RBC mulls hedge fund spinoff; would invest $1B

|By:, SA News Editor

Royal Bank of Canada  (RY -0.2%) has been considering options for its NY-based prop trading unit since the final version of the Volcker rule - which restricts banks' ability to trade their own book - was released in December.

The new hedge fund to be spun out would be named Taursa Capital Partners, reports Bloomberg, and open by year-end. RBC gets less than 1.5% of its revenues from prop trading, according to CEO Gordon Nixon.