It's happened before and it will happen again. People who once worked in trading are finding new trading jobs hard to come by and taking one of the more plentiful jobs in risk management.
The latest to do so is Richard Lester, the former head of equity trading at Nomura. According to his public profile, Lester is now risk manager at DRS Markets. He left Nomura in May after the Japanese bank took an axe to its European equities division.
What is DRS markets? We don't exactly know as it doesn't have a website and Lester didn't immediately respond to a request to comment. Filings with Companies House indicate that it's only existed since April 2016, before which it was known as General Trade Global, a contract for difference (CFD) broker. The CEO is Darren Vickers, who was a manager at SG Warburg for 13 years in the late 20th century.
Before joining Nomura, Lester spent two years as head of equity trading at Citi in London and two years as an MD at Barclays. He also launched an equities fund for Sarigan Asset Management, a fixed income portfolio manager.
Equities traders aren't having a good year: Coalition predicts revenues will be down 15% on 2015. Lester may have wanted to move into risk, but his move doesn't bode well for out-of-work traders who don't. - As we noted earlier this week, there are an estimated 65,000 people chasing finance jobs in London who haven't yet been able to find one.