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While the term "bank" may conjure a monolithic image, the reality is far more nuanced. The world of banking can be broadly divided into: Retail Banks: Think of your local branch where you have your checking and savings accounts. For example, Wells Fargo and Bank of America are giants in this space. interest annually.
In doing so, these rules are intended to reduce counterparty risk, limit contagion and increase transparency in the market. The lessons learnt from past financial stress conditions and crises, particularly those involving non-bank market participants, have driven these changes.
Clearing obligations will become stricter, with enhanced oversight of margin requirements and riskmanagement processes. Despite these new potentially arduous compliance pressures, trading desks are also likely to benefit from reduced counterparty risk and improved market confidence thanks to the changes.
I have also worked on different types of trading desks ranging from full-franchise to proprietarytrading. The entire world was shaken and I recall the CEO was standing behind me as the market opened and the phone board lit up with other banks calling for a price. I have seen many significant moments in history.
Joining the industry after graduating from business school at the age of 20, Papanichola has an impressive track record that spans across five hedge funds and two banks. My key takeaway from those guys was that the core foundation of trading isn’t about buying and selling.
New rules have impacted almost every financial firm, ranging from banks to asset managers. The importance of these rules can be linked to the reshaping of the regulatory environment and ultimately creating a more robust trading environment and promoting investor confidence.
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