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Regulators are clamping down on banks’ trading practices.

But one thing banks are still doing is block trading, reports Bloomberg. The outlet says, “[B]lock trades are about buying low and selling high. Banks typically make money by bidding on shares at a discount to the current price and selling them for slightly more. The discount helps protect the firm from a price drop and pays for the risk the bank takes while it locates new buyers.”

To learn more about block trades and how banks are using them, click here.

For more on banks, check out:

Why banks need more capital

Regulation is top risk for banks

OFSI releases final Basel III liquidity guidance

Too much regulation stifles growth, says Scotiabank

Originally published on Advisor.ca

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