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by ryeguy_24 2634 days ago
I don’t think this is accurate. Regulators release the Volcker Rule to shut down prop trading at banks.
2 comments

The Volcker rule contains exemptions for certain prop trading activities. For example, trading in US government bonds is exempt.
Here's nice flowchart[0] to determine what counts as proprietary trading. There is a surprising amount that is still allowed.

https://www.davispolk.com/files/DavisPolk_Final_Volcker_Rule...

There still exist principal investing groups, as well as market making groups that can contribute to the bottom line.
Right. They have tons of trading activities that are non-proprietary. I’m sure they can always hide some positions that are truly proprietary but largely they are not supposed to put on positions for their own gain.