Prop trading isn't what it used to be. Traders in general are thought to be good candidates for downsizing right now. This is reflected by the fact that proprietary trading desks seem to be becoming a thing of the past. JPMorgan got rid of its desk. And Merrill Lynch is following suit, according to Financial News Online. There will still be some prop trading via specific asset class desks. You have to wonder if this is optimal. One benefit of a dedicated desk was that it could seek cross-asset opportunities, combing say derivatives and debt. But perhaps those opportunities just aren't worth it anymore for commercial banks. We're in a new world after all.

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