RBC Exits Half Its Prop-Trading Strategies as Volcker Rule Looms
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Royal Bank of Canada exited about half its proprietary-trading strategies as the lender seeks to comply with looming U.S. regulations.
The bank’s RBC Capital Markets unit recorded about C$46 million ($40.5 million) of costs and lower revenue in the fourth quarter tied to abandoning those strategies to conform with the Volcker Rule, the Toronto-based company said today. Royal Bank has been working to reorganize its global arbitrage and trading unit for a year after the U.S. regulators released a final version of the provision, which restricts banks’ ability to trade with their own money.