Two firms in expansion mode

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Australia & New Zealand Banking Group (ANZ) plans to boost its capital-markets business in India and will hire bankers to increase syndicated lending and bond origination.

Bloomberg News reports that the new hires will be in addition to employees in Hong Kong and Singapore who currently serve Indian capital-markets customers, Andrew Geczy, the head of ANZ’s international and institutional banking division, said in a telephone interview last week. The bank has in-principle approval from India’s central bank to add two more branches to support trade and investment flows, it said by e-mail yesterday.

Meanwhile Ken Griffin, the billionaire hedge-fund manager who’s captured almost 20% of trading in equity options through his market-making business, is taking aim at the global swaps industry.

Bloomberg also reports that Citadel LLC, the parent of Griffin’s money-management and brokerage firms, is setting up a dealer to make markets in contracts used to hedge or speculate on everything from currencies to corporate creditworthiness, according to a regulatory filing and a person briefed on the matter, who asked not to be identified because the plans are private.

The move positions Citadel to compete with JPMorgan and other banks that reap tens of billions of dollars in annual revenue from over-the-counter derivatives.

'If the market evolves in a way where the most important factor goes from relationships to technology, that is what the new entrants will thrive on', said Ryan Sheftel, head of e-commerce in the fixed-income division of Credit Suisse. 'If it goes very electronic, relationships matter less'.

ANZ Bank Plans New Hires For India Capital Markets Expansion

Citadel Builds Swaps Unit to Repeat Market-Making Triumph

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