PEOPLE MOVES NEWS UPDATE
HSBC ’ s former global head of FX eDistribution and Distribution platforms , Lee Butler , has left the bank after nearly two decades to join JP Morgan in a digital markets sales role .
Citi has appointed a new head of high-touch trading for developed markets EMEA in London , Will Cussen , according to two people familiar with the matter .
Intercontinental Exchange ( ICE ) has named its fixed income and data services lead Lynn Martin as the new president of the New York Stock Exchange , replacing Stacey Cunningham who is pursuing a new chapter in her career .
Alex Ells , global head of facilitation trading , and Emma Fouracre-Reid , EU head of developed markets facilitation trading , have both left HSBC to join a family office in Dubai sources said , speaking on condition of anonymity as the matter is private .
Euronext ' s MTS business CEO , Fabrizio Testa , is stepping away from the helm after 22 years to take up the reins at newly acquired Borsa Italiana .
Citi has hired Vincent Vandenbroucke from Credit Suisse as its EMEA head of prime brokerage consulting , following the Swiss bank ’ s pullback from the space .
SELL-SIDE
JP Morgan latest top tier bank to close its small and mid-cap trading desk in London
Stocks are now being covered by sector pitches or by offices in Europe as JP Morgan follows peers in moving the desk out of London .
JP Morgan is the latest bulge bracket bank to disband its dedicated small and mid-cap trading desk in London , according to a person with knowledge of the matter . The restructure of the equities business occurred in recent months and has seen staff and coverage of companies move to larger pitches organised by sector or to colleagues working in offices in Europe , with the US bank ’ s Paris office seeing an influx of staff , the spokesperson added . JP Morgan declined to comment .
Historically , these desks used to generate significant commissions , the source said , but as banks have become more risk averse they have pulled back from using their balance sheet to facilitate trading in smaller cap stocks in the secondary market for clients .
The introduction of new regulations by the European Securities and Markets Authority ( ESMA ) in the wake of a no-deal Brexit for financial services , such as the share trading obligation ( STO ), has meant that the coverage and trading of stocks has moved to the Continent as clients being serviced in Europe now need to be serviced by staff based in the region . Shares traded in euros must also be traded on European exchanges . Following Brexit , Amsterdam overtook London as Europe ’ s largest share trading hub , according to data from Cboe Exchange .
ESMA has been aggressive in its application of these new trading rules and has been in constant contact with the larger banks to ensure that they are adhering to the new regulations , the source said .
“ MiFID II started this trend ,” according to one fund manager who spoke on condition of anonymity . “ Falling commissions and lower research spend has made the coverage of smaller companies less economical ,” they added .
JP Morgan isn ’ t alone in making such a move towards sectorised stock coverage . Following peers Citi and Bank of America who also disbanded committed small- and mid-cap desks in London .
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