Barclays to cut more than 200 investment bank jobs; FCA announces launch of new private stock market

Today’s need-to-know stories

Barclays to cut more than 200 investment bank jobs

Barclays is preparing to cut more than 200 jobs in its investment banking business in the coming days, according to a Bloomberg report on Monday citing sources familiar with the matter.

The cuts, which the sources said will impact around 3 per cent of the division’s workforce, will affect staff in investment banking and global markets and research, with managing directors among the most senior positions to go.

Sources told Bloomberg the move is part of chief executive CS Venkatakrishnan’s broader strategy to enhance Barclays’ investment banking profitability and reallocate resources towards key growth areas. The bank carried out similar cuts just over a year ago.

One source said the lay-offs do not indicate a pullback from any product lines or asset classes but are aimed at freeing up resources to invest in priority areas.

Barclays is reportedly focusing on expanding its presence in European rates, equity derivatives and securitised products, while also aiming to increase revenue from equity capital markets and M&A, particularly in healthcare, industrials, technology and energy transition.

“Like other banks, we regularly review our talent pool as part of our ongoing business operations to ensure continued investment in priority areas,” a Barclays spokesperson said.

FCA announces launch of new private stock market

The UK’s Financial Conduct Authority has finalised the rules for its new private trading platform, the Private Intermittent Securities and Capital Exchange System, or Pisces.

The platform will enable shares in private companies to be bought and sold, catering to growing demand for liquidity in private markets. 

“As companies choose to stay private for longer, there is demand for investors to trade private company shares easily and efficiently in an organised marketplace,” the FCA said in a press release. 

Access to Pisces will be limited to institutional investors, wealthy individuals, sophisticated investors and the employees of participating companies. Trading is expected to begin later this year. 

“Pisces is the latest step in the FCA’s wide-ranging reforms to the UK’s markets to boost growth and competitiveness,” said Simon Walls, the FCA’s executive director of markets.

Moelis hands CEO role to partner Mahmoodzadegan

Ken Moelis will step down as chief executive of Moelis & Company, the investment bank he co-founded, and hand leadership to his longtime partner Navid Mahmoodzadegan, the bank announced on Monday. 

Moelis will transition to the role of executive chair on October 1 and will continue to advise clients in his new capacity.

“This is the right moment to elevate the next generation of leadership and create further opportunities for internal growth,” Moelis said in a statement.

Mahmoodzadegan, who is currently co-president of Moelis & Co, will take over as chief executive and join the board of directors. Jeff Raich, also a co-founder and co-president, will assume the role of executive vice-chair.

Moelis launched the investment bank in 2007 with Mahmoodzadegan and Raich after leaving UBS, where he was the Swiss bank’s top dealmaker for the Americas.

Moelis & Co debuted on public markets in 2014 and has since grown to a market capitalisation of over $4bn.

SocGen debuts stablecoin in first for a major European bank

Société Générale’s crypto arm, SG-Forge, announced on Tuesday the launch of a US dollar-pegged stablecoin called USD CoinVertible, representing the first such move by a major European bank. 

The token, to be listed on both Ethereum and Solana blockchains, is scheduled to begin trading publicly in July. BNY will serve as the reserve custodian.

The stablecoin is designed for use in crypto trading, cross-border payments, foreign exchange transactions and collateral management.

SG-Forge said it will offer 24/7 conversion between fiat and stablecoins, targeting institutional, corporate and retail clients. 

“This new currency will enable our clients, either institutions, corporates or retail investors, to leverage the benefits of an institutional-grade stablecoin,” said Jean-Marc Stenger, chief executive of SG-Forge.

USD CoinVertible follows the 2023 launch of the euro-backed EUR CoinVertible, which has so far seen limited uptake, with only around €41.8mn-worth of the token in circulation, according to the SG-Forge website.

Both tokens are classified as electronic-money tokens under the EU’s Mica rules, with SG-Forge operating as a licensed electronic money institution, regulated by the French Prudential Supervision and Resolution Authority.