Volcker Rule Impact

This problem tests your understanding of how regulation can reshape a trading business model. Candidates should know the difference between proprietary trading, where a bank trades for its own account, and client-facing activities such as market making and flow trading, where the bank supports customer demand. Interviewers ask this because sales and trading professionals need to understand which activities generate revenue, which activities are client driven, and how regulation affects risk taking, balance sheet use, and business strategy. It also checks whether you can explain why banks had to shift toward serving clients rather than pursuing trading gains for themselves.