Bank One, the sixth-largest bank holding company in the U.S, is planning to launch a credit derivatives operation in London. The firm plans to hire a team of between six and 10 traders and structurers. Bank One believes there is a promising business opportunity in Europe for the credit derivatives market and fears it will "miss the boat" if it doesn't act soon, according to an official. The firm is active in the European foreign exchange, interest rate and equity derivatives markets.
Bank One expects to have the team in place early in the third quarter and could begin trading as soon as August. Dave Schabes, Chicago-based chairman of U.S. capital markets, and Bill Wulkan, European head of capital markets in London, are spearheading the hiring effort. Wulkan declined to comment and Schabes did not return calls. Firm spokesman Stan Lata also declined comment.
"This would be a big move for Bank One," said a credit derivatives trader in New York. "Entering the European market is a big step in moving up the ladder as far as its global presence goes," he added.