Foreign-exchange traders in London are set for the biggest drop in bonuses among bank employees as regulators toughen scrutiny in the wake of scandals, according to a survey by Emolument. Currency traders are likely to see a 43 percent decline in payouts for 2014, compared with a 41 percent jump projected for colleagues on commodities desks, according to estimates by the salary benchmarking website. The average bonus paid to currency and commodities traders for last year was 134,000 pounds ($218,000) and 106,000 pounds, respectively, it said. The $5.3 trillion-a-day currency market is under investigation amid allegations that dealers leaked confidential client information and colluded to rig benchmarks. Revenue from foreign-exchange trading is also being squeezed amid weaker client activity, as regulators strive to rein in excessive compensation to prevent another financial crisis. The European Union has banned bonuses exceeding more than twice fixed pay. “The foreign-exchange market has been tough and there are a lot of traders out there without jobs,” said Jason Kennedy, chief executive officer of recruitment firm Kennedy Group in London. “There is no need to pay because they aren’t going anywhere and also after the noise with the scandal, banks prefer to keep their head below the parapet and therefore by not paying even ordinary bonuses they are avoiding any attention.”
Posted on: Thu, 18 Sep 2014 11:39:11 +0000
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