Deutsche Bank Tightens Personal Trading Rules for Staff

(Bloomberg) -- Deutsche Bank AG is tightening its rules on how employees can trade with their own money, according to people familiar with the matter.

From next year, all trades in exchange-traded funds -- investments that track the performance of a large number of underlying assets -- will need to be cleared by an employee’s manager and compliance staff, regardless of their size, said the people. The rules are being brought into line with those for stock trades, the people said, asking not to be identified because they’re not authorized to talk about the matter.

Most large financial firms have trading policies to minimize potential conflicts of interest and insider trading. Deutsche Bank is taking a more conservative policy than certain peers, with some inside the bank concerned that staff could be distracted at work by their private investments, said one of the people.

A spokesman for Deutsche Bank said the firm has always had a strict policy on personal trading, and updates it regularly.

Deutsche Bank is not the only bank to tighten its rules in recent years. Last year, HSBC Holdings Plc instructed about 6,000 employees at its global markets division to cease buying single-name securities and certain ETFs on their personal accounts, people with knowledge of the matter said at the time.

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