Over the past few years, big banks have begun to reduce the size of their proprietary trading desks.
In the worst-case scenario, some prop desks were closed for good as financial firms attempted to overcome the industry’s struggles and to weather the new regulations that followed.
“I think we’re dealing with a consolidated industry,” Rob Friesen, President and COO of Bright Trading, LLC, told StreetID. “Any job that takes a piece of paper and does this with it,” he gestured, “moves it from this side of the desk to this side of the desk, why can’t that job be automated? Are the margins there for redundant jobs?”
Whatever the answer, “There is consolidation occurring,” Friesen said.