Societe Generale has closed its G-10 forex-trading desk in London, packing up shop and moving its operations to Paris as part of an initiative to reorganize its forex business and partner with the brokerage Newedge.
Societe Generale, like many other institutional banks worldwide, have felt the pinch of low volatilities and waning institutional volumes this year, exacerbated by the summer months. In turn, this has led to an industry-wide restructuring as several institutions and firms look to emerge out of this turmoil. The bank’s London personnel will thus be moving to France, including two traders previously employed on the G-10 desk that are now preparing to work on an agency-only trading desk.
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Conversely, Newedge has been a wealth for forex personnel, including a trio of former executives who were recently appointed as FX Directors at GAIN Capital’s GTX Platform. A looming cohabitation of Newedge and Societe Generale was brought on by the latter acquiring a 100% stake in Newedge back in May. The whole industry is searching for ways to revamp their models and thus branch away from seemingly arcane risk-transfer models – the Newedge acquisition and subsequent relocation appears to be Societe Generale’s bid at this strategy.