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The makeup of the flame retardant Firemaster 550, for instance, is considered a proprietary trade secret.
Under the Volcker Rule, keeping that car on the lot would constitute a proprietary trade, not market making.
But if the bank holds the assets too long or lets the stake grow too large, it may look more like a proprietary trade.
The formula by which the payment for cartoons is determined has since been changed, but cannot be revealed, as it is considered a proprietary trade secret.
The bet began as a hedge, which is largely exempt under a draft version of the rule, though it probably evolved into a proprietary trade over time.
For example, traders say, it will be tricky for regulators to define what constitutes a proprietary trade as opposed to a reasonable hedge against looming risks.
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Allen Morgan, general partner of Mayfield Fund, a venture capital firm in Menlo Park, Calif., that has invested about $20 million in the company, says the proprietary trade-matching and -processing system is the key.
That practice is known as proprietary trading.
Some support the crackdown on proprietary trading.
Not all proprietary trades are short-term.
That is not proprietary trading, he argues.
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