JPMorgan Loses Trading Executives as Wall Street Celebrating Boom in Equity

J.P. Morgan's equity derivatives team is losing one of its key members. Jason Cuttler, managing director of the firm's equity derivatives team in New York, is currently on gardening leave, according to his LinkedIn profile.

The timing of the exit is curious in that JPMorgan saw a standout performance from its Equities Equities Equities can be characterized as stocks or shares in a company that investors can buy or sell. When you buy a stock, you are in essence buying an equity, becoming a partial owner of shares in a specific company or fund.However, equities do not pay a fixed interest rate, and as such are not considered guaranteed income. As such, equity markets are often associated with risk.When a company issues bonds, it’s taking loans from buyers. When a company offers shares, on the other hand, it’s selling pa Equities can be characterized as stocks or shares in a company that investors can buy or sell. When you buy a stock, you are in essence buying an equity, becoming a partial owner of shares in a specific company or fund.However, equities do not pay a fixed interest rate, and as such are not considered guaranteed income. As such, equity markets are often associated with risk.When a company issues bonds, it’s taking loans from buyers. When a company offers shares, on the other hand, it’s selling pa Read this Term division, which had revenues boosted by 24% from the previous year, reaching $2 billion. The gains come at a time when Wall Street banks are struggling with other trading businesses.

JPMorgan's equities business brought in $2 billion in revenue in the second quarter. However, it lags behind top rivals Morgan Stanley and Goldman for equities trading market share, though that gap is narrowing.

Equity derivatives traders have become the focus of an intense Wall Street hiring spree amid their improved performance in 2018. The segment has particularly benefited from the rebound in Volatility Volatility In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, or stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Trad In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, or stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Trad Read this Term, and thus played a key role in the banks’ earnings this year.

Just yesterday, we reported that Amit Mehrotra, head of US equities trading at Barclays, is set to leave the debt-focused investment bank. Barclays has been shaping and strengthening its electronic trading and equities business with hires in recent months — several of them from rivals.

As such, Cuttler’s departure is important for the firm as it represents the exit of a veteran leader from one of the bank's highly functioning units in recent months.

Jason Cuttler served more than two years with J.P. Morgan. He drew attention when leaving Goldman Sachs in early 2016 after more than 14 years, sparking speculation over how much J.P. Morgan must have spent to lure him away.

While at Goldman, he helped to grow its business in London and New York. Most recently, he served as global head of tactical equity derivative strategy team, part of a lengthy career dating back to 2001.