Final details of new rules on proprietary trading are expected within a fortnight, but traders are already exiting US banks before the regulatory axe falls. The proprietary trading desks at Bank of America Merrill Lynch, Citigroup and JP Morgan are expected to follow those at rivals Morgan Stanley and Goldman Sachs, by either being spun out or shut down.

Morgan Stanley has reached agreement with its proprietary trading chief, Peter Muller, that will allow his team of traders to form a new firm at the end of next year. It is expected that around 60 employees will join Muller at the venture, PDT Advisors.