Now is not the time to work on a European equities index trading desk. According to Deutsche Bank's analysts they've had a particularly miserable start to the year. This might be why senior European index trading staff are quietly disappearing.
We understand that Regis Loeb, an HSBC managing director and head of European index trading, has gone. Samy Bellaiche, an equity index flow trader at HSBC in Paris, is said to have left too.
HSBC isn't the only bank losing equity derivatives index traders. Dipesh Shah, another trader of the genre, is said to have left Morgan Stanley.
HSBC was unable to immediately confirm either exit. Loeb had worked for the bank since December 2013 after being axed by Bank of America Merrill Lynch in mid-2012. Bellaiche was formerly head of equity index options flow trading at BNP Paribas, and joined HSBC in November 2011. Shah joined Morgan Stanley in 2009 according to the FCA Register.
As we reported in last month, both HSBC and Morgan Stanley have been eradicating expensive mid-to-senior staff in an effort to cut costs. HSBC's equities business had a particularly bad year in 2016, with revenues down nearly 28%. HSBC's European equities business is run by Franck Lacour, who was put in charge last May having previously been head of trading. Lacour previously worked with Loeb at Barclays and is thought to have been instrumental in hiring him.