Wednesday's Headlines: Casualties of High-Frequency Trading

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Schonfeld Group Fired Approximately 50 Traders Last Friday[CNBC]

A large proprietary trading shop, Schonfeld Group, terminated 50 traders from its force of 350. An e-mail from CEO Steven Schonfeld blamed the cutback on "direct competition from black boxes, stat arb, and high frequency trading which ... has caused under the circumstances to change our outlook for lesser skilled traders."

Banks Redefine Jobs of 'Prop' Traders [WSJ]

With the Senate slated to vote next week on the final financial reform bill, banks are moving star proprietary traders to new posts less likely to run afoul of the pending law's Volcker Rule provision. Citigroup, for instance, might shift some 25 prop traders to desks that trade on behalf of clients.

EU Toughens Bonus Rules With Limits on Cash Payouts [Bloomberg News]

The European parliament approved a law requiring bankers' bonuses to consist of at least 70 percent deferred compensation and compelling institutions to report the number of people earning more than 1 million euros ($1.3 million).

Dreaming of 2003 [The Deal]

The private equity business is stirring back to life. Domestic LBO activity rebounded to $37 billion in this year's first half, from $10.4 billion in the first half of 2009, according to Dealogic.

Former Regulators Find Steady Work With Hedge Funds[Reuters]

At least five former SEC commissioners - including ex-chairmen Arthur Levitt and Harvey Pitt - have signed on as directors or advisers to prominent hedge funds in recent weeks.

Kleinwort Sees Its Future By Eyeing The Past [FT]

Kleinwort Benson's new chairman Leonhard Fischer expects the London-based brokerage to employ 500 people at its new Mayfair premises by the end of 2012. Fischer's RHJ International, a spin-off of US private equity company Ripplewood Holdings, completed its purchase of Kleinwort from Dresdner last week.

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