Citigroup to buy Knight options unit | FT

Citigroup is expanding its derivatives business by agreeing to buy the options market-making arm of Knight Trading for $225m in cash.

The move will make Citigroup one of the leading providers of options execution alongside Bear Stearns and Goldman Sachs.......

Citigroup has strong options order flow from both institutional and retail clients but currently has to hand all the trades over for execution.......

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Merrill Lynch poaches for equity derivatives arm | FT
Merrill Lynch has poached 17 traders and sales people for its equity derivatives operation.

The move comes at a time when investment banks are hiring again after a three-year bear market.

The newcomers join from Goldman Sachs, UBS, Commerzbank, CSFB, Lehman Brothers and Dresdner Kleinwort Wasserstein......

The appointments follow a recent wave of poaching in the City, as banks are prepared again to offer lucrative salaries. Last month, Nomura hired 15 equity derivatives traders, including 13 from Merrill.......