An associate in Goldman Sachs' electronic sales team has left to become a VP at RBC Capital Markets.
Stephen Kaminsky spent six years at Goldman before leaving in June to become a vice president on RBC's fixed income electronic sales desk. He's due to join the Canadian bank later this month.
Kaminsky's move comes after a difficult few quarter for Goldman Sachs' fixed income currencies and commodities (FICC) business. Revenues in the unit fell nearly 40% year-on-year in the second quarter - more than at any other bank. So far this year, Goldman's FICC revenues are down 21% on 2016. At Morgan Stanley, they're up 26%. At RBC Capital Markets, they're up 22%.
RBC is understood to be building its fixed income electronic trading operation under Haider Ali, a director in the algorithmic trading business.
As banks everywhere seek to adapt to European MiFID II regulations and exploit the growing trend for electronic trading in fixed income products, people who can sell electronic trading systems are growing in popularity. Citadel Securities, for example, has been boosting its U.S. electronic trading capabilities after hiring Nicola White, Morgan Stanley’s former head of electronic fixed income markets.
Figures from the Bank for International Settlements reflect the potential for electronic trading in fixed income products to increase. While over 80% of cash equities products are now trading electronically, the figures for standard interest rate swaps and liquid investment grade credit products are closer to 70% and 40% respectively.