Citi, Morgan Stanley Lose Traders to Hedge Funds
Citigroup is losing its top stock trader and a team of Morgan Stanley traders is departing after less than a year as the migration from banks to hedge funds continues. Michael Pringle, Citigroup’s global head of equities trading in London, is joining Moore Capital Management, spokesmen for the firms said. The Morgan Stanley team, led by Jason Mackay, will pursue trading opportunities outside the bank, according to a person with direct knowledge of the matter, who requested anonymity because the moves are private. New regulations since the financial crisis have accelerated the movement of Wall Street’s top traders to hedge funds. The banks that once gave traders pools of capital to invest are now saying they’ll stop proprietary trading and focus on executing orders for clients. Banks are also paying bonuses largely in deferred stock. “Back in the day, they’d compete well with hedge funds, but given the new regulatory environment, there’s been a shift to deferred compensation,” said Joel Salomon, a former Citigroup trader.