London lures derivatives pros from abroad

Strong demand for equity derivatives professionals in London is drawing in staff from overseas.

Malcom Pace, an equity derivatives specialist consultant at Malta-based search firm Melita Associates, says the current rush of equity derivatives hiring is attracting unprecedented numbers of staff to London from continental Europe.

"The London market is sucking equity derivatives people from Paris and Frankfurt," says Pace. "People who move to London from continental Europe can usually double their pay packages, as well as benefiting from tax breaks."

BNP Paribas, Wachovia, Bank of America, Morgan Stanley, Merrill Lynch and JP Morgan are among the banks understood to be hiring equity derivative staff in London this year. BNP Paribas alone is adding 200 staff in London and Paris.

A recent study by Deutsche Bank found fund managers trading of equity derivatives increased 150% in the past year.