European Banks will face heightened regulation of their activities and a ramping up of enforcement actions from the US with a shortage of compliance professionals. While banks are traditionally compliance savvy, recruitment experts say that cuts in recruitment budgets and a rapidly evolving job description have led to a shortage of skilled talent.  Hot TopicRecent headline grabbing news stori...

Despite the contradictory weather, summer has definitely started and with it the traditional slow down in the recruitment markets. (One could argue that, from a recruitment perspective, summer started a while back.)With this in mind over the summer, we will continue to provide you with the news you expect but the editorial will be produced sporadically and only when there is notewor...

Hiring in the FX market has remained steady, but at low levels compared to 2011 and significantly down on 2010. Guaranteed bonuses are almost non-existent, but banks are finding more creative ways to give new joiners some income assurance and risk mitigation for the coming year. The most active hiring sectors are hedge fund sales, real money sales and eFX. In particular, FX e-commer...

They say that everybody is only six connections from any other person. That might hold true in the unfriendly areas of the capital markets and, in the closeted world of private equity, they are supposed to work so hard (and put in such long hours) that few of them know anyone at all, and can just about make the link with their families. However, in the commodities space, i...

With business in the financial markets slower and economic data reports proving that the economies in the UK and Europe are still weak - along with the never ending Euro crisis - it comes as a surprise that morale in the fixed income market is fairly upbeat. Reports from the first quarter of this year show that the situation has been improving and, while the number of redundancies b...

Mid-way through the second quarter of 2012, it is clear that the initial market exuberance of Q1 is now far from peoples’ minds. Delta One volumes are down and European ETF outflows were close to €4 billion during April 2012, compared to inflows in March 2012 of €2.4 billion. Admittedly, the lion’s shares of these outflows were DAX-related, but distribution d...

The credit market remains slow and unpredictable from a hiring perspective. We had hoped that with the markets seemingly stabilising at the beginning of the year, we would see a return of investor confidence and that the subsequent increase in trading activity would provide a fillip to hiring appetite in the second quarter of 2012. However, this hasn’t been the case: recent re...

The cash equity market continues to be slow and uncertain from a hiring perspective. As always, there are pockets of activity within those houses brave enough to see this as an opportunity to build out certain strategically important functions. However, the body count continues to rise, with the opportunities for these individuals to return to the market dwindling and set to reduce further as ho...

After an exceptionally quiet first quarter, we are seeing significant activity in terms of cutbacks by major players, which are more than counter balanced by strong niche hiring. On the downside, BAML, HSBC and RBS have all cut back compliance teams following strategic reviews and restructuring, although proportionately, compliance has fared better than most areas. In the small to...

The EMEA FX hiring market seems to be easing and becoming a little more active, although still not near the levels reached in 2010 and 2011. Guaranteed bonuses are beginning to be seen again for selective and business critical hire, in some cases banks are looking for creative solutions to provide income assurance for new joiners. Headcount availability remains the crucial component a...

Recent years have been challenging for professionals working in the power and carbon markets and, to some extent, for those in the gas markets. Redundancies have been common and long-term unemployment a reality for many. The oil market has fared relatively well, but the first quarter of 2012 has seen casualties across banks, trading firms and utilities. Oil traders have typically been reluc...

Here’s some exciting news – our weekly update newsletter is now available to download from the Apple App store and is also on Windows Phone and Android. Newer versions of Blackberries will be catered for in the near future. So, to celebrate the birth of our App, which for users weighs in at no pounds (and no pence), we thought we’d share with you the down...

Current or pending benchmark IPO transactions -such as ZIGGO, DKSH and FACEBOOK - show that companies are finally returning to the equity capital markets and, as a result, sentiment and corporate finance activity should pick up. And things certainly couldn’t be worse than the void of the last seven months. However, bulge bracket banks are still cautious about pressing the hiring ...

2012 has started in a more positive vein than perhaps we feared at the end of last year. While it appears true that bonus pools have been hit hard and the hiring plans of many, if not on hold, have been reined back, there is still hiring going on in the commodities space. However, it is very focussed, complete skill-set alignment is being required and the interview process is taking significantl...

