Reuters: Financial Services and Real Estate: UPDATE 2-Newedge's metals head Mike Frawley leaves

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UPDATE 2-Newedge's metals head Mike Frawley leaves Jun 7th 2012, 23:20 Thu Jun 7, 2012 7:20pm EDT By Josephine Mason NEW YORK, June 7 (Reuters) - Newedge Group global head of metals Mike Frawley has left the broker and is joining Jefferies Group Inc, market sources told Reuters. Frawley resigned on Wednesday and is heading to Jefferies Bache, a clearing member of the London Metal Exchange, a senior executive at a rival broker told Reuters. A spokeswoman for Newedge, one of the world's largest futures brokerages and a joint venture between two of France's largest banks, Crédit Agricole CIB and Société Générale , confirmed his departure. It is also a ring dealing member of the LME. John Fay, who is global head of fixed income, currencies and commodities (FICC), will assume Frawley's responsibilities, the Newedge spokeswoman said. "As the most highly regarded metal teams globally, we continue to compete hard in the market for talent to enhance our team's capabilities even further," she said. Frawley's new role at Jefferies Bache, a relative newcomer to metals brokerage, is not known. New York-based Jefferies made its first foray into the market last year when it bought Prudential Financial's Prudential Bache commodities and financial derivatives business. The division was renamed Jefferies Bache. But it has ambitions to expand - it took a look at MF Global Holdings Ltd days before the broker-dealer collapsed last October, but walked away from a deal due to the high risks. Reports have also said it is interested in buying the failed broker's precious metals assets. Frawley, who had been with Newedge and its previous guises as Carr Futures and Calyon Financial for at least 10 years, is not the first executive to be wooed by Newedge's new rival. Former Chief Executive Patrice Blanc was hired by Jefferies in October 2010 to start the futures business and was appointed chairman and CEO of Jefferies Bache after the Bache acquisition. But his exit comes at a tough time for Newedge's co-owners as French banks seek to cut their exposure to dollar financing, reduce debt and boost their capital ratios amid concern about the euro-zone debt crisis. Low interest rates have also hit futures brokerages' profits and stiff competition among brokers has hurt commission and execution fees. Jefferies declined to comment. Link this Share this Digg this Email Reprints

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