Commentary

Jared Dillian
Traders Magazine Online News

Was it Worth It?

In this piece from 10th Man, author Jared Dillian discusses how the ETF revolution is less about ETFs and more about indexing; about how people have come to view stocks less as stocks and more as blobs of stocks.

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November 1, 2000

Cutbacks, Growth For Trading Pros

By Staff Reports

The mergers and acquisitions that will unite some of the largest trading desks on Wall Street are likely to result in the elimination of hundreds of trading jobs.

The reason: an overlap in services and in the markets covered.

As many as 3,000 jobs will go in the trading and banking areas as Chase Manhattan completes its acquisition of J.P. Morgan, according to Chase chief executive William B. Harrison.

Harrison was not specific but the cuts are expected to be felt more in the bond trading than in the equity areas.

The news is not all bad for traders. The deals will create larger and more capital-intensive trading desks.

As previously reported, UBS Warburg's acquisition of PaineWebber, will create a stronger Nasdaq trading desk, making markets in 1,000 stocks, according to Jack Francis, Warburg's Nasdaq desk chief.

Separately, as part of Credit Suisse First Boston's acquisition of Donaldson, Lufkin & Jenrette, the equity trading desks at both firms were "integrated," a spokesperson for CS First Boston said.

The traders at DLJ's floor on 277 Park Avenue in New York City were moved downtown, to Credit Suisse First Boston's floor on 11 Madison Avenue.