---
title: Bank Trading Profit
url: https://www.ml-quant.com/papers/ssrn/4898830/
site: ML-Quant (https://www.ml-quant.com)
updated: 2026-09-26
license: Summaries CC BY 4.0; links go to the original sources
index: https://www.ml-quant.com/llms.txt
identifier: SSRN 4898830
source_url: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4898830
featured: 2024-07-24
citations: unknown
topic: Trading, Microstructure & Execution
---


# Bank Trading Profit

Large U.S. dealer banks make substantial profits from their trading desks, which serve as financial intermediaries, without taking on market risk in the asset markets they mediate.

- Source: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4898830
- Identifier: SSRN 4898830
- Released: 2024-07-08
- First featured: Quant Letter No. 58 (2024-07-24): https://www.ml-quant.com/issues/2024-07-24/
- Citations (Semantic Scholar): not tracked
- Published in: not yet
- Topic: Trading, Microstructure & Execution

## Related

- [Unrealized asset loss, liquidity risk from uninsured deposit outflows and bank runs: Evidence from the 2023 banking stress](https://www.ml-quant.com/papers/ssrn/4911252/): The Spring 2023 banking stress analysis reveals a potential $1.6 trillion loss for the U.S. banking system and identifies 20 banks at risk if half of uninsured deposits are withdrawn.
- [ECBs Impact](https://www.ml-quant.com/papers/ssrn/4913034/): The research uses a GVAR model to study the effects of the European Central Bank's unconventional monetary policies on six Central and Eastern European countries, showing that these policies reduce liquidity spread and raise yield spread, suggesting increased economic activity and a preference for bonds among investors.
- [A Panorama of Liquidity Creation in Turkish Banking Industry: Highlights, Determinants and Consequences](https://www.ml-quant.com/papers/ssrn/4823938/): The paper studies liquidity creation in the Turkish banking sector, emphasizing the importance of capital adequacy, ownership structure, and competition level.
- [FRTB Impact on Market Risk](https://www.ml-quant.com/papers/ssrn/4727740/): The study examines the impact of the Basel Fundamental Review of the Trading Book on banks' capital requirements, predicting significant increases in regulatory capital.
- [Banking Regulations and Liquidity Risk](https://www.ml-quant.com/papers/ssrn/5097938/): The research examines the positive effect of banking regulations on liquidity risk and financial stability in the European banking sector.
- [Liquidity Provision on DEX](https://www.ml-quant.com/papers/ssrn/4694683/): Decentralized exchanges' infrastructure can lead to arbitrage losses for liquidity providers, with design changes offering limited reduction in these losses, as shown in a study using the Silicon Valley Bank collapse.