Monday, 20 October 2014
Last updated 6 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.”
Sep 22 2014 | 4:15pm ET
"I tell people that everybody likes good news and so if you have good performance that’s wonderful,” explains Mike McKitish of Peddie School's endowment, “but it’s the people that want to talk about the bad news or where they drifted and how they came back and how they stayed to their discipline…” that he wants to hear from. Read more…
Sep 30 2014 | 9:29am ET
The crisp Autumnal days of October are upon us, and so are a few of the hedge fund industry’s favorite charitable events. If you have never been to Rocktoberfest, well, you are missing out. And for a quieter evening of sipping and socializing, stop by HFC’s Wine Soiree. Read more…
Most traders agree that proper risk management is the key to successful trading. However, many traders depend on the deeply flawed measure of standard deviation as a benchmark of risk. Here we put it ...