JPMorgan has integrated credit and rates trading in Tokyo and transferred the previous head of rates trading for Japan to take an undisclosed position in London. Reasons for the moves were not immediately apparent but appear to be part of a trend across Asia for banks to consolidate their operations (DW, 1/6). In the reorganization, Ashley Bacon, head of rates in Tokyo, will take a newly created senior role in the rates group in London. Two JPMorgan insiders expressed surprise that the firm has not yet announced Bacon's new role. Bacon declined comment.
Kumi Fujii, managing director of rates trading in Tokyo, who previously reported to Bacon, has assumed the new position of head of credit and rates trading for Japan. On the interest rate side Fujii now reports directly to Bart Broadman, vice chairman and head of credit and rates for Asia Pacific, and to Chris Nicholas, managing director and head of Asian credit markets in Hong Kong. Fujii confirmed her new role and referred further questions to the press office. Mika Watanabe, a spokeswoman, declined comment. Nicholas was traveling and could not be reached.
The moves come on the back of an announcement from JPMorgan that Broadman will relocate to Singapore this summer to build up the bank's presence in Southeast Asia. He will retain his role as vice chairman for the region and head of the credit and rates businesses.
Separately, JPMorgan is now facilitating trading of hybrid credit instruments for the region out of Tokyo rather than London. "We have moved risk management of certain frequently traded products on Asian names to Tokyo," said Mahesh Bulchandani, managing director and head of structured credit products in Tokyo. For the effort, Jason Sippel, a structurer in the credit and rates group, has become the third member of a credit hybrid trading team, handling what Bulchandani called, "light exotic products." These may encompass credit, fx and interest rate risk. "We've come to the point where there is enough volume to justify migrating the risk function to Asia," said Sippel.
