U.S. regulators are considering a “multi-tiered test” to crack down on proprietary trading by banks, Financial Times reports. The first tier will comprise automated “tripwires” that alert banks’ compliance departments.

The second will enable internal compliance and risk management departments to quiz the trader on the nature of the position. Regulators, that keep inspectors on banks’ premises, will also be able to see the “tripwires” and monitor both traders and compliance departments.

Click here for the story from Financial Times.