JP Morgan's prop traders find new home at BarCap

LONDON & NEW YORK - Barclays Capital has launched a raid on JP Morgan's proprietary trading team in London and New York, as the US bank continues to cut back its prop operations.

Todd Edgar and Sinan Gumusdis in London, and Joe Cordello, David Bailey and Peter Bushman in New York all left JP Morgan at the end of July and are set to join BarCap this autumn, according to market sources. The five are expected to remain in their current locations when they take on their new roles.

It is believed the new starters will report to Jan Smorczewski, who oversees foreign exchange and interest rate prop trading at the bank in London.

JP Morgan revealed last November that it was closing its proprietary positioning business (FX Week, November 10, 2008). Some of the 80-strong staff, including the five moving to BarCap, were absorbed into the prop activities of individual trading businesses.

Separately, BarCap has also made a hire to its spot-trading team in London, according to a source at the bank. Mike Weston will start today (August 10) covering the Swiss franc, which is similar to the role he held at his most recent employer, Citi in London. Weston reports to Daniel Wise, head of spot trading for the bank in London.

Barclays Capital and JP Morgan declined to comment.