(Adds Citi departures, background on equity derivatives
HONG KONG, July 25 Citigroup Inc has named
James Boyle as global head of equity derivatives, according to
an internal memo, replacing Simon Yates who left for New York
hedge fund Two Sigma Investments LLC in early July.
Yates was the second executive in Citi's equities division
to leave the U.S. bank for a hedge fund this year, after global
head of equities trading Mike Pringle departed for Moore Capital
Management in May.
Boyle will remain based in Hong Kong until the end of this
year and move to New York in the new year, according to the memo
seen by Reuters on Friday.
A spokesman for Citi in Hong Kong confirmed the contents of
Boyle started at Citi in 2012 as head of derivatives trading
in Asia, shortly afterwards assuming responsibility for all
trading in the region. He previously worked at Chicago-based
hedge fund Citadel, and before that led global equity
derivatives trading at Merrill Lynch.
Equity derivatives are contracts whose value comes from an
underlying security such as an individual stock or a basket of
Although trading such instruments can be risky, investment
banks globally have bet on them in recent years to bolster
equity desks' revenue amid a slump in fees from trading ordinary
In Asia last year, banks saw a spike in equity derivatives
trading revenue. French bank Societe Generale singled
out "strong revenues on flow equity derivatives" in Asia in
reporting a 42 percent year-on-year increase in net income at
its equities division for the first half of this year.
(Reporting by Lawrence White; Editing by Christopher Cushing)