Cantor raids Prebon

Cantor Fitzgerald, the money broking company, has raided rival Prebon Yamane, hiring part of the broker's short-term interest rate swaps team.

The move comes just weeks ahead of Prebon's proposed merger with rival Tullett Liberty, the inter-dealer arm of UK stockbroker Collins Stewart, and as Cantor seeks to hire hundreds of voice brokers.

A spokesperson for Search Partners, Cantor's London-based headhunter, said that Cantor had reached agreements with a "good portion" of Prebon's Eonia (Euro Overnight Index Average Swaps) team, who have signed forward agreements to join the broker when their contracts with Prebon expire.

The forward agreements are designed to avoid costly the litigation which routinely occur when brokers poach staff from rival firms.

Although the bulk of the departures are unlikely to happen before Prebon's 135m (€201m) merger with Tullett is completed in October, they could still potentially derail the deal.

Prebon's Eonia team is among the best in the market and one of the broker's key attractions for Tullett, which is stronger in the medium to long-term end of the swaps market.

Cantor is also believed to be seeking to hire Prebon's Sonia (Sterling Overnight Index Swaps) team, although its spokesman would not comment.

Cantor announced earlier this month it would spin off its global voice brokerage business and focus on expanding its institutional equity and fixed income arms.

The new company will be known as BGC Partners and will initially employ more than 400 brokers in London, New York, Geneva, Milan and Tokyo.

Cantor retained Search Partners, earlier this month to spearhead the hiring of hundreds of brokers before the spin-off takes place in October.

Since the Prebon merger was announced, Tullett has suffered the departure of Rod Taylor, the brokerage's European head, and part of its US Treasury team which Cantor raided in August.

Bruce Collins, the former chief executive of Tullett resigned in April.