Rivals are set to gain from merger of French brokers

The deal is still a long way from being signed, as the due-diligence process continues and terms are yet to be set. But rival brokers tell FX Week they have already received phone calls from staff at the French brokers, asking to discuss a possible move.

One broker said he expected a lot of customers and business as a result of the merger. "A number of staff have already phoned up to arrange meetings," he said. "We expect foreign exchange business to come our way, and indeed the whole gamut of the business. Everything Fimat does, we do. Everything Calyon Financial does, we do. We are looking to profit quite a bit."

The expectation is that the Paris office, where the merged unit is to be based, will remain largely unaffected, according to a head of foreign exchange at a rival broker. He expects all other offices of the two brokers to see losses. He added that his company had also received calls in particular from Fimat staff, an indication that they had most to fear from the proposed merger.

Steve Pryor, head of FX sales at BGC in London, agrees that Fimat staff are likely to be hardest hit. "Calyon Financial already has brokerage business Credit Lyonnais, Rouse and other brokers they've bought over the years that handle margining futures and FX." His view reflects rumours that have already surfaced of departures at Fimat's New York office.

Pryor added that he also sees the merger as an opportunity. "Some people will not like the change, which means there will be some people, perhaps with clients, looking to move." He said some staff may simply be taking the opportunity to move, rather than being under threat.

Pryor dismissed any fears that clients would suffer from the consolidation. "Consolidation is evolution," said Pryor. "It is good because it proves the industry is becoming more efficient. The process will bring more technology and greater transparency, which is better for the industry. The industry will never do anything to its detriment or that of its clients."