Exclusive: Credit Suisse to move London, Paris traders to asset management arm

Wed Feb 11, 2015 2:46pm EST
 
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By Nishant Kumar

LONDON (Reuters) - Credit Suisse CSGN.VX is preparing to move a London and Paris-based trading team out of its investment banking unit and into its asset management arm to raise external capital, sources familiar with the matter said.

The team, currently part of the bank's Systematic Market-Making Group (SMG), will be led by the group's Paris-based co-head Pierre-Yves Morlat and manages about $750 million in internal capital, the sources said.

The move is partly a result of regulations enacted after the 2008 financial crisis that restricts banks from trading with their own capital.

It also allows Credit Suisse to scale-up the business by raising funds from external investors like a hedge fund, earn attractive fees and reward and retain its successful traders.

A Credit Suisse spokesman declined to comment. Sources declined to be named as the plan was private.

The team that Morlat co-heads with New York-based Nick Branca makes money for the bank and executes some strategies similar to hedge funds by trading across all asset classes.

Branca is not part of the team that is preparing to move by the end of the year or early next year, one of the sources said. The source also could not provide the team size as the plan was at an early stage.

Credit Suisse had hired Morlat, a former Societe Generale (SOGN.PA: Quote) executive, in 2009 in London as head of proprietary arbitrage trading for Europe, Asia, Middle East, and Africa.   Continued...

 
A national flag of Switzerland flies in front of a branch office of Swiss bank Credit Suisse in Luzern October 30, 2014.  REUTERS/Arnd Wiegmann