely on either the fixed income or equities trading market. Notably, trading revenues at the 5 largest U.S.-based investment banks in 2014 were only marginally better than the dismal figures seen in 2011, when the sovereign debt crisis in Europe hit securities trading operations worldwide.

Read More: Forbes

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