Lunchtime Links: After expansion comes the inevitable downsizing at Knight Capital

Before the trading glitch that forced it to seek $400m in emergency funding, Knight Capital was one of the bigger hirers in the City of London this year. Now, with the appointment of a number of new board members, it’s reviewing its strategy and, sadly, cuts seem likely.

Question marks remain over whether it’s going to close certain business areas to focus on its core activity of stock trading, says the Wall Street Journal. It's institutional sales and trading division could be on the block, and its planned expansion into bonds and currencies could be put on the back burner.

Thomas Joyce, chairman and chief executive at Knight Capital, said: We're trying to stabilize the company after a fairly traumatic event. We just have our heads down trying to push business forward."

"There's a lot on the table. I wouldn't be surprised to see them resize or exit some of their businesses," added Chris Allen, analyst at Evercore Partners.

Meanwhile:

Fidelity chief names his daughter as successor (Financial Times)

Morgan Stanley’s hedge fund capital raiser is leaving, probably to join a hedge fund (Bloomberg)

Jefferies is sharpening the knife in its London operation. 15 people in its equities division are at risk (Financial News)

Knight Capital boss: “I’m not sure I have to prove anything and I have the full support of the board from what I can see.” (Financial Times)

Citigroup’s former FICC head is moving to boutique bank Gleacher (Financial News)

John Paulson is more aggressive than most hedge fund managers (Bloomberg)

Way to secure a pay rise? Work for the Prince of Lichtenstein’s bank (eFC Switzerland)

Asset managers believe that investment banks should be split from retail arms (Money Marketing)

Citi has a new head of corporate finance for Asia-Pac (The Asset)

Citi could be moving into a shiny new skyscraper in NYC (Wall Street Journal)

It’s not amazingly awesome to be a self-made millionaire at 25 (Business Insider)

‘All banks’ – top of the list of brands making Britain angry (The Drum)