Simon Yates, Citigroup’s global head of equity derivatives sales and trading, has left the bank after almost four years to join $20 billion hedge fund Two Sigma Investments.
Yates, who quit the bank on Wednesday, will start in September as chief executive officer of Two Sigma’s trading arm, according to a person with direct knowledge of the departure.
Citigroup, which ranks 10th among banks in stock trading, has been looking to expand its trading of options and other derivatives. The use of those financial instruments can give investors some protection against losses but can also make for riskier bets.
Two Sigma uses complex computer algorithms for its trades and has grown into a powerhouse hedge fund since its founding 13 years ago.
Yates, who declined to comment, left in part because increasing regulation on derivatives made it harder to work out deals, one person said.
Scott Helfman, a spokesman for Citigroup, declined to comment.