Kaupthing Bank

The Proprietary Trading team seeks opportunities to increase the long-term returns of the Bank’s capital. Some of the positions taken for the Bank’s own account are opportunistic investments with a medium-term horizon, while others are short-term positions aimed at taking advantage of price discrepancies or spreads in different markets. However, all positions fall within a clearly defined risk framework based on various factors such as liquidity, legal framework and the Bank’s risk policy.

The proprietary trading units within the Group have a complementary focus on different instruments and markets. The different units also vary in terms of strategy and timeframe. Each unit is awarded a risk budget based upon past performance and its current business case.

Last updated/revised: 3 June 2008