Tullett Claims of BGC Raiding Repo Desk Denied by Finra PanelMatthew Leising
Tullett Prebon Plc’s claim that competitor BGC Partners Inc. improperly lured away nine traders was rejected by an arbitration panel of the Financial Industry Regulatory Authority, according to BGC.
The claims for more than $16 million against BGC, which matches securities trades between banks, are in addition to several other lawsuits brought by Tullett Prebon from 2009 to 2011 that seek at least $1 billion in damages for allegedly raiding its brokers around the world. The dispute decided Jan. 11 by the Finra arbitration panel involved nine repurchase agreement traders who left Tullett Prebon for BGC in 2011, Robert Hubbell, a BGC spokesman, said in a telephone interview.
“All Tullett’s claims were denied in full, affirming that BGC’s recruitment and employment of the repo brokers was lawful and appropriate,” BGC said in a statement today.
The larger lawsuits are still progressing, Hubbell said. BGC sought to “cripple Tullett’s inter-dealer broker business on a global scale,” luring 83 brokers from Singapore, Hong Kong, Tokyo and London, according to Tullett’s 2009 complaint filed in federal court in Newark, New Jersey.
Tullett Prebon was ordered to pay $380,000 in compensation that was owed to the nine brokers who left in 2011, Hubbell said.
Nigel Szembel, a Tullett Prebon spokesman, didn’t immediately respond to a telephone message.
The case is Tullett Prebon Plc v. BGC Partners Inc., U.S. District Court, District of New Jersey (Newark).