Global banking giant JP Morgan has apparently decided to close down its proprietary trading operations, sources from within the bank say. According to an unnamed source quoted by Dow Jones, JP Morgan has issued notice to approximately 20 proprietary traders that trade commodities.
JP Morgan has never had a huge focus on proprietary trading, and it’s prop trading desks have tended to be small. Nevertheless those desks have been affected by regulatory reform and in particular the Volcker Rule, which forbids banks from proprietary trading, proprietary investments in hedge funds and private equity.
EBay, the online auction site and owner of PayPal has reported second quarter profits which were better than expected, but threw a note of caution saying it expects adverse currency movements to have a negative impact on overseas sales.
According to the Bloomberg news service, Ebay’s Second-quarter net income rose 26 percent to $412.2 million, or 31 cents a share, from $327.3 million, or 25 cents a share. The company delivered earnings of 40 cents a share, with the average estimate of analysts polled by Bloomberg predicting the company would earn 38 cents a share.