First New York Co-Pres. Quits As Firm Preps. Hedge Fund

Nov 8 2010 | 10:40am ET

Proprietary trading firm First New York Securities—which is readying its first hedge fund—is facing more changes.

Donald Motschwiller, co-president of the New York-based firm, resigned last month, just nine months after being promoted to the post and just a month after co-president Joseph Schenk was named CEO. Schenk is leading First New York's first foray into managing outside money.

Motschwiller left First New York to purse other opportunities, The Wall Street Journal reports. He spent six years at the $350 million firm.

First New York plans to launch a multi-strategy hedge fund that mimics its hugely successful prop. trading operations and may hire as many as 40 traders to help run it. The firm hopes to attract some of the talent currently leaving bank prop. desks in the wake of new U.S. regulations that bar banks from the activity.

First New York has already hired former hedge fund professional, Seth Platt, to help set up the hedge fund. Platt last year left fund of hedge funds Explorer Asset Management, where he was a manager.

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