London’s Currency Traders Set for Biggest Bonus Decrease
Foreign-exchange traders in London are set for the biggest drop in bonuses among bank employees as regulators toughen scrutiny in the wake of scandals, according to a survey by Emolument.
Currency traders are likely to see a 43% decline in payouts for 2014, compared with a 41% jump projected for colleagues on commodities desks, according to estimates by the salary benchmarking website. The average bonus paid to currency and commodities traders for last year was 134,000 pounds ($218,000) and 106,000 pounds, respectively, it said.
The $5.3 trillion-a-day currency market is under investigation amid allegations that dealers leaked confidential client information and colluded to rig benchmarks.
“The foreign-exchange market has been tough and there are a lot of traders out there without jobs,” said Jason Kennedy, chief executive officer of recruitment firm Kennedy Group in London.
Bonuses may also be under pressure as earnings decline. Revenue earned from Group of 10 nations’ currencies was the “poorest line of business” for the world’s 10 largest investments banks in the first half, with the biggest drop since 2008, according to analytics firm Coalition.
“Low volatility levels across the currency markets are putting intense pressure on the upcoming bonus pool,” Emolument CEO Robert Benson said by e-mail.
Source: bloomberg- London’s Currency Traders Set for Biggest Bonus Decrease
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