JonesTrading Hires for Derivatives Push

JonesTrading is ramping up its derivatives business push with several key new hires.

In response to client demand and evolving market conditions, JonesTrading appointed Tom Steen as managing director and head of its global derivatives business in November and Steen is now building out his team.

Steen, who is based in Toronto, announced that Mark Neuman, Rich Breitenecker and Chris Rich have been hired to join the derivatives team. Steen says that the firm is actively looking to hire additional derivatives professionals, particularly in New York, Boston and Chicago.

“We are looking to build an integrated platform with our cash equity business and derivatives business,” says Steen. “JonesTrading has been successful over the past 30 years but didn’t have the products to allow clients to hedge risks and better use capital in some circumstances.” Steen adds that the derivatives business will be modeled after the equity side and be an agency only business.

“All of our sales traders will have the ability to learn about the derivatives products and introduce them to clients and have them covered by the derivatives sales force,” says Steen. “Or if their knowledge is high enough, they can cover those clients themselves.”

Packy Jones, chairman of JonesTrading, says, “Our goal is to have one derivatives focused person in each of our 13 offices. Right now we have 4 in different offices.”

He adds that he would like to see about “five to ten percent of our business in the option space,” eventually.

Steen points out that in the current market conditions, being able to offer derivatives products and services to clients is key. “The equity markets aren’t going to continue to go up like they used to,” he says. “The firms that have come through and done well are the ones that have been using derivatives.”

Neuman will be a managing director and work out of JonesTrading’s New York City office. Previously he was at Susquehanna International Group (SIG) and has also worked at Kaia Investment Management and Merrill Lynch.

Breitenecker has been appointed head of JonesTrading’s Derivatives Agency Trading Desk. He was most recently at Barclays and has also held positions at Lehman Brothers and Merrill Lynch.

Rich will serve as Head Options Strategist and will also support the Derivatives Agency Trading Desk. He was previously a senior options strategist at Newedge Group and was principal at Rich Advisory Group.

Jeff Smoke will also be moving from JonesTrading’s Orlando office to the Chicago office to help run the day to day derivatives business.

Jones says that these hires are coming at an opportune time. “This is a once in a lifetime situation where some of the big bulge bracket firms are going through a transition they haven’t seen for a while and it makes people open their eyes and be willing to have (employment) conversations.”