Interbank Market News Scan: What retail traders should be looking at from the Federal Reserve perspective. 10:56 AM EST.

The Stats …

30-Day fed Funds Futures and Options (ZQV3): 95.145

Source: CME Group.

Effective Federal Funds Rate: 5.08%

Federal Funds Target Range: 5.00% to 5.25%

Discount Window Rate: 5.25%

Interest on Reserve Balances: 5.15%

U.S. Ten-year Treasurys: 3.39%






Source: Board of Governors-Federal Reserve System.

Today’s Definition …

Proprietary trading:

“Proprietary trading refers to a financial firm or commercial bank that invests for direct market gain rather than earning commission dollars by trading on behalf of clients. Also known as “prop trading,” this type of trading activity occurs when a financial firm chooses to profit from market activities rather than thin-margin commissions obtained through client trading activity. Proprietary trading may involve the trading of stocks, bonds, commodities, currencies, or other instruments.

Financial firms or commercial banks that engage in proprietary trading believe they have a competitive advantage that will enable them to earn an annual return that exceeds index investing, bond yield appreciation, or other investment styles.” — Investopedia.

14 May 2023

Disclaimer: This information is not being offered as legal or financial advice. Contact your legal or financial advisor before trading on any information.