RBC Capital Markets will begin trading volatility arbitrage as part of its proprietary trading operations and has raided Mako Global Derivatives to kick start the activity. Richard Tavoso, managing director and head of global equity derivatives at RBC in New York, said the firm has been looking to add vol arb to its plethora of strategies for a while and has been waiting to find the right team.
Jim Carney, head of U.S. equities at Mako in New York, and Manny Voumvourakis, who worked alongside Carney, will co-head the new trading operations, with the team being rounded out by an additional two Mako traders, Tavoso said. Both Carney and Voumvourakis were between jobs and could not to be reached. Paul Britton, ceo of Mako's U.S. operations, said the firm has not yet replaced Carney and Voumvourakis but will likely do so.