Hedging Trades

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For market makers, who may buy unwanted securities that customers want to sell, hedging may be wise and prudent. But it will also be short term, until the bank trades out of whatever position it took on in the course of making the market.
May 17, 2012 at 21:21 | Source: New York Times
It was supposed to place trades, including by hedging, to keep the firm from losing money. But part of the group's job may have been at odds with its stated goal of reducing risk: It was also supposed to turn its "hedging" trades into a tidy profit.
May 16, 2012 at 01:48 | Source: St. Petersburg Times
In a shareholder meeting Tuesday, JPMorgan Chase chief executive Jamie Dimon indicated the bank agrees the London trades ran afoul of hedging. "We continue to believe in the importance of being able to hedge risk as an institution. However, we also ...
May 18, 2012 at 17:09 | Source: American Banker Online
But it goes on to create an exemption for "risk-mitigating hedging activities in connection with and ... to come up with a workable way to differentiate prop trades from exotic hedges. Nearly two years and several missed deadlines later, the ...
May 21, 2012 at 16:01 | Source: Reuters
It was Dimon who transformed the investment office in recent years to make bigger and riskier speculative trades with the bank’s money, Bloomberg reported. One sign that the unit may have been doing more than hedging could be seen in its daily ...
May 11, 2012 at 16:49 | Source: Bloomberg
Harris goes on to explain that "hedging trades are often losing trades. If you have a true hedge -- selling the risk of an instrument through a hedging vehicle -- if the value of the instrument rises, you lose money on the hedge, but you have made money on ...
May 16, 2012 at 10:52 | Source: Inside Fidelity
The incident shows how firms could use the pending rule's hedging exemption to do proprietary trades and still technically be compliant with Volcker. It could allow firms to keep some proprietary trading desks, but portray them to regulators as ...
May 11, 2012 at 20:52 | Source: msnbc.com
One of the biggest: How much wiggle room should banks have to make trades that are part of hedging the risks in their business? "I don't
May 15, 2012 at 18:17 | Source: Wall Street Journal
REUTERS - Three top executives involved with a failed hedging strategy that cost JPMorgan Chase & Co ... Two of Drew's subordinates who were involved with the trades, London-based Achilles Macris and Javier Martin-Artajo, are expected to be asked to ...
May 24, 2012 at 23:57 | Source: in.news.yahoo.com
WASHINGTON – A top U.S. banking official Wednesday said regulators are working to define hedging, a key term in Washington ... trading losses raise questions about whether the bank's trades would be permitted under the Volcker rule.
May 16, 2012 at 20:03 | Source: FOXBusiness