Barclays has promoted former macro products head Mike Bagguley to be chief operating officer for the investment bank, replacing Justin Bull, who left the bank in April.
In his new role, which takes immediate effect, Bagguley will report to investment bank chief Tom King. He will be tasked with accelerating delivery of the bank’s strategic overhaul that got underway last year.
That strategy, which was announced in May 2014, saw the bank transfer £90bn of risk-weighted assets into a non-core unit. Barclays also streamlined its core investment banking operations and embarked on a three-year plan to axe 7,000 jobs – a quarter of the investment bank’s headcount – which it is on course to achieve.
Bagguley took charge of the macro products group last year, when the division was created as part of that same strategic overhaul. The group brings together trading and distribution across rates, credit, foreign exchange and commodities in an attempt to streamline operations in a business that has been battered by a structural and cyclical decline.
During his time running the division, Bagguley has helped steer a small turnaround. Third quarter macro revenues were 3% up on 2014 levels at £485m, while overall fixed income revenues were 2% down, outperforming an average drop of 25% in FICC revenues across the Street. Year-to-date, Barclays remains one of only two banks posting improved FICC revenues.
“Our recent third-quarter results further validate the strategic choices we made last year but there is more to do,” said King in an internal memo seen by IFR. “Mike’s appointment will help us to build on the great progress we have made so far, and more quickly deliver for our clients the huge potential in our business.”
The macro business will now be jointly run by Rob Bogucki, co-head of macro trading based in New York, Nat Tyce, co-head of macro trading based in London, and Kashif Zafar, head of macro distribution.