Third-quarter results of the world's largest investment banks show they are making gains from trading of fixed-income and foreign-exchange products on behalf of clients, the so-called flow business, instead of proprietary trading. Deutsche Bank, Credit Suisse, Barclays, Goldman Sachs, JPMorgan Chase and others are all profiting from flow. "Everybody wants to be a flow monster now," said Huw Van Steenis, a Morgan Stanley senior banking analyst. "In an environment of stricter regulation, higher capital charges and uncertain markets, scale and efficiency in client flow is the right strategic response."
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