Wednesday, 17 December 2014
Last updated 13 hours ago
Sep 22 2008 | 3:45am ET
The trading tiff between JPMorgan Chase and Citadel Investment Group is over almost as quickly as it started.
JPMorgan cut off counterparty trading with the Chicago-based hedge fund on Thursday, reportedly in response to the latter’s poaching of several employees. But the two sides had ironed out their differences by Friday, and JPMorgan lifted its trading ban.
The dispute between the two banks came to a head following Citadel’s hire of Greg Boester, an adjustable-rate mortgage securities trader on Wednesday. JPMorgan has complained that earlier Citadel hires of its employees have been in violation of contractual agreements, a point that Citadel disputes. But Boester’s hire was apparently the straw that broke the camel’s back, as Steve Black, co-head of JPMorgan’s investment bank, called Citadel founder Kenneth Griffin on Wednesday night to inform him that the hedge fund could no longer trade with JPMorgan, The Wall Street Journal reports.
The trading bar did not affect JPMorgan’s financing and clearing arrangements with Citadel, a point that Griffin emphasized in a letter to investors.
“We do not anticipate any disruption to our business, as we continue to interact closely with our numerous other trading counterparties and with JPMorgan for both clearing and financing,” Griffin wrote. “We regret that JP Morgan has chosen this course of action.”
Dec 1 2014 | 10:21am ET
As 2014 winds down, Northern Trust Hedge Fund Services executives took some time to share their outlook on trends facing the industry in 2015. Read more…
Jeff Sprecher was simply looking for a platform to trade energies when launching ICE 14 years ago but it has grown to reach the pinnacle of both the listed futures and equities world.