Equity derivatives traders experience an exceptional summer
If you’re a junior investment banker fighting to the death on an understaffed team over an endless stream of live trading, you probably don’t want to know if everyone is being paid to do nothing this summer, but they exist; many of them are equity derivatives.
Equity derivative desks are having a good year. Bank Analysts at JPMorgan to predict that income from equity derivatives will be up 16% in 2021 compared to 2020 (admittedly in part because 2020 has been a terrible time), and this growth is already fueled by hiring. Headhunters in space say they were unusually busy in the first half.
As a result, the equity derivatives market in particular is inundated with people spending the summer on gardening leave before taking on new roles. Some are at hedge funds where long non-competitions are normal for the course (e.g. Kenneth Pregnell in Capula, absent since February 2020). Others are in investment banks.
Many Bank of America exits in Paris have yet to surface, for example. Niels Christensen, head of equities distribution for the Nordic region and head of cross-asset distribution for the EMEA region, disappeared in April and is probably sitting on a beach somewhere until he is allegedly reunited with Christian Treuer, BofA’s former Paris co-head of EMEA equity derivatives and continental European equity distribution, who is back at Barclays and apparently bringing some of his BofA colleagues with him.
However, the former bank employees who have had the best summer seem to be those who left SocGen’s equity derivatives business. As we reported earlier, there are quite a few – both in London to Paris. Insiders suggest the French bank’s equity derivatives division exits are in double digits.
SocGen doesn’t like people to leave (unless they take voluntary dismissal, in which case it is good) and imposes a punitive notice period six months on his most favorite staff. Some of those who recently resigned from SocGen will therefore not be back in action until October or November, which is more than enough to remove last year’s difficulties from their systems.
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