November 2006 - RBS and JP Morgan scale back prop trading
REVIEW OF THE YEAR
Royal Bank of Scotland laid off its entire London based prop trading desk while JP Morgan veteran trader Bill Arnold retired from the bank. The cuts from the banks came after a long period of flat markets but ironically coincided with the first significant volatility of the year. The end of November saw unexpectedly large moves in the dollar/yen and euro/dollar as traders welcomed a pre-Christmas build-up in volatility after a year of flat markets.
Euro/dollar breached the psychologically
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