Jefferies winds down outsourced fixed-income trading unit - Bloomberg

Jefferies Financial Group Inc. (NYSE:JEF) is shutting down its outsourced fixed-income trading desk, retreating from a venture it had aimed to grow only a year earlier.

Joram Siegel, who leads Jefferies' outsourced fixed-income trading unit, is departing, Bloomberg reported, citing sources familiar with the situation. Siegel had joined the firm in early 2024.

Throughout the previous year, Jefferies was actively recruiting traders for the unit, which provided fixed-income execution services to asset managers with limited in-house capacity. The desk catered to firms without the internal resources to handle fixed-income trading themselves.

The pullback underscores the hurdles of extending outsourced trading services into new segments. Jefferies had intended to expand the desk within its broader fixed-income business.

This reversal comes less than two years after the investment bank assembled the team. Jefferies has declined to comment on the closure.

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