Citi, Mor­gan Stan­ley Lose Traders to Hedge Funds

The Economic Times - - Money & Banking -

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.

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