The credit markets remain subdued and hiring freezes at banks are still in place.  With the majority of 2011 bonuses now behind us, this would normally be the time of year when a flurry of hires take place, however this is not the case for 2012. With the seemingly never-ending Greek debt crisis putting a dampener on fixed income trading activity and with banks having to respond to...

2012 was a bad year for banking bonuses, following on from several notably mediocre years. In spring 2012, many will feel that they have worked incredibly hard throughout 2011, but have not been adequately or fairly rewarded for their efforts or contributions.But is there worse to come? The fact that financial regulation is getting increasingly stringent, combined with evidence t...

We are proud to announce that CORRELATE SEARCH HONG KONG has been ranked ‘No 1’ in a number of different polls in the 12th Annual Headhunters Poll by ASIAMONEY for 2012. This is a poll of senior executives to determine the best regional search firms and recruiters. We are ranked No 1 in the following categories:Asia (ex Japan)• Overall - Best contingent headhunting firms –...

The equity markets remain subdued. With the back end of the bonus round upon us, results have been mixed. However, the overall message is far from encouraging for the aspiring equity professional. In short, almost everyone was down on last year. The lucky and the talented were doing well to keep their drop in remuneration confined to the high teens, with the vast majority seeing tot...

The upside for foreign exchange in 2011 was that revenue was up around 10% to 15% and sales/trading teams outperformed their fixed income counterparts. The downside, however, was that 2011 was not a great year to have a great year. A reduction in the bonus pool of approximately 25% to 30% was already discounted and expectations were managed, with employees tending to believe that the bonus reduc...

At first glance, 2012 has not got off to a good start with regards to employment opportunities in the commodity markets. January has seen the banks pull the plug on financing PETROPLUS, the independent refiner and wholesaler of petroleum products, with about 200 professionals now facing an uncertain future at the Zug head office. BBVA has taken the decision to exit commodities, only...

The fact that bonus pots are down is old news. What is interesting is where these diminishing pools are being shared, both in terms of level and function. Traditionally, revenue generators have been king and no one is pretending that a trader adding £10 million to the bottom line isn’t going to be looked after. However, there are some interesting patterns emerging in earl...

There is now a huge tide of regulatory change sweeping over the financial services landscape that has seen new rules and regulations, a more aggressive regulator, intense media scrutiny fuelling a public loathing of the financial services industry, politicians point scoring on issues surrounding bankers’ remuneration, and so on. This is all driven by the desire to ensure great...

The year has begun with the main Delta One EMEA investment banks having a handful of hiring requirements, but with most being notable for their absence from the traditional New Year hiring bonanza. While a few desks have received their new headcount sign-offs, the reality is that most banks still have a hiring freeze on, unless a particular role is deemed as business critical.Unfort...

From Efinancial News: Barclays Capital, the UK’s largest derivatives trading bank, has hired the former London sales chief at futures exchange Eurex to head a senior client services team within its London derivatives operations. Manuela Arbuckle, who left Eurex in December, will join Barclays Capital early this year, according to sources familiar with the move. Barclays C...

In our first, specially extended newsletter of 2012 (and as promised last year), here is a selection of our hiring-related predictions for the coming year. However, regardless of whatever ultimately happens, we wish all our readers the very best. Jon Trevelyan (Editor)  Compliance and riskThere are a number of factors that have contributed to a high level of turn...

Once upon a time, the great advantage of making year-end predictions for the coming year was that 12 months is usually long enough for people to forget what you said. Or, at least that was the case before the invention of the Internet. Now, at the touch of a button, we can check the statements made by those bold (or foolhardy) enough to stick their necks out and predict the future.So, in the spi...

Malaise among the financial services community has been well documented in recent months and continues to grow with the exit of Credit Agricole from commodities this week. On the other hand, for physical commodity traders - across both the energy and metals markets in Europe - the mood had remained relatively upbeat. However, recent weeks have seen the debt crisis widen geographically and this h...

As we enter the final weeks of the year, the general mood remains one of uncertainty while banks continue with cost reductions and business consolidation. Although some investment banks appear to be escaping the abysmal fourth quarter than many had feared, significant questions remain as to where profits can be booked in 2012. An overall consensus is emerging the markets will continue to be diffic...

On the twelfth day of Christmas, my dear Bank gave to me: A Bonus of only Equity! Two rogue traders, Three credit defaulters, Four calling regulators, Five sovereign debts, Six clients a-baying, Seven Exchanges a-merging, Eight Chief Executives a-leaving, Nine firms a-shrinking, Ten new rules a-coming, Eleven litigators, litigating, Twelve reasons for recession. And a Bonus of only Equity!

The Financial Times recently published a short article on quantitative finance and the role it has to play in the current crisis, taking the position that what we need is more mathematics. However, our opinion is that it is not so much about the quantity of mathematics (and mathematicians) but rather the quality.  The position most of our clients take is that the overall quality of mathematic...

Market commentary: Will 2012 be any better?The investment banking environment continues to get tougher for everyone. There are numerous strategic reviewsthat have recently been completed or are still in progress, and these are bound to lead to further job losses acrossthe banking industry. And, as the year draws to a close, it is a daunting task for those who fall victim to theincreasing numbers o...

As well as widespread investment banking job cuts at all levels, particularly in the bulge bracket banks, it is the use of the term ‘strategic review’ that has stood out in recent weeks. At the moment, banks are very good at identifying revenue weaknesses in the current economic snapshot in time. However, this is a de-risking exercise with little consideration for future...

Since headhunters are brokers in human capital, our concerns mirror those of the sales and trading community in the City. Some market movement is necessary as inertia helps no-one, but a wildly volatile market creates fear, uncertainty and a feeling of helplessness and inability to control events. By all accounts, MF GLOBAL had a well-run, profitable London business, with solid compl...

The cash equity market continues to be relatively quiet, as banks struggle to find a way forward in difficult markets. And, as we approach year end, everyone’s focus inevitably now moves towards the question concerning the size ofthe bonus pot and where individual expectations should lie. The bad news is that it hasn’t been a good year – but there’s no great shock there....

Wall Street Journal Article on currency trading job losses. Simon Head comments. Read the original article by Neil Shah here: http://online.wsj.com/article/BT-CO-20111020-719046.html Banks hit by sluggish trading revenues are cutting staff in fixed-income, currencies and commodities by about 10% globally, according to Options Group, a New York-based recruitment firm. Currency trade...

As the year end looms, we are beginning to be asked what patterns we are seeing in terms of compensation structure. Is every bank on the same page? Will the base salary get higher or will it remain unchanged? Will the bonus pool share ever be reducing? To date, around 60% of banks have increased front-office salaries in the last 12 months. However, as a new study shows, more than a quarter are exp...

With the dust now starting to settle after the UBS Delta One debacle, the media attention seems more focussed on the Eurozone sovereign crisis and anti-capitalist demonstrations around the world than Delta One. However, the aftermath of the UBS rogue trading event did rightly have repercussions throughout the Delta One world. Thankfully though for the industry, its repercussions are focused not on...

After two quarters of rather depressing news from the commodities markets, a guarded optimism might be in order - although perhaps restricted to the non-banking space.   The long-awaited European arrival of FREEPOINT COMMODITIES has finally come to pass, with the establishment of a London office with an initial 15 person headcount. The team is led by Michael Walter and he has filled most of...

Hiring activity in FX is still down on 2010 levels, with available headcount very low and very few guaranteed bonuses offered to new joiners. However, despite a relatively depressed fixed income market, FX revenue has generally increased, with some banks reporting being up 20% on 2010. Breaking this down, revenue generated from corporate clients has increased, while mark-up from hedge funds has...

We have to be brutally honest. The bare facts don’t look good, but there is a silver lining behind these dark statistical clouds. First the bad news - the hiring market for front office IT professionals and quantitative analysts saw an 18% to 20% month-on-month drop in job opportunities in September 2011. At the same time, the number of financial services professional job seekers c...

Hiring activity in the cash equity market has pretty much ground to a halt for the year, as poor volumes and macro issues continue to dog performance. The expected redundancy rounds have commenced with Credit Suisse leading the way with 50 from its equity business over the last two weeks. With other banks expected to follow hot on its heels with similar numbers, there will be a good supply of ca...

The hiring market continues slowly in FX & rates, with activity significantly lower than 2010 levels. However, while FX revenue is approximately flat or slightly down on 2010, it is still regarded as good news in a FICC market whose revenues are lower than last year. The ‘hiring window’ with guaranteed bonuses on offer was, for the most part, shut in July. This meant that, while d...

The traditional summer lull in the primary markets saw IB revenues fall to historic lows in Europe and North America. European IB revenues in August were down a staggering 46% on the same month last year, mostly felt in ECM and DCM rather than M&A. The worry for the wider investment banking community is that advisory activity is often seen as a barometer for future secondary trading lev...

We are entering an interesting period. On the one hand, banking profits are down and, in areas such as fixed income, dramatically so. As a result, cost cutting will increase and normally support functions such as compliance would suffer more than most.However, these aren’t normal times. So, on the other hand, political considerations and the need for a host of regulators to be seen to be t...

The commodities markets have suffered from sharp pricing fluctuations and short-to-medium term forecasts suggest that this will continue for a while. Set against this, the picture for recruitment within the commodities markets would seem remarkably stable. While not suggesting that a ‘New Dawn’ is yet with us, there are encouraging signs to be seen. In particular, significant recruitm...

These are the million dollar questions that seem to be on everyone’s lips. The answers remain ever elusive. However, it is apparent that there is demand for risk diversification and the disposal of non-core and toxic assets from balance sheets to free up liquidity and/or capital. Although the banks have been working hard to meet the capital adequacy requirements of the new regulatory regim...

With an overall investment banking market sitting somewhere between static and teetering on the edge of an abyss, the world of Delta One, perhaps by definition, is sitting in a comfortable space for the second half of 2011. Revenues in the PB space, and the resultant Delta One trading activity generated from this, have been on the ebb in the last quarter as many hedge funds are either sitting on...

Given its continued lacklustre performance and absence of volume, the cash market has largely shut up shop for the summer and probably for the rest of the year (certainly where guarantees are required). The general trend seems to have been that the first quarter was very good, with most houses in line with or, those with strong trading teams, exceeding budget and last year’s comparative pe...

Despite the first quarter showing an M&A revival compared with the previous two years, the European market is still sluggish as a result of macro-economic and political shocks slowing deal activity in the second quarter. Cash-rich corporates, which steered a conservative route through the downturn and having planned their strategic deals, are now reluctant to press the button – particula...

Recently, there has been a marked surge in activity and job openings across the wholesale banking market, but particular hotspots include fixed income advisory at VP and director level, and AML at the AVP/VP level and control room. The pocketing of well-deserved, but (in many cases) smaller bonuses - particularly at some of the notable bulge bracket houses, such as Nomura and Credit Suisse&nb...

The commodities markets have had a rollercoaster of a ride for the last couple of months. Volatile price movements, an ultra-high-profile IPO taking place, and the repositioning of a number of offerings from banks and trading houses have all had an effect on hiring rates.Recently, NOMURA has decided to step back from the European commodities markets; JP MORGAN has taken over the RBS SEMPRA busines...

With revenues from global equity derivatives in the first quarter of 2011 being broadly in line with those in the same period last year, but with volumes lower in EMEA than those in APAC and the Americas, as we enter the second half year, the EMEA equity derivatives market is far from where we hoped it would be - both in terms of profit and headcount growth. Therefore, the equity derivatives recru...

Early indications of 2011 FX market hiring point towards cost-controlled growth. We are now experiencing a market where, for hires to be made, they must be business-critical, pre-approved and highly scrutinised by executive committee members. We can also no longer assume banks will remain headcount neutral, with leavers automatically being replaced.However, not all is doom and gloom. The 'feel-bad...

On the surface, the cash equity recruitment market appears relatively quiet with an uneasy stability within the bulge bracket firms post bonus. With business levels / volumes still poor, vacancies are being managed internally or filled by more junior talent. Rather than a temporary lull, this appears to be the new reality, as firms re-adjust to business levels that do not appear to be improving. T...