Standard Chartered Plans Launch Of N.Y. Proprietary Trading Desk

Standard Chartered (StanChart) is starting a proprietary trading desk in New York under Bob Fakhoury, who has returned home from London to lead the effort. The desk, which will trade currencies and interest-rate products, should be up and running by early next year, says Fakhoury.

The desk will focus on medium-term interest rates and short-term strategic positions in the major currencies, says Fakhoury, adding that emerging markets currencies will be traded as opportunities arise. Fakhoury says the desk will likely have about three traders initially who would be outside hires.

The proprietary desk will be a first for StanChart, although the bank takes strategic positions in currencies, there is no single unit that monitors all products, Fakhoury believes.

Before the desk starts trading, Fakhoury says the New York room will be getting the CaTS Software risk management systems now being installed in the bank's London office.

The bank decided to start a proprietary trading desk because, as far as New York is concerned, it wants to supplement the income derived from traditional day trading in the currencies and money market management, says Fakhoury.

In addition to starting the proprietary desk, Fakhoury maintains his responsibilities as head of the global asset liability management group, which he previously ran from London.