JPMorgan has plans to shut down all of its prop trading desks, says Bloomberg.

Around 20 commodities traders in London were told to apply for jobs elsewhere inside the bank.

Bloomberg: JPM told traders who bet on commodities for the firm’s account that their unit will be closed as the company begins to shut down all its proprietary trading, according to a person briefed on the matter.

The bank eventually will close all in-house trading to comply with new U.S. curbs on investment banks, said the person

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There were rumors a few weeks ago that Goldman would shut down its prop trading units, rumors since reversed. And other banks such as Citi and Bank of America have also made moves to change the roles of their prop traders. JPMorgan’s announcement is somewhat different though because they apparently plan to shut down ALL prop trading desks.

But here’s the proviso – shutting down prop trading desks actually might resemble just changing the appearance of prop trading, not the practice. Prop traders are no longer “prop traders,” as many have been moved to client-based desks. If proprietary trading becomes related to client operations and as long as the “prop trading” is done for client-related purposes, it’s OK. Even if it resembles the prop trading done on strictly defined “prop trading” desks.