Deutsche Bank has poached Martin Zinkin, head of BNP Paribas’ electronic fixed income research and strategy team, as it looks to speed up the electronification of its fixed income business, with rates a particular target this year.
Zinkin signed up to BNP Paribas in September last year, having previously worked as head of fixed income electronic trading at Nomura (and before that Lehman Brothers), but joined Deutsche Bank last month.
Zinkin is now co-head of Deutsche's MET e-trading (along with Jason Batt), reporting to Rob Mandeno, global head of FX spot and options at the bank. Deutsche confirmed the appointment.
He will be responsible for the delivery of the bank's core e-trading platform including pricing, quantitative market making, internalisation and venue connectivity.
Over the last year, Deutsche Bank has been hiring significantly in order to move its fixed income trading business from a manual to electronic process. Much of this investment, like that of other banks, has been driven by regulators who want to see more transparent and recordable markets.
Deutsche’s Market Electronic Trading (MET) technology team, created in 2012, has been hiring as it expanded its electronic execution platforms across its rates, credit, FX and commodities business over the past year, to deal with these regulatory demands.
Recruiters suggest that Deutsche’s rates business is the focus for 2014, and a number of staff currently working on FX e-trading projects have been seconded across. However, as well as Zinkin’s appointment, technology headhunters with knowledge of the bank’s recruitment plans suggest it’s likely to hire externally in the coming months.
It’s no secret that investment banks’ rates businesses have taken a hammering over the past year. In 2013, revenues in the rates divisions of bulge bracket banks are expected to have slipped by 42%, according to estimates from data provider Coalition.
Nonetheless, this has actually worked in the favour of those working on the e-Commerce and electronic trading platforms. Banks are realising the value of pouring money into investing in rates e-trading platforms, rather than employing legions of expensive traders in a business that’s becoming increasingly commoditised.