Proprietary trading (also known as prop trading ) occurs when a trader trades stocks , bonds , currencies , commodities , their derivatives , or other financial instruments with the firm's own money (instead of using depositors' money) to make a profit for itself. Proprietary trading can create potential conflicts of interest such as insider trading and front running .
6-564: Calmar Steamship Company was a proprietary subsidiary of the Bethlehem Steel founded in New York City in 1927. Bethlehem Steel Company founded Calmar Steamship Company and other steamship companies after finding general shipping companies could not meet the company's needs in a timely manner. At the time Bethlehem Steel Company was the second-largest steelmaker in the United States and
12-485: A hedge fund . There are a number of ways in which proprietary trading can create conflicts of interest between a bank's interests and those of its customers. One example of an alleged conflict of interest can be found in charges brought by the Australian Securities & Investments Commission against Citigroup in 2007. Another source of conflicts of interest is potential front running , in which case
18-614: The MK II 20mm Oerlikon autocannon and the 3"/50 , 4"/50 , and 5"/38 deck guns. After the war there were many surplus ships and much competition. Black Diamond Steamship Company continued to operate after the war, but closed in the 1955. See also, similar role:- Empire ship , Fort ship , Park ship , Ocean ship . Proprietary trading Proprietary traders may use a variety of strategies such as index arbitrage , statistical arbitrage , merger arbitrage , fundamental analysis , volatility arbitrage , or global macro trading, much like
24-406: The buy-side clients suffer from significantly higher trading costs. Front running per se is illegal, but there are circumstances under which a broker that operates a proprietary trading desk gains advantage over its clients based on inferences from order book data. Trader Nick Leeson took down Barings Bank with unauthorized proprietary positions. UBS trader Kweku Adoboli lost $ 2.3 billion of
30-638: The war. During World War II Bethlehem Steel Company had its subsidiary companies: Calmar Steamship Company and Interocean active with charter shipping for the Maritime Commission and War Shipping Administration . During wartime, the Companies operated Victory ships and Liberty ships . The ship was run by its crew and the US Navy supplied United States Navy Armed Guards to man the deck guns and radio. The most common armament mounted on these merchant ships were
36-686: The world, only behind U.S. Steel . Calmar Steamship Company shipped Bethlehem Steel Company products from the Atlantic coast to the Pacific coast . On the return trip, Calmar Steamship Company would bring lumber products from the Pacific coast to the Atlantic coast. Calmar Steamship Company closed in 1976, as United States steel manufacture declined in the 1960s. During World War II Bethlehem Steel Company had its subsidiary companies operated charter shipping to support
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