JP Morgan has decided to close down its proprietary trading operations as part of its initiative to comply with new US curbs on investment banks.

According to reports, JP Morgan has issued notice to nearly 20 proprietary traders that trade commodities about the elimination of their jobs.

JP Morgan has never focused much on proprietary trading, but its small proprietary trading desks are nonetheless affected by US regulatory reform and in particular the Volcker Rule, which forbids banks from proprietary trading, proprietary investments in hedge funds and private equity.

JP Morgan has decided to exit from all its commodities proprietary-trading desk and proprietary trading.