Newedge Rethinks Organization in Major Restructure

Futures broker Newedge has announced plans for a wholesale reform of the way it operates its business, in light of adverse market conditions.

Newedge will separate its execution and clearing functions for futures and options in an agency only manner. It also said that it would withdraw from unprofitable markets, potentially putting jobs at risk. The plan has the support of its two shareholders, Société Générale and Crédit Agricole Corporate and Investment Bank.

"The listed derivatives industry is at a turning point," says Nicolas Breteau, CEO at Newedge. "The pace and significance of change, driven by regulation, economic and market headwinds, and developing client needs, is set to continue. The plan presented today follows a strategic review of our business and is a measured, informed response to the challenges facing the industry."

Newedge, formed in 2008 by the merger of Fimat and Calyon Financial, is one of the world's largest futures brokerage houses. It is the second-largest broker in the US by customer funds, with locations in 15 countries.