Credit Suisse’s shake-out of its equity derivatives business, which has resulted in senior exits over the past four months, goes on.
The latest senior departure is Tim Scanlon, head of equity derivative sales at Credit Suisse in New York. He has just been hired by Societe Generale to head up its equity derivative flow sales business.
Scanlon’s exit from Credit Suisse is all the more remarkable because he’s about as close to a lifer as it gets. He joined Credit Suisse over 21 years ago from Paine Webber, the bank that was eventually consumed by UBS, and has worked his way up the ranks since 1996.
Scanlon is, however, the latest senior person to leave Credit Suisse’s equity derivatives business. As we reported last week, Anthony Pesco, global head of equity derivatives, convertibles and funding products – again based in New York – has departed. Pesco joined Credit Suisse in 1999, and has left seemingly without another role to go to. December, Walter Rotondo, who was most recently head of European equity derivatives convertibles trading, left Credit Suisse along with Andrea Negri, a managing director and co-head of equity sales and equity derivative sales in Europe. In February, Giuliano Cislaghi, one of Credit Suisse’s most senior equity derivative salesman, also left the bank.
It’s been a rough year for equities, but equity derivatives revenues particularly struggled in 2016. Revenues were down 21% globally, according to figures from research firm Coalition, which was the biggest decline in any asset class in investment banks sales and trading functions.
Credit Suisse blamed falling equity derivatives revenues for part of the problems affecting its equities business last year and has been shaking up the division. It hired Mike Stewart from UBS in December to lead its equities team, and the expectation is that he’ll hire in some former UBS staff. Already, he’s recruited Benoit Rauly, who was latterly global head of complex equity and hybrid trading at UBS.
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