Eigenhandel
Eigenhandel, or proprietary trading, is the practice by which a financial institution, such as a bank or investment firm, trades financial instruments using its own capital and balance sheet with the aim of earning profits from market movements, rather than executing orders on behalf of clients. It often operates through dedicated trading desks, separate from client-facing activities.
Activities include trading equities, fixed income, derivatives, commodities, and complex structured products. Traders rely on market
Regulation tightened after the global financial crisis. In the United States, the Volcker Rule limits proprietary
Critics argue that Eigenhandel can create conflicts of interest, exacerbate systemic risk, and encourage excessive risk-taking