Trader and equity derivatives heads depart DB

Two senior equity derivatives heads and one equity derivatives trader have left Deutsche Bank after it reported €386 million in losses on its equity prop trading book.

Richard Carson, Deutsche’s London-based global equity derivatives head, has resigned, as well as Nino Kjellman, Deutsche’s head of equity derivatives in Asia.

Until recently, Kjellman was in charge of global equity derivatives in Europe. Andrew Kent, a London-based equity derivatives trader, has also resigned.

The bank has appointed Michele Gissi and Roger Naylor to replace Carson as co-heads of global equity derivatives. Gissi formerly ran global equity derivatives for North America and will continue to be based in New York.

Naylor was previously head of equities for Central and Eastern Europe, the Middle East and Africa – a job that spanned sales and trading in both cash and derivatives. In his new role, he will continue to be based in London.

Both Gissi and Naylor will report to Noreddine Sebti, Deutsche’s global head of risk for equities, as well as their respective regional heads. These are Robert Karofsky, the bank’s head of equities in North America; and Garth Ritchie, its head of equities in Europe.

In its third-quarter results, released on October 30, the bank said its corporate and investment banking division had lost €386 million through its equity proprietary trading operation; "revenues from equity derivatives were materially lower than in the third quarter 2007 due to lower customer activity in structured products and continued market dislocation in correlation and volatility" it added. Overall, the equity sales and trading division lost €142 million in the quarter, compared with profit of €428 million in the same quarter in 2007.

See also: Carson global head of Deutsche’s new derivatives unit