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Barclays Severing Ties With Up to 7,000 Business Clients
Bloomberg | Dec 19
Barclays is preparing to tell 7,000 clients to do more trading with the firm or find another bank, the latest move in an industrywide trend of winnowing down customer lists to the ones that produce significant profits. The British bank launched a new computer system, called Flight Deck, this month that ranks every customer of its trading unit by the return they generate on the firm’s capital, allowing Barclays to prioritize its most lucrative relationships and jettison those that have become a drag. Since 2014, the bank has culled 17,000 clients as tougher capital rules make dealing with many smaller firms less profitable, and the new system has identified a further 7,000 that may need to go. As a general rule, Barclays wants at least a 10 percent return on capital from every customer.
Top European HFT Spire Hires for Mifid II Push
Financial News | Dec 19
Spire Europe, the London arm of US proprietary trading group Tower Research Capital, will appoint Simon Dove as head of liquidity management from January 2017, a new role for the firm. He will be specifically responsible for helping to secure liquidity provision agreements between Spire and third parties, including investment banks. It is a departure for the firm, which trades directly on exchanges and other trading venues, using its own capital and highly quantitative models. Dove, twice an FN Rising Star, was most recently managing director at rival London prop firm, Sun Trading International,. Before that he spent more than eight years at the London Stock Exchange.
BGC Hires Two More Brokers in Futures Push
FOW.com | Dec 19
BGC Partners has started hiring senior London-based brokers to work with Greg Holley, Societe Generale’s former head of UK sales, on an aggressive expansion by the US-based inter-dealer in futures and options. BGC has hired in recent weeks Karl Cotier and Peter Osler, experienced futures experts who joined the inter-dealer broking giant from ED&F Man, according to sources. Cotier, who was a sales director at ED&F Man, has been hired to work with Holley, set to join next month, on sales to larger clients.
ICAP Looks to Process Forex Trades on Blockchain
Financial Times | Dec 18
ICAP is preparing to process thousands of foreign exchange trades on blockchain technology amid signs the emerging standard is encroaching on global markets. The London group, to be renamed NEX Group from January, will supply the code to customers in March so institutional investors can more transparently track and value deals in the spot market, which trades $1.7tn a day. At the same time Euroclear, one of the world’s largest settlement houses, and its partner Paxos, a US financial technology group, have completed a 2-week blockchain pilot for more than 600 test deals in the London bullion market.
Goldman Reshuffles Research Leadership Ahead of New Rule
Reuters | Dec 16
Goldman Sachs has reshuffled the leadership of its research division, according to an internal memo seen by Reuters on Friday. The changes come as banks are preparing for the latest Markets in Financial Instruments Directive, known as MiFID II, which will change the way that investment research is paid for by clients. Goldman has elevated Bob Boroujerdi to head of global securities research, where he will also become chair of the securities research operating group and remain head of Americas research. He was most recently co-chief operating officer of research and chief investment officer for global equity research.