Job vacancies at London’s financial-services companies fell by 8 percent in July from the previous month as hiring by large securities firms slowed, according to a survey by a recruitment firm.
The number of openings in the City and Canary Wharf financial districts decreased to 2,000 in July from 2,190 in June, London-based Astbury Marsden said in a statement today. However, smaller companies such as high-frequency and algorithmic trading firms, are “actively” creating new positions and adding employees, according to the recruiter.
“It’s smaller city firms rather than the big investment banks that are driving city hiring,” Adam Jackson, associate director at Astbury Marsden, said in the statement. They “don’t have the same restrictions on remuneration that the large investment banks do. For the bigger firms there is intense scrutiny of the rewards for top staff.”
Smaller firms may become more attractive to investment bankers as scrutiny of senior executives’ pay by regulators and politicians intensifies. Under plans published by the Bank of England last week, top bankers could be forced to pay back bonuses awarded as long as seven years earlier and could face criminal charges for reckless misconduct.
High-frequency and algorithmic trading firms are taking on technology and infrastructure employees from investment banks that are scaling back in proprietary trading, Astbury Marsden said.
While larger firms have been cutting sales and trading jobs, they have been adding positions in compliance, according to the recruitment firm.