Citigroup is expected to charge Richard Burns, co-head of equity derivatives for Europe, with setting up a global group for structured products. The move follows Citi's decision two weeks ago to combine its equity trading desks under Andrew Crane, who previously co-headed equity derivatives with Burns (DW, 2/14). Jeremy Hughes, spokesman for Citi in London, declined comment and Burns is on vacation and could not be reached.
It could not be determined whether the creation of the new group signals a move by Citi to combine its derivatives structuring and sales teams across asset classes under one head, as has been done at other derivatives houses. Merrill Lynch (DW, 2/22), JPMorgan (DW, 8/6), and ABN AMRO (DW, 12/3) all combined their debt and equity marketing teams last year. City officials say these reorganizations have boosted hybrid structuring, which is an area of focus for most of the large derivatives houses (DW, 12/23).
Skeptics, however, said Citi has frequently talked about boosting its cross-asset product division and has failed to do so. In addition, the U.S. bulge bracket firm already has a hybrid structuring team, which reports into fixed income and is headed by structurer Erwin Parviz. The team covers fund derivatives which at most other European houses are traded and structured from equity derivative desks. Citigroup watchers suggest Parviz's group may also be reorganized, but it was not clear whether its fixed income reporting line would change. Parviz declined comment.
Burns is said to have been tipped for promotion before, but is reluctant to move to the U.S. The new role, based in London, could be an ideal solution for him and the bank, which is keen to keep Burns on board, said the insiders. Structured equity derivatives is a big earner for the U.S. house and it makes sense to create a global role to oversee this, added one Citi official.
