Sales and trading
BankingDefinition
Banking activities focused on facilitating client trading: market-making in stocks, bonds, FX, commodities, derivatives. Profit comes from bid-ask spreads on customer flow plus prop positions.
Volcker Rule (Dodd-Frank) restricted prop trading after 2008. Modern banks earn most of S&T revenue from market-making, prime brokerage, and structured products. Fixed income S&T (FICC) typically ~2x equities S&T at the bulge brackets.
Volcker Rule (Dodd-Frank) restricted prop trading after 2008. Modern banks earn most of S&T revenue from market-making, prime brokerage, and structured products. Fixed income S&T (FICC) typically ~2x equities S&T at the bulge brackets